Gemstar-TV Guide International Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

Gemstar-TV Guide International Case Solution

Donatiello, among just 3 self-reliant directors on the board, wished to do exactly what was right for investors. Nevertheless, the choices needed to come to that result were far from clear.

Generally, serving on a business's board of directors is not a full-time task, however in the summertime of 2002, Nick Donatiello (GSB 1986) discovered himself in precisely that position. As a member of Gemstar-TV Guide International's (Gemstar's or the Company's) board of directors and its Audit Committee, Donatiello was caught up in a storm of accounting concerns, investor claims and a power battle in between the Company's biggest investors.

This case fixates accounting and governance problems that occurred throughout the 2001 audit of Gemstar TV Guide International. In summary, although management and the business's auditors, KPMG, coincided the acknowledgment of specific incomes, the business's audit committee thought that those profits ought to be reiterated. The case talks about the specifics of 2 audit concerns, specifically, as well as supplies an introduction of the business and the different celebrations included.

Knowing Objective

The case results in a choice point where trainees could be asked regardless of whether they would fire the business's auditors and reiterate profits or agree with the accounting treatment promoted by management and KPMG. Raises concerns consisting of the function of the audit committee, income acknowledgment requirements and basic governance practices.

This is just an excerpt. This case is about Business