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

No, it’s not Chips A’Hoy! According to Reuters, U.S. President Joe Biden met with executives from major companies on Monday to discuss the global chip shortage that has severely hurt U.S. automakers and spurred Intel Corp to announce it plans to make chips for car plants at its factories in the next six to nine months.

Questions:

  1. What could the current supply crunch of chips lead to?
  2. How many corporate executives met with the Biden Administration on April 12?
  3. Executives from what tech companies were at the summit?
  4. How much has President Biden pledged to invest in semiconductor manufacturing and research as part of his broader focus on rebuilding U.S. manufacturing?

Source:

Bose, N. and S. Nellis. (2021). As Biden works to fix chips shortage, Intel promises help for hurting automakers. Reuters, April 12 (Retrievable online at https://www.reuters.com/article/us-usa-biden-chips-idUSKBN2BZ118)

Posted by & filed under Accounting Information Systems, Accounting Principles, Advanced Accounting, All Articles, Auditing, Behavioral and Social Issues Related to Accounting, Ethical Dilemma, Fraud Accounting, Uncategorized.

According to the Washington Post, Mary Goddard, a former intern at the Sununu Youth Development Center in New Hampshire, says a supervisor suggested she destroy her notes and lie about a teen’s sexual assault allegation.

Questions:

  1. What did the intern do?
  2. What happened to her supervisor?
  3. What would you have done as an intern?
  4. What questions did the article leave unanswered?

Source:

Ramer, H. (2021). Ex-youth center intern says she was told to destroy notes. The Washington Post, April 2 (Retrievable online at https://www.washingtonpost.com/national/ex-youth-center-intern-says-she-was-told-to-destroy-notes/2021/04/02/6958260a-93a6-11eb-aadc-af78701a30ca_story.html)

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According to the Washington Post, according to a Maryland state audit, procurement regulations where not followed when the Maryland administration bought 500,000 COVID-19 tests from a South Korean company last year and the first batch of tests that later had to be replaced for an additional $2.5 million was not authorized by the U.S. Food and Drug Administration (FDA).

Questions:

  1. What critical state regulation provisions were not followed, according to the audit?
  2. Given that the pandemic was a crisis situation, why are lawmakers so critical of the circumstances?
  3. Sen. Paul Pinsky, a Democrat who has questioned the procurement, is quoted as saying, ” That we spent $464,000 so he can get a photo op at the airport is unbelievable .” What is he referring to?
  4. What type of audit is this?

Source:

Witte, B. (2021). Maryland audit faults procurement of 500K virus tests. The Washington Post, April 2 (Retrievable online at https://www.washingtonpost.com/health/maryland-audit-faults-procurement-of-500k-virus-tests/2021/04/02/7b6e6002-9400-11eb-aadc-af78701a30ca_story.html)

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, IFRS, Intermediate Accounting, International Accounting, Managerial Accounting, Uncategorized.

According to the New York Times, Greensill Capital promised a win-win for buyers and sellers, until it all fell apart, igniting concerns about opaque accounting practices.

Questions:

  1. How much was Greensill valued at less than 2 years ago?
  2. Explain how Greensill’s problems extend to the U.S.
  3. Explain Mr. Greensill’s position in the firm as the founder of the supply chain finance company.
  4. What does the FASB plan to do about supply chain finance disclosures and when?

Source:

Nelson, E. , J. Ewing, and L. Alderman. (2021). The Swift Collapse of a Company Built on Debt. The New York Times, March 28 (Retrievable online at https://www.nytimes.com/2021/03/28/business/greensill-capital-collapse.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, Video Updates.

According to the Washington Post, Mooky Greidinger, the chief executive of Cineworld, believes that really bright days are ahead of the movie theater industry.

Questions

  1. What is the theatrical window and how does it impact the U.S. movie theater industry?
  2. What is delaying the quick comeback of movie theaters in Europe?
  3. How is Cineworld and Regal propping up its cash flow position?

Source:

Zeitchik, S. (2021). The head of Regal Cinemas believes movie theaters are on the verge of a major comeback. The Washington Post, March 27 (Retrievable online at https://www.washingtonpost.com/business/2021/03/27/theaters-recovery-regal-mooky/)

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According to the Washington Post, the CEO for a sort of “Uber for private investigators” called Trustify was sentenced to 97 months this week for fraud.

Questions:

  1. What is the CEO’s name and age?
  2. Did the company make a profit? Explain.
  3. Originally the CEO was sentenced for 9 years. Why was his sentence shortened?
  4. How much money was raised by Trustify’s 250 investors and what happened to it?

Source:

Barakat, M. Tech company founder gets 8 years in prison for stock fraud. The Washington Post, March 26 (Retrievable online at https://www.washingtonpost.com/business/tech-company-founder-gets-8-years-in-prison-for-stock-fraud/2021/03/26/9c879012-8e6d-11eb-a33e-da28941cb9ac_story.html).

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

According to the New York Times, executives at Volkswagen made a commitment to electric vehicles that now is paying off after the diesel scandal five years ago.

Questions:

  1. According to the article, what is the ID.4 and when will it be available to customers?
  2. Why did the article say that Volkswagen’s entrance into the electric car market is well-timed?
  3. What did the article say about Volkswagen and software?
  4. What is the Modular Electrification Toolbox? Explain Volkswagen’s commitment to this platform.
  5. Based on the article, do you think that Volkswagen would be a good investment? Why or why not?

Source:

Ewing, J. (2021). How Volkswagen’s Sins Fueled Its Redemption. The New York Times, March 19 (Retrievable online at https://www.nytimes.com/2021/03/19/business/volkswagen-electric-cars-share-price.html)

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According to Techrepublic.com, cybercriminals have attacked hospitals and other healthcare organizations with double-extortion ransomware attacks during the COVID pandemic.

Questions:

  1. What is a double-extortion ransomware attack and how many different ransomware variants are now using the double-extortion plot?
  2. Why are cybercriminals focusing on hospitals and other healthcare organizations with these even bolder types of attacks?
  3. What is the name of the threat intelligence team at Palo Alto Networks (the source of the information used in this article)?
  4. What is the difference from the “spray-and-pray” ransomware model and the “stay-and-play” model?
  5. What recommendations does Palo Alto Networks make to prevent organizations against these bolder ransomware attacks?  

Source:

Whitney, L. (2021). How ransomware is evolving as a threat to organizations. Techrepublic.com, March 17 (Retrievable online at How ransomware is evolving as a threat to organizations – TechRepublic).

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 Benefits Pro, the American Rescue Plan just passed in Congress includes benefits for student loan borrowers and non-borrowers.

Questions

  1. How do taxes impact student loan forgiveness?
  2. When colleges receive their allocations of the financial aid relief package, how should it be used?
  3. If you are a small business owner with a defaulted student loan, what type of relief does the stimulus package provide?

Source:

Napach, B. (2021). How the $1.9T stimulus package benefits student loan borrowers. Benefits Pro, March 16 (Retrievable online at https://www.benefitspro.com/2021/03/16/how-the-1-9t-stimulus-package-benefits-college-students-412-113293)

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

According to the New York Times, workers may have to file more than one state tax return, and in certain situations they could end up owing taxes in both states. The details depend on your home state and what state you worked in during 2020.

Questions:

  1. What type of rules apply?
  2. If you end up paying state income tax in two states, will your payment be a double amount?
  3. What generally happens in states that share a border?
  4. Do all states tax people who moved in temporarily during the pandemic?
  5. What states use special rules to tax remote workers based on the location of their employer’s office — even if the employee doesn’t physically work at that location?
    • Has this only been an issue since coronavirus?
    • What state or states is/are easing this position and will it be temporary or permanent?

Source:

Carrns, A. (2021) The Tax Headaches of Working Remotely. The New York Times, March 12 (Retrievable online at https://www.nytimes.com/2021/03/12/your-money/taxes/2020-taxes-work-from-home.html)