Publications

February 2018 (Revised June 2021)
Case

New Constructs: Disrupting Fundamental Analysis with Robo-Analysts

By: Charles C.Y. Wang and Kyle Thomas

This case highlights the business challenges associated with a financial technology firm, New Constructs, that created a technology that can quickly parse complicated public firm financials to paint a clearer economic picture of firms, remove accounting distortions,... View Details

Keywords: Fundamental Analysis; Machine Learning; Robo-analysts; Financial Statements; Financial Reporting; Analysis; Information Technology; Financial Services Industry; Financial Services Industry; Financial Services Industry; North America; Tennessee

September 2005 (Revised July 2006)
Case

Accounting for Pensions and Employee Benefits at Ford and Toyota

Uses Ford's and Toyota's financial statements to familiarize students with the information provided in pension footnotes. Allows students to combine that information with other financial statement information to create a greater understanding of the costs of each... View Details

Keywords: Accounting; Compensation and Benefits; Auto Industry

June 1994
Case

Harvey Cohen

By: F. Warren McFarlan

An introductory case in the construction of financial statements from basic financial transactions where inflation accounting is an issue. A rewritten version of an earlier case. View Details

Keywords: Accounting; Financial Statements; Inflation and Deflation

February 2003 (Revised April 2006)
Case

Analyzing Edison Schools Inc. (A)

By: David F. Hawkins and Jacob Cohen

Provides the background information for Edison Schools, Inc. and the 2001 financial statements and footnotes. View Details

Keywords: Accounting; Financial Statements; Education Industry; United States

March 2011 (Revised February 2012)
Supplement

Cosmeticos de Espana, S.A. (E)

By: David F. Hawkins

Spanish parent company must decide on the Euro/BsF exchange rate to translate its Venezuelan subsidiary's financial statements into Euros. View Details

Keywords: Financial Statements; Business Subsidiaries; Decision Choices and Conditions; Currency Exchange Rate; Beauty and Cosmetics Industry; Spain; Venezuela

May 1998
Case

Data Saver Inc.

By: David F. Hawkins

An inventor must prepare financial statements to obtain financing for the commercial use of his invention. View Details

Keywords: Financing and Loans; Financial Statements

February 2003 (Revised March 2003)
Background Note

Revenue Recognition Guidelines

This case presents a summary of the Financial Accounting Standards Board's Concept Statements #5 and #6. View Details

Keywords: Revenue Recognition; Standards

October 2012
Case

Ribbons an' Bows, Inc.

By: David F. Hawkins

The basic concepts of accounting are explored while students prepare the financial statements for a retailer's first three months of business. View Details

Keywords: Basic Accounting Concepts; Fair Value; Fair Value Accounting; Financial Statements; Retail Industry

Awards

Notable Contributions to Accounting Literature Award

By: Paul M. Healy

Business Analysis and Valuation Using Financial Statements (South-Western College Publishing, 1996), with Victor L. Bernard and Krishna G. Palepu, won the 1999 American Accounting Association Notable Contributions to Accounting Literature Award. View Details

January 2008 (Revised May 2013)
Background Note

Accounting for Interest Rate Derivatives

Explains the accounting for interest rate derivatives under Statement of Financial Accounting Standards 133. View Details

Keywords: Accounting; Financial Instruments; Interest Rates; Standards

August 2000 (Revised January 2006)
Case

Sears, Roebuck and Co. vs. Wal-Mart Stores, Inc.

This case is designed to familiarize students with the use of financial ratios. Two retailers, Sears, Roebuck and Co. and Wal-Mart Stores, Inc., have a very similar value for return on equity (ROE) in the 1997 fiscal year. Students use the information in the case and... View Details

Keywords: Value Creation; Financial Statements; Retail Industry; United States

February 2011 (Revised June 2011)
Case

Aluar: Aluminio Argentino S.A. (A)

By: David F. Hawkins, Hernan Etiennot, Gustavo A. Herrero and Cintra Scott

Argentine government claims inflation rate is 8 percent but others claim it is double that rate. Analysts' attempts to adjust the company's financial statements for inflation. View Details

Keywords: Inflation and Deflation; Accounting; Financial Statements; Government and Politics; Argentina

January 2008 (Revised July 2010)
Case

Wal-Mart's Use of Interest Rate Swaps

"Wal-Mart's Use of Interest Rate Swaps" recounts Wal-Mart's use of interest rate swaps to hedge the fair value of its fixed-rate debt against changing interest rates. This case provides students with a foundation for understanding the use of and accounting for more... View Details

Keywords: Fair Value Accounting; Financial Statements; Credit Derivatives and Swaps; Financial Strategy; Interest Rates; Corporate Disclosure

February 2008 (Revised November 2010)
Background Note

Accounting for Business Combinations: Acquisition Method

By: David F. Hawkins and F. Asis Martinez Jerez

A technical note reviewing business combinations and Goodwill accounting under the Statement of Financial Accounting Standards, No. 141R. View Details

Keywords: Goodwill Accounting; Mergers and Acquisitions; Standards

October 1999 (Revised October 2000)
Case

Coca-Cola Company (A), The

By: David F. Hawkins

In order to fully appreciate Coca-Cola's profitability, financial risk, and operating risk, Jane Wilson, a security analyst, is considering preparing a consolidated financial statement for Coca-Cola analyzing Coca-Cola Enterprises as a fully consolidated entity. View Details

Keywords: Accounting Audits; Financial Statements; Business Earnings; History; Private Sector; Business Units; Consolidation; Organizations; Operations; Private Ownership; Consumer Products Industry; Food and Beverage Industry

February 2011 (Revised July 2011)
Supplement

Aluar: Aluminio Argentino S.A. (B)

By: David F. Hawkins, Hernan Etiennot, Gustavo A. Herrero and Hugo Pentenero

Argentine government claims inflation rate is 8 percent but others claim it is double that rate. Analysts' attempts to adjust the company's financial statements for inflation. View Details

Keywords: Financial Statements; Inflation and Deflation; Argentina

July 1995 (Revised October 1995)
Case

Superior Clamps, Inc.

By: David F. Hawkins

An investor must prepare pro forma financial statements as a basis for a third-party investment in his new company. The investor must make a number of accounting policy decisions. View Details

Keywords: Financing and Loans; Investment; Policy; Financial Statements; Business Startups; Manufacturing Industry

December 1999 (Revised March 2001)
Case

Machinery International (A)

By: David F. Hawkins

A U.S. company must decide how to translate its German subsidiary's DM financial statements into U.S. dollars for public and internal reporting purposes. A rewritten version of an earlier case. View Details

Keywords: Machinery and Machining; Financial Statements; Financial Reporting; Currency; Money; Accounting; Valuation; Manufacturing Industry; Accounting Industry; United States

October 2006 (Revised June 2007)
Case

Deferred Taxes at Obadiah Vineyard

Obadiah Vineyard's owners create financial statements in accordance with generally accepted accounting principles (GAAP) to help them obtain funding to plant more acreage. The owners grapple with deferred taxes and the differences between tax and financial reporting... View Details

Keywords: Plant-Based Agribusiness; Taxation; Financial Statements; Agriculture and Agribusiness Industry