個案總覽

At the end of the harvest season, the owner of a family-owned farm had to decide whether to purchase a new combine or perform significant repairs on the existing machine. He realized that the decision needed to be made before the next harvest season, but was unsure of which option would best fit the company. This case outlines a simple capital budgeting decision in the farming industry. It can be used to educate individuals on the farming industry with concepts required to make an investment decision.

Sight Savers International is a not-for-profit organization that provides services in prevention and cures for blindness in developing countries. The organization must determine how it can make long range commitments today with its current environment of unpredictable donor funding and expenditures. Students will be introduced to the difficulty of using budgetary controls in an environment of considerable uncertainty; and to provide discussions on the appropriateness of principles, and implications for control systems.

The associate director of a university campus reviews two opportunities to improve the profitability of the largest food sales generator on the campus. Low profitability prompts an evaluation of the restaurant mix and a decision regarding operational improvements or more restaurant alternatives.

A retail chain specializing in industrial equipment and supplies to commercial contractors is a victim of commercial crime, which has placed the business on the brink of financial collapse. A regional accounting firm has been contracted to investigate the nature of the crimes and make recommendations on what should be done. This case provides students with an introduction to the topics of commercial crime, forensic accounting, bankruptcy and financial statement analysis.

The associate director of a university campus reviews two opportunities to improve the profitability of the largest food sales generator on the campus. Low profitability prompts an evaluation of the restaurant mix and a decision regarding operational improvements or more restaurant alternatives.

Examines investor relations and financial communications in a large company with a diverse group of financial stakeholders. Total is an "energy major" based in Paris, France. The importance of its product and its impact on economies and environments combine with the size of the company to make Total highly visible to investors, governments, environmental groups, and other shareholders. The highly technical nature of Total's many internal activities and the breadth of its complex operations further impacts communication efforts. In addition, as a Continental European firm (in particular, French), Total has strong societal expectations regarding its interactions with employees/citizens vs. shareholders. Examines how Total creates a consistent and clear financial communication that provides information to these diverse stakeholder bases and their different desires for the company. Also asks students to consider how this communication strategy will need adjustment due to a period of high oil prices and a resulting windfall profit during 2005.

Spreadsheet Supplement for case 106023

Gives an overview of accounting for equity investments less than 20%. Uses this accounting to introduce the issue of amounts included in the statement of comprehensive income during a different time period from its inclusion in net income (sometimes called "recycled earnings").

Introduces students to a group of investors and stakeholders who evaluate firms at least partially on factors other than eventual investment payoff. Focuses on investors who evaluate and attempt to impact firms' ethical, corporate governance, or other "societal" practices. Such investors vary from large institutions that use this as one component of investing to "ethical" funds that invest solely on these criteria to individual gadfly's who use this forum for their personal initiatives. These nontraditional investors are becoming an increasingly important portion of the financial markets. Thus, managers and investor relations experts must consider their alternative desires when designing disclosure/communication strategies. Considers noninvestor groups that use a firm's financial market information and connections as a lever to impact the firm's behavior.

A senior accountant at Bristol-Myers Squibb has to assess the appropriateness of revenue recognition as the company has dramatically altered its relationships with its channel customers. The decision maker has to determine not only appropriateness but the right approach to deal with senior management on the issue.

A consultant with a human resources consulting firm must reassess a client's long-term incentive program, by reviewing the current plans and considering other forms of incentives. Students will focus on accounting for equity-based compensation payments, the importance of assumptions in the determination of employee stock-option expense and financial reporting and economic implications of different long-term equity-based incentive plans.

The owner of a lumber and building supply business is interested in finding out how much the business is worth and how to go about selling it. The business is currently enjoying considerable success and earnings are at record levels. She must decide which valuation method to choose.

Provides a simple exercise to illustrate consolidation accounting.

Underneath every economic model involving math lies a substrate of great simplification and imagination, says Columbia University's Emanuel Derman.

Relates the events leading up to the announcement in February 2005 that INVESTools, a Utah-based provider of investor education services, would be restating prior-year financial statements due to inappropriate revenue recognition.

An abstract is not available for this product.

An abstract is not available for this product.

An abstract is not available for this product.

Spreadsheet Supplement for case 106009.

An investor in General Motors Company (GM) has received the company's annual report, and is concerned with the increasing number of negative headlines in major newspapers regarding the company's business strategy and financial reporting. He must analyse GM's business and financial position and decide whether or not to sell his shares in the company. This case can be used to: facilitate a discussion about the implications of pensions on company operations and the potential burdens for corporations providing generous defined benefit plans; consider the issue of accounting for pensions and pension disclosure, including the reasonableness of assumptions and the effect on operating income; and to discuss the reasons for downgrading bonds and the implications downgrading can have on a company.