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Full-Text Articles in Business
Ethical Implications Of Friendly Takeovers: A Financial Manager’S Story, Barbara Tarasovich
Ethical Implications Of Friendly Takeovers: A Financial Manager’S Story, Barbara Tarasovich
WCBT Faculty Publications
Case study in which Bernadette was heading the corporate acquisitions team. It was important for Bernadette to be certain that there was no unethical behavior on the part of the project and management team responsible for the acquisition and integration of these companies. The pressures to achieve synergies can often result in people problems, cultural value, and ethical differences that impede the smooth integration of companies. For each acquisition, Bernadette needed to ensure that the newly acquired assets were secure. In addition, she had to ensure that the acquired companies were not employing inappropriate accounting practices in order to inflate …
Teaching Note On The Treatment Of Noncontrolling Interests In Financial Analysis, Cost Of Capital And Valuation: A Case Study Of Verizon Communications, Bridget Lyons
WCBT Faculty Publications
A noncontrolling interest (NCI) arises when a firm fully consolidates subsidiaries that are not wholly owned by the parent. The existence of a noncontrolling interest complicates financial analysis and valuation. Failure to appropriately consider the NCI may lead to errors in equity valuation and share price since the NCI impacts equity value and implied share price of the parent firm. Return on equity calculations must be carefully constructed as there are several net income and equity values reported. Finally, the NCI can impact the weighted average cost of capital. Verizon Communications was selected as a case study based on the …
Corporate Revenue Miscalculations & The Impact On Stakeholders, Karen Cascini, Alan Delfavero, Ryan Bezner
Corporate Revenue Miscalculations & The Impact On Stakeholders, Karen Cascini, Alan Delfavero, Ryan Bezner
WCBT Faculty Publications
Corporate earnings restatements are regarded as one of the most significant issues in accounting today. While there are various factors that can influence corporate earnings, revenue is the key contributor to a business’ net income. During the 2000s, a multitude of domestic and multinational corporations faced significant issues with their revenue recognition practices. Although the investing public might regard any revenue restatement as laden with possible fraud, this is not always the case. Multinational firms face dual accounting systems, such as U.S. Generally Accepted Accounting Principles (GAAP) and International Financial Reporting Standards (IFRS). Consequently, similarities and differences among accounting systems, …