Stirling Homex (A)

Case Analysis

Deals primarily with the fundamental issue of revenue recognition. Homex was recognizing revenue from its modular units before the date on which a sale had actually occurred. In addition, there are some interesting questions that deal with the distribution of profits between divisions, the activation of expenses, and the importance of ‘working capital’ in a particular setting.

Deals primarily with the fundamental issue of revenue recognition. Homex was recognizing revenue from its modular units before the date on which a sale had actually occurred. In addition, there are some interesting questions that deal with the distribution of profits between divisions, the activation of expenses, and the importance of ‘working capital’ in a particular setting.
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from
M. Edgar Barrett,
Jonathan N. Brown
Source: Harvard Business School
12 pages.
Release date: 01 March, 1973. Prod #: 173193-PDF-ENG
Stirling Homex (A) HBR case solution