Posted by & filed under Accounting Information Systems, Accounting Principles, Advanced Accounting, All Articles, Auditing, Behavioral and Social Issues Related to Accounting, Cost Accounting, Ethical Dilemma, Financial Accounting, Financial Reporting and Analysis, Financial Statement Analysis, Income Taxes, Intermediate Accounting, International Accounting, Managerial Accounting, Uncategorized.

A finding that Leon Black, the billionaire boss of Apollo Global Management, paid the convicted sex offender $150 million. This touched off an attempt to remove him.

Questions:

  1. What is Apollo Global Management?
  2. Who tried to unseat Leon Black as CEO?
  3. What act of contrition does Black plan for his role in giving money to convicted sex offender, Jeffrey Epstein?
  4. How much money does Apollo manage for institutional investors, including pension plans and sovereign wealth funds?

Source:

Goldstein, M. and K. Rosman. (2021). Apollo C.E.O. to Step Down After Firm Finds More Payments to Jeffrey Epstein. The New York Times, Jan. 25 (Retrievable online at https://www.nytimes.com/2021/01/25/business/leon-black-apollo-jeffrey-epstein.html)

Posted by & filed under Accounting Information Systems, Accounting Principles, Advanced Accounting, All Articles, Auditing, Behavioral and Social Issues Related to Accounting, Cost Accounting, Financial Accounting, IFRS, Income Taxes, Intermediate Accounting, International Accounting, Managerial Accounting, Uncategorized.

According to the New York Times, unfortunately, European governments have extended national programs to keep troubled businesses afloat, but the aid may only be postponing the inevitable demise and ultimately making things worse in the future.

Questions:

  1. According to the article, this recession in France and other European countries is the worst since when?
  2. If European governments had not intervened, what is the estimate of the number of European business failures during last year?
  3. What is the size of the rescue package proposed in the U.S. by President Biden?
  4. According to Jeffrey Franks at the IMF, why is it important to let unviable companies go bankrupt?

Source:

Alderman, L. (2021). Europe’s Bankruptcies Are Plummeting. That May Be a Problem. The New York Times, Jan. 25 (Retrievable online at https://www.nytimes.com/2021/01/25/business/Europe-bankruptcies.html)

Posted by & filed under Accounting Information Systems, Accounting Principles, Advanced Accounting, All Articles, Auditing, Behavioral and Social Issues Related to Accounting, Cost Accounting, Ethical Dilemma, Financial Accounting, Financial Reporting and Analysis, Intermediate Accounting, Managerial Accounting, Uncategorized, Video Updates.

According to the New York Times, Taboola, a company with catchy clickbait links, previously planned to merge with its chief rival. Now it plans to go public on its own.

Questions:

  1. When do companies advertising through Taboola pay?
  2. What is the Taboola platform described as?
  3. What are the concerns that Taboola has in common with other advertisers?
  4. Where was Taboola started?
  5. What is Taboola hoping for by going public?

Source:

de la Merced, M. J. and L. Hsu. (2021) Taboola, Purveyor of Clickbait Ads, Will Go Public. The New York Times, Jan. 26 (Retrievable online at https://www.nytimes.com/2021/01/25/business/media/taboola-public-spac.html)

Posted by & filed under Accounting Information Systems, Accounting Principles, Advanced Accounting, All Articles, Auditing, Behavioral and Social Issues Related to Accounting, Cost Accounting, Financial Accounting, Income Taxes, Intermediate Accounting, Managerial Accounting, Uncategorized.

According to the New York Times, tax policy used to be fairly boring and predictable. But in the past decade, it has become dynamic in a way that tax advisers don’t like: It changes with the political party in power.

Questions:

  1. According to the article, changes for tax advisers with the political party in power make what particular decisions difficult?
  2. What important tax changes are expected under the new Biden administration?
  3. How will the pandemic affect the timing of tax policy changes?

Source:

Krugman, P. (2021). The Estate Tax May Change Under Biden, Affecting Far More People. The New York Times, Jan. 15 (Retrievable online at https://www.nytimes.com/2021/01/15/your-money/estate-tax-biden.html?smid=tw-dealbook&smtyp=cur)

Posted by & filed under Accounting Information Systems, Accounting Principles, Advanced Accounting, All Articles, Auditing, Behavioral and Social Issues Related to Accounting, Cost Accounting, Ethical Dilemma, Financial Accounting, IFRS, Intermediate Accounting, International Accounting, Managerial Accounting, Uncategorized.

According to the Washington Post, Total is the first major petroleum company to leave the influential trade group, the American Petroleum Institute (API).

Question:

  1. Why did Total leave the influential API trade group?’
  2. What other oil companies have left trade groups? Name the trade groups and companies.
  3. How much has Total invested in the U.S. over the past five years?
  4. What is Total’s role in exporting liquefied natural gas in the U.S.?
  5. In what U.S. firm does Total maintain a position as major stakeholder?

Source:

Mufson, S. (2021) French oil giant Total quits American Petroleum Institute. The Washington Post, Jan. 15 (Retrievable online at https://www.washingtonpost.com/climate-environment/2021/01/15/french-oil-giant-total-quits-american-petroleum-institute/)

The logo of French oil and gas company Total. (Pascal Rossignol/Reuters)

Posted by & filed under Accounting Information Systems, Accounting Principles, Advanced Accounting, All Articles, Auditing, Behavioral and Social Issues Related to Accounting, Cost Accounting, Ethical Dilemma, Financial Accounting, Intermediate Accounting, Managerial Accounting, Uncategorized, Video Updates.

According to the Washington Post, Dollar General workers who get the COVID vaccine will be rewarded with four hours of pay. This makes the company one of the first major retailers to incentivize inoculations for its workforce.

Questions:

  1. What is the base rate for Dollar General workers?
  2. What barrier does the company hope to break down with this incentive?
  3. Are retailers required to report infection rates or deaths due to the coronavirus?
  4. According to the United Food and Commercial Workers Union estimates to Jan. 5, how many workers have been infected and how many workers have died in the retail, grocery, food processing and other front-line industries?
  5. Will the employees have to provide proof of vaccination? Do you agree with this policy? Discuss.
  6. Summarize the financial profit and investment data in the article relating to the pandemic period.

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

According to Accounting Today, highly paid college sports coaches (and some hospital executives) are are targets of a 21 percent excise tax by the IRS if these nonprofit employees receive $1 million or more in salary.

Questions:

  1. What is the big loophole in the law?
  2. Who pays the tax? Employee or nonprofit organization?
  3. What is the “limited hours exception” in the law?
  4. How does the excise-tax provision align some of the tax rules for nonprofits with that for public corporations?

Source:

Davison, L. and McQuillan, S. (2021). Colleges paying top dollar for coaches will pay extra to IRS. Accounting Today, Jan. 12 (Retrievable online at Colleges paying top dollar for coaches will pay extra to IRS | Accounting Today)

Posted by & filed under Accounting Information Systems, Accounting Principles, Advanced Accounting, All Articles, Auditing, Behavioral and Social Issues Related to Accounting, Cost Accounting, Financial Accounting, Fraud Accounting, Intermediate Accounting, Managerial Accounting, Uncategorized.

According to the Insights Commentary, the U.S. Congress recently passed the National Defense Authorization Act (“NDAA”) for Fiscal Year 2021, which includes important changes to the Securities and Exchange Commission’s (“SEC”) ability to seek disgorgement. Although President Trump vetoed the bill, the House of Representatives and Senate voted to override the veto on December 28, 2020, and January 1, 2021, respectively.

Questions:

  1. What was the context leading to the new provisions of disgorgement?
  2. For disgorgement, what is the statute of limitations for fraud-based violations according to the new legislation?
  3. What challenges does the additional time allowed by the statute of limitations pose for the SEC?
  4. What are the three takeaways from the new provisions?

Source:

Staff. (2021) Defense Bill to Expand SEC Powers and Authority. Jones Day Publications, Jan. 4 (Retrievable online at https://www.jonesday.com/en/insights/2020/12/defense-bill-to-expand-sec-powers-and-authority)

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According to Business Insider, real eiderdown is one of the warmest natural fibers you can find, but it doesn’t come cheap; an eiderdown double duvet could cost you over $8,000.

Questions:

  1. Which part of the processes do you think is most expensive?
  2. How much is produced each year?
  3. Is harvesting the down a destructive process to the wild birds?
  4. How does it compare to duck down?
  5. If you had an extra $8,000 to use for something, would you use it to buy an eiderdown double duvet? Why or why not?

Source:

Floyd, C. (2020). Why Icelandic Eiderdown Harvested from Wild Ducks is So Expensive. Business Insider, August 20 https://search.yahoo.com/search?fr=mcafee&type=E211US105G0&p=Why+is+Icelandic+Eiderdown+so+expensive)

Posted by & filed under Accounting Information Systems, Accounting Principles, Advanced Accounting, All Articles, Auditing, Financial Accounting, Financial Reporting and Analysis, Financial Statement Analysis, Intermediate Accounting, Uncategorized.

According to Accounting Today, the Financial Standards Accounting Board’s recent roundtable discussions centered on new guidance about lease implementation for public and nonpublic organizations, and what we can expect for non-public implementation next year.

Questions:

  1. Why didn’t participants at the Sep. 2020 FASB Roundtable want sweeping changes to lease guidance?
  2. According to the article, why would private companies welcome practical expedience to reduce the cost and complexity associated with determining the incremental borrowing rate?
  3. Separate from the Roundtable, the FASB issued October proposals designed to improve three targeted areas of its lease accounting guidance for public companies? What are these three areas?
  4. What would the delay of similar guidance for non-public implementation cause?

Source:

Ohm, A. (2020) FASB: Don’t make big changes to the lease standard. Accounting Today, December 24 (Retrievable online at https://www.accountingtoday.com/opinion/fasb-dont-make-big-changes-to-the-lease-standard)