Case #6 - Who owns this company? Serving the needs of different financial statement users.
Even though this case deals with the first learning objective in Chapter 1, it works best to introduce it at the end of the chapter. The goal of this case is for students to identify how financial reporting needs differ depending of the type of entity. Even with limited financial accounting knowledge, students should be able to identify how the reporting needs of a for-profit organization differ from a non-profit organization.
Learning Objectives: IFAB 1-1, FFAC 1-1, Survey 1-1
Implementation Ideas: 1) Students work the case in groups of 3-4 and then we have a class discussion (class time: 5-10 minutes) , 2) Assign case out-of-class and then discuss in class (class time: 5 minutes)
Handouts and Solution for Case #6 available on Resources Page
Who owns this company?
Who owns Starbucks? Who owns the American Cancer Society (ACS)? Many people and organizations other than owners are interested in the operations of Starbucks and the ACS. These parties are called stakeholders. Among others, they include lenders, employees, suppliers, customers, benefactors, research institutions, local governments, cancer patients, lawyers, bankers, financial analysts, and
government agencies such as the Internal Revenue Service and the Securities and Exchange Commission. Organizations communicate information to stakeholders through financial reports.
How would the financial reporting needs of Starbucks differ from those of the ACS?
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