Posted by & filed under Accounting Information Systems, Accounting Principles, Advanced Accounting, Auditing, Cost Accounting, Ethical Dilemma, Fraud Accounting, Intermediate Accounting, Managerial Accounting, Uncategorized, Video Updates.

According to Mother Jones, in 10 months, the Trump administration has yet to approve a single claim to help defrauded students of such for-profit colleges as Corinthian or ITT.

Questions:
1. Who is now calling on the Department of Education to resume helping students who borrowed loans from the fraudulent for-profit colleges?
2. Approximately how many people have been defrauded from Corinthian and ITT?
3. How many borrower defense claims had been approved under the Obama administration?
4. Why did Betsy DeVos draw criticism from consumer advocates and lawmakers when, at a conference in Michigan, regarding this issue?

Source:
Rios, E. (2017). The Trump Administration Has Yet to Approve a Single Student Debt Relief Claim. Mother Jones, Nov. 15 (Retrievable online at http://www.motherjones.com/politics/2017/11/the-trump-administration-has-yet-to-approve-a-single-student-debt-relief-claim/)

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

According to the New York TImes, Republicans in the House of Representatives have just passed a tax bill that would devastate graduate research in the United States.

Questions:

1. What would be the result if universities try to cover the tuition that will now be taxed for graduate students?
2. How does the American public benefit from graduate students?
3. What happens to the Lifetime Learning credit as a result of this bill?
4. Is this bill now law? Explain.

Source:
Rosseau, E. (2017). he House Just Voted to Bankrupt Graduate Students. The New York Times, Nov. 16 (Retrievable online at https://www.nytimes.com/2017/11/16/opinion/house-tax-bill-graduate-students.html)

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

According to the Washington Post, Walmart, which has worked hard to shed its image as an old-school retailer, recently offered proof that its efforts are working: Online sales rose 50 percent, the company said, as more Americans flocked to Walmart.com for everyday items.

Questions:
1. After the announcement about the increase in online sales, what happened to Walmart shares?
2. What has Walmart done to expand its online reach?
3. How much are Americans expected to spend this Holiday season?
4. What are the projections for Target?

Source:
Bhattarai, A. (2017). Walmart, gaining on Amazon, says its online sales grew 50 percent. The Washington Post, Nov. 16 (Retrievable online at https://www.washingtonpost.com/news/business/wp/2017/11/16/walmart-gaining-on-amazon-says-its-online-sales-grew-50-percent/?hpid=hp_hp-cards_hp-card-technology%3Ahomepage%2Fcard&utm_term=.adf499a21bea)

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

If you have not had a chance to read about the Paradise Papers, you owe it to yourself to read this article about Nike. Nike is avoiding taxes by charging themselves for intellectual property. This is a story involving grey areas and loopholes, tax havens and zero tax rates, and the movement of money and royalties from one jurisdiction to the next. Intrigued?

Questions:
1. Where are Nike shoes made?
2. What is the Netherlands connection to Nike?
3. What is the Bermuda connection to Nike?
4. Where is the tax residence of Nike Innovate? What is Nike Innovate?

Source:

N. Hopkins and S. Bowers. (2017) Revealed: how Nike stays one step ahead of the taxman. The Guardian, Nov. 6 (Retrievable online at https://www.theguardian.com/news/2017/nov/06/nike-tax-paradise-papers)

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

“Thor: Ragnarok” rocked the box office for the second weekend in a row.

Questions:

1. What was the movie’s competition?
2. Who stars in the movie?
3. How much has the box-office success taken in since opening?
4. Research this one: How does accounting in the movie industry vary from other industries?

Source:
Staff. (2017) “Thor” smashes competition again at weekend box office. Reuters.com, Nov. 12 (Retrievable online at http://www.reuters.com/video/2017/11/12/thor-smashes-competition-again-at-weeken?videoId=372958477&videoChannel=2602&channelName=Most+Popular)

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

To make deeper inroads into online fashion, Wal-Mart Stores Inc said it will soon offer Hudson’s Bay Co. owned department store chain Lord & Taylor dedicated space on its website.

Questions:
1. When will the new fashions be offered?
2. What are the financial terms of the deal?
3. Despite its large presence, who is Wal-Mart failing to attract with its online offerings?
4. What does Walmart see as its virtual future?

Source:

Bose, N. (2017). Wal-Mart partners with Lord & Taylor to expand online fashion presence. Reuters.com, Nov. 13 (Retrievable online at http://www.reuters.com/article/us-walmart-lord-taylor/wal-mart-partners-with-lord-taylor-to-expand-online-fashion-presence-idUSKBN1DD2Q7)

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According to Reuters, CVS Health Corp., a U.S. pharmacy chain, made an offer to acquire No. 3 U.S. health insurer, Aetna Inc. for more than $200 per share, or over $66 billion.

Questions:
1. After the news, what happened to Aetna stock price?
2. Would this be a good “marriage,” in your opinion?
3. How could this be used to apply pressure against a proposed move by Amazon to go into the pharmacy business?
4. Why are times so uncertain for the healthcare industry right now?

Source:
O’Donnell, C. and Greg Roumeliotis. CVS makes more than $66 billion bid for Aetna: sources. Reuters, Oct. 26 (Retrievable at http://www.reuters.com/article/us-aetna-m-a-cvs-health/cvs-makes-more-than-66-billion-bid-for-aetna-sources-idUSKBN1CV3CM)

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

Broadcom LTD made an unsolicited $103 billion bid for Qualcomm to set the stage for a major takeover of the chipmaker and dominate the market of semiconductors used in mobile phones.

Questions:
1. What is Qualcomm’s take on this bid?
2. Would this deal cause a monopoly?
3. What are the terms of the deal?
4. What is the likely moves of both companies’ stock prices?
5. Where will the likely approval problem happen?
6. Who is Hock Tan?
7. Why is Qualcomm vulnerable for a takeover at this time?

Source:
Mukherjee, S. and Greg Roumeliotis. (2017) Broadcom offers $103 billion for Qualcomm, sets up takeover battle. Reuters, Nov. 6 (Retrievable at http://www.reuters.com/article/us-qualcomm-m-a-broadcom/broadcom-offers-103-billion-for-qualcomm-sets-up-takeover-battle-idUSKBN1D61EO)

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

In 2008, a thriving company named Science Care Inc developed a 55-page national expansion plan. Read what happened!

Questions:
1. What was the company’s goal?
2. What company did Science Care Inc. model?
3. How much did the company earn From 2012 through 2014?
4. If a person donates a whole body when they die, what are the government regulations for companies carving it up?
5. What is the background on Jim Rogers and his company?
6. How much do cadavers sell for?
7. Do you think companies should profit from body donations? Discuss.

Source:
Shiffman, J. and B. Grow. (2017) Special Report: U.S. company makes a fortune selling bodies donated to science. Reuters.com, Oct. 26 (Retrievable online at http://www.reuters.com/article/us-usa-bodies-science-specialreport/special-report-u-s-company-makes-a-fortune-selling-bodies-donated-to-science-idUSKBN1CV1J7)

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, Sears and Whirlpool are severing ties after a 101-year relationship. You will no longer be able to buy Whirlpool appliances at Sears, but Whirlpool will still make Kenmore appliances for the firm.

Questions:
1. Why does this matter?
2. What other relationships has Sears changed in the recent past?
3. What did Sears tell its employees about severing the Whirlpool relationship?
4. According to the article, why are all these shifts happening at Sears?

Source:
LeVine, S. (2017) Struggling Sears cuts ties with another old friend. Axios.com, Oct. 24 (Retrievable online at https://www.axios.com/struggling-sears-cuts-ties-with-another-old-friend-2500748627.html?utm_medium=linkshare&utm_campaign=organic)