Starbucks: Venti Leases Harvard Case Solution & Analysis

This case depicts a financial analyst trying to make sense of Starbucks’ finances and drawing from recent endeavors of the IASB and FASB to identify lease accounting as a key problem facing this organization. The study underlines the benefit of knowing about all the duties of an organization in order to understand its general operation.

Students analyze Starbucks’ substantial use of leases and use spreadsheet tools to comprehend the complete extent of the corporation’s indebtedness, in reviewing the case. The case allows issues of high-level accounting standards to be elucidated, using a well-known company with which pupils identify. The case exemplifies the real-world impacts of accounting policy choices.

Learning Objective: The case addresses lease bookkeeping and develops students’ abilities in identifying lease duties and quantifying indebtedness relating to lease payments. In addition, it gives students insights into the accounting standard-setting process and the bigger problems of standard setting and accounting policy, while revealing how these areas impact our comprehension of specific firms. The case was used in introductory MBA core classes in managerial accounting and control.

At the undergraduate degree, the case was used in corporate financial reporting electives concerning financial reporting practices. The study helps pupils in gaining aware regarding the bigger picture of the institution through accounting functions. In addition, it illustrates how the accounting treatment of particular kinds of financing may be key to their popularity — a possible answer to the question of whether accounting matters.

Publication Date: 08/19/2011

This is just an excerpt. This case is about Finance

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