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

According to Accounting Today, the SEC loosened independence rules as part of a deregulatory push in recent years.

Questions:

  1. According to the article, what will the amendments to Rule 2-01 of Regulation SX do?
  2. How do the new and old rules vary on the following situation: An auditor is with a firm that audits a lender that provided the individual auditor with his/her student loan.
  3. What was some of the dissention against the change?

Source:

Cohn, M. (2020). SEC loosens auditor independence rules. Accounting Today, Oct. 16 (Retrievable online at https://www.accountingtoday.com/news/sec-loosens-auditor-independence-rules?)

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.

According to Accounting Today, two senior executives at Botswana supermarket chain, Choppies Enterprises Ltd., are suing former auditors PwC for 653 million rand ($40 million) for not signing off on the company’s 2018 accounts, leading to a share price collapse.

Questions:

  1. What are the actual allegations?
  2. How much did Choppies shares lose between September 2018 and their suspension on Nov. 1 of that year?
  3. Do you think that the cost of being cautious is a good topic for auditors to debate?

Source:

Prinsloo, L. (2020). PwC hit by $40M lawsuit from Botswana supermarket chain. Accounting Today, Oct. 19 (Retrievable online at https://www.accountingtoday.com/articles/pwc-hit-by-40m-lawsuit-from-botswana-supermarket-chain?)

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, Video Updates.

Amazon’s extravaganza sale, Prime Day, is frequented by people who pay  annual or monthly fees to be specially treated with more ways to spend. But is this once a year event about really saving money or just being manipulated via behavioral finance?

Questions:

  1. According to the article, what is behavioral finance?
  2. According to the article, the offer of a discount makes people do what?
  3. What tips did the article offer regarding curbing your enthusiasm for discount deals?
  4. In your opinion, what was the most interesting issue in the article?  

Source:

Singletary, M. (2020). The dirty secret of Amazon Prime Day: Shoppers aren’t saving as much as they think. The Washington Post, Oct. 13 (Retrievable online at https://www.washingtonpost.com/business/2020/10/13/amazon-prime-day-savings/)

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

According to the Washington Post and the regulatory filing, the Securities and Exchange Commission warned General Electric that it faces legal action in connection with its troubled insurance business.

Questions:

  1. What is a Wells notice that the SEC issued to GE?
  2. What is the reason for the notice to GE, specifically?
  3. What will happen next if the government choses to proceed?

Source:

Shabar, H. (2020). GE is warned it faces SEC action tied to accounting investigation. The Washington Post, Oct. 6 (Retrievable online at https://www.washingtonpost.com/business/2020/10/06/ge-sec-insurance-wells-notice/)

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 Washington Post, Supreme Court justices pressed Google to explain why its use of software code to develop its Android mobile operating system didn’t amount to theft, in a closely watched case that could determine how copyright law applies to software.

Questions:

  1. What is Google’s argument?
  2. Who challenged Google’s assertion and what was his argument?
  3. What are the broad ramifications for the software industry?
  4. Would this ruling affect any accounting issues related to accounting for technology companies?

Source:

Greene, J. (2020). Google, Oracle square off on landmark copyright case at the Supreme Court. The Washington Post, Oct. 7 (Retrievable online at https://www.washingtonpost.com/technology/2020/10/07/google-oracle-supreme-court/)

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

According to the New York Times, the picturesque Gard area of France, famous for Rhone wines, desperately needs more employment, but environmentalists are pushing back at the possibility of Amazon’s looming “blight.”

Questions:

  1. According to the article, what is the extent of the “blight” that Amazon’s new warehouse would cause in the area?
  2. What is the Yellow Vest movement? Why was it mentioned in the article?
  3. How many warehouses does Amazon already have in France?
  4. What is the unemployment rate in the Gard area and how does it compare to France’s national unemployment rate?

Source:

Alderman, L. (2020) Are Amazon Jobs Worth 1,400 Loads of Traffic? French Region Is Split. The New York Times, Oct. 11 (Retrievable online at https://www.nytimes.com/2020/10/11/business/amazon-warehouse-france.html)

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

According to the New York Times, Honest Company hired Morgan Stanley and Jefferies to run a sale process, with the hopes of valuing the company at more than $1 billion.

Questions:

  1. What type of business is Honest Company?
  2. Why do they say in the article that the valuation the Honest Company will be a test of its turnaround? What does that mean?
  3. What is the sales figure of Honest Company?

Source:

Hirsch, L. (2020). A high valuation for Honest Company will be a test of its turnaround, Sep. 28. (Retrievable online at https://www.nytimes.com/live/2020/09/28/business/stock-market-today-coronavirus)

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

According to the New York Times, a federal lawsuit against Google for violation of child online privacy was dismissed.

Questions:

  1. Why was the lawsuit dismissed?
  2. What Act did New Mexico fail to prove violation by Google?
  3. What was the issue that brought the case to course?

Source:https://youtu.be/vFC6sjVVst0

Wakabayashi, D. (2020). New Mexico’s privacy lawsuit against Google is dismissed. The New York Times, Sep. 28 (Retrievable online at https://www.nytimes.com/live/2020/09/28/business/stock-market-today-coronavirus)

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 New York Times, members of the United Airlines pilots’ union agreed to a collective sacrifice to prevent the airline’s 13,000 pilots from being furloughed until June 2021.

Questions:

  1. As a contract agreement looms, how many jobs are United Airlines and its pilots’ union planning to save?
  2. How much money did the passenger airlines receive from Congress for the CARES ACT to pay employees during the downturn of the coronavirus period?
  3. Although United’s pilots may have avoided cuts, how many other United employees may be furloughed?

Source:

Staff. (2020) United Airlines Reaches Deal to Avoid Some Job Cuts. The New York Times, Sep. 28 (Retrievable online at https://www.nytimes.com/live/2020/09/28/business/stock-market-today-coronavirus)

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

During 2020, amusement and theme parks have reduced operating days, slashed ticket prices, and closed early for the year because of lower-than-hoped attendance.

Questions:

  1. In what state have theme and amusement parks been closed since mid-March?
  2. What was one of the most surprising issues in the article?
  3. Which park has ” social distance squads”?

Source:

Seewer, J. (2020). Virus still throwing theme park attendance for a loop. The Washington Post, Sep. 7 (Retrievable online at https://www.washingtonpost.com/business/virus-still-throwing-theme-park-attendance-for-a-loop/2020/09/07/b84c5938-f0ff-11ea-8025-5d3489768ac8_story.html)