Posted by & filed under Accounting Principles, Marketing & Strategy.

Description: Not so long ago Samsung’s Galaxy Note 7  launch was met with claims of ‘phone to beat’ status from Cnet.com. The past few days, however, have been unfriendly times for Samsung’s Note 7 with multiplying accounts of phones on fire. The latest blow:  airlines banning the planes from flight. Combined with news of Samsung’s exploding washing machines, Samsung will have some reputation rebuilding to think about.

 Date: October 15, 2016

Source: theglobeandmail.com; CNN.com

Link:

http://www.theglobeandmail.com/news/national/us-canada-ban-samsung-galaxy-note-7-smartphones-from-airliners/article32382150/

http://money.cnn.com/2016/09/28/news/samsung-cpsc-washing-machine-explosion-reports/index.html

Discussion Points:

1) Are you or any of your friends owners of the Note 7? Have any of you seen the phone go up in flames?

2) If you were working for Samsung, what strategies might you recommend to combat the issues over product quality?n

3)  Chapter 10 of Wiley’s  Financial Accounting: Tools for Business Decision Making speaks about provisions and contingent liabilities. Should Samsung use one of these approaches in accounting for the Galaxy Note 7?

 

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