Publications
Publications
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(120,283)
- Faculty Publications (157)
- January 2011 (Revised August 2011)
- Supplement
Kanebo Ltd. (C)
By: David F. Hawkins, Suraj Srinivasan and Akiko Kanno
The exposure of the Kanebo Ltd. fraud raises questions of Japan's preparedness to adopt International Financial Reporting Standards. View Details
- January 2011 (Revised January 2012)
- Case
The Case of the Unidentified Healthcare Companies2010
By: Richard Bohmer, Ethan Bernstein, Margarita Krivitski and Srinidhi Reddy
This case presents financial statements and selected ratios for 14 unidentified healthcare organizations and asks that each set of financial information be matched with one of the following healthcare companies: a biotechnology firm, a community nursing company, a... View Details
- 2011
- Article
'Deprival Value' vs. 'Fair Value' Measurement for Contract Liabilities: How to Resolve the 'Revenue Recognition' Conundrum
By: Joanne Horton, Richard H. Macve and George Serafeim
Revenue recognition and measurement principles can conflict with liability recognition and measurement principles. We explore here under different market conditions when the two measurement approaches coincide and when they conflict. We show that where entities expect... View Details
- September 2010 (Revised September 2013)
- Case
Accounting for the iPhone at Apple Inc.
By: Francois Brochet, Krishna G. Palepu and Lauren Barley
Apple initially recognized revenue associated with its iPhone product using subscription accounting. However, in 2008, the company started providing non-GAAP supplemental numbers where substantially all of the revenue was recognized upfront. Market participants'... View Details
- September 2010 (Revised July 2012)
- Case
Citigroup 2007: Financial Reporting and Regulatory Capital
By: Suraj Srinivasan, Edward J. Riedl and Sharon Katz
This case introduces 1) financial statements for banks, 2) basic regulatory capital calculations, and 3) actions Citigroup must consider under a scenario of continued losses/fair value declines in 2008 (leading to potential violation of regulatory capital). View Details
- February 2010 (Revised December 2011)
- Case
Ricoh Company, Ltd.
By: Robert G. Eccles, Amy C. Edmondson, Marco Iansiti and Akiko Kanno
Ricoh, the Japanese copier manufacturer, is committed to reducing its environmental impact to one-eighth of its 2000 levels by 2050. It has already introduced three stages of environmental awareness to its operations, and its recycled copier business broke even in... View Details
- January 2010 (Revised April 2013)
- Case
Aubrey McClendon's Special Incentive Compensation at Chesapeake Energy (A)
By: Paul Healy, Clayton S. Rose and Aldo Sesia
Aubrey McClendon, founder and CEO of Chesapeake Energy, was, according to Fortune Magazine, the highest paid U.S. CEO in 2008 receiving over $100 million in total compensation. McClendon received this compensation despite a significant drop in the company's stock price... View Details
- Article
Market Reaction to and Valuation of IFRS Reconciliation Adjustments: First Evidence from the UK
By: Joanne Horton and George Serafeim
We investigate the market reaction to, and the value-relevance of, information contained in the mandatory transitional documents required by International Financial Reporting Standards (IFRS) 1 (2005). We find significant negative abnormal returns for firms reporting... View Details
- July 2009 (Revised June 2010)
- Supplement
Kim Park (B): Liabilities
By: David F. Hawkins, Gregory Miller and V.G. Narayanan
A series of caselets exploring the accounting for liabilities. View Details
- March 2009 (Revised February 2011)
- Background Note
Note: Fair Value Accounting for Investments in Debt Securities
The note describes how fair value accounting applies to debt securities that are classified by financial institutions as (1) "trading" securities, (2) "available for sale" securities, or (3) "hold to maturity" securities. It explains the hierarchy for inputs used in... View Details
- March 2009 (Revised July 2010)
- Case
State Street Corporation
To maximize their effectiveness, color cases should be printed in color. State Street Corp. reports a 13% gain in EPS in 2008 amidst a global financial crisis. The stock price declines 59% on the day of the earnings report. This one day decline was exceeded in the... View Details
- March 2009
- Supplement
Bausch & Lomb, Inc.: Pressure to Perform (B)
By: Robert L. Simons
This case breaks the existing (and still available) Bausch & Lomb, Inc.: Pressure to Perform case into an (A) and a (B) case. The (B) case can be used in class to demonstrate the serious consequences of overly aggressive accounting. The (B) case should be used after... View Details
- March 2009
- Article
Earnings Management and Corporate Tax Shelters, and Book-Tax Alignment
By: Mihir Desai and Dhammika Dharmapala
This paper reviews recent evidence analyzing the link between earnings management and corporate tax avoidance and considers the implications for how policymakers should evaluate the financial reporting environment facing firms. A real-world tax shelter is dissected to... View Details
- March 2009
- Article
The Impact of Shareholder Activism on Financial Reporting and Compensation: The Case of Employee Stock Options Expensing
By: F. Ferri and Tatiana Sandino
We examine the economic consequences of more than 150 shareholder proposals to expense employee stock options (ESO) submitted during the proxy seasons of 2003 and 2004, the first case in which the SEC allowed a shareholder vote on an accounting matter. Our results... View Details
- November 2008 (Revised November 2024)
- Case
The Fall of Enron
By: Paul Healy and Krishna Palepu
The case traces the rise of Enron, covering the company's business innovations, personnel management, and risk management processes. It then examines the company's dramatic fall including the extension of its trading model into questionable new businesses, the... View Details
- October 2008 (Revised October 2009)
- Case
New Century Financial Corporation
By: Krishna G. Palepu, Suraj Srinivasan and Aldo Sesia
After years of rapid growth and stock price appreciation, New Century Financial Corporation, one of the largest subprime loan originators in the U.S., reported accounting problems in early 2007. The resulting liquidity crisis forced the company to file for Chapter 11... View Details
- 2008
- Working Paper
Signaling Firm Performance Through Financial Statement Presentation: An Analysis Using Special Items
By: Edward J. Riedl and Suraj Srinivasan
This paper investigates whether managers' presentation of special items within the financial statements reflects economic performance or opportunism. Specifically, we assess special items presented as a separate line item on the income statement (income statement... View Details
- December 2007
- Article
Applying Modern Risk Management to Equity and Credit Analysis
By: Robert C. Merton
Traditional conventions of accounting and actuarial science distort the valuation of capital risk in corporations with pension plans because under these conventions, pension assets and liabilities are not included in balance sheet calculations. The modern risk... View Details
- 2007
- Book
An Experiment in Fair Value Accounting? The State of the Art in Research and Thought Leadership on Accounting for Life Assurance in the UK and Continental Europe
By: Joanne G Horton, Richard H. Macve and George Serafeim
"Fair value" is currently the central topic of debate in the development of accounting standards. While it has now been defined to mean an exit price in US GAAP, the IASB is still considering its own definition, and some commentators are arguing for versions of entry... View Details
- 2007
- Working Paper
The Impact of Shareholder Activism on Financial Reporting and Compensation: The Case of Employee Stock Options Expensing
By: Fabrizio Ferri and Tatiana Sandino
In this paper we examine the economic consequences of over 150 shareholder proposals to expense employee stock options (ESO) submitted during the proxy seasons of 2003 and 2004–the first case where the SEC has allowed an accounting matter to be subject to an advisory... View Details