NBC paid $401 million for the rights to televise the 1992 Summer Olympic Games, and it was widely reported that it had a loss of more than $60 million. CBS purchased the rights to the 1992 and 1994 Winter Olympic Games for a combined $543 million. CBS reported a $322 million pretax loss on its baseball and football contracts in 1991. 1. Under what conditions, if any, should NBC and CBS have written down the value of their assets?
NBC paid $401 million for the rights to televise the 1992 Summer Olympic Games, and it was widely reported that it had a loss of more than $60 million. CBS purchased the rights to the 1992 and 1994 Winter Olympic Games for a combined $543 million. CBS reported a $322 million pretax loss on its baseball and football contracts in 1991. 1. Under what conditions, if any, should NBC and CBS have written down the value of their assets?
Business Its Legal Ethical & Global Environment
10th Edition
ISBN:9781305224414
Author:JENNINGS
Publisher:JENNINGS
Chapter9: Business Torts
Section: Chapter Questions
Problem 9QAP
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NBC paid $401 million for the rights to televise the 1992 Summer Olympic Games, and it was widely reported that it had a loss of more than $60 million.
CBS purchased the rights to the 1992 and 1994 Winter Olympic Games for a combined $543 million. CBS reported a $322 million pretax loss on its baseball and football contracts in 1991.
1. Under what conditions, if any, should NBC and CBS have written down the value of their assets?
2. Does this situation allow opportunities for earnings management?
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