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

Posted: 31 Aug 2010

See all articles by Lori Holder-Webb

Lori Holder-Webb

Western New England University - Department of Accounting and Finance

Mark J. Kohlbeck

Florida Atlantic University - School of Accounting

Date Written: 2006

Abstract

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.

Keywords: financial reporting, mergers and acqusitions, reaquired franchise rights, intangibles

JEL Classification: M40, M49, G34

Suggested Citation

Holder-Webb, Lori and Kohlbeck, Mark J., The Hole in the Doughnut - Accounting for Acquired Intangibles at Krispy Kreme (2006). Issues in Accounting Education, Vol. 21, No. 3, 2006. Available at SSRN: https://ssrn.com/abstract=1669341

Lori Holder-Webb (Contact Author)

Western New England University - Department of Accounting and Finance ( email )

United States

Mark J. Kohlbeck

Florida Atlantic University - School of Accounting ( email )

777 Glades Avenue
KH 119
Boca Raton, FL 33431-0991
United States
561-297-1363 (Phone)

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