Case | HBS Case Collection | September 2010 (Revised September 2011)

Leasing Decision at Magnet Beauty Products, Inc.

by Krishna G. Palepu and George Serafeim

Abstract

A fast-growing retailer is facing two different leasing options for its stores. In choosing between the two options, management is considering the potential impact of the two options on the company's financial statements, in light of the proposed new accounting standard for leases.

Keywords: Financial Statements; Decision Choices and Conditions; Growth and Development Strategy; Standards; Leasing; Beauty and Cosmetics Industry; Retail Industry;

Citation:

Palepu, Krishna G., and George Serafeim. "Leasing Decision at Magnet Beauty Products, Inc." Harvard Business School Case 111-039, September 2010. (Revised September 2011.)