When pupil have the English-language PDF of this succinct Case in a coursepack, they are going to also have the option to buy an audio version. Biovail Corporation, a leading Canadian pharmaceutical company listed on the New York Stock Exchange, declares that it will miss its quarterly earnings objective by $25 to $45 million, blaming $10 to $15 million of the shortfall on a truck misfortune involving a consignment that left its ability on the last day of the quarter. The case was finally prosecuted by the U.S. Securities and Exchange Commission (SEC).
The case is centered on the issue of revenue recognition and how the firm should have accounted for the sales (FOB business or FOB destination). Nevertheless, it also supplies a rich setting allowing exploration of issues that are peripheral around the principles of earnings management. For example, the case talks about stock analysts' feedback to the statement; questions how much product was truly in the truck; questions how harshly the business responds against the analysts who downgrade the stock; and highlights the role of the SEC in enforcement.
PUBLICATION DATE: April 07, 2009 PRODUCT #: 4011-HCB-ENG
This is just an excerpt. This case is about FINANCE & ACCOUNTING
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