This case requires students to apply accounting and ethical decision-making within the context of a potential land impairment decision. Students are required to research the relevant professional literature and provide appropriate FASB Codification references and IAS cites as they investigate the significant uncertainties that frequently are associated with valuation and impairment analyses. Students also are required to evaluate the ethical implications of the decisions that could be made regarding the necessity of impairment. The case provides an opportunity for students to extend their research and financial accounting abilities, to consider the consequences associated with a set of potentially reasonable accounting alternatives, and to begin to appreciate how the significant uncertainties that are present in many accounting and auditing situations require consistent technical and ethical decision-making. The case could be used in Intermediate Accounting I as well as in undergraduate and graduate Auditing or Ethics classes.
Document Object Identifier (DOI)
Persellin, J. S., Shaub, M.K. & Wilkins, M. S. (2014). Arachnophobia: A Case on Impairment and Accounting Ethics. Issues in Accounting Education. Issues in Accounting Education, 29(4), 577-586. doi: http://dx.doi.org/10.2308/iace-50890
Issues in Accounting Education