Teaching note for product 9B00B003.

The chief financial officer and acting chief executive officer of PixStream Incorporated, a high-tech video networking solutions company, was contemplating how going public in the next couple of years might affect his decisions and choices relating to the company's accounting practices for research and development expenditures. He needed to determine if he should continue expensing all research and development costs or if he should capitalize .....more

The chief financial officer for the Ontario Transportation Capital Corporation was contemplating some of the accounting policies that would apply to his preparation of the Highway 407 Express Toll Route 1997/1998 financial statements. He needed to determine when highway toll revenues and expenses should begin to be recognized, when and how the highway should be capitalized and amortized, and how rehabilitation and maintenance activities should be .....more

Several large Canadian public companies announced their intent to merge and use the pooling of interests method rather than the traditional purchase method. Pooling had been rarely used to account for business combinations in Canada. The case focus is on an analyst who wanted to ensure that she understood the differential impact of both methods so that she could more fully represent her clients' interests. She decided to use an analysis of the .....more

Teaching note for product 9A99B013.

The objective of this note is to describe and highlight the importance of the cash flow statement to evaluate the financial performance and position of a company. The intent of the note is not to provide a detailed description of how to prepare a cash flow statement but to emphasize its use.

A young entrepreneur, faced with a rapidly growing company, must choose between three financing options: a bank loan, issuing stock or selling his company. The purpose of this case is to: (1) illustrate some of the alternatives available for managing a rapidly growing company; (2) teach students how to do quantitative and qualitative analysis when evaluating the appropriateness of strategic alternatives; (3) illustrate to students the operational .....more

Teaching note for product 9A97B002.

After a turbulent year in the Canadian airline industry, Madelaine Mercier wants to reevaluate her investment in Air Canada and Canadian Airlines. She is wondering how she should reflect the extensive amount of leases used by the two companies in her analysis. She is unsure if she should make adjustments to the company's financial statements and is curious to know whether these adjustments would make a material difference in her analysis.