How is the balance sheet of Rovio, the maker of Angry Birds, impacted by its Initial Public Offering? Original blog posting (November 5, 2017)

Rovio had its IPO in late 2017 Rovio, maker of Angry Birds mobile games, is headquartered in Finland IPO in September 2017 resulted in cash proceeds to Rovio of 30 million euros (approx. $35 US million) Rovio wants to acquire other game makers and reward employees with the proceeds

Question 1 Assume that Rovio received the proceeds from its IPO in cash. How would Rovio’s balance sheet be impacted by its IPO? (Ignore any underwriting, professional, or other fees related to an IPO.)

Question 2 Would there be any impact on Rovio’s income statement in 2017 from this IPO? Explain.

Question 3 What would be the impact on Rovio’s balance sheet if it used its cash to then purchase another game maker company as a long-term investment?

Question Recap Assume that Rovio received the proceeds from its IPO in cash. How would Rovio’s balance sheet be impacted by its IPO? (Ignore any underwriting, professional, or other fees related to an IPO.) Would there be any impact on Rovio’s income statement in 2017 from this IPO? Explain. What would be the impact on Rovio’s balance sheet if it used its cash to then purchase another game maker company as a long-term investment?

For additional news stories to use in the accounting classroom, see the Accounting in the Headlines blog at http://accountingintheheadlines.com/ Questions or comments? Dr. Wendy Tietz at wtietz@kent.edu