A financier wants to put money in an investment in a software/information technology company. While the business seems to be very attractive, concerns are raised in the fiscal media over the organization's accounting policy decisions, particularly the choice to capitalize software development costs (internally developed intangible assets) and sales fees.
Concerns also have been raised over the business focus on metrics outside generally accepted accounting principles. Students are asked to evaluate the company's accounting policy choices and are supplied with important information regarding the organization's business model, existing and proposed accounting standards (both under U.S. GAAP and IFRS), and the accounting policies of challengers. After appraising the accounting policies, pupils may then conclude whether any alterations ought to be made to the financial statements and decide how this impacts valuation.
PUBLICATION DATE: August 22, 2012 PRODUCT #: W12158-HCB-ENG
This is just an excerpt. This case is about FINANCE & ACCOUNTING
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