Case | HBS Case Collection | September 1987 (Revised December 1996)

Patten Corp.

by Krishna G. Palepu


Forbes Magazine criticized the revenue recognition policy of Patten Corp. As a result, the company's stock price dropped by a significant amount. The students are asked to discuss if the criticism by Forbes is justified, and if not, what the company should do.

Keywords: Fair Value Accounting; Financial Statements; Budgets and Budgeting; Problems and Challenges; Financial Condition; Spending; Revenue; Planning; Quality; Stocks; Journalism and News Industry;


Palepu, Krishna G. "Patten Corp." Harvard Business School Case 188-027, September 1987. (Revised December 1996.)