The Trueblood Case Studies

The Trueblood Series cases and solutions are available in Adobe PDF format below. Solutions are password protected for faculty use only. Access to solutions by other unauthorized individuals is strictly prohibited. To find out how to obtain access to the case solutions, please contact us via e-mail or mail a request on your school letterhead to:

Deloitte Foundation
Ten Westport Road
Wilton, CT 06897

Due to the issuance of certain new accounting literature, changes in the status of ongoing projects during the last year, or evolution of practice, addenda have been added to a number of the existing cases. Please refer to the “Addendum” column in the index below to determine if a case has been updated. A link to the 2011 Addenda Summary can also be found at the bottom of this page. Because an addendum may affect the solution for a case study, you should review the updated solutions.

The nonexclusive right to reproduce material contained in these cases without explicit written permission is hereby granted to faculty in connection with classroom use, academic research, and other educational endeavors of a not-for-profit nature.

2011 Case Index

Case: 11-1 Polluter
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Type: Cash flows US and IFRS
Subject: Statement of Cashflows classification
Applicable courses: Intermediate

Case: 11-2(a) Fair Value Hierarchy 
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Type: Fair Value
Subject: Determining fair value hierarchy per ASC 820 and reconciliation of investments valued with Level 3 inputs.
Applicable courses: Graduate

Case: 11-2(b) Fair Value Disclosures
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Type: Fair Value
Subject: Determining quantitative and qualitative disclosures for assets and liabilities that are measured at fair value on a recurring basis under ASC 820.
Applicable courses: Graduate

Case: 11-3 Masters of the Universe
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Type: Consolidation of Variable Interest Entities
Subject: Applying key concepts of the VIE model in ASC 810-10 (Statement 167).
Applicable courses: Advanced or Graduate

Case: 11-4 Functional Currency Determination
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Type: Functional Currency US and IFRS
Subject:Determining functional currency under IFRS and U.S. GAAP
Applicable courses: Advanced or Graduate

Case: 11-5 Venus Cellular
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Type: Income Statement Presentation
Subject: Identifying presentation issues in the statement of comprehensive income or the income statement under U.S. GAAP and IFRS
Applicable courses: Intermediate

Case: 11-6 Lessee, Ltd.
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Type: Lease accounting US and IFRS
Subject: Determining the appropriate classification and accounting for a lease arrangement under U.S. GAAP and IFRS
Applicable courses: Intermediate or Graduate

Case: 11-7 Food for Thought
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Type: Business Combinations
Subject: Determining consideration transferred, fair value of assets acquired and liabilities assumed and valuation of intangible assets under ASC 805.
Applicable courses: Advanced or Graduate

Case: 11-8 Billy's Beats
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Type:Professional judgement
Subject: Using professional judgment to evaluate the reserve estimates based on management representations.
Applicable courses: Undergraduate or Graduate Auditing

Case: 11-9 Goodwill Impairment Testing
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Type: Goodwill Impairment
Subject: Determining if an interim goodwill impairment test should be performed and if the goodwill impairment analysis performed at the last annual testing date can be carried forward to the current year.
Applicable courses: Intermediate or Graduate

2010 Case Index

Case: 10-1 SolvGen
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Type: Revenue recognition
Subject: Recognizing revenue in a research and development arrangement with multiple elements
Applicable courses: Intermediate or Graduate

Case: 10-2 Eagle Impairment Loss
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Type: Accounting for Asset Impairments
Subject: Calculating impairment of assets and reversals of impairment losses under IFRS and U.S. GAAP
Applicable courses: Intermediate or Graduate

Case 10-3 Restructuring Costs
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Type: Restructuring Costs 
Subject: Accounting for restructuring costs under IFRS and U.S. GAAP
Applicable courses: Intermediate or Graduate

Case 10-4 Lack of Information
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Type: Asset Retirement Obligations
Subject: Assessing whether sufficient information exists to measure an asset retirement obligation.
Applicable courses: Intermediate or Graduate

Cases: 10-5 Danle Corporation
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Type: Contingencies
Subject: Accounting and disclosure requirements of SFAS 5
Applicable courses: Intermediate or Graduate course integrating Financial Reporting and Auditing

Case: 10-6 Care for Kids
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Type: Materiality of Errors
Subject: Evaluating & classifying deficiencies that are greater than de minimis but not material
Applicable courses: Auditing

Case: 10-7 Impaired Abilites
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Type: Investments
Subject: Assessing whether investments are other than temporarily impaired
Applicable courses: Intermediate or Graduate

Case: 10-8 AB&C Company
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Type: Investments; Fair Value
Subject: Auditing investments: existence and valuation
Applicable courses: Auditing or Graduate course integrating Financial Reporting and Auditing

Case: 10-9 Institutional Investor Company
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Type: Investments; Fair Value
Subject: Auditing investments: existence and valuation
Applicable courses: Auditing or Graduate course integrating Financial Reporting and Auditing

Case: 10-10 An Offer You Can't Refuse
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Type: Professional Judgment
Subject: Professional judgment on accrual of estimated settlement obligation and management representations
Applicable courses: Auditing or Graduate course integrating Financial Reporting and Auditing

Case: 10-11 Eye Vision
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Type: Revenue Recognition
Subject: Multiple deliverables/software revenue recognition
Applicable courses: Intermediate or Graduate

2009 Case Index

Case: 09-1 Velocity Cellular
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Type: Revenue recognition
Subject: Accounting for revenue arrangements with multiple deliverables. The case requires students to question the existence of multiple deliverables.
Applicable courses: Intermediate or Graduate

Case: 09-2 Pharmgen Pharmaceuticals
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Type: Funded R&D
Subject: Understanding the implications of and accounting for R&D funding arrangements. The case focuses on the difficulty of deciding how to account for R&D contractual arrangements.
Applicable courses: Intermediate or Graduate

Case 09-3 Venturing Into Consolidations
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Type: FIN 46(R)/ Consolidations 
Subject: Applying the principles of accounting for Variable Interest Entities to Joint Venture arrangements. The case focuses on identifying variable interest entities and determining which standards to apply.
Applicable courses: Advanced or Graduate

Case 09-4 Needs Space
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Type: Lease accounting
Subject: Accounting for asset retirement and similar obligations imposed under the terms of a lease agreement.
Applicable courses: Intermediate or Graduate

Cases: 09-5 and 09-5(a) Pit Stop Closed/Sold
Download: 09-5 Case | Solution  09-5(a) Case | Solution
Type: Discontinued operations
Subject: Determining whether an asset disposal qualifies for presentation as a discontinued operation.
Applicable courses: Advanced or Graduate

Case: 09-6 UpBeat, Inc.
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Type: Transfers of financial assets
Subject: Accounting for the transfer and servicing of financial instruments. The case requires students to determine whether particular provisions preclude sales treatment.
Applicable courses: Advanced or Graduate

Case: 09-7 Auto Corporation
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Type: Impairment
Subject: Accounting for asset impairments. The case asks students to determine the appropriate asset groupings to assess impairment and to identify matters to consider when testing the recognition and measurement of impairment.
Applicable courses: Intermediate or undergraduate auditing if covering either the accounting or auditing components separately; Graduate course integrating accounting and auditing

Case: 09-8 Classified Information
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Type: Income statement presentation
Subject: Issues related to the appropriate placement of items in the income statement. The case is designed to illustrate some common issues related to income statement presentation.
Applicable courses: Intermediate or Graduate

Case: 09-9 Bricks & Mortar
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Type: Income taxes
Subject: Accounting for uncertain tax positions. The case illustrates the judgments involved in applying FIN48.
Applicable courses: Intermediate or Graduate Accounting or Tax course covering FIN48

2008 Case Index

Case: 08-2 - Sooner or Later
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Type: Stock compensation 
Subject: Understanding the implications of performance measures in the accounting for share-based compensation.
Applicable Courses: Intermediate or graduate course

Case: 08-3 - Hedge Documentation
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Type: Derivatives
Subject: Identifying deficiencies in hedge documentation under SFAS 133 and understanding the implications for hedge accounting. 2009 Addendum: No
Applicable Courses: Graduate

Case: 08-4 - The Bear Minimum
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Type: Lease accounting
Subject: Identifying minimum lease payments.
Applicable Courses: Intermediate

Case: 08-5 - Sell-It Products
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Type: Segment reporting
Subject: Analyzing selected financial statement data to identify operating segments and determining which of those are reportable segments.
Applicable Courses: Intermediate or graduate

Case: 08-6 - The Rump Organization
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Type: Pension/OPEB accounting
Subject: Understanding the difference between voluntary and involuntary employee termination benefits and the related accounting implications.
Applicable Courses: Intermediate or graduate course

Case: 08-9 - Fraud and Illegal Acts
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Type: Auditing
Subject: Fraud
Applicable Courses: Undergraduate or auditing course.

2007 Case Index

Case: 07-3 Columbia On-Line Networks
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Type: Accounting
Subject: Recognizing revenue in arrangements with multiple elements, accounting for long- term executory contracts, and audit considerations with respect to revenue recognition (with an emphasis on identifying round-trip transactions).
Applicable Courses: Intermediate accounting or undergraduate auditing if covering either the accounting or the auditing components of the case independently. Graduate course integrating financial accounting and auditing.

Case: 07-4 Murray Compensation
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Type: Accounting
Subject: Accounting for modifications to share-based payment awards. Requires the calculation of share based payments including the impact of reducing the exercise price.
Applicable Courses: Intermediate accounting or graduate course.

Case: 07-5 Springbok Corporation
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Type: Accounting
Subject: Identifying the accounting literature that applies to long-term incentive plans.
Applicable Courses: Requires research of the accounting literature to determine which literature appropriately applies to long-term incentive programs.

Case: 07-6 Graphic, Inc.
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Type: Accounting
Subject: Identifying and evaluating evidence to determine the appropriate income tax valuation allowance. Requires applying judgment in assessing the evidence that would impact the need for a valuation allowance related to deferred tax assets.
Applicable Courses: Intermediate accounting or graduate course.

Case: 07-8 Hurricane William
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Type: Accounting
Subject: Accounting for anticipated insurance recoveries. Focuses on the judgments related to accounting for a contingent asset, in this case an insurance recovery.
Applicable Courses: Intermediate accounting.

2006 Case Index

Case: 06-12 Outsourcing Services, Inc.
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Type: Accounting
Subject: Deferred Costs (accounting for upfront contract origination costs)
Applicable Courses: Intermediate - expense recognition

2005 Case Index

Case: 05-6 Centcom, Inc.
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Type: Accounting
Subject: Consolidation (consolidation in accordance with the guidance under IFRS)
Applicable Courses: Advanced or graduate

Case: 05-7 Ace Company
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Type: Accounting
Subject: Derivatives (equity instruments with multiple components)
Applicable Courses: Graduate

Case: 05-9 Spend More
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Type: Accounting
Subject: Stock Compensation (accounting for compensation costs under different stock option arrangements)
Applicable Courses: Intermediate - stock options or graduate

2004 Case Index

Case: 04-4 Three Little Pigs, Inc.
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Type: Accounting
Subject: Inventory (assessing and reporting of impairment of inventories - LOCOM)
Applicable Courses: Intermediate - inventory valuation

Case: 04-8 Drug King
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Type: Accounting
Subject: Derivatives (accounting for assets transfers with related puts and calls)
Applicable Courses: Graduate

Case: 04-9 Healthcare Depot
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Type: Accounting
Subject: Goodwill Impairment Issues (goodwill impairment and identification of reporting units)
Applicable Courses: Intermediate - intangibles or graduate

2003 Case Index

Case: 03-5 – Part 1 Trademark, Inc. Part 1
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Type: Accounting Auditing
Subject: Client Integrity (earnings management and assessing client integrity)
Applicable Courses: Undergraduate or graduate auditing

Case: 03-5 – Part 2 Trademark Inc. Part 2
Download: Case | Solution | Handout 1 | Handout 2 | Handout 3
Type: Auditing
Subject: Client Integrity (audit procedures related to assessing potential misstatements related to earnings management)
Applicable Courses: Undergraduate or graduate auditing

Note: Cases and solutions for 10-1, 10-2, 11-2(a), 11-2(b), and 11-5 will be coming soon.