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First Solar: CFRAs Accounting Quality Concerns Case Solution & Answer

The case relates to the analysis of the quality of accounting under Prime Centre research firm Financial Research and Analysis (CFRA) companies in the solar industry, focusing on First Solar Inc. in 2009, CFRA feared First Solar, as most of the solar industry, at the deteriorating business prospects and exposed to the risks arising from the recognition of revenue, high inventory levels, the lack of customers and geographical diversification, aggressive policies ensure growth of excess production capacity, and risks of the supply chain. The case puts students in the shoes of the CFRA analysts who need to assess the prospects of the quality of accounting and business of First Solar after the company released its financial figures for the second quarter of 2009. The case provides students with basic information about the solar energy industry, First Solar, the CFRA research data, and quarterly reports of First Solar and conference call on the results of analysis and draw conclusions about accounting practices and First Solar strength as a company. Students must decide whether to flag CFRA First Solar as a concern and add “major concerns” CFRA list.
by
Suraj Srinivasan,
Ian McKown Cornell
Source: Harvard Business School
30 pages.
Date Posted: January 24, 2013. Prod #: 113044-PDF-ENG
First Solar: Accounting Quality Concerns CFRA Case Solution

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