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    • All HBS Web  (2,129)
      • Faculty Publications  (386)

      Fair Value AccountingRemove Fair Value Accounting →

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      • December 2003
      • Case

      Antitrust Regulations in a Global Setting: The EU Investigation of the GE/Honeywell Merger

      By: Mihir A. Desai, Belen Villalonga and Mark Veblen
      Helps students understand the principles underlying competition and antitrust policy in the context of the proposed GE-Honeywell merger. The U.S. Department of Justice has already approved the transaction and it is being considered by the European Commission. The... View Details
      Keywords: Mergers and Acquisitions; Decisions; Economy; Fairness; Governing Rules, Regulations, and Reforms; Competition; Aerospace Industry
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      Desai, Mihir A., Belen Villalonga, and Mark Veblen. "Antitrust Regulations in a Global Setting: The EU Investigation of the GE/Honeywell Merger." Harvard Business School Case 204-081, December 2003.
      • December 2003 (Revised October 2006)
      • Case

      Globalizing the Cost of Capital and Capital Budgeting at AES

      By: Mihir A. Desai and Douglas Kurt Schillinger
      With electricity generating businesses around the world, AES Corp. is seeking a methodology for calculating the cost of capital for its various businesses and potential projects. In the past, AES used the same cost of capital for all of its capital budgeting, but the... View Details
      Keywords: International Finance; Risk Management; Globalized Firms and Management; Cost of Capital; Valuation; Emerging Markets; Foreign Direct Investment; Capital Budgeting; Energy Industry; South America
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      Desai, Mihir A., and Douglas Kurt Schillinger. "Globalizing the Cost of Capital and Capital Budgeting at AES." Harvard Business School Case 204-109, December 2003. (Revised October 2006.)
      • December 2003
      • Case

      Fox Bids for the NFL-1993

      By: Bharat N. Anand and Catherine M. Conneely
      The Fox television network, launched in 1987 by Rupert Murdoch's News Corp. was in a precarious position in 1993. Although it had met its business plan targets, its ratings in the recently concluded November "sweeps" were indifferent, several of its newly launched... View Details
      Keywords: Valuation; Competitive Strategy; Financial Reporting; Bids and Bidding; Revenue; Television Entertainment; Media and Broadcasting Industry
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      Anand, Bharat N., and Catherine M. Conneely. "Fox Bids for the NFL-1993." Harvard Business School Case 704-443, December 2003.
      • July 2003 (Revised August 2003)
      • Case

      Global Healthcare Exchange

      By: Lynda M. Applegate and Jamie Ladge
      Founded in March 2000 at the height of the dot-com bubble, Global Healthcare Exchange (GHX) was one of 90 online marketplaces in the health care industry. The company's founders were among the largest suppliers in the industry, including Johnson & Johnson, GE Medical,... View Details
      Keywords: Mergers and Acquisitions; Entrepreneurship; Price; Leadership; Growth and Development Strategy; Supply and Industry; Organizational Design; Expansion; Internet and the Web; Valuation; Health Industry
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      Applegate, Lynda M., and Jamie Ladge. "Global Healthcare Exchange." Harvard Business School Case 804-002, July 2003. (Revised August 2003.)
      • April 2003 (Revised May 2003)
      • Case

      Valuation Ratios in the Airline Industry

      By: Paul M. Healy, Krishna G. Palepu and Jonathan Barnett
      Four firms in the airline industry illustrate the underlying differences in valuation multiples (price-earnings and price-to-book). View Details
      Keywords: Valuation; Activity Based Costing and Management; Accounting Audits; Air Transportation Industry
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      Healy, Paul M., Krishna G. Palepu, and Jonathan Barnett. "Valuation Ratios in the Airline Industry." Harvard Business School Case 103-002, April 2003. (Revised May 2003.)
      • February 2003 (Revised August 2004)
      • Case

      Flextronics: Deciding on a Shop Floor System for Producing the Microsoft Xbox

      By: Jeffrey T. Polzer and Alison Berkley Wagonfeld
      Jim McCusker must guide a group decision-making process aimed at getting input and buy-in from key people in California, Mexico, and Austria to choose a shop floor IT system for Flextronics. McCusker is Flextronics' account manager for the Microsoft Xbox project.... View Details
      Keywords: Groups and Teams; Decision Making; Power and Influence; Geographic Location; Problems and Challenges; Leadership; California; Mexico; Austria
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      Polzer, Jeffrey T., and Alison Berkley Wagonfeld. "Flextronics: Deciding on a Shop Floor System for Producing the Microsoft Xbox." Harvard Business School Case 403-090, February 2003. (Revised August 2004.)
      • February 2003 (Revised March 2007)
      • Case

      Internet Customer Acquisition Strategy at Bankinter

      By: Francisco de Asis Martinez-Jerez, V.G. Narayanan and Lisa Brem
      Bankinter, a relatively small Spanish bank, has a large presence as an Internet financial services provider. Leading the way to profitability through the Internet will give Bankinter a major competitive advantage over the larger, more established Spanish banks. Ann... View Details
      Keywords: Customer Relationship Management; Internet and the Web; Activity Based Costing and Management; Customer Value and Value Chain; Banks and Banking; Banking Industry; Spain
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      Martinez-Jerez, Francisco de Asis, V.G. Narayanan, and Lisa Brem. "Internet Customer Acquisition Strategy at Bankinter." Harvard Business School Case 103-021, February 2003. (Revised March 2007.)
      • January 2003 (Revised February 2011)
      • Tool

      Business Analysis and Valuation Model (Version 5)

      By: Paul M. Healy, Krishna G. Palepu and Jonathan Barnett
      Once you enter company financial statements, this software enables you to standardize them to a common format, make any needed adjustments to the company's accounting, and make assumptions about the company's future performance. The model then provides financial ratios... View Details
      Keywords: Financial Statements; Standards; Mathematical Methods; Valuation
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      "Business Analysis and Valuation Model (Version 5)." Harvard Business School Tool 103-701, January 2003. (Revised February 2011.)
      • September 2002 (Revised October 2002)
      • Case

      Corporate Inversions: Stanley Works and the Lure of Tax Havens

      By: Mihir A. Desai, James R. Hines, Jr and Mark Veblen
      In response to Stanley Work's announcement that it is moving to Bermuda--and the associated jump in market value--a major competitor sets out to determine how the market is valuing the consequences of moving to a tax haven and whether his company should invert to a tax... View Details
      Keywords: Financial Management; Taxation; Financial Strategy; Credit Derivatives and Swaps; International Finance; Valuation; Financial Markets; Financial Statements; United States
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      Desai, Mihir A., James R. Hines, Jr, and Mark Veblen. "Corporate Inversions: Stanley Works and the Lure of Tax Havens." Harvard Business School Case 203-008, September 2002. (Revised October 2002.)
      • August 2002 (Revised August 2003)
      • Case

      Electronic Arts Introduces The Sims Online

      By: Youngme E. Moon
      Electronic Arts (EA), the world's largest independent game publisher, is preparing to launch an online, subscription-based version of the most popular PC game in history: The Sims. The new game is called "The Sims Online" and it differs from the original game in two... View Details
      Keywords: Fair Value Accounting; Decision Making; Price; Product Launch; Market Entry and Exit; Internet; Entertainment and Recreation Industry
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      Moon, Youngme E. "Electronic Arts Introduces The Sims Online." Harvard Business School Case 503-008, August 2002. (Revised August 2003.)
      • October 2001
      • Exercise

      Liability Problems

      By: Robert S. Kaplan
      This case provides three examples of the recognition and measurement of liabilities. The first focuses on recognizing when employees have rendered services for which future period benefits have been earned, that is, whether unused vacation, sick, and personal days at... View Details
      Keywords: Cash; Annuities; Interest Rates; Compensation and Benefits; Employees; Wages; Problems and Challenges; Value
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      Kaplan, Robert S. "Liability Problems." Harvard Business School Exercise 102-035, October 2001.
      • August 2001 (Revised March 2016)
      • Case

      Doral Costa

      By: William J. Poorvu, John H. Vogel Jr., Arthur I. Segel and Amy Silverstein
      Doral Costa is a proposed 277,803 square foot Class A office park development in Miami, FL. Trammell Crow Co. would like to develop this office park in joint venture with a partner. Samantha Spar, the acquisitions partner at Titan Associates, a large real estate... View Details
      Keywords: Buildings and Facilities; Joint Ventures; Acquisition; Investment; Partners and Partnerships; Decision Choices and Conditions; Fair Value Accounting; Construction; Property; Real Estate Industry; Consulting Industry; Miami
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      Poorvu, William J., John H. Vogel Jr., Arthur I. Segel, and Amy Silverstein. "Doral Costa." Harvard Business School Case 802-023, August 2001. (Revised March 2016.)
      • June 2001 (Revised October 2002)
      • Case

      Accounting for the Intel Pentium Chip Flaw

      By: Gregory S. Miller, V.G. Narayanan and Lisa Brem
      Investigates the 1994 Intel Pentium plan. View Details
      Keywords: Fair Value Accounting; Quality; Measurement and Metrics; Cost; Computer Industry
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      Miller, Gregory S., V.G. Narayanan, and Lisa Brem. "Accounting for the Intel Pentium Chip Flaw." Harvard Business School Case 101-072, June 2001. (Revised October 2002.)
      • February 2001 (Revised April 2001)
      • Background Note

      Note on Valuing Private Businesses

      By: Dwight B. Crane and Indra Reinbergs
      This case provides a brief overview of valuation for owners of closely held companies. The focus is on a comparable transactions approach, although rules of thumb and discounted cash flow are mentioned. Earnings multiples and their drivers are discussed. It uses... View Details
      Keywords: Earnings Management; Finance; Cash Flow; Analytics and Data Science; Private Ownership; Valuation
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      Crane, Dwight B., and Indra Reinbergs. "Note on Valuing Private Businesses." Harvard Business School Background Note 201-060, February 2001. (Revised April 2001.)
      • November 2000 (Revised July 2001)
      • Case

      Intuit QuickBooks

      By: Rajiv Lal and Punima P Kochikar
      Internet QuickBooks, a successful product with a strong brand and an 85% share of retail sales, was faced with the challenge of meeting market growth expectations in a mature, slowing market segment. Generating recurring revenues by providing value-added online... View Details
      Keywords: Budgets and Budgeting; Decisions; Growth and Development; Brands and Branding; Market Participation; Problems and Challenges; Internet and the Web; Value; Web Services Industry
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      Lal, Rajiv, and Punima P Kochikar. "Intuit QuickBooks." Harvard Business School Case 501-054, November 2000. (Revised July 2001.)
      • October 2000 (Revised October 2000)
      • Case

      Off-Balance Sheet Leases in the Restaurant Industry

      By: Amy P. Hutton, Paul M. Healy and Jacob Cohen
      Amid mounting concern by credit agencies about off-balance sheet liabilities, an analyst for one of the leading credit-rating agencies has been asked to make a presentation about off-balance sheet liabilities, the strategic analysis behind leasing versus purchasing... View Details
      Keywords: Fair Value Accounting; Property; Leasing; Financial Statements; Capital Structure; Credit; Financial Services Industry
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      Hutton, Amy P., Paul M. Healy, and Jacob Cohen. "Off-Balance Sheet Leases in the Restaurant Industry." Harvard Business School Case 101-033, October 2000. (Revised October 2000.)
      • August 2000 (Revised January 2001)
      • Background Note

      Asset Reporting

      By: Paul M. Healy and Preeti Choudhary
      Using historical cost and conservatism to identify and value assets, this case explains the criteria for asset reporting in straightforward situations and then examines scenarios where implementing the criteria for recognition and valuation of assets is conceptually... View Details
      Keywords: Accounting; Assets; Problems and Challenges; Accounting Industry
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      Healy, Paul M., and Preeti Choudhary. "Asset Reporting." Harvard Business School Background Note 101-014, August 2000. (Revised January 2001.)
      • August 2000 (Revised February 2001)
      • Background Note

      Expense Recognition

      By: Paul M. Healy and Preeti Choudhary
      Recording expenses is not often clear-cut and can require considerable management judgment. This case discusses expense recognition in straightforward situations and then considers expense transactions that may be more complex to record. It uses examples that include... View Details
      Keywords: Accounting; Cost; Financial Statements
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      Healy, Paul M., and Preeti Choudhary. "Expense Recognition." Harvard Business School Background Note 101-015, August 2000. (Revised February 2001.)
      • August 2000 (Revised November 2001)
      • Background Note

      Liability Reporting

      By: Paul M. Healy and Preeti Choudhary
      By examining key criteria for recognizing a liability, this case explores liability recognition in straightforward situations and then examines the most difficult reporting issues in recording liabilities. These often arise when: 1) uncertainty arises about whether an... View Details
      Keywords: Financial Reporting; Legal Liability; Valuation; Problems and Challenges; Accounting Industry
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      Healy, Paul M., and Preeti Choudhary. "Liability Reporting." Harvard Business School Background Note 101-016, August 2000. (Revised November 2001.)
      • March 2000
      • Background Note

      Transfer Pricing

      By: Robert S. Kaplan
      Discusses use of market prices, negotiated prices, variable costs, dual rate, and full costs for transfer prices. View Details
      Keywords: Fair Value Accounting; Cost Accounting; Price; Price Bubble; Negotiation; Cost Management; Cost of Capital; Financial Markets; Strategic Planning; Accounting Industry
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      Kaplan, Robert S. "Transfer Pricing." Harvard Business School Background Note 100-099, March 2000.
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