Stepping into the light: navigating the challenges of formalizing accounting practices in a Cuban travel agency

Luis Demetrio Gómez García, Gloria María Zambrano Aranda

Research output: Contribution to journalArticlepeer-review

Abstract

Learning outcomes: After reading and analyzing the case study, the students would be able to understand the critical role of the International Financial Reporting Standards (IFRS)-compliant accounting principles in facilitating strategic alliances between publicly traded international corporations and emerging companies in informal business environments, design the company’s accounting system to ensure the application of the accounting standards contained in IFRS and understand the accounting process for properly recording a company’s transactions. Case overview/synopsis: This case study deals with Giulia’s decision to take on the proposal of a conglomerate to acquire a 45% stake in her travel agency, Know Cuba First Travel Agency (KCF). Giulia was an Italian entrepreneur based in Havana, Cuba. She has dealt with informal business practices in the Cuban tourism industry. However, Foreign Investments Ltd., a publicly listed company, needs formal accounting if investing in the venture. If Giulia agrees with the proposal, an accounting information system would have to be implemented to comply with the investor’s requirements. Complexity academic level: This case study is suitable for financial accounting undergraduate courses. Supplementary materials: Teaching notes are available for educators only. Subject code: CSS 1: Accounting and finance.

Original languageEnglish
Pages (from-to)1-35
Number of pages35
JournalEmerald Emerging Markets Case Studies
Volume13
Issue number4
DOIs
StatePublished - 2023

Keywords

  • Accounting information systems
  • Accounting standards
  • Entrepreneurship
  • IFRS
  • Informal accounting practices
  • Informal business practices
  • International accounting
  • International business
  • Tourism industry

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