Subject & Research Guides: PRME: Case Studies

Accounting Case Studies

"Fortune Minerals - The Nico Project" by Chris Sturby & Melissa Jean, 2011, Ivey School of Business
A publicly traded mining company has an opportunity to develop a mine containing gold, cobalt, and bismuth in Canada’s Northwest Territories and must determine the financial viability of doing so. In order to gauge the attractiveness of the project, the company needs to evaluate the net present value of the opportunity, given volatile and uncertain variables, such as commodity prices and foreign exchange rates. The company must also consider a number of qualitative considerations that may affect the project, such as relations with First Nations communities.
SDG Topics: Responsible Consumption & Production / Peace, Justice and Strong Institutions / Partnerships for the Goals.
"Erie Thames Powerlines: the Hybrid Truck Decision" by Stephan Vachon & Ryan Mallany, 2016, Ivey School of Business
Erie Thames Powerlines, an electricity distributor in Southwestern Ontario, needed to determine the suitability of the company acquiring a hybrid truck as opposed to a conventional diesel utility truck. As of early July 2016, the truck suppliers (for both hybrid and diesel trucks) and the internal accounting department had provided substantial information with which to conduct a thorough analysis. The company also wanted to include some qualitative aspects, such as the reduction of noise pollution and the positive contributions of hybrid trucks both to the company’s image and to its promotion of energy efficiency. The firm needed to build an appropriate business analysis that included both qualitative and quantitative elements to support a recommendation to the utility company’s board of directors in August 2016. This case is recommended for use in an environmental management or economic project evaluation course, or in an introductory accounting course for a class in cash flow analysis. The case’s main intent is to introduce students to a cash flow analysis that integrates a carbon footprint and other qualitative issues in its decision-making.
SDG Topics: Affordable & Clean Energy / Industry, Innovation & Infrastructure / Sustainable Cities & Communities / Climate Action.

"Diamond Foods, Inc." by Suraj Srinivasan & Tim Gray, 2013, Harvard Business School
The Diamond Foods, Inc. case describes the major accounting blow up at the company in late 2011. Diamond Foods, a high flying growth company in 2011, grew from a walnut farmers' cooperative in 2005 into a branded snack foods manufacturer on the strength of a series of acquisitions. The accounting scandal that involved improper accounting for walnut purchases led to Diamond's dropping its high profile acquisition of Pringles, an SEC and DOJ investigation, the departure of the CEO and CFO, and the grounding of a high flying growth company. The case describes the history and growth of the company, the investigative and analytical work conducted by OWS and allows students to understand implications of the growth strategy for financial performance and valuation. Additionally, the case highlights the role of corporate boards and audit committees in managing strategic and financial reporting risks.
SDG Topics: Responsible Consumption & Production / Peace, Justice & Strong Institutions.

"Fortune Minerals - The Nico Project" by Chris Sturby & Melissa Jean, 2011, Ivey School of Business
A publicly traded mining company has an opportunity to develop a mine containing gold, cobalt, and bismuth in Canada’s Northwest Territories and must determine the financial viability of doing so. In order to gauge the attractiveness of the project, the company needs to evaluate the net present value of the opportunity, given volatile and uncertain variables, such as commodity prices and foreign exchange rates. The company must also consider a number of qualitative considerations that may affect the project, such as relations with First Nations communities.
SDG Topics: Responsible Consumption & Production / Peace, Justice and Strong Institutions / Partnerships for the Goals.
"Diamond Foods, Inc." by Suraj Srinivasan & Tim Gray, 2013, Harvard Business School
The Diamond Foods, Inc. case describes the major accounting blow up at the company in late 2011. Diamond Foods, a high flying growth company in 2011, grew from a walnut farmers' cooperative in 2005 into a branded snack foods manufacturer on the strength of a series of acquisitions. The accounting scandal that involved improper accounting for walnut purchases led to Diamond's dropping its high profile acquisition of Pringles, an SEC and DOJ investigation, the departure of the CEO and CFO, and the grounding of a high flying growth company. The case describes the history and growth of the company, the investigative and analytical work conducted by OWS and allows students to understand implications of the growth strategy for financial performance and valuation. Additionally, the case highlights the role of corporate boards and audit committees in managing strategic and financial reporting risks.
SDG Topics: Responsible Consumption & Production / Peace, Justice & Strong Institutions.
"Etsy: Keeping it Real by Keeping Taxes Low" by Lisa de Simone, Jeff Hoopes, Rebecca Lester & Sheila Melvin, 2016, Stanford University
Etsy was an online craft bazaar founded in 2005 in a loft in Brooklyn, New York. The company was known for its emphasis on social responsibility, transparency, authenticity, and its somewhat nontraditional approach to business. In January 2015, Etsy converted its Irish subsidiary to an unlimited liability company, a move it described as implementation of an updated global corporate structure. In a subsequent U.S. Securities and Exchange Commission (SEC) filing, it stated that this changed structure might result in a reduction in our overall effective tax rate. In August 2015, the company came under fire for this move. The Wall Street Journal summarized the reaction with the headline Etsy Faces Pressure to Abandon Irish Tax Strategy. This case explores Etsy's initial decision, the critical public response to it, and Etsy' choice to ignore the fallout and stay the course.
SDG Topics: Industry, Innovation & Infrastructure / Peace, Justice & Strong Institutions.
"Lehman Brothers' Fall" by Ram Kumar Kakani, Vasudha Singhania & Martin Stack, 2012, Ivey School of Business
This case describes the financial undertakings of Lehman Brothers Inc., which was once the fourth-largest investment bank in the world. On September 15, 2008, less than a year after the bank presented its largest profit ever, the world watched its decline. In terms of size of assets, Lehman is considered the largest bankruptcy in history, with assets totaling US$639 billion and liabilities of US$613 billion. The U.S. credit crisis had uprooted the strength of Wall Street, with Lehman announcing a petition it filed under Chapter 11 of the U.S. Bankruptcy Code. The bankruptcy raised some interesting questions, the biggest among them being: How could a large company such as Lehman, with a record of reporting huge profits, become so helpless that it had to file for bankruptcy? This case can be used in: a financial accounting course, a course on fraud accounting, a financial reporting systems course, and others.
SDG Topics: Decent Work & Economic Growth / Reduced Inequalities / Responsible Consumption & Production / Peace, Justice and Strong Institutions.
"The Southwest Airlines One Report" by Robert G. Eccles, Beiting Cheng & Susan Thyne, 2011, Harvard Business School
In 2009, Southwest Airlines produced its first integrated annual report, the Southwest Airlines One Report, combing financial and nonfinancial performance information. This case examines Southwest's environmental and corporate social responsibility (CSR) reports produced in the two years preceding 2009 and follows the company's decision to transition to a new reporting format. Preparing for the 2010 report, the Southwest reporting team contemplates how to improve the One Report. The case also allows for debate on the future of integrated reporting, including its impact on internal management processes, integrated audits, and mandated nonfinancial reporting.
SDG Topics: Industry, Innovation & Infrastructure / Sustainable Cities & Communities / Climate Action / Peace, Justice & Strong Institutions.

"Diamond Foods, Inc." by Suraj Srinivasan & Tim Gray, 2013, Harvard Business School
The Diamond Foods, Inc. case describes the major accounting blow up at the company in late 2011. Diamond Foods, a high flying growth company in 2011, grew from a walnut farmers' cooperative in 2005 into a branded snack foods manufacturer on the strength of a series of acquisitions. The accounting scandal that involved improper accounting for walnut purchases led to Diamond's dropping its high profile acquisition of Pringles, an SEC and DOJ investigation, the departure of the CEO and CFO, and the grounding of a high flying growth company. The case describes the history and growth of the company, the investigative and analytical work conducted by OWS and allows students to understand implications of the growth strategy for financial performance and valuation. Additionally, the case highlights the role of corporate boards and audit committees in managing strategic and financial reporting risks.
SDG Topics: Responsible Consumption & Production / Peace, Justice & Strong Institutions.
"Lehman Brothers' Fall" by Ram Kumar Kakani, Vasudha Singhania & Martin Stack, 2012, Ivey School of Business
This case describes the financial undertakings of Lehman Brothers Inc., which was once the fourth-largest investment bank in the world. On September 15, 2008, less than a year after the bank presented its largest profit ever, the world watched its decline. In terms of size of assets, Lehman is considered the largest bankruptcy in history, with assets totaling US$639 billion and liabilities of US$613 billion. The U.S. credit crisis had uprooted the strength of Wall Street, with Lehman announcing a petition it filed under Chapter 11 of the U.S. Bankruptcy Code. The bankruptcy raised some interesting questions, the biggest among them being: How could a large company such as Lehman, with a record of reporting huge profits, become so helpless that it had to file for bankruptcy? This case can be used in: a financial accounting course, a course on fraud accounting, a financial reporting systems course, and others.
SDG Topics: Decent Work & Economic Growth / Reduced Inequalities / Responsible Consumption & Production / Peace, Justice and Strong Institutions.
"The Southwest Airlines One Report" by Robert G. Eccles, Beiting Cheng & Susan Thyne, 2011, Harvard Business School
In 2009, Southwest Airlines produced its first integrated annual report, the Southwest Airlines One Report, combing financial and nonfinancial performance information. This case examines Southwest's environmental and corporate social responsibility (CSR) reports produced in the two years preceding 2009 and follows the company's decision to transition to a new reporting format. Preparing for the 2010 report, the Southwest reporting team contemplates how to improve the One Report. The case also allows for debate on the future of integrated reporting, including its impact on internal management processes, integrated audits, and mandated nonfinancial reporting.
SDG Topics: Industry, Innovation & Infrastructure / Sustainable Cities & Communities / Climate Action / Peace, Justice & Strong Institutions.

"Lehman Brothers' Fall" by Ram Kumar Kakani, Vasudha Singhania & Martin Stack, 2012, Ivey School of Business
This case describes the financial undertakings of Lehman Brothers Inc., which was once the fourth-largest investment bank in the world. On September 15, 2008, less than a year after the bank presented its largest profit ever, the world watched its decline. In terms of size of assets, Lehman is considered the largest bankruptcy in history, with assets totaling US$639 billion and liabilities of US$613 billion. The U.S. credit crisis had uprooted the strength of Wall Street, with Lehman announcing a petition it filed under Chapter 11 of the U.S. Bankruptcy Code. The bankruptcy raised some interesting questions, the biggest among them being: How could a large company such as Lehman, with a record of reporting huge profits, become so helpless that it had to file for bankruptcy? This case can be used in: a financial accounting course, a course on fraud accounting, a financial reporting systems course, and others.
SDG Topics: Decent Work & Economic Growth / Reduced Inequalities / Responsible Consumption & Production / Peace, Justice and Strong Institutions.

"Fortune Minerals - The Nico Project" by Chris Sturby & Melissa Jean, 2011, Ivey School of Business
A publicly traded mining company has an opportunity to develop a mine containing gold, cobalt, and bismuth in Canada’s Northwest Territories and must determine the financial viability of doing so. In order to gauge the attractiveness of the project, the company needs to evaluate the net present value of the opportunity, given volatile and uncertain variables, such as commodity prices and foreign exchange rates. The company must also consider a number of qualitative considerations that may affect the project, such as relations with First Nations communities.
SDG Topics: Responsible Consumption & Production / Peace, Justice and Strong Institutions / Partnerships for the Goals.

"Etsy: Keeping it Real by Keeping Taxes Low" by Lisa de Simone, Jeff Hoopes, Rebecca Lester & Sheila Melvin, 2016, Stanford University
Etsy was an online craft bazaar founded in 2005 in a loft in Brooklyn, New York. The company was known for its emphasis on social responsibility, transparency, authenticity, and its somewhat nontraditional approach to business. In January 2015, Etsy converted its Irish subsidiary to an unlimited liability company, a move it described as implementation of an updated global corporate structure. In a subsequent U.S. Securities and Exchange Commission (SEC) filing, it stated that this changed structure might result in a reduction in our overall effective tax rate. In August 2015, the company came under fire for this move. The Wall Street Journal summarized the reaction with the headline Etsy Faces Pressure to Abandon Irish Tax Strategy. This case explores Etsy's initial decision, the critical public response to it, and Etsy' choice to ignore the fallout and stay the course.
SDG Topics: Industry, Innovation & Infrastructure / Peace, Justice & Strong Institutions.
"Lehman Brothers' Fall" by Ram Kumar Kakani, Vasudha Singhania & Martin Stack, 2012, Ivey School of Business
This case describes the financial undertakings of Lehman Brothers Inc., which was once the fourth-largest investment bank in the world. On September 15, 2008, less than a year after the bank presented its largest profit ever, the world watched its decline. In terms of size of assets, Lehman is considered the largest bankruptcy in history, with assets totaling US$639 billion and liabilities of US$613 billion. The U.S. credit crisis had uprooted the strength of Wall Street, with Lehman announcing a petition it filed under Chapter 11 of the U.S. Bankruptcy Code. The bankruptcy raised some interesting questions, the biggest among them being: How could a large company such as Lehman, with a record of reporting huge profits, become so helpless that it had to file for bankruptcy? This case can be used in: a financial accounting course, a course on fraud accounting, a financial reporting systems course, and others.
SDG Topics: Decent Work & Economic Growth / Reduced Inequalities / Responsible Consumption & Production / Peace, Justice and Strong Institutions.
"Diamond Foods, Inc." by Suraj Srinivasan & Tim Gray, 2013, Harvard Business School
The Diamond Foods, Inc. case describes the major accounting blow up at the company in late 2011. Diamond Foods, a high flying growth company in 2011, grew from a walnut farmers' cooperative in 2005 into a branded snack foods manufacturer on the strength of a series of acquisitions. The accounting scandal that involved improper accounting for walnut purchases led to Diamond's dropping its high profile acquisition of Pringles, an SEC and DOJ investigation, the departure of the CEO and CFO, and the grounding of a high flying growth company. The case describes the history and growth of the company, the investigative and analytical work conducted by OWS and allows students to understand implications of the growth strategy for financial performance and valuation. Additionally, the case highlights the role of corporate boards and audit committees in managing strategic and financial reporting risks.
SDG Topics: Responsible Consumption & Production / Peace, Justice & Strong Institutions.
"The Southwest Airlines One Report" by Robert G. Eccles, Beiting Cheng & Susan Thyne, 2011, Harvard Business School
In 2009, Southwest Airlines produced its first integrated annual report, the Southwest Airlines One Report, combing financial and nonfinancial performance information. This case examines Southwest's environmental and corporate social responsibility (CSR) reports produced in the two years preceding 2009 and follows the company's decision to transition to a new reporting format. Preparing for the 2010 report, the Southwest reporting team contemplates how to improve the One Report. The case also allows for debate on the future of integrated reporting, including its impact on internal management processes, integrated audits, and mandated nonfinancial reporting.
SDG Topics: Industry, Innovation & Infrastructure / Sustainable Cities & Communities / Climate Action / Peace, Justice & Strong Institutions.

"Fortune Minerals - The Nico Project" by Chris Sturby & Melissa Jean, 2011, Ivey School of Business
A publicly traded mining company has an opportunity to develop a mine containing gold, cobalt, and bismuth in Canada’s Northwest Territories and must determine the financial viability of doing so. In order to gauge the attractiveness of the project, the company needs to evaluate the net present value of the opportunity, given volatile and uncertain variables, such as commodity prices and foreign exchange rates. The company must also consider a number of qualitative considerations that may affect the project, such as relations with First Nations communities.
SDG Topics: Responsible Consumption & Production / Peace, Justice and Strong Institutions / Partnerships for the Goals.
"Erie Thames Powerlines: the Hybrid Truck Decision" by Stephan Vachon & Ryan Mallany, 2016, Ivey School of Business
Erie Thames Powerlines, an electricity distributor in Southwestern Ontario, needed to determine the suitability of the company acquiring a hybrid truck as opposed to a conventional diesel utility truck. As of early July 2016, the truck suppliers (for both hybrid and diesel trucks) and the internal accounting department had provided substantial information with which to conduct a thorough analysis. The company also wanted to include some qualitative aspects, such as the reduction of noise pollution and the positive contributions of hybrid trucks both to the company’s image and to its promotion of energy efficiency. The firm needed to build an appropriate business analysis that included both qualitative and quantitative elements to support a recommendation to the utility company’s board of directors in August 2016. This case is recommended for use in an environmental management or economic project evaluation course, or in an introductory accounting course for a class in cash flow analysis. The case’s main intent is to introduce students to a cash flow analysis that integrates a carbon footprint and other qualitative issues in its decision-making.
SDG Topics: Affordable & Clean Energy / Industry, Innovation & Infrastructure / Sustainable Cities & Communities / Climate Action.
"Getting up in the Air: Establishing a Carbon Offsetting Programme at a Hybrid Airline" by Kristian Hvass, Bersant Hobdari & Thomas Balle, 2013, Copenhagen Business School
This fictional case enables students to apply their quantitative analytical skills by inviting them to act as external consultants to the airline, Air Nordic, which is considering investing in winglet technology or a carbon offsetting programme. Using the industry data provided, the class can analyse the merits of carbon offsetting, winglets, or maintaining the status quo.
SDG Topics: Industry, Innovation & Infrastructure / Climate Action.
"Textbooks for Change" by Elizabeth M. A. Grasby & Shannon Wright, 2016, Ivey School of Business
In May 2015, the chief executive officer (CEO) of a small social enterprise was trying to decide how to expand its business. Textbooks for Change collected used texts from universities and supported African entrepreneurs and universities by donating text sales proceeds or through the distribution of donated materials to deserving schools. The CEO was considering expanding the business to collect textbooks from universities outside its region, and wanted to assess the potential financial viability of three targeted universities. This case is recommended for introductory courses in managerial accounting at the first- or second-year undergraduate level.
SDG Topics: Quality Education / Reduced Inequalities / Partnerships for the Goals.

"The Southwest Airlines One Report" by Robert G. Eccles, Beiting Cheng & Susan Thyne, 2011, Harvard Business School
In 2009, Southwest Airlines produced its first integrated annual report, the Southwest Airlines One Report, combing financial and nonfinancial performance information. This case examines Southwest's environmental and corporate social responsibility (CSR) reports produced in the two years preceding 2009 and follows the company's decision to transition to a new reporting format. Preparing for the 2010 report, the Southwest reporting team contemplates how to improve the One Report. The case also allows for debate on the future of integrated reporting, including its impact on internal management processes, integrated audits, and mandated nonfinancial reporting.
SDG Topics: Industry, Innovation & Infrastructure / Sustainable Cities & Communities / Climate Action / Peace, Justice & Strong Institutions.

"Textbooks for Change" by Elizabeth M. A. Grasby & Shannon Wright, 2016, Ivey School of Business
In May 2015, the chief executive officer (CEO) of a small social enterprise was trying to decide how to expand its business. Textbooks for Change collected used texts from universities and supported African entrepreneurs and universities by donating text sales proceeds or through the distribution of donated materials to deserving schools. The CEO was considering expanding the business to collect textbooks from universities outside its region, and wanted to assess the potential financial viability of three targeted universities. This case is recommended for introductory courses in managerial accounting at the first- or second-year undergraduate level.
SDG Topics: Quality Education / Reduced Inequalities / Partnerships for the Goals.

"Etsy: Keeping it Real by Keeping Taxes Low" by Lisa de Simone, Jeff Hoopes, Rebecca Lester & Sheila Melvin, 2016, Stanford University
Etsy was an online craft bazaar founded in 2005 in a loft in Brooklyn, New York. The company was known for its emphasis on social responsibility, transparency, authenticity, and its somewhat nontraditional approach to business. In January 2015, Etsy converted its Irish subsidiary to an unlimited liability company, a move it described as implementation of an updated global corporate structure. In a subsequent U.S. Securities and Exchange Commission (SEC) filing, it stated that this changed structure might result in a reduction in our overall effective tax rate. In August 2015, the company came under fire for this move. The Wall Street Journal summarized the reaction with the headline Etsy Faces Pressure to Abandon Irish Tax Strategy. This case explores Etsy's initial decision, the critical public response to it, and Etsy' choice to ignore the fallout and stay the course.
SDG Topics: Industry, Innovation & Infrastructure / Peace, Justice & Strong Institutions.