The spill resulted in severe societal, environmental, and economic damages to the Prince William Sound area and led to over 20 years of litigation about the correct amount of damages to be paid by Exxon.
The case got two parts. Part I addresses the inquiry of whether a company has a responsibility to accrue and disclose a provision in its financial statements before a calamity occurs. Part II deal with accounting disclosures obligatory in the aftermath of this kind of calamity. A student in intermediate accounting performs the function of an intern working at an international public accounting firm with clients who might be faced with episodes similar to Exxon, in 2010, such as the British Petroleum Deepwater Horizon disaster in the Gulf of Mexico. These incidents, whether they happen in the United States or elsewhere, may have considerable fiscal, societal, and environmental impacts; create uncertainty over payment sums; and cross years before final settlement. The research should include authoritative pronouncements in effect at the current date using U.S. generally accepted accounting principles (GAAP) and international financial reporting standards (IFRS). "
PUBLICATION DATE: June 01, 2012 PRODUCT #: BAB719-HCB-ENG
This is just an excerpt. This case is about LEADERSHIP & MANAGING PEOPLE
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