個案總覽

International Accounting Standard (IAS) 39, Financial Instruments: Recognition and Measurement, has attracted considerable controversy throughout its development. Major European financial institutions and political agencies lobbied heavily against the development of certain provisions within the standard. Jacques Chirac, the president of France, suggested that the accounting treatment prescribed in IAS 39 threatens the stability of the European economic structure. Despite its efforts to accommodate constituents' concerns, the International Accounting Standards board refused to fully concede to lobby pressure and implemented a compromise standard in March 2004. As a result, the European Union's Accounting Regulatory Committee voted to recommend that the European Commission only partially adopt IAS 39, effectively "carving-out" two provisions that were the focal point of debate. Explores the history of IAS 39, describes the IAS 39 prescribed accounting treatment for fair value and cash flow hedges, outlines heavily debated issues surrounding macro hedge accounting, and illustrates the impact of politics in the accounting standard setting process. Also explores the implications of the European Commission's "carve-out" on the viability of the International Accounting Standards board and the board's overriding goal of global harmonization of financial reporting standards.

Merrill Lynch (ML) is at a crossroads. Stan O'Neal became its CEO and implemented a radical cost-cutting program. In addition, the company dot-com continues to recover from the fallout from the Enron and dot-com scandals. What are the future prospects for ML? Can the firm compete against its traditional competitors or against the recently merged Goliaths of banking, such as Citigroup?

Presents a move by Betapharm to centralize procurement and e-sourcing and the many control and incentive issues that arose subsequently.

Supplements the (A) case.

Supplements the (A) case.

Spreadsheet Supplement for case 105030.

The proprietor of a day spa must decide whether to purchase a microdermabrasion machine. This differential analysis case will test students' abilities to identify those costs that are recurring cash flows and those costs that are investments; give practice calculating working capital investments; differentiate between relevant and non-relevant costs for a differential analysis and test students on their ability to conduct a sensitivity analysis.

The president and chief executive officer of Info-Tech Research Group must determine the pricing and promotional strategies for the company's newest product offering. This case allows students to use differential analysis as a tool to aid in their decision. Students are expected to perform a qualitative analysis based on the fit of Info-Tech's new product offering within the competitive marketplace and its potential customers; identify those items relevant to the decision and categorize them as either recurring cash flows or one-time cash flows; understand that the recurring cash flows consist of both variable costs and fixed costs and to recognize the difference; identify those items which are investments, including working capital accounts; apply exchange rates so that all figures in the analysis are in the same currency; calculate return on investment and payback ratios; recognize the need for and perform a sensitivity analysis on the projected sales levels; and make a decision based on both qualitative and quantitative analysis.

Discusses the use of budgeted rather than historical data in an activity-based costing (ABC) model and argues for calculating rates using practical capacity, not actual utilization. An ABC model need not be limited to analysis of historical data. When cost driver rates are calculated based on forecasted data, they can be used proactively for decisions such as pricing and order acceptance. Second, to avoid distortion of cost driver rates caused by unused capacity, the rates should be calculated using the practical capacity of the resources performing the activity. Discusses how to estimate practical capacity in various situations, including lumpy capacity acquisition, ramp-up of capacity utilization, seasonal and peak-load capacity, and differing service quality levels from supplied capacity.

Presents an overview of many issues associated with cost accounting and control.

Describes a framework that financial analysts can use to assess the likelihood of accounting misstatements in financial statements.

The chief financial officer of Ontario-based Bluewater Foods Corporation has just returned from a meeting with management of County Chickens Ltd., Bluewater's largest supplier of chicken breast meat and current acquisition target. The chief financial officer must put together a recommendation as to how a purchase of County might be structured and how it would affect Bluewater's financial statement.

The chief financial officer of Ontario-based Bluewater Foods Corporation has just returned from a meeting with management of County Chickens Ltd., Bluewater's largest supplier of chicken breast meat and current acquisition target. The chief financial officer must put together a recommendation as to how a purchase of County might be structured and how it would affect Bluewater's financial statement.

A loan assessment officer at Export Development Canada is evaluating a proposed deal involving the export of refurbished machines used in the forestry industry. He must decide whether Export Development Corporation should extend loans to a foreign firm that is interested in purchasing from a Canadian supplier. Issues include international business risk and the role of an export development agency in facilitating a country's exports.

Covers the management control process.

Management is struggling to meet consensus quarterly earnings-per-share numbers. Discusses a number of accounting decisions. A report indicating internal control problems in one of the company's divisions raises a Sarbanes-Oxley certification issue. A rewritten version of an earlier case.

Financial analysis is one way to detect WorldCom's fraudulent accounting. This case presents two perspectives of WorldCom: the company as viewed by security analysts and the inside view of the accounting fraud. Also looks at the company's acquisition accounting to assess potential for abuse. Teaching Purpose: To assess the probability of accounting risk.

An auditor is planning the audit of a new client, Acme Hardware. For preparing the audit plan, he becomes aware of the possibility that certain managers might be using accounting flexibility to aid them in qualifying for incentive bonuses based on profitability. The areas are inventory and advertising. The auditor must decide what action, if any, to take.

A Spanish soccer team that received a large influx of cash thanks to a real estate transaction with its stadium faces critical accounting decisions. The team's accountants are confronted with decisions about players' contracts, jersey inventory, season ticket sales, and the lease of a parking garage, among others.