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, Fraud Accounting, Income Taxes, Intermediate Accounting, Managerial Accounting, Uncategorized.

According to the Washington Post, Starbucks illegally withheld wages and benefits from thousands of unionized baristas, the National Labor Relations Board (NLRB) alleged in a complaint Wednesday.

Questions:

  1. How many Starbucks locations have voted to join the union?
  2. What does the NLRB seek as a result of the complaint?
  3. Explain the disparity in wages between unionized and non-unionized.
  4. What other Starbuck dispute has happened in Memphis?

Source:

Gurley, L. (2022) Starbucks illegally withheld raises from union workers, labor board says. The Washington Post, Aug. 25 (Retrievable online at https://www.washingtonpost.com/business/2022/08/24/starbucks-raises-nlrb-complaint/)

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, Financial Reporting and Analysis, Financial Statement Analysis, Intermediate Accounting, International Accounting, Managerial Accounting, Uncategorized, Video Updates.

There has been a lot of market movement since Fed Chair Powell’s Jackson Hole speech last Friday.

Questions:

  1. What did Powell say about interest rates?

2. What did the article say that Powell’s speech is trying to remind people about?

3. How high do you think interest rates will be raised?

4. What do the “talking heads” in the video think will happen?

Source:

Chappattta, B. (2022) Powell’s 8-Minute Speech Erases $78 Billion From Richest Americans. Bloomberg.com, August 26 (Retrievable at https://www.bloomberg.com/news/articles/2022-08-26/powell-s-jackson-hole-speech-erases-78-billion-from-richest-americans-fortunes)

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 Statement Analysis, Fraud Accounting, Intermediate Accounting, International Accounting, Managerial Accounting, Uncategorized.

According to Thomson Reuters, the U.S. Public Company Accounting Oversight Board (PCAOB) on Aug. 26, 2022, finally signed an agreement with Chinese authorities that will allow the board to inspect and investigate audit firms based in China and Hong Kong whose clients trade on American exchanges.

Questions:

  1. When will the PCAOB start inspections?
  2. What were the legislative provisions that helped the PCAOB seal the deal?
  3. What are some of the reasons why China has so far not granted full access to audit papers?
  4. What fraud, mentioned in the article, cost a lot of money for U.S. investors?

Source:

Ho, S. (2022) U.S. and China Sign Historic Agreement on Audit Firm Supervision. Thomson Reuters Tax and Accounting News, Aug. 29 (Retrievable online at https://tax.thomsonreuters.com/news/u-s-and-china-sign-historic-agreement-on-audit-firm-supervision/)

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

According to The New York Times, Steven King, well-known author, testified as a witness for the government in its lawsuit to stop the merger of two of the largest publishers.

Questions:

  1. What is the amount of the proposed acquisition?
  2. Who are the two publishers and which one is acquiring the other in this consolidation?
  3. How does Mr. King’s testimony illustrate the government argument that consolidation in the publishing industry has hurt authors and the industry? Discuss and give examples.
  4. What does the word “imprint” mean as it is used in this article?

Source:

Bednar, A. (2022). Stephen King Testifies That Merger Between Publishing Giants Would Hurt Writers. The New York Times, August 2 (Retrievable online at https://www.nytimes.com/2022/08/02/business/stephen-king-penguin-random-house-antitrust-testimony.html)

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

According to the New York Times, Robinhood announced layoffs for the second time this year.

Questions:

  1. What is Robinhood?
  2. What percent of employees will be layed off in this second round?
  3. Why are the layoffs occuring?
  4. What roles in the company will be primarily affected?

Source

Kelley, L. and D. Yaffee-Bellany. (2022). Robinhood lays off 23% of its staff, blaming crypto meltdown and inflation. The New York Times, August 2 (Retrievable at https://www.nytimes.com/2022/08/02/business/robinhood-layoffs.html)

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

According to the New York Times, CNN profits have slumped for the first time in years.

Questions:

  1. The network is on a pace to drop below its usual profit point. What is this point?
  2. What service did the newly formed Warner Bros. Discovery make when it took over CNN?
  3. What are some of the revenue generating ideas that have been floated for CNN?
  4. What are some of the expense cutting measures that have been taken?
  5. Why is the overall strategy not to emphasize ratings for producers?

Source:

Mullin, B. (2022). Profits Slump at CNN as Ratings Plummet. The New York Times, Aug. 2 (Retrievable online at https://www.nytimes.com/2022/08/02/business/media/cnn-profit-chris-licht.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 Washington Post, Stephen Buyer, ex-GOP Congressman from Indiana, is accused of exploiting nonpublic information in his role as a corporate consultant to reap hundreds of thousands of dollars in profits.

Questions:

  1. Which arm of the government charges individuals with insider trading?
  2. During what period did Buyer act on insider trading information?
  3. What stocks did Buyer illegally profit from due to his access to nonpublic information?
  4. In abusing his role as a corporate consultant, how much did Buyer earn in illegal profits?

Source:

Shaban, H. (2022). Stephen Buyer, former GOP congressman, accused of insider trading. The Washington Post, July 25 (Retrievable online at https://www.washingtonpost.com/business/2022/07/25/stephen-buyer-insider-trading-sec/)

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, notoriously risky cryptocurrency firms may be integrated into the traditional banking system under a little-noticed provision in a new bill that raises alarms among financial experts.

Questions

  1. When was the bill introduced and what will it allow?
  2. What has happened to the digital asset market since early May?
  3. What are the long-term issues surrounding bank reserves invested in cryptocurrencies?

Source:

Newmyer, T. (2022) Bill to grant crypto firms access to Federal Reserve alarms experts. The Washington Post, July 3 (Retrievable online at https://www.washingtonpost.com/business/2022/07/03/crypto-banks-risk-lummis/)

Prior to May’s Crypto crash

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 IRS rules, there is no minimum age to open a Roth IRA as long as certain rules are met.

Questions:

  1. What is probably the most important rule for children to meet?
  2. What are some other Roth IRA rules?
  3. Does money for a Roth have to come directly from your child’s pocket?
  4. What if the money is from self-employment?

Source:

Carrns, A. (2022) You’re Never Too Young for a Roth I.R.A. The New York Times, June 10 (Retrievable at https://www.nytimes.com/2022/06/10/business/kids-roth-ira-retirement.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, Intermediate Accounting, Managerial Accounting, Uncategorized.

According to the New York Times, the Securities and Exchange Commission (SEC) said the cheating involved hundreds of EY’s workers from 2017 to 2021, resulted in the largest penalty ever imposed by the agency against an auditing firm.

Questions:

  1. What amount was the fine imposed by U.S. securities regulators?
  2. What were the three (3) charges against the accounting firm?
  3. Which other Big 4 accounting firm had similar allegations of cheating by auditors on internal training exams?
  4. Was this the first instance of widespread cheating on ethics exams by EY employees? Explain.

Source:

Goldstein, M. (2022). Ernst & Young to Pay $100 Million Fine After Auditors Cheated on Ethics Exams. The New York Times, June 28 (Retrievable online at https://www.nytimes.com/2022/06/28/business/ernst-young-sec-cheating.html)