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.
|Referentgranskad vetenskaplig tidskrift||Issues in Accounting Education|
|Status||Publicerad - 11.03.2022|
|MoE-publikationstyp||A1 Originalartikel i en vetenskaplig tidskrift|
- 512 Företagsekonomi
Styrkeområden och områden med hög potential (AoS och AoHP)
- AoS: Finansiering, redovisning och företagsstyrning