In the (A) case, Jason Phillips, Chief Financial Officer of a soup manufacturing business, is given the job of optimizing the value of the company twelve months after the case is set. Jason is curious to see whether accounting and real actions options can be utilized to improve the company's fiscal position and increase its perceived value to investors although he does not wish to break any rules that are legal. The case allows him to choose from a menu of alternatives, including choices on product pricing, stock levels, accounts receivables, leasing or buying valuation or sale of securities and a new machine. These options are fed into an Excel spreadsheet which corrects accounting disclosures and financial projections properly. Even though the case may be centered on the accounting results of decisions that were actual, a richer discussion is obtained when considering the ethical angles of the choice process. In particular, how much 'earnings management' ought to be pursued and what types of behaviors are simply going to be unraveled by investors?
PUBLICATION DATE: April 26, 2011 PRODUCT #: KEL574-HCB-ENG
This is just an excerpt. This case is about FINANCE & ACCOUNTING
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