Larry E. Watkins, John V. Black, Jr.
published: 2006 | Case Study | Accounting/Finance
Subject Area: Accounting/Finance
Key Issues: Mergers and Acquisitions; Holding Gain on Investments; Conversion of Debt to Equity; Financial Reporting (Consolidations)
Case Description: The engagement partner of a major accounting and consulting firm addresses the conflicting desires of a client's company's CFO and the accounting standards of the SEC and the FASB in relation to a contentious corporate acquisition. Because the CFO and the partner are in disagreement on some of the reporting issues related to the acquisition and the SEC filings, students are asked to research these accounting issues. Students must also consider goodwill as a theoretical construct and the international transfer of foreign currency. An opportunity to discuss the independence of the accounting and consulting firm in relation to the client is also presented.
# Case Pages: 5
Case Number: 020049-22-3-3
Teaching Note: Yes
revised May 24/06