Foster's Brewing Group Ltd.
Foster's Brewing Group Ltd. is an Australian company, who does business around the world and who shares trade on several international exchanges. The case focuses on the differences between Canadian and Australian General Accepted Accounting Principles (specifically the treatment of brands) and how these differences should be interpreted by an external investor. Teaching objectives include: (a) raising awareness of accounting differences in different jurisdictions; (b) understanding the impact that these differences may have on the financial statements; (c) examining brand accounting; and (d) making decisions on international companies as investments.
- To be aware of accounting differences in different jurisdictions.
- To understand the impact of these differences on the financial statements.
- To understand the adjustments that could be made to make the financial statements more comparable.
- To understand the limitations of financial analysis of a different country.
- To be aware of the International Standards Board and its movement for harmonization.
- To understand the business of brewing and the main drivers in the industry.
- To consider the appropriateness of Foster's brand accounting.
- To think about the various methods that may be used to value brands and consider whether Foster's would be a good long-term investment.
Canada/Australia, Large, 1997
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