Gator Electronics Harvard Case Solution & Analysis

Gator Electronics Case Solution

Gator Electronics Inc. (“Gator”) is an electronic equipment manufacturing company that sells electronic products to third party retail facilities in about 100 nations. The chief decision makers handle, as well as Gator has identified its reporting units as geographical regions in which it runs and review functionality and operating outcome.

• Canada.
• Asia.
• Europe, the Middle East, as well as Africa.

You're intending to audit the present-year goodwill impairment evaluation of Gator. Gator’s entire assets as of December 31, 20X3, are about $1.6 billion.

Gator elected not to do the qualitative evaluation for ascertaining whether it's more likely than not that the reasonable value of a reporting unit is less than its carrying amount; it carried on with measure 1 of the quantitative two step goodwill impairment evaluation for a great many reporting units. On the foundation of the valuation prepared by Direction’s Pro, Gator estimated the reasonable value of all the reporting units exceeded their individual carrying values prepared or and no measure 2 evaluation was needed.

The focus of the case study is going to be on the U.S. reporting unit.

The booking partner has requested you to review Gator’s discounted cash flow evaluation (part of the measure 1 test in determining reasonable value of the reporting unit) to discover what audit processes ought to be performed. Gator direction has additionally supplied the valuation programs along with a memo documenting its strategy.

 

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