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, Video Updates.

According to the Washington Post, now is a good time to book fall getaways because rates are dropping.

Questions:

  1. By month, what drops are expected in airline rates?
  2. What is the peak travel month?
  3. When are the most expensive times for travel?
  4. Do sales that airlines advertise the best rates? Discuss.

Source:

Sampson, H. (2019). Airfare is dropping — and you can enjoy the trend through September. The Washington Post, July 15 (Retrievable online at https://www.washingtonpost.com/travel/2019/07/15/airfare-is-dropping-you-can-enjoy-trend-through-september/?utm_term=.210b875902dc)

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

Goldman Sachs has a plan to combine five investing teams into a single alternatives unit. This plan has been doubted internally and has led to interesting drama within the firm.

Questions:

  1. Who is Goldman’s CEO who announced this plan?
  2. Why is this move important to outside investors?
  3. Why is the debate centering around Goldman’s two most profitable units?
  4. What are these units?
  5. Explain the sentence in the article: ” The CEO wants to take advantage of the growth in alternatives, but to do so means moving away from the limitations of Goldman’s balance sheet.” 

Source:

Campbell, R. (2019). Goldman Sachs execs are jockeying for power in the firm’s big new private investing unit — and the stakes couldn’t be higher. Business Insider, July 15 (Retrievable online at https://www.businessinsider.com/theres-drama-with-goldman-sachs-private-investing-unit-plan-2019-7)

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 Business Insider, six trucking companies have already folded during 2019. As a result, more than 2500 truckers are unemployed.

Questions:

  1. Explain the spot market for trucking companies and what has happened to it.
  2. What are the trucking companies that have gone bankrupt in 2019 and how many truckers were left unemployed by each bankruptcy?
  3. What company do many of these firms blame for their bankruptcies? Explain why.

Source:

Premack, R. (2019). At least 2,500 truck drivers have lost their jobs in 2019 as the transportation ‘bloodbath’ unfolds — here’s the full list of bankrupt trucking companies. Business Insider, July 15 (Retrievable online at https://www.businessinsider.com/trucking-companies-bankrupt-list-truckers-react-to-industry-bloodbath-2019-7#starlite-trucking-28-truck-drivers-1 )

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

According to Accounting Today, the Financial Accounting Standards Board’s (FASB’s) recent accounting standard update adjusts production costs of films and episodic content produced for TV and online streaming services such as Netflix and Hulu.

Questions:

  1. How has the accounting for costs adjusted with the way we now consume media?
  2. What does the accounting standard eliminate?
  3. Explain the convergence model used in the accounting standard related to films and episodic content produced.
  4. What does the standard do to disclosure requirements?
  5. How do you anticipate the monetization of TV and movie content will affect you?

Source:

Cohn, M. (2019). FASB standard on film and TV episode costs may have an impact on what you watch next year. Accounting Today, July 5 (Retrievable online at

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

Deloitte LLP was fined 4.3 million pounds for audit failures of a unit of Serco Group Plc. Additionally, audit engagement partner, Helen George, was fined 97,500 pounds for failure to act in accordance with the fundamental principle of professional competence and due care.

Questions:

  1. After admission of misconduct by both Deloitte and Helen George, what happened?
  2. Serco Group Plc agreed to pay 19.2 million pounds to settle a six-year fraud probe into false accounting related to what intentional mistatement?
  3. Deloitte’s fine comes just weeks after PricewaterhouseCoopers fine for what?
  4. How much was PWC’s fine in #3 above?

Source:

Miller, H. (2019) Deloitte fined $5.4M over Serco Group audit failings. Accounting Today, July 5 (Retrievable online at https://www.accountingtoday.com/articles/deloitte-fined-54m-over-serco-group-audit-failings?utm_campaign=audit%20%26%20accounting-jul%208%202019&utm_medium=email&utm_source=newsletter&eid=57251c705b8682bf40d8936b8b0be222)

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, Video Updates.

Germany’s largest bank, Deutsche Bank, has begun a string of layoffs that will result in 20 percent fewer employees or 18,000 jobs.

Questions:

  1. This slashing in jobs happened on the first day takeover of the new CEO. Who is the CEO?
  2. What happened to shares of Deutsche Bank after word of this sweeping overhaul?
  3. How much does Deutsche Bank plan to spend on the restructuring this year?
  4. Essentially, why is the bank being restructured?

Source:

Mohamed, T. (2019). Deutsche Bank begins brutal cull of 18,000 bankers in a $8.3 billion overhaul. Business Insider, July 6 (Retrievable online at https://markets.businessinsider.com/news/stocks/what-we-know-about-deutsche-bank-restructuring-plan-2019-7-1028333237)

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

A newly released block chain report about banking was previewed on Business Insider.com.

Questions:

  1. According to Bloomberg, how much money has been poured into block chain technology, annually, as of 2018 within financial institutions?
  2. What are key difficulties or roadblocks associated with block chain application?
  3. What are the companies mentioned in the report?

Source:

Tesfaye, M. (2019). BLOCKCHAIN IN BANKING: An inside look at four banks’ early blockchain successes and failures. Business Insider, June 17 (Retrievable online at https://www.businessinsider.com/the-blockchain-in-banking-report-2019-6)

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

According to Business Insider, sarin, a deadly poison, has been detected in a mail facility at the Silicon Valley Facebook headquarters. Evacuation and FBI investigations were reported.

Questions:

  1. Is it possible that the detection was a false positive and according to whom?
  2. What is the business park where Facebook is located?
  3. Based on the article, why would you think that they evacuated 4 buildings and 3 are now back in use?
  4. If you were the accountant calculating miscellaneous losses for the one-day threat, what information would you need and why?
  5. Would a loss be allowed for this day per the tax code and why?

Source:

Price, R. (2019). The deadly poison sarin was detected in a mail bag at Facebook’s offices in California. Business Insider, July 1 (Retrievable online at https://www.businessinsider.com/sarin-poison-detected-in-facebook-mail-menlo-park-california-2019-7)

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

One of the most popular purchases that people are making this summer is the Samsung Galaxy Fit e, previously announced in March 2019 at Samsung’s big 2019 Unpacked event.

Questions:

  1. In your opinion, what are the best features of the Samsung Galaxy Fit e and why?
  2. In your opinion, what are the worst issues associated with the Samsung Galaxy Fit e and why?
  3. Compare the projected price in U.S. dollars off the Fit e in the article with actual U.S. prices you find online. (This will require some currency exchange calculation.)

Source:

Sumra, H. (2019). Samsung Galaxy Fit and Fit e: Everything you need to know about the new trackers. Wareable.com (Retrievable online at https://www.wareable.com/fitness-trackers/samsung-galaxy-fit-e-specs-price-launch-date-7004)

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

Amazon.com Inc has just unveiled its online professional beauty store to sell supplies to licensed professional stylists, barbers and estheticians, and this move is causing the value of shares of other beauty retailers to drop.

Questions:

  1. Which beauty retailers does the article mention?
  2. What will Amazon require for purchase?
  3. Do you think this will be a profitable part of Amazon’s business and why?

Source:

Reuters staff. (2019). Amazon’s new beauty store for professionals poses threat to beauty retailers. Reuters.com, June 24 (Retrievable online at https://www.reuters.com/article/us-amazon-beauty-products/amazons-new-beauty-store-for-professionals-poses-threat-to-beauty-retailers-idUSKCN1TP21H)