View Homework Help – Harnischferger Case from ACG at Florida International University. Harnischfeger Corporation 1. Describe clearly the accounting. Agenda Case Facts Strategy Analysis Accounting Analysis. Directions Read the “Harnischfeger Corp” case study and answer the following questions. Submit your completed assignment no later than the last day of Week .

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From one side that decision could help the company to rebuild the trust of customers and suppliers for continuing in business. The company considered the offer inadequate and rejected it.

Harnischfeger incorporated products purchased from Kobe Steel, which were re-sold by the company, into its net sales. In fact, the company was negotiating long-term contracts in with the governments of Turkey and China.

See Exhibit 4, Note 2, in the case. Not necessarily, they can not fully predict the outcome of these changes but history shows them that as long as their plant machinery are more harjischfeger to date production will perform at a better rate which should lead to valuable resources needed to conduct good business.

Harnischfeger Corporation | Free Essays –

In any case, these adjustments impose a cost on the user. The pension plan changes affected positively the statements in Why do you think the management of Harnischfeger made these accounting changes? See Hranischfeger 4, Notes 6 and 9, in the case. C Prentice Hall, Inc.

Harnischfeger Corporation

In my opinion, the changed accounting format highlights the effectiveness of our strategy better than the old policies do. How to Write a Critical Analysis.


Avoid the violation of debt covenant restrictions, and 4. The company changed its corpiration for duration patterns and tooling. In the pension expenses accounted for 1. The depreciation policy for financial reporting purposes was changed to a straight-line method from a principally accelerated method.

To use this website, you must agree to harnizchfeger Privacy Policyincluding cookie policy. As a company you have to put the best foot forward if you want to raise capital, convince customers that you are a viable company, and attract talented people to work for the company.

If debt covenants are specified in terms of accounting numbers, managers have an incentive to choose accounting policies to minimize the violation of the covenants. I am not sure whether people make the adjustments or not, but either way we wish to present an optimistic version of the picture and let people figure out what to do with the numbers.

Harnischfeger Case Group Members: Even thought the changes indicate an optimistic move, it does not guarantee that the company is going to be able to implement its business plan.

This may have an effect on future profits. Also, these studies do not examine whether the stock market recognizes the recurring effects of accounting changes.

cororation Students point out a number of possible motives for the accounting changes: Meaning that the net loss of previous year was reduced by approximately Compute the ratio of the allowance to gross receivables receivables before the allowance in and This change should report higher profits in the coming years. Change in the allowance for doubtful accounts.


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My own belief is that people adjust for the obvious things like one-time gains and losses but have difficulty in adjusting for ongoing differences. The earlier philosophy of this company was to choose the conservative alternative whenever there was a choice. As a result of going harniischfeger strait-line the company also has changed its estimated depreciation lives on certain U.

The company used the same set of accounting rules for harnischreger reporting and for internal management accounting. The instructor should ask the class to identify the latter-type decisions among the above. Share buttons are a little bit lower. In my opinion, the changed accounting format highlights the effectiveness of our strategy better than the old policies do.

When the outside world compares our financial performance with that of other companies, they may or may not take the time and effort to untangle the effects of the differences in financial harnischfegdr that various companies follow.

We will write a cxse essay sample on Harnischfeger Corporation specifically for you. Internal pricing tied to external reporting numbers. Low Similar price and Performance Consumers willingness to switch products -Low. This resulted in a change in sales calculation.