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...

In December 2007, the FASB revised accounting for business combinations and permitted firms to record a bargain purchase gain within current earnings at the completion of a business combination. Although the FASB contends that the new treatment improves the representational faithfulness of the...

We investigate whether or not Financial Accounting Standards (FAS) 123R, which requires recognizing stock-based compensation at fair value, affects stock repurchase activity. Prior research has shown that the dilution effect of dividends on earnings per share (EPS) decreases the value of stock...