Publications

August 2017 (Revised September 2018)
Case

Accounting Turbulence at Boeing

By: Jonas Heese, Suraj Srinivasan, David Lane and James Barnett

Unlike its rival Airbus, Boeing had used a practice called program accounting to record its commercial aircraft expenses since the 1980s. Program accounting allowed Boeing to expense estimated average costs instead of the actual production costs of an aircraft. This... View Details

Keywords: Asset Recognition; Program Accounting; Airline Industry; Accounting; Production; Cost; Air Transportation Industry

August 2012 (Revised July 2017)
Case

Netflix: Valuing a New Business Model

By: Francois Brochet, Suraj Srinivasan and Michael Norris

In autumn 2011, Netflix was working to right the ship after publicly stumbling through a price hike and strategic shift and then retreat. The company was changing its business model to focus on streaming video service rather than the DVDs by mail that had brought the... View Details

Keywords: Performance Measurement; Online Business; Asset Recognition; Accounting; Performance Evaluation; Online Technology; Motion Pictures and Video Industry; United States; Canada; Latin America; West Indies

October 2007
Article

The Influence of Financial Statement Recognition and Analyst Coverage on the Market's Valuation of R&D Capital

By: Michael D. Kimbrough

Statement of Financial Accounting Standards 141 (SFAS No. 141)'s requirement that an acquirer in a business combination estimate the fair value of the target's separately identifiable assets and liabilities (including research and development capital) provides a rare... View Details

Keywords: Information; Value Creation; Fair Value Accounting; Research and Development; Financial Statements; Capital

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

Keywords: Fair Value; Deprival Value; Contract Liabilities; Fair Value Accounting; Measurement and Metrics; Profit; Revenue Recognition; Assets; Performance Evaluation; Contracts

SSRN

December 2017 (Revised May 2018)
Case

Amazon Buys Whole Foods

By: José B. Alvarez, David Lane and Joni Coughlin

The June 2017 news that e-commerce giant Amazon was paying $13.7 billion for organic supermarket chain Whole Foods precipitated a broad sell-off in the shares of grocery retailers and suppliers. Behind the precipitous declines lay recognition that Amazon’s bold move... View Details

Keywords: Amazon; Whole Foods; Grocery; Grocery Delivery; Mergers ＆ Acquisitions; Business Models; Food Value Chain; Agribusiness; Mergers and Acquisitions; Operations; Competitive Strategy; E-commerce; Agriculture and Agribusiness Industry; Retail Industry; Web Services Industry; Food and Beverage Industry; United States

Article

Brand Values and Capital Market Valuation

By: Mary Barth, Michael B. Clement, George Foster and Ron Kasznik

Brand value estimates are significantly positively related to prices and returns, incremental to accounting variables. Questionable brand value estimate reliability underlies lack of financial statement recognition for brands. Findings suggest estimates are relevant... View Details

Keywords: Brands and Branding; Valuation

Find at Harvard

December 1984 (Revised July 2005)
Case

Burnet vs. Logan

By: Henry B. Reiling

The taxpayer sold mining company stocks and was to be paid royalty as ore was extracted from the corporation's mine. Because the factual issues of whether ore would be extracted and, if so, how much and when were so indeterminate, the court held that the contract right... View Details

Keywords: Taxation; Law Enforcement; Asset Management; Valuation; Policy; Mining Industry

Hakeem Belo-Osagie is an accomplished Nigerian professional and entrepreneur. He earned a degree in Political Philosophy and Economics from Oxford University as well as a law degree from Cambridge University and an MBA from Harvard Business School.

He is the... View Details

22 Apr 2020
Research Event

How Investors Are Sizing Up Climate Change’s Risks—and Opportunities

Until a few years ago, climate change’s potential impact seemed abstract for many investors. Now, as sea levels rise, hurricanes intensify, and droughts threaten food supplies, many investors are confronting its financial realities. But it’s not a simple calculation.... View Details

Keywords: by Danielle Kost; Financial Services

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

Keywords: Transition; Financial Instruments; Framework; Market Entry and Exit; Insurance; Revenue Recognition; Fair Value Accounting; Standards; United Kingdom

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11 Aug 2009
First Look

First Look: August 11, 2009

profit from their private information relating to a specific financial reporting element, goodwill impairments, prior to its incorporation by the equity market or recognition by the firm's accounting system. Download the paper:... View Details

Keywords: Martha Lagace

George Serafeim

George Serafeim is the Charles M. Williams Professor of Business Administration at Harvard Business School. He co-leads a Lab, within Harvard's Digital, Data, Design Institute, and serves on the faculty steering commitee of Harvard University's Salata Institute. He... View Details

Keywords: asset management; asset management; asset management; asset management; asset management; asset management; asset management

02 Sep 2014
First Look

First Look: September 2

contributions to product design, but the same cannot be said for services. Undoubtedly many examples of outstanding service design exist, and we will mention some later in this work. But recognition of service design as a discipline, as a... View Details

Keywords: Sean Silverthorne

29 Mar 2011
First Look

First Look: March 29

http://www.francescagino.com/uploads/4/7/4/7/4747506/gino_shea_deception_chapter_2012.pdf Stock Price Fragility Authors:Robin Greenwood and David Thesmar Publication:Journal of Financial Economics (forthcoming) Abstract We investigate the relationship between ownership... View Details

Keywords: Sean Silverthorne

Article

Tread Lightly Through These Accounting Minefields

By: H. David Sherman and S. David Young

In the current economic climate, there is tremendous pressure—and personal incentive for managers—to report sales growth and meet investors' revenue expectations. As a result, more companies have been issuing misleading financial reports, according to the SEC,... View Details

Keywords: Derivatives; Benchmarking Performance; Accounting; Revenue Recognition; Assets