Analogical Reasoning and the case of Accounting for Cashback Programs in the Casino Industry

The primary objective of this instructional case is to develop students' analogical reasoning skills. This objective is accomplished by directing the students to resolve an actual accounting issue involving an unstructured, open-ended, and real situation for which there are no specific authoritative pronouncements. To resolve the issue, students must draw upon and apply their knowledge and understanding of accounting principles as embodied in GAAP. Students are likely to disagree on the proper accounting treatment to be used in this situation. Therefore, the case can also be used to expose them to issues arising in the context of resolving disagreements in a group setting.