The Crusin Lines: Asset Impairment, Ethical Issues, and Reputation Risk: Case Report

Wayne G. Bremser*, Benita Gullkvist

*Corresponding author for this work

Research output: Contribution to journalArticleScientificpeer-review


This instructional case was inspired by a real-world incident, involving a highly publicized cruise ship mishap. The breakdown at sea generates significant negative publicity, which has an adverse effect on corporate reputation. Consequently, there is an increased reputation risk, which may have implications for asset impairment testing. The case requires students to apply fair value standards relevant to non-financial assets is the impairment testing process. The case can be used for impairment testing under either US GAAP or IFRS, and it can be used to compare the methods. The case demonstrates that asset impairment testing requires professional judgment to be exercised. If an impairment loss is recorded, it will affect executive bonuses. Students are asked to use an ethical framework for guidance to resolve possible ethical issues. This case can be used in an international accounting course, and an intermediate or graduate-level financial accounting course.
Original languageEnglish
Peer-reviewed scientific journalIssues in Accounting Education
Issue number3
Pages (from-to)91-99
Number of pages9
Publication statusPublished - 11.03.2022
MoE publication typeA1 Journal article - refereed


  • 512 Business and Management
  • asset impairment
  • fair value
  • ethical issues
  • reputation risk

Areas of Strength and Areas of High Potential (AoS and AoHP)

  • AoS: Financial management, accounting, and governance


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