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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]

Recently, academics and professionals have focused much attention on the education of accounting students. Despite this attention, there is little empirical data available on current teaching practices in upper-level accounting courses. This study surveys professors to gather information on pedagogical styles used in the first intermediate accounting course. This information can serve as an assessment of current practice and as a benchmark against which to measure future progress. The study concentrates on issues such as examination composition, how students are evaluated, how class time is spent, and the extent to which communication skills are stressed in classroom activities. Survey responses from over 300 intermediate accounting instructors are analyzed. The results indicate that while traditional methods of testing and evaluating students predominate, some faculty are stressing communication skills and using pedagogical approaches that foster active learning. [ABSTRACT FROM AUTHOR]