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With increasing calls for a greater connection between management education and practice, teaching cases play a vital role in the business curriculum. Cases not only allow instructors to expose students to practical problems but also let educators contribute to the scholarship of teaching and learning. An important reason why faculty members may refrain from writing cases is they perceive it is difficult to develop publishable cases that are also novel. Reviewers of the journals that publish teaching cases are increasingly asking authors to place the case in the extant literature and explain what makes their case unique. To overcome some of the challenges encountered when attempting to write and publish novel teaching cases, this article presents a useful framework--Design Thinking--for tackling the "wicked problem" of developing novel cases and provides experience-based tips to implement the framework. By introducing the concepts and language of design thinking, we provide case writers with an iterative approach that leads to the development of novel cases by identifying and innovatively addressing instructors', students', and editors' demands. We argue that by applying a design-thinking approach, case writers can produce novel and publishable instructional cases.

This case pertains to the interplay of cost accounting, performance measurement, and financial reporting issues in Toshiba's semiconductor business. It addresses how Toshiba manipulated its reported profits by inappropriately allocating its budgeted fixed overheads and not recognizing inventory losses in a timely manner in the financial statements. These manipulations overstated profits of the semiconductor business by ¥36.0 billion, almost a quarter of the total of Toshiba Corporation's ¥151.8 billion profit overstatement. The investigation report indicated that the profit manipulations were a likely outcome of top management's unrealistic expectations. For the semiconductor business of Toshiba, the timely recognition of inventory losses would have offset the profit misstatements resulting from the inappropriate allocation of budgeted fixed overheads. Alternatively, proper allocation of budgeted fixed overheads would have reduced or even avoided the need to recognize inventory losses. The case provides an integrative view of cost and financial accounting. [ABSTRACT FROM AUTHOR]

Implementation of service learning in an accounting course yielded five success factors: institutional and individual conviction of its value, alliances with community agencies, intellectual and instructional legitimacy, faculty and student motivation, and appropriate assessments. The service learning component works best when it is optional and involves 15-20 hours. (Contains 31 references.) (SK)

SYNOPSIS: In October 2019, the Financial Reporting Policy Committee of the Financial Accounting and Reporting Section of the American Accounting Association submitted a comment letter to the Financial Accounting Standards Board regarding the accounting for certain identifiable intangible assets acquired in a business combination and subsequent accounting for goodwill. This paper summarizes the content of the comment letter and discusses opportunities for future research on intangible assets that may inform accounting standard-setting decisions. JEL Classifications: M40. [ABSTRACT FROM AUTHOR]

Each year, millions of people donate blood at blood centers run by not-for-profit organizations such as the American Red Cross, which supply blood products to hospitals. Many people can also give blood plasma and receive cash compensation from for-profit pharmaceutical companies, which use plasma to develop and manufacture medical products. Blood donations raise interesting accounting issues. How should the blood and plasma donations be accounted for by a not-for-profit organization and a for-profit company, respectively? How are these similar transactions manifested differently in their financial statements? Is the accounting treatment consistent with the objectives of the entities? What are the ethical and social issues in paying for plasma donation? The case leverages students' familiarity with accounting standards for business enterprises to deepen their understanding of not-for-profit accounting. The case also challenges students to think critically about accounting concepts and improve their Codification research skills. [ABSTRACT FROM AUTHOR]

ABSTRACT: This case presents a multifaceted, decision-oriented context to assess the appropriateness of accounting policy for ensuring a faithful representation of underlying economic reality, it will enhance your: (1) appreciation [...]

This case provides an experiential learning opportunity to (1) appreciate the role of professional judgment in accounting policy choices, (2) evaluate the effect of accounting decisions on other business functions, and (3) understand the challenges in transitioning to a new accounting policy. Prestige's previous auditors had allowed the use of output-based measure (milestones completed) to compute the percentage-of-completion (POC) for its long-term construction contracts. The newly appointed auditors recommended switching to input-based measures (costs incurred) to compute POC. Students must choose the appropriate financial reporting policy, considering accounting and non-accounting issues. The case addresses an important context because almost one in every eight large 500 companies is engaged in long-term construction contracts (AICPA 2013). Although the case setting is in India, it can be used in any country given its GAAP-agnostic nature. The case is best suited for intermediate accounting courses in which the topic of revenue recognition is addressed. [ABSTRACT FROM AUTHOR]

This case describes how Toshiba, a well-known Japanese conglomerate, creatively used the technique of channel-stuffing to inflate its earnings by $478 million during 2008–2014. Students evaluate the uniqueness of Toshiba's practice of channel-stuffing, determine whether Toshiba's financial statements faithfully depicted the economic reality of underlying transactions, and understand the spiraling effects of channel-stuffing on reported profits. Students also learn that the responsibility for integrity in financial reporting lies not just with the top management, but also with the junior employees. The case requires an understanding of only basic accounting concepts and can be used in a variety of courses, especially in the M.B.A. introductory accounting course, and in the intermediate accounting courses at the undergraduate or graduate level. [ABSTRACT FROM AUTHOR]

The study compared the improvement in computational skills of two similar groups of accounting students, one using calculators in examinations and the other not. Not using calculators seems to improve the arithmetical ability of students, but does not significantly improve students' feel for numbers or ability to solve word problems. (CH)

This real-world comprehensive case provides an experiential assignment to bring alive most major topics addressed in the financial statement analysis and valuation course. By demonstrating the interconnections between different topics, the case also serves as an integrative assignment to develop a holistic understanding of the course. The case presents a platform to develop students' critical-thinking and problem-solving skills. By requiring them to apply the frameworks of strategy and industry analysis, techniques of accounting and financial analysis, and by placing them in the role of a financial analyst, the case develops an understanding of the challenges involved in financial analysis and valuation in a real-world context. The case helps students to experience the power of using financial statements and other publicly available information to derive insights into firm valuation and to appreciate the role of accruals-based and real earnings management in stock valuation. [ABSTRACT FROM AUTHOR]

PAUL HOLT CHERYL HEIN, International Accounting, Fourth Edition (Houston, TX: Dame Publications, Inc., 1999). A slim accounting textbook falls under the category of species reaching extinction. Thus, I embraced eagerly [...]

This case aims to help you understand how a world-known Japanese conglomerate—Toshiba Corporation—managed its earnings using the percentage-of-completion method to account for construction contracts in its Energy and Infrastructure division. In response to inquiries from Japan's Securities and Exchange Surveillance Commission (SESC) and internal investigations, Toshiba restated its earnings for an extended period (2008–2014) by the staggering amount of $1.86 billion. Twenty-one percent of this amount related to its improper accounting for construction contracts. The case requires you to research authoritative accounting literature, evaluate Toshiba's accounting practices, and determine which GAAP-compliant procedures Toshiba should have followed. The case assignment intends to improve your ability to (1) identify, interpret, and apply the new revenue recognition standard (ASC 606), (2) appreciate the distinction between a company's stated accounting policies and their implementation, (3) recognize the importance of estimates and judgments in the accounting process, and (4) understand the critical role played by the senior management and organizational culture in the assurance of integrity in financial reports. [ABSTRACT FROM AUTHOR]

Vodafone is recognized globally as a seminal case in which the taxation of indirect transfer of shares was litigated before a country's highest judicial court. Vodafone Group plc, through a web of its directly and indirectly owned subsidiaries in different tax jurisdictions, acquired a majority interest in Hutchison Essar, an Indian telecommunications company. For failing to withhold taxes, the Indian Revenue Service has assessed $5 billion in taxes and penalties on Vodafone. Whether India's position to tax indirect transfer of shares between two non-Indian entities is consistent with the practices of OECD countries such as the U.S. and whether such tax measures help economic competitiveness are hotly debated topics. The case can be used in a graduate course in international taxation, or in a capstone course to address the topics of tax research and tax policy. It helps students to (1) research tax literature in the U.S. and a foreign country and apply it to a real-world context, (2) understand a complex acquisition transaction and its tax ramifications, (3) determine whether a similar transaction would be taxable in the Organisation for Economic Co-operation and Development (OECD) countries, and (4) evaluate the pros and cons of taxing the transfer of shares between two foreign entities by tax authorities. [ABSTRACT FROM AUTHOR]

Diamond Foods is a comprehensive case that provides an opportunity for students to apply several financial auditing concepts and professional auditing standards to a real-world context. Diamond overstated its earnings of fiscal 2010 and 2011, by 38 percent and 47 percent, respectively, by delaying recognition of the cost of walnuts acquired to later accounting periods. The case requires students to determine whether Diamond's external auditor--Deloitte & Touche, LLP (Deloitte)--fulfilled its responsibility to obtain reasonable assurance that the financial statements were free of material misstatement. Students need to determine whether Deloitte's issuance of an unqualified opinion on Diamond's financial statements and internal controls violated professional auditing standards. In addition, students are required to evaluate whether Deloitte obtained sufficient understanding of Diamond's business and industry, exercised the needed professional skepticism, and used appropriate analytical procedures to discharge its professional responsibilities. The case presents an opportunity to achieve several learning objectives, including the development of research, critical-thinking, communication, and problem-solving skills. The case is appropriate for use in a graduate or undergraduate course in financial auditing. It can also be used in a fraud examination course, or in a capstone course in the accounting curriculum. [ABSTRACT FROM AUTHOR]

Diamond Foods is America's largest walnut processor specializing in processing, marketing, and distributing nuts and snack products. This real-world case presents financial reporting issues around the commodities cost shifting strategy used by Diamond's management to falsify earnings. By delaying the recognition of a portion of the cost of walnuts acquired into later accounting periods, Diamond Foods materially underreported the cost of sales and overstated earnings in fiscal 2010 and 2011. The primary learning goal of the case is to help students understand the anatomy and motivations of earnings manipulation. Specifically, students will have the opportunity to (1) apply the FASB's Conceptual Framework to a real-world context, (2) determine the nature of errors and compute their numerical effects on financial statements, (3) understand motivations for earnings management and actions needed for managing earnings of future years, (4) explain the anatomy of financial reporting fraud by reconstructing journal entries, (5) prepare comparative financial statements for retroactive restatements, (6) explain the rationale for clawback provisions in compensation contracts, and (7) understand the difference between the real and accrual-based earnings management. [ABSTRACT FROM AUTHOR]

With increasing global convergence of accounting standards, integration of International Financial Reporting Standards (IFRS) materials in accounting curricula is gaining growing attention worldwide. The Spectacular Airlines case provides an opportunity for you to develop critical thinking skills by requiring you to apply basic accounting concepts to account for customer loyalty programs. It then asks you to identify and apply professional accounting literature to address accounting issues faced by the potential acquirer of Spectacular. Specifically, the case addresses the liability and revenue recognition issues for the frequent flyer plans of airlines, a context in which multiple conceptual approaches are possible and diverse accounting practices are followed. The case helps you to (1) improve your understanding of the importance of financial reporting issues in the context of a real-world business decision, such as cross-border mergers and acquisitions (M&A), (2) research U.S. GAAP and IFRS for addressing revenue recognition issues for customer loyalty programs, (3) understand complexities in the application of an accounting standard in a real-world setting, and (4) evaluate the effects of transition from the local GAAP to IFRS on businesses, their financial statements and ratios. [ABSTRACT FROM AUTHOR]

Max-Value Stores, Inc., a discount general merchandise operator, has initiated a program to sell its own gift cards and those of other retailers. This case provides an opportunity to apply your understanding of various financial reporting topics (revenue recognition, liability de-recognition, accounting changes, and deferred tax accounting) to determine the applicable GAAP (generally accepted accounting principles) for recognizing gift card "breakage," the estimated amount of gift cards that is unlikely to be redeemed. You also must evaluate soundness of the proposals that the management of MVS has made during the process of annual audit to recognize estimated gift card breakage and estimated non-redemption of the restricted gift cards issued during the special Thanksgiving promotion. The case provides you an opportunity to examine several technical and conceptual financial reporting issues in a real-world setting, strengthen accounting research capabilities, understand implications of the choice of an accounting policy for performance measurement and financial statement analysis, and develop critical thinking and professional judgment skills. [ABSTRACT FROM AUTHOR]

Super Electronics, Inc., a specialty retailer, has recently initiated several sales incentives and has entered into a long-term purchase arrangement with a major vendor that entitles it to sliding discounts based on its level of purchases. Using FASB Accounting Standards Codification, you are to determine whether the Company's existing policies comply with Generally Accepted Accounting Principles (GAAP). You are also required to evaluate the soundness of the proposals that SE's management has made during the process of annual audit and explore plausible motivations behind them. The case provides an opportunity to examine several technical and conceptual accounting issues in a real-world setting, strengthen accounting research capabilities, understand implications of the choice of an accounting policy for performance measurement and financial statement analysis, and develop advanced critical thinking and professional judgment skills. [ABSTRACT FROM AUTHOR]

Explores management's choice of transition method and adoption timing in its shift to the Statement of Financial Accounting Standards No. 96 (SFAS 96) on income taxes. Desire to manage earnings as a motivation in the transition.

Presents a case study of accounting for frequent flyer plans to analyze financial reporting problem using the Generally Accepted Accounting Principles (GAAP). Definition of the problem; Prevalence and financial significance of the problem; Getting familiar with industry, financial reporting environment and accounting practices; Development of objective criteria; Solution approach.

This article discusses various theoretical and practical issues related to purchase commitments and recommends a unifying framework to guide accounting and disclosure practices. Many businesses enter into contracts to purchase goods at fixed prices in order to ensure a continued supply of the goods or as a hedge against price increases. During the period that such contracts are outstanding, fluctuations in the prices of the underlying goods can have significant effects on the financial statements. The accounting literature provides no single comprehensive discussion of the issues involved in accounting for purchase commitments. This has led companies to adopt widely varying practices. A review of the financial statements indicates that many of the reported losses on purchase commitments have had a substantial impact on companies' net incomes. While accounting for purchase commitments may not be a very widespread problem, it is a problem that can have a significant effect on a company's bottom line and has largely been neglected by accounting policy makers. This article recommends solutions to problems in accounting for purchase commitments.