Diamond Foods

1. Determine Facts • Diamond foods is a snack and nut company that Is based in Stockton, California. • Diamond Foods carried a reputation that they would make “bold and expensive” transactions and acquisitions. • Diamond created an aggressive culture that focused on performance due to competition within the industry. • Diamond Foods lacked oversight from management and questionable ethical behaviors started to occur. • In 2009, there was a restructuring of leadership due to fraud allegations against

Executive summary Diamond Foods, Inc. was founded in 1912 and was publicly traded in 2005 as a distributor of potato chips, snack nuts, popcorn, shell nuts, and culinary nuts. Its brands include: Kettle Brand Chips, Emerald snack nuts, Pop Secret popcorn, and Diamond of California nuts (Gujarathi, 2015, p. 47). The company motto was always “bigger is better,” which was implemented by former CEO Michael Mendes (Mendes) to meet high performance expectations and keep up with the competition in the snack

Diamond Foods Accounting Scandal BACKGROUND: Founded in 1912 as a walnut grower cooperative, Diamond Food’s primary business involved buying walnuts from local California growers, processing the product, and reselling it. The San Francisco-based company converted from a cooperative to a public corporation in July of 2005, issuing its initial shares for $17. By 2010, Diamond Foods (DMND) had expanded and acquired a number of snack food companies including Kettle Brand® Chips and Pop Secret® popcorn

Diamond Food Case Project Requirement 1     1. Manipulation of commodity cost. As a common practice in the company, management would instruct related accounting employee to decrease the commodity costs by a small incremental at a time, until the desired earning numbers for that period was achieved. 2. Special accounting treatment of grower payments. Diamond made “continuity payment” and “momentum payment” to manipulate cost to growers. These payments were claimed to be advances for multi-year

SEC v. Diamond Food, Inc. Diamond Food, Inc. is a snack food company founded in 1912 in San Francisco. Diamond Inc. decided to broaden internationally in 1930 and turned into a publicly traded company in 2005. Diamond Inc. sells five premium merchandise, under five various brands; their products are chips, nuts and popcorn and their brands are Diamond of California, Kettle Brand, Kettle chips, Emerald and Pop Secret. In January 2014, SEC filed independent actions against diamond food Inc. due to

Allegations of Diamond Foods Inc.’s’ Understatement of Accounts Payable. Abstract On November 1, 2011, Diamond Foods Inc.’s (NASDAQ: DMND) unexpectedly disclosed serious discrepancies (possible understatement of accounts payable) regarding its 2011 financial statement reports and as a result announced its decision to delay its acquisition of the Pringles snack business from Procter & Gamble Company (P&G) (NYSE: PG). Naturally, the November 1, 2011 confession caused an immediate

Diamond Foods Case – Final Exam ------------------------------------------------- MKTG 4100-12 Jeffrey Moore 6/4/2013 Diamond Foods Case – Final Exam ------------------------------------------------- MKTG 4100-12 Jeffrey Moore 6/4/2013 Introduction & Problem Statement Since Diamond Foods (DF) became public in 2005

Problem Statement The major internal problem that Diamond Foods needs to address is potential excess waste in the packaging and handling operations of their product assembly. One of the major external problems is facing the demands of competitors. The ethical dilemma that Diamond Foods could face is lying about nutritional facts on products and packaging. Trend Analysis The trend of net sales, in terms of percentage fluctuation, proves that net sales stayed almost exactly the same between 2013

ISSUES IN ACCOUNTING EDUCATION Vol. 30, No. 1 2015 pp. 47–69 American Accounting Association DOI: 10.2308/iace-50948 Diamond Foods, Inc.: Anatomy and Motivations of Earnings Manipulation Mahendra R. Gujarathi ABSTRACT: Diamond Foods is America’s largest walnut processor specializing in processing, marketing, and distributing nuts and snack products. This real-world case presents financial reporting issues around the commodities cost shifting strategy used by Diamond’s management to falsify

Marks each ) | | Case 1 | Conflict Diamonds | | | During the late 1990s South African diamond product De Beers and other companies on the diamond industry discovered that some of the diamonds they were buying or selling came from groups who used the proceeds to finance brutal civil wars. In Sierra Leone, rebels took control of diamond mines by systematically chopping off the arms and hands of as many as 20,000 children, women and men until the diamond operations were turned over to them. Similarly