Ponderosa Development: A Financial Reporting Case

Abstract

This case, or parts thereof, is appropriate for use in an undergraduate intermediate accounting course or an undergraduate/graduate financial accounting cases course. This case deals with various financial reporting issues such as interest capitalization, asset impairment, contingent items, and troubled-debt restructuring. This is all done with a backdrop of a bursting real estate bubble and a national credit crunch. The write-up of the solution to this case is also a useful vehicle for student preparation of either a professional memo or an executive summary. Both provide reinforcement of technical writing skills.