Blockbuster Video.

Blockbuster Video is a case study that covers the matching principle, ordinary vs. extraordinary income, amortization of goodwill and the relationship between accounting information and market efficiency. Instructors of Intermediate Accounting I or other junior-level accounting courses should find the level of difficulty of the accounting principles and the related issues addressed in the case appropriate for their students. Students should be able to develop their analytical skills by researching the official accounting pronouncements through the Financial Accounting Research System (FARS) or other sources of authoritative literature that are related to each accounting issue. This process should allow students to better understand the different alternatives which pertain to each accounting issue, and to perceive the key factors relevant in evaluating each alternative.