Advanced Emissions Solutions, Inc.: An Accounting Case Study

• In Event: Accounting Education and Application

Abstract

Advanced Emissions Solutions, Inc. formed as a result of the restructuring of ADA-ES, Inc. in 2013. From 2011 to 2014, Advanced Emissions experienced internal control failures resulting in materially misstated financial statements. This case study examines attributes of Advanced Emissions’ accounting failures including loss contingencies, warranty accruals, revenue recognition, consolidations, and internal controls. The case explores the ethical implications of the decisions made. The case exposes students to accounting research, critical thinking and application of knowledge learned in the classroom to a real-life situation.

Authors

• Lynn H. Clements, Florida Southern College

• Ashlyn VanDenDriessche, Florida Southern College