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

Deutsche Lufthansa AG plans to raise 2.14 billion euros ($2.5 billion) through a heavily discounted share sale as it strives to repay a German government coronavirus bailout.

Questions:

  1. How will the airline group raise the money to repay this bailout?
  2. What does Lufthansa avoid with full repayment?
  3. What are the expectation of the airline for the number of passengers over the next few months?
  4. What has happened to Lufthansa’s stock over the last year?

Source:

Wilkes, W. and J. Bowker . (2021). Lufthansa to Raise $2.5 Billion to Repay State Bailout Funds. Yahoo! Finance.com, Sep. 20 (Retrievable online at https://finance.yahoo.com/news/lufthansa-raise-2-14-billion-170413598.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, a contract dispute between Nabisco and its workers ended on Saturday, after protests and a strike that lasted several weeks.

Questions:

  1. What is the name of the union that Nabisco workers belong to?
  2. Who owns Nabisco?
  3. What issues did unionized employees agree to?
  4. What changes will employees see in their pension plans?
  5. What amount of raises with the employees see and when do they start?
  6. What is the length of time for the new contract?
  7. What issues did the union raise on overtime?

Source:

Vigdor, N. (2021). Nabisco Workers End Weekslong Strike After Reaching New Contract. The New York Times, Sep. 19 (Retrievable online at https://www.nytimes.com/2021/09/19/business/nabisco-union-strike.html)

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

According to Accounting Today, the FASB is proposing changes in fair value measurement of equity securities that will improve comparability of financial information from companies with investments in equity securities that are subject to contractual restrictions and might prevent the sale of those securities.

Questions:

  1. Why did fair value measurement complicate things during the 2008-2009 financial crisis?
  2. What is the FASB standard that governs fair value and what does it say?
  3. What is the issue of conflicting guidance that some FASB member believe presents conflicting guidance about the sale of an equity security?

Source:

Cohn, M. (2021). FASB proposes changes in fair value measurement of equity securities. Accounting Today, Sep. 15 (Retrievable online at https://www.accountingtoday.com/news/fasb-proposes-changes-in-fair-value-measurement-of-equity-securities)

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, Fraud Accounting, Intermediate Accounting, Managerial Accounting, Uncategorized, Video Updates.

Credit rating giant TransUnion is buying Neustar, an identity resolution company for $3.1 Billion in cash.

Questions:

  1. When is the deal expected to close?
  2. How much is Neustar expected to generate in 2021?
  3. What is the strategic benefit of Neustar for TransUnion?
  4. Who owned Neustar going back to the 1990s and today?
  5. What part of Neustar will not be sold?
  • Sources:

Spangler, T. (2021). TransUnion to Buy Consumer-Data Aggregator Neustar for $3.1 Billion in Cash. Variety, Sep. 13 (Retrievable online at https://variety.com/2021/biz/news/transunion-neustar-acquisition-1235063047/).

Cooper, R. (2021). Most of Neustar to be Sold in $3.1B deal. Washington Business Journal, Sep. 13 (Retrievable online at https://www.bizjournals.com/washington/news/2021/09/13/most-of-neustar-to-be-sold-in-3-1b-deal.html).

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, Intermediate Accounting, Managerial Accounting, Uncategorized.

Postal Fleet Services, a St. Augustine Florida company,  states that problems with the U.S. Postal Service’s mileage-tracking program have forced them to slash jobs and opened them up to trucker lawsuits in three states.

Questions:

  1. How long has the company been a trucking contractor for the U.S. Postal Service?
  2. Over what period did Postal Fleet Services say that they were shorted money and how much do they claim?
  3. According to the article, what are the problems with the DRO software?
  4. What kind of problems will these pose to an audit trail?
  5. What has happened to first-class mail versus parcels over the period from 2010 to 2020?

Source:

Bogage, J. (2021). Faulty USPS software cost trucking contractor $110 million and led to mass layoffs, company claims, Sep. 10 (Retrievable online at https://www.washingtonpost.com/business/2021/09/10/usps-software-trucking-layoffs/).

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, Fraud Accounting, Intermediate Accounting, Managerial Accounting, Uncategorized.

According to the Washington Post, Coinbase CEO Brian Armstrong said the SEC told the company that the upcoming product it is planning to offer is a type of security that should be registered with the government.

Questions:

  1. What is Coinbase’s proposed product?
  2. Why does the SEC care?
  3. How does Neel Kashkari, president of the Minneapolis Federal Reserve, describe cryptocurrency?
  4. What are customers expected to earn from the product?
  5. What happened to shares of Coinbase after the CEO tweeted this news?
  6. What steps has the FASB taken concerning the accounting for cryptocurrencies?
  7. Based on the article, how do you think the FASB would classify the proposed product?

Source:

Shaban, H. and T. Newmyer. (2021). Coinbase CEO says SEC has threatened to sue over crypto lending program. The Washington Post, Sep. 8 (Retrievable online at https://www.washingtonpost.com/business/2021/09/08/coinbase-sec-wells-notice/)

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, Intermediate Accounting, Managerial Accounting, Uncategorized, Video Updates.

According to the Miami Herald, a Florida air-conditioning company has been taken to court for the seventh time since 1995 for failing to pay its employees what they are owed.

Questions:

  1. What is the name of the company and where are they headquartered?
  2. What Act have they violated?
  3. What agency brings forth the violation suit?
  4. In the most recent investigation, what violations were listed?
  5. What is the total amount of wages that were not paid in the first six investigations?
  6. What amount of civil penalties were levied?

Source:

Neal, D. (2021). A Florida A/C company has shorted workers $490,000 in pay via repeated violations. The Miami Herald, Sep. 5 (Retrievable online at https://www.miamiherald.com/news/business/article253913478.html)

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

According to the New York Times, with more companies offering cryptocurrency loans and high-yield deposit accounts Washington is worried about how this might disrupt the banking industry with a lack of regulations.

Questions:

  1. Which company was mentioned in the article as aspiring to be the J.P. Morgan Chase of cryptocurrency?
  2. What crypto platform temporarily lost $600 million of customer assets last month to hackers?
  3. What is the SEC doing about investigating cryptocurrency and other digital assets?
  4. What are “syrup pools”?
  5. In your opinion, what was the most interesting information in this article?

Source:

Lipton, E. and E. Livni (2021). Crypto’s Rapid Move Into Banking Elicits Alarm in Washington. New York Times, Sep. 5 (Retrievable at https://www.nytimes.com/2021/09/05/us/politics/cryptocurrency-banking-regulation.html)

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, Uncategorized.

In a recent article in Accounting Today, Baruch Lev discusses the poor quality and low relevance of corporate financial statements due to “a sad state of accounting standards.”

Questions:

  1. Briefly list the three suggestions presented by Baruch Lev meaningful new agendas for accounting regulators.
  2. What examples does Professor Lev present as supporting the U.S. accounting standards as “leading from behind?”
  3. Do you agree that accountants are stuck in the industrial-era and should pay more attention to intangibles rather than physical assets? Support your answer.
  4. What did you find to be the most interesting part of this article?

Source:

Lev, B. (2021). The sad state of accounting standards. Accounting Today, July 21 (Retrievable online at https://www.accountingtoday.com/opinion/the-sad-state-of-accounting-standards?)

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, Intermediate Accounting, International Accounting, Managerial Accounting, Uncategorized, Video Updates.

While speaking with four former Theranos employees about the upcoming trial of embattled CEO Elizabeth Holmes, CNBC found the former employees want the trial to be over and still fear retribution.

Questions:

  1. What was Micah Nies’ position at Theranos?
  2. Do the former employees think Holmes will be found guilty? Why?
  3. What red flags of the fraud were mentioned in the article?
  4. The trial is just coming to court. Why? When was Holmes actually charged?
  5. When does jury selection to start for the Elizabeth Holmes trial?

Sources:

CNBC, August 27 (Retrievable at https://www.cnbc.com/2021/08/27/former-theranos-employees-are-still-shaken-as-elizabeth-holmes-trial-looms.html)