Details

Case

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FINANCIAL REPORTING AT SAMSUNG - A CASE OF EXPLODING PHONES

Atifa A. Dar, Waqar Ali


INDUSTRY : Telecommunication

AREA : Finance

ORGANIZATION : Samsung

LENGTH : 16

LUMS No : 02-645-2018-1

PUBLICATION YEAR : 2018

DESCRIPTION

KEYWORDS:

Samsung Electronics, International Financial Reporting Standards, Chaebol culture, Exploding Phones, Note 7.


DESCRIPTION:

This case is based on published financial statements of Samsung Electronics Company Limited and a collection of news articles published after the discontinuation and expensive recall of its Galaxy Note 7 after flaws led some of the phones to overheat and burst into flames. The case follows the woes of Samsung from the S7 debacle to the arrest of its Vice Chairman and requires students to anticipate the effects of these events on the published financial statements with an emphasis on financial reporting requirements of International Financial Reporting Standards (IFRS).


LEARNING OBJECTIVES:

The objective of the case is to allow students to collate and apply multiple concepts covered throughout a financial reporting course to financial statements as a whole and line items individually. In addition, it illustrates how certain factors may have a more pervasive effect and impact the fundamental assumptions on which financial statements are prepared. The case also aims to develop a cogent understanding of published annual accounts as they would interact with financial statements and line items within, in the context of business news and developments.


SUBJECTS COVERED:

Finance, Auditing, Financial Reporting