Posted by & filed under Accounting Information Systems, Accounting Principles, Advanced Accounting, All Articles, Auditing, Cost Accounting, Ethical Dilemma, Financial Accounting, Income Taxes, Intermediate Accounting, Managerial Accounting, Uncategorized, Video Updates.

Walmart’s disabled greeters are being replaced by “customer hosts,” with growing responsibilities.

Questions:
1. Why has this been such a PR disaster for the company?
2. How many days were the greeters given to find new jobs?
3. What is the new job of “customer hosts” meant to do?
4. What are your thoughts about this change?

Source:
Siegel, R. (2019). A crisis for Walmart’s disabled workers, and a PR crisis for the retail giant. The Washington Post, March 1 (Retrievable at https://www.washingtonpost.com/business/2019/03/01/crisis-walmarts-disabled-workers-pr-crisis-retail-giant/?utm_term=.352fa71e8f30).

Posted by & filed under Accounting Information Systems, Accounting Principles, Advanced Accounting, All Articles, Auditing, Cost Accounting, Financial Accounting, Income Taxes, Intermediate Accounting, International Accounting, Managerial Accounting, Uncategorized.

According to Axios, while big chains like Amazon Go, Sweetgreen, and Shake Shack are fast eliminating cash sales, U.S. cities and states are fighting against this trend.

Questions:
1. Why are states like New Jersey and cities like Philadelphia banning cashless retailers?
2. What percentage of U.S. sales are made with cash?
3. What is the trend in China?
4. What are some of the “work-arounds” to accept cash?

Source:
Pandey, E. (2019). The battle against cashless stores. Axios.com, March 2 (Retrievable at https://www.axios.com/banning-cashless-stores-6da5af22-f251-4fca-af71-e9a7579381b0.html).

Posted by & filed under Accounting Information Systems, Accounting Principles, Advanced Accounting, All Articles, Auditing, Cost Accounting, Ethical Dilemma, Financial Accounting, Income Taxes, Intermediate Accounting, Managerial Accounting, Uncategorized.

In Germany, a family owing a debt had the family dog seized by the city of Ahlen. The City then sold the dog on EBay in order to pay for the debt.

Questions:

1. What were the other assets that they considered seizing?
2. Who bought the dog and what was the new owner skeptical about?
3. After the new owner bought the dog, what happened and why is the owner now considering legal action against the city?
4. Months later, what are the three children keeping to remind them of their dog that was taken by the City?
5. What is your opinion of this incident?

Source:
Mettler, K. (2019) A family couldn’t pay the bills, so the city took their dog and sold it on eBay. The Washington Post, Feb. 28 (Retrievable online at https://www.washingtonpost.com/science/2019/03/01/family-couldnt-pay-their-bills-so-city-took-their-dog-sold-it-ebay/?utm_term=.4801a6455c85)

Posted by & filed under Accounting Information Systems, Accounting Principles, Advanced Accounting, All Articles, Auditing, Cost Accounting, Financial Accounting, Intermediate Accounting, Managerial Accounting, Video Updates.

According to StockNews.com, Amazon is becoming a player in the logistics and shipping industry.

Questions:
1. How many planes does Amazon have?
2. Where will its new hub be and how much does it cost?
3. How much did shipping costs increase for Amazon this year?
4. Which airport recently dethroned Atlanta as the top cargo shipper because of Amazon?

Source:
Schoolov, K. (2019). Amazon is rapidly adding planes to its fleet to handle more of its own shipping. Stock News.com, Feb. 15, 2019 (Retrievable online at https://stocknews.com/news/amzn-amazon-is-rapidly-adding-planes-to-its-fleet-to-handle/)

Posted by & filed under Accounting Information Systems, Accounting Principles, Advanced Accounting, All Articles, Auditing, Cost Accounting, Income Taxes, Intermediate Accounting, Managerial Accounting, Uncategorized.

When millions of Americans began filling out their 2018 taxes, they were surprised to learn that their refunds will be less than expected or that they owe money to the Internal Revenue Service after years of receiving refunds.

Questions:
1. How are some people protesting via social media?
2. Why have refunds decreased?
3. How much has the average refund check decreased this year as compared to last year?
4. Based on the article, explain the difference between taxes versus your refund.

Source:

Long, H. (2019). Millions of Americans could be stunned as their tax refunds shrink. Washington Post, Feb. 10 (Retrievable online at https://www.washingtonpost.com/business/2019/02/10/millions-americans-could-be-stunned-their-tax-refunds-shrink/?utm_term=.222c14616eff)

Posted by & filed under Accounting Information Systems, Accounting Principles, Advanced Accounting, All Articles, Auditing, Cost Accounting, Ethical Dilemma, Financial Accounting, Intermediate Accounting, Managerial Accounting, Uncategorized.

According to Bloomberg, Novartis AG is preparing for significant demand for its new gene therapy, a potential blockbuster targeting a disease that kills infants. Now the company is looking at the potential for installment payment plans for a treatment that could command a multimillion-dollar price.

Questions:
1. At what price does Novartis estimate that the drug Zolgensma could be cost-effective?
2. The treatment is a potential cure for what disease?
3. If Zolgensma is an alternative to Biogen Inc.’s drug Spinraza, what is the benefit of having two drugs for the same condition?

Source:
Paton, J. (2019). Novartis Sees High Demand for Possible Multimillion-Dollar Drug. Bloomberg, Jan. 31 (Retrievable online at https://www.bloomberg.com/news/articles/2019-01-30/novartis-prepares-for-significant-demand-for-new-gene-therapy)

Posted by & filed under Accounting Information Systems, Accounting Principles, Advanced Accounting, All Articles, Auditing, Cost Accounting, Ethical Dilemma, Financial Accounting, Intermediate Accounting, Managerial Accounting, Uncategorized.

According to the Guardian, the Trump administration plans to abolish key parts of an Obama-era rule that was aimed at protecting vulnerable borrowers from amassing untenable debts from payday loans.

Questions:
1. How high can the interest rate be from some payday lenders?
2. What is the Trump administration argument for scrapping the basic expense coverage?
3. Who and what do advocates for borrowers blame for the change?

Source:
Milman, O. (2019) Trump administration to roll back Obama-era payday loan protections. The Guardian, Feb. 7 (Retrievable online at https://www.theguardian.com/us-news/2019/feb/07/payday-loans-rule-consumer-financial-protection-roll-back)

Posted by & filed under Accounting Information Systems, Accounting Principles, Advanced Accounting, All Articles, Auditing, Cost Accounting, Ethical Dilemma, Financial Accounting, IFRS, Income Taxes, Intermediate Accounting, International Accounting, Managerial Accounting, Uncategorized.

A Finnish nationwide experiment with basic income has not increased employment among those participating in the two-year trial, but their general well-being seems to have increased.

Questions:
1. How much did randomly selected, unemployed people aged 25-58 get in tax-free income each month? (U.S. dollars)
2. What were most people worried about related to any new venture?
3. What was the country’s unemployment rate in 2018?
4. What are your thoughts about this trial?

Source:
Olsen, J.M. (2019). Finnish basic income trial: creates happiness, but not jobs. AP News, Feb. 8 (Retrievable at https://apnews.com/f80234e1958e4635ba01c5aa83f09778)

Posted by & filed under Accounting Information Systems, Accounting Principles, Advanced Accounting, All Articles, Auditing, Cost Accounting, Ethical Dilemma, Financial Accounting, Intermediate Accounting, Managerial Accounting, Uncategorized.

According to Axios, listed companies, who previously provided detailed breakouts of information on earnings reports, are now paring down these disclosures.

Questions:
1. What is(are) the reason(s) for this minimalist reporting?
2. What changes did Ford Motors make and what may be a reason for this?
3. Companies say the old metrics are less appropriate as their businesses evolve, but what do market strategists claim?

Source:
Brown, C. (2019). Wall Street trend: Cutting back details from earnings reports. Axios.com, Feb. 8 (Retrievable at https://www.axios.com/get-read-cutting-back-on-how-they-report-earnings-1549633742-087c7687-159b-427e-a746-407f9bed96a0.html)

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Herbalife’s chief executive has resigned over unspecified comments he made before taking leadership of the Los Angeles supplement maker.

Questions:
1. What did his previous remarks relate to?
2. Who is CEO Goudis’ replacement and what is the replacement’s background?
3. Why has Herbalife been in the news since 2015?

Source:
Pazzanghera, J. (2019). Herbalife chief Richard Goudis resigns over comments he made before taking the job. LA Times, Jan. 9 (Retrievable online at https://www.latimes.com/business/la-fi-herbalife-goudis-resigns-20190109-story.html)