industry collapsed. Thomson used those funds to expand its electronic publishing. Finally, Thomson sold its major book publishing division, Thomson Learning, to a private equity firm in 2007 at what was probably the height of value for book publishers, and acquired Reuters. The case can also be used to consider the validity of fair value accounting. Thomson was required to record the fair value of various intangible assets it obtained when it acquired Reuters. Thomson valued four significant intangibles: trade names; customer relationships; developed technology, and; other. Thomson also reported pro-forma results that show operating profit had the acquisition occurred a year earlier, and pro-forma results for the current period so readers could determine how the combined firm performed relative to the prior year. The case provides enough information for a discussion of whether the acquisition was worth its value. Best uses: Undergraduate intermediate accounting First-year MBA/Executive MBA Financial accounting Financial reporting Financial statement analysis Valuation Use with: Business Combinations (Chapter 7) Thomson’s Acquisition of Reuters (B) 7 pages; intermediate IFRS reporting Change to IFRS reporting This case shows reported net income and equity under both Canadian GAAP shareholders’ and IFRS. It also includes an explanation of Canadian GAAP and IFRS rules for each item that Thomson Reuters would report differently under IFRS. The case can be used in combination with Thomson (A) to consider differences between Canadian GAAP (which is similar to U.S. GAAP) and IFRS. It can also be used to discuss how difficult it would be to change from either Canadian or U.S. GAAP to IFRS. To facilitate that discussion, the case includes Thomson to adopt IFRS early. Reuters’ request The firm expects that to be a simple conversion because Reuters already reports using IFRS. Most U.S. firms own overseas operations that also report locally using IFRS, so many of them could easily convert to IFRS. Best uses: Undergraduate intermediate accounting First-year MBA/Executive MBA Financial accounting Financial reporting Financial statement analysis Mitchells & Butlers plc
industry collapsed. Thomson used those funds to expand its electronic publishing. Finally, Thomson sold its major book publishing division, Thomson Learning, to a private equity firm in 2007 at what was probably the height of value for book publishers, and acquired Reuters. The case can also be used to consider the validity of fair value accounting. Thomson was required to record the fair value of various intangible assets it obtained when it acquired Reuters. Thomson valued four significant intangibles: trade names; customer relationships; developed technology, and; other. Thomson also reported pro-forma results that show operating profit had the acquisition occurred a year earlier, and pro-forma results for the current period so readers could determine how the combined firm performed relative to the prior year. The case provides enough information for a discussion of whether the acquisition was worth its value. Best uses: Undergraduate intermediate accounting First-year MBA/Executive MBA Financial accounting Financial reporting Financial statement analysis Valuation Use with: Business Combinations (Chapter 7) Thomson’s Acquisition of Reuters (B) 7 pages; intermediate IFRS reporting Change to IFRS reporting This case shows reported net income and shareholders’ equity under both Canadian GAAP and IFRS. It also includes an explanation of Canadian GAAP and IFRS rules for each item that Thomson Reuters would report differently under IFRS. The case can be used in combination with Thomson (A) to consider differences between Canadian GAAP (which is similar to U.S. GAAP) and IFRS. It can also be used to discuss how difficult it would be to change from either Canadian or U.S. GAAP to IFRS. To facilitate that discussion, the case includes Thomson Reuters’ request to adopt IFRS early. The firm expects that to be a simple conversion because Reuters already reports using IFRS. Most U.S. firms own overseas operations that also report locally using IFRS, so many of them could easily convert to IFRS. Best uses: Undergraduate intermediate accounting First-year MBA/Executive MBA Financial accounting Financial reporting Financial statement analysis Mitchells & Butlers plc