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.

According to Accounting Today, the founder of apparel licenser Iconix Brand Group, which last month settled a high-profile dispute with the rapper Jay-Z, was charged by federal prosecutors with inflating the company’s revenue and earnings.

Questions:

  1. Who was named in the indictment? What are their roles in the investigation?
  2. How much was the civil settlement that Iconix paid to resolve 2013 to 2015 allegations that financial data were manipulated and transactions were not properly accounted for?
  3. This is the third suit for alleged fraud brought by Manhattan U.S. Attorney Geoffrey Berman in the last 4 months. What were the other two?
  4. What was Jay-Z’s role in the SEC investigation? What was Jay-Z’s settlement with Iconix and what was it for?

Source:

Accounting Today staff. (2019) Ex-Iconix CEO charged in accounting fraud. Accounting Today, Dec. 5 (Retrievable online at https://www.accountingtoday.com/articles/iconix-brands-ex-ceo-charged-by-u-s-in-accounting-fraud)

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 Business Wire, BDO USA has appointed its first woman chair of the Board.

Questions:

  1. Who is this woman and how long has she been in the accounting profession?
  2. In what primary areas of accounting has she worked?
  3. When did she take over this post as chairperson?

Source:

Business Wire Staff. (2019). BDO USA, LLP Names Kelly Johnson as Board Chair; Four Partners Elected to Board of Directors. Business Wire, Dec. 3 (Retrievable online at https://finance.yahoo.com/news/bdo-usa-llp-names-kelly-140000802.html

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 Bank for International Settlements, the Financial Times reports that turmoil in the repo market was fueled by hedge funds need to borrow cash in order to drive returns on trades.

Questions:

  1. What is the Repo market?
  2. Why is the pullback by bank lending a bad sign?
  3. Explain the increasingly popular hedge fund strategy involving the purchase of US Treasuries, with respect to the repo market.
  4. Summarize (in 4 sentences or less) the concern for volatility ahead in the repo market, as reported by this article.

Source:

Stubbington, T. and J. Rennison. (2019). Hedge funds key in exacerbating repo market turmoil, says BIS. Financial Times, Dec. 8 (Retrievable online at https://www.ft.com/content/2a23313a-1843-11ea-9ee4-11f260415385)

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

The Polestar 1 is a 619-horsepower, high-performance, high-priced, gas-hybrid grand-touring car that’s the first vehicle from Volvo’s new stand-alone brand.

Questions:

  1. Where is the Polestar 1 built?
  2. What company bought Volvo from Ford in 2009? Where is this parent company located?
  3. What is the exact sticker price of the Polestar 1?
  4. Why is the fact that the Polestar 1 is a coupe (two-door) unique?
  5. Based on the features, do you think that the car will ever become more affordable? Explain.

Source:

DeBord, M. (2019). The $157,000 Polestar 1 is a spectacular insight into what Volvo’s new brand can achieve. It’s also the best car China has ever built. Businessinsider.com, Dec. 2 (Retrievable online at https://www.businessinsider.com/volvo-polestar-1-review-first-drive-photos-features-verdict-2019-12)

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

Kroger, one of the largest supermarket chains, is partnering with an Indianapolis startup called ClusterTruck in order to open delivery-only kitchens, known as  “dark” or “ghost” kitchens in Indianapolis, Columbus, and Denver.

Questions:

  1. What is the new Kroger concept called?
  2. Who do they see as their competitors and their advantage over competitors?
  3. According to the Taylor article, what fast-food chains have partnered with dark kitchens?
  4. Why do you think the delivery-focused restaurants are expanding?

Sources:

Peterson, H. (2019). The nation’s largest supermarket is opening ‘dark’ kitchens to offer free delivery of restaurant-style meals within 7 minutes of preparation. Businessinsider.com, Dec. 2 (Retrievable online at https://www.businessinsider.com/kroger-opens-dark-kitchens-to-offer-free-meal-delivery-2019-12)

Taylor, K. (2019). ‘Ghost kitchens’ are taking over fast-food chains from Chick-fil-A to Wendy’s. Businessinsider.com, Oct. 12 (Retrievable online at https://www.businessinsider.com/chick-fil-a-wendys-ghost-kitchens-growth-2019-10)

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, Video Updates.

After years of continually beating the market with quarterly revenue targets, Parker H. Petit, CEO of MiMedx Group, Inc., was sued by the SEC for  allegedly engaging in a “wide-ranging fraud” to inflate revenue.

Questions:

  1. What is the industry type in which MiMedx operates?
  2. What were the ways in which the company perpetrated the fraud?
  3. Who else were named as defendants in the suit and what is their current status in the company?
  4. What other incidents in the past of Petit and his former deputy point to wrongdoing?

Source:

Melin, A. (2019). SEC charges MiMedx and ex-CEO with accounting fraud. Accounting Today, Nov. 27 (Retrievable online at accountingtoday.com/articles/former-mimedx-ceo-petit-charged-with-accounting-fraud-exposed-by-short-sellers?position=editorial_7&campaignname=ACT%20Daily-12022019&utm_source=newsletter&utm_medium=email&utm_campaign=ACT_Daily_Daily_TEST%2B%27-%27%2B12022019&bt_ee=UV5Ed%2Bjn4DVfH60DSb3n%2Fq61KiVPQ4RF3iQXvEyY7gw%3D&bt_ts=1575284535891)

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, Managerial Accounting, Uncategorized.

According to the Associated Press, an investigation showed that the Kansas City School District falsified attendance data for three years in a bid to regain full accreditation from the state.

Questions:

1. What was the result of overreporting attendance?

2. How many officials were involved in the 3-year scam from 2013 to 2016?

3. How was the state made aware of the problem?

4. While some of the employees that manipulated the data have left the district, do you think that they could or will be prosecuted for the fraud? Why or why not?

Associated Press staff. (2019). Kansas City district falsified attendance data; owes state. The Washington Post, Nov. 20 (Retrievable online at https://www.washingtonpost.com/national/kansas-city-district-falsified-attendance-data-owes-state/2019/11/20/0e3b89c2-0bd2-11ea-8054-2)

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 the Washington Post, Google plans to add checking accounts from Citigroup and a credit union to its Google Pay digital wallet in 2020.

Questions:

  1. What is Google Pay?
  2. Who is Google currently working with to push its finance arena?
  3. How many banks already offer transactions via Google Pay in the U.S.?

Source:

Anderson, M. (2019). Google plans to offer checking accounts. The Washington Post, Nov. 13 (Retrievable online at https://www.washingtonpost.com/business/technology/report-google-will-offer-checking-accounts/2019/11/13/1cf5dfbe-0635-11ea-9118-25d6bd37dfb1_story.html)

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 a ZDNet investigation, hackers commandeered user accounts for Disney Plus’ new streaming service. As a result, hackers locked users out, changed authorization log-ins, and sold the hacked accounts for as little as $3 each.

Questions:

  1. Does this happen with other streaming services? If so, what are some of the other services mentioned?
  2. What does the article say that Disney Plus failed to incorporate in its security?
  3. Will the incorporation of this security option in question #2 guarantee that hacking will not occur?
  4. In what countries has Disney Plus launched?

Source:

Telford, T. (2019). Thousands of Disney Plus accounts were hacked and sold online for as little as $3. The Washington Post, Nov. 19 (Retrievable online at https://www.washingtonpost.com/business/2019/11/19/thousands-disney-accounts-were-hacked-sold-online-little/)

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 BusinessInsider.com, virtual reality (VR) has been historically associated with consumer-facing gaming, but it’s been gaining traction in companies lately.

Questions:

  1. According to the article, what companies are actively using VR?
  2. How are they using it?
  3. How has this driven up the revenue from the hardware and software of VR?
  4. What other sources can you find that reference VR usage in companies? Find at least five and summarize each one in 3 sentences.

Source:

Sarnoff, P. (2018). THE VR IN THE ENTERPRISE REPORT: How retailers and brands are illustrating VR’s potential in sales, employee training, and product development. BusinessInsider.com, Dec. 19 (Retrievable online at https://www.businessinsider.com/virtual-reality-for-enterprise-sales-employee-training-product-2018-12)