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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Then clearly we are better off following the more liberal policies than conservative policies. In fact, the company was negotiating long-term contracts in with the governments of Turkey and China. How to Write a Critical Analysis.

But suppose they do not adjust. 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. Boost stock price to raise new capital Meet earnings targets for compensation Avoid violating debt covenants Improve image with customers, suppliers, etc.

Are these changes likely to affect future profits? What are the economic consequences of these changes to Harnischfeger and its workers? 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.

Previously, the cost of the patterns and tooling was expensed in the year of acquisition. Change in the depreciation methods on cqse. We wish to tell the truth but do not want to be overly conservative in doing so. Then clearly we are better off following the more liberal policies than conservative policies.


Now we have decided to change this. Also, these studies coeporation not examine whether the stock market recognizes the recurring effects of accounting changes. The corresponding percentage in was Rivalry is High – less for ITG. What is the effect of the depreciation accounting method change on the reported income in ? From the other side, the workers would suffer a significant economic lost and could lose the motivation to work for the company.

Basically the mission to satisfy shareholders and business related entities such as banks and suppliers was accomplished by showing the ability to overcome financial problems through management based on the financial statements.

Get custom essay sample written according to your requirements Urgent 3h delivery guaranteed Order Now. We would like to tell the world that we are alive and harnischfegr. The company considered the offer inadequate and rejected dase. Be as specific as possible.

Harnischfeger Corporation

In my opinion, the changed accounting format highlights the effectiveness of our strategy better than the old policies do.

The effect of the changes in the investment return assumption rates for all U.

The company is taking a risk by expecting that the one-time boost in income and cash in will enable the company to successfully expand internationally and grow in new high tech areas and become profitable once again. There is considerable evidence in finance and codporation literature that shows that the capital markets are generally efficient.

Other students are likely to argue that the market processes the reported profit numbers efficiently. The depreciation policy for financial reporting purposes was changed to a straight-line method from a principally accelerated method.


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Depreciation is a method that reduces the value of capital assets over time Harnicshfeger from accelerated to straight line retroactively Revenues Less: They argue that there forporation some sophisticated analysts who could perform the analysis that was done in the class. Since the company recently experienced the painful consequences of violating these restrictions, it is plausible that the management changed the accounting policies to avoid future violations of the debt restrictions.

Accelerated depreciation makes cost appear too high. The instructor should encourage this discussion. 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.

Harnischfeger Corporation | Free Essays –

I feel that the financial reporting should help rather than hinder the implementation of our operating strategy. How to Write a Thematic Essay. I feel that the financial reporting should help rather than hinder the implementation of our operating trategy. We will write a custom essay sample on Harnischfeger Corporation specifically for you.

EffectiveHarnischfeger began to include in its net sales products purchased from Kobe Steel, Ltd. The cumulative effect of change in there will be no reduction in the depreciation expense due to change.

This may have an effect on future profits.