Instructional Case: Cannon Group, Inc.

This case study focuses on the processes of cost amortization, revenue recognition, and revenue estimation. The case setting involves an independent film production company that has recently been informed that its filings with the Securities and Exchange Commission are being investigated. Students are asked to take the perspective of an accountant for an investment banking firm assigned to assess whether Cannon's financial disclosures are fairly presented. The case has been used successfully at the M.B.A. level, but is also appropriate for the undergraduate level in an intermediate or accounting theory course. The case was prepared from publicly available documents.