KANSAS CITY ZEPHYRS BASEBALL CLUB: A BASEBALL ACCOUNTING DISPUTE. This case is used to illustrate some basic accounting issues in a. Describes a dispute between the owners of the major league baseball teams and the players’ union about the profitability of the baseball teams. The issue is. Kansas City Zephyrs Baseball Club, Inc. case study. Krishna G. Palepu. Save; Share. Save; Share.
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Proxy advisors ISS and Glass Lewis expressed serious reservations about the plan and urged shareholders to vote against it. Considering the fact that Kansas City Zephyrs Baseball Club is expensing everything ahead of time it is important to note that they will not have these costs to offset profit from future years. Palepu and Sarah Gulick. The players feel that the sign-up bonuses should be amortized over the contract of the players. Palepu, and Anthony K.
Kansas City Zephyrs Baseball Club Case Study by Chiara Lo Cascio on Prezi
Zepyhrs, but copying text is forbidden on this website! If all the targets were achieved, Tesla would be one of the most valuable companies in the world, and Musk would receive the highest compensation of any CEO in US corporate history. The case describes the financial statements of the baseball club Kansas City Zephyrs and discusses several items citty accounting treatment is under dispute between owners and players.
If you contact us after hours, we’ll get back to you in 24 hours or less. The case is best used as an introductory case in a course on financial reporting or performance measurement. Business and Environment Business History Entrepreneurship. Icn.2006 there is a separate fund this can be put on the balance sheet as a other asset till they are expensed in the year they become a current payable.
The plan xephyrs were entirely contingent on achieving very ambitious market value, sales, and EBIT targets over the next ten years. A consultant is brought in to decide whether a representative team, the Kansas City Zephyrs, is making or losing money. This seems inconsistent with their prior argument to have the financials match cash flow as much as possible with an argument against depreciation.
If the targets were not achieved, Musk would receive nothing. Click to learn more https: Cite View Details Related. Hi, I am Sara from Studymoose Hi there, would you like to get such a paper?
Kansas City Zephyrs Baseball Club, Inc.
Using different accounting techniques resulted in two very different financial statements for the Kansas City Zephyrs Baseball Kwnsas. Palepu This case centers around a dispute between the owners and the players regarding the profitability of professional baseball teams in zephyr with the negotiations for a new collective bargaining agreement.
Palepu and Sarah Gulick Keywords: It was also brought up that some companies put aside this money and others do not. Although, both teams seem to agree on most of the financial statements there seem to be three specific areas that are kxnsas dispute. How to cite this page Choose cite format: According to the players there is an appreciation rather than depreciation as the players actually improve their skills as they increase in experience.
Kansas City Zephyrs Baseball Club Essay
Aiyesha DeyKrishna G. The issue is important because of the ongoing collective bargaining negotiations. Palepu, and Joseph P. Your Answer is very helpful for Us Thank you a lot! The discussion reveals the tensions in performance measurement and illustrates the fundamental issues in accrual accounting. The three causes of disputes are roster depreciation, overstated player salary expense, and related party transactions.
Accounting and Management General Management.
Cite View Details Educators Related. How about receiving a customized one? Accessed December 31, Sorry, but downloading is forbidden on this website. We’ll occasionally send you account related and promo emails. Students are asked to resolve basebapl disagreements and determine the team’s “true” profitability.
Finance Globalization Health Care. He has to settle a number of accounting disputes about roster depreciation, signing bonuses, deferred compensation, and stadium costs.