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AT&T Wireless: Text Messaging
Vaughan S. Radcliffe; Mitchell Stein; Michael LickverCase IVEY-9B11B005-EAccounting and Control, Marketing, StrategyThis case examines AT&T’s wireless business with a focus on its text messaging services. The industry features a high proportion of fixed costs in relation to acquiring spectrum and building a network. Variable costs are relatively low, especially in the case of SMS text messages. Pricing and margins in text messaging have attracted regulatory scrutiny in the Unites States, Canada, and elsewhere. The case requires the use of key concepts in cost ...Starting at €8.20
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Groupon and the SEC
Vaughan S. Radcliffe; Mitchell Stein; Alexis GottschalkCase IVEY-9B12B002-EAccounting and Control, Finance, StrategyThis case provides an opportunity to review Groupon Inc’s S1 filing made prior to an initial public offering. Groupon’s financial statements attracted a great deal of controversy due to revenue recognition policies that produced substantially higher revenues for the corporation, as well as non-GAAP earnings measures, especially ACSOI — an invention of the firm that served to exclude certain marketing expenses from the calculation of profit. Since...Starting at €8.20
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IFRS: Canada's Decision
Vaughan S. Radcliffe; Mitchell SteinCase IVEY-9B11B017-EAccounting and Control, Finance, StrategyThe case comprises an interview with Paul Cherry, who as chair of the Accounting Standards Board of Canada (the Canadian accounting standard setter) led a process that brought Canada to adopt international financial reporting standards (IFRS). The case provides a rich and in-depth examination of the real-world considerations that led Canada to adopt IFRS. It offers analysis of the competing alternatives such as the U.S. GAAP (generally accepted a...Starting at €8.20
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RBI and the Great White North Franchisee Association
Vaughan S. Radcliffe; Mitchell Stein; Hashu RahimCase IVEY-9B19B002-EAccounting and ControlIn March 2018, an analyst at an investment management firm in Toronto, Ontario, had to decide whether or not to recommend that his firm establish a position in shares of Restaurant Brands International Inc. (RBI). Formed after the merger of Burger King and Tim Hortons Inc., RBI was led by the private equity firm 3G Capital. RBI was a powerhouse–the third-largest, quick-service restaurant chain in the world. Although RBI was performing well and se...Starting at €8.20
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In Search of the 'Right' Numbers: Navigating Professional Judgment Challenges in Accounting
Mitchell Stein; Matthew Sooy; Anthony ScilipotiCase IVEY-9B20B012-EAccounting and ControlIn October 2001, the co-founder and vice-president of Veritas Investment Research Corporation (Veritas), was considering his next steps as he prepared to issue a highly critical report on Bombardier Inc. (Bombardier). The vice-president believed that BombStarting at €8.20
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Tesla's Non-GAAP Accounting Measurements: Revenue Recognition and Stock-Based Compensation
Martin Persson; Mitchell Stein; Spencer HiggsCase IVEY-9B17B019-EAccounting and ControlIn November 2014, questions were raised about American electric car manufacturer Tesla Motors Inc.'s (Tesla's) accounting practices, which did not follow the generally accepted accounting practices (GAAP). Tesla’s third quarter 2014 financial statements showed a loss of almost US$75 million when using U.S. GAAP standards, compared to a profit of over $5 million when using its own non-GAAP standards. The accounting discrepancy between the two syst...Starting at €8.20
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Pricing Police: An Activity-Based Costing Model of Police Services
Vaughan S. Radcliffe; Mitchell Stein; Adam EricksonCase IVEY-9B16B014-EAccounting and ControlOn January 17, 2015, the Ontario Provincial Police (OPP) released service cost estimates to all municipalities under its new municipal billing model. The new billing model, according to the recommendations of the auditor general, was designed to provide a more consistent, transparent, and accurate reflection of municipal servicing costs. Several mayors were not entirely sold on the new model and had their own opinion on how each municipality shou...Starting at €8.20
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Under Armour Settles with the SEC
Mitchell Stein; Vaughan S. Radcliffe; David BoothCase IVEY-W27293-EAccounting and Control, FinanceIn May 2021, a recent graduate from the master of business administration program at Ivey Business School noticed a news article about one of his investments, the leading athletic apparel company Under Armour, Inc. The article stated that Under Armour, Inc. was fined US$9 Million by the US Security and Exchange Commission. The charges were a result of concerns over the company’s revenue reporting practices, but the company's share price dropped o...Starting at €8.20
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Penn West Petroleum Ltd.
Martin Persson; Vaughan S. Radcliffe; Mitchell Stein; Hammad SiddiquiCase IVEY-9B15B007-EAccounting and ControlIn 2015, Penn West Petroleum Ltd. (Penn West), a large Canadian oil company, made multiple acquisitions that led to a buildup of goodwill (i.e., the purchase price was higher than the net book value of the acquisitions). When the economic environment worsened, there was concern that this goodwill had been impaired. The concern deepened as economic factors improved but Penn West’s stock performance continued to be poor, indicating that the market ...Starting at €8.20
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Starbucks: Venti Leases
Vaughan S. Radcliffe; Mitchell Stein; Caleb Yong; Gabrielle GreggCase IVEY-9B11B014-EAccounting and Control, Finance, StrategyThis case depicts a financial analyst trying to make sense of Starbucks’ finances and drawing from recent projects of the IASB and FASB to identify lease accounting as a key issue for the firm. The case underscores the importance of having a full pictureStarting at €8.20