Ideal for MBA students, this case presents an exercise that tests students’ knowledge of financial accounting and reporting and how the tax system affects financial reporting. Students are asked to complete an exercise that focuses on the income tax footnote. This footnote provides information that can be used to assess a seller’s tax liability or an acquirer’s tax costs associated with an M&A transaction. As part of the exercise, students are asked to derive the income tax basis and to complete a table of deferred tax assets and liabilities as reported in the income tax footnote.
Darden Business Publishing – University of Virginia