The Hole in the Doughnut - Accounting for Acquired Intangibles at Krispy Kreme

Krispy Kreme Doughnuts, Inc. used a 2000 initial public offering (IPO) to embark on an active expansion and franchise reacquisition program. This case focuses on this high-visibility franchise reacquisition program and several associated and highly controversial accounting issues, and provides an opportunity to examine numerous technical and conceptual issues in a real-world setting. In the case, you will encounter a variety of financial reporting issues – from identification and valuation of uncommon intangible assets in part 1, to acquisition accounting, purchase-price allocations, contingent consideration, exit costs, executive compensation, and loan impairments in part 2. The case is appropriate for use in intermediate and advanced accounting courses