Arachnophobia: A Case on Impairment and Accounting Ethics

35 Pages Posted: 10 Oct 2014 Last revised: 11 Sep 2018

See all articles by Julie Persellin

Julie Persellin

Trinity University

Mike Shaub

Texas A&M University

Michael S. Wilkins

University of Kansas

Date Written: October 8, 2014

Abstract

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.

Keywords: Long-lived assets, impairment, fair value measurement, IFRS, ethics

Suggested Citation

Persellin, Julie and Shaub, Mike and Wilkins, Michael S., Arachnophobia: A Case on Impairment and Accounting Ethics (October 8, 2014). Julie S. Persellin, Michael K. Shaub, and Michael S. Wilkins (2014) Arachnophobia: A Case on Impairment and Accounting Ethics. Issues in Accounting Education: November 2014, Vol. 29, No. 4, pp. 577-586., Mays Business School Research Paper No. 2507282, Available at SSRN: https://ssrn.com/abstract=2507282

Julie Persellin

Trinity University ( email )

San Antonio, TX 78212
United States

Mike Shaub

Texas A&M University ( email )

430 Wehner
College Station, TX 77843-4353
United States

Michael S. Wilkins (Contact Author)

University of Kansas ( email )

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