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.

The chief executive and founder of the shapewear company Spanx surprised employees with two first-class plane tickets and $10,000 each.

Questions:

  1. How much did Sara Blakely spend to start her company in 2000 and what did she pledge it would be worth when people laughed 21 years ago?
  2. What fact points to why Blakely is encouraging more support for female-led businesses?
  3. What is the valuation of Sara Blakely’s company today? Who has the last laugh?

Source:

Yang, M. (2021). Spanx chief gives all employees first-class plane tickets and $10,000. The Guardian, Oct. 25 (Retrievable online at https://www.theguardian.com/us-news/2021/oct/25/spanx-chief-gives-employees-first-class-plane-tickets-10000).

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According to the New York Times, the supply chain disruptions go back as early as last year, at the beginning stages of the pandemic. 

Questions

  1. According to the article, what factors created the perfect storm in disrupting the supply chain?
  2. Why couldn’t the factories just produce more and help catch up the supply chain disruptions?
  3. According to the article, when will the shortages end?
  4. Why are new cars so hard to find?
  5. What type of cost impacts do these supply chain problems cause?

Source:

Goodman, P.S. (2021). How the Supply Chain Broke, and Why It Won’t Be Fixed Anytime Soon. The New York Times, Oct. 22 (Retrievable online at https://www.nytimes.com/2021/10/22/business/shortages-supply-chain.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, Income Taxes, Intermediate Accounting, Managerial Accounting, Uncategorized.

According to the Washington Post, workers at an Amazon warehouse in New York’s Staten Island have launched a union drive in an ambitious bid to organize one of the world’s largest employers.

Questions:

  1. How many locations would have an employee vote to unionize at Amazon warehouses?
  2. During the coronavirus pandemic, by what percentage have Amazon’s profits increased during the quarter ended June 30?
  3. What issues are workers hoping to improve at Amazon through unionization?
  4. What union is involved?

Source:

Bogage, J. and E. Rosenberg (2021). Amazon warehouse workers on Staten Island seek union vote. The Washington Post, Oct. 21 (Retrievable online at https://www.washingtonpost.com/business/2021/10/21/amazon-union-vote-staten-island/)

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

According to the New York Times, a knot of problems with Amazon’s system for handling paid and unpaid leaves has led to devastating consequences for workers.

Questions:

  1. According to the article, by what percentage had Tara Jones been underpaid by her Amazon warehouse job on one paycheck?
  2. What are some of the problems that have occurred with the Amazon HR software?
  3. On what does the NY Times investigation blame Amazon’s pay problems?
  4. Who is being penalized with problems in the Amazon leave and benefits packages and why?

Source:

Kantor, J., K. Weise, and G. Ashford. (2021). Inside Amazon’s Worst Human Resources Problem. The New York Times, Oct. 24 (Retrievable online at www.https://www.nytimes.com/2021/10/24/technology/amazon-employee-leave-errors.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, Video Updates.

According to Bloomberg, Zillow Group Inc. is taking a break from buying U.S. homes after the online real estate giant’s pivot into tech-powered house-flipping hit a snag.

Questions:

  1. How many homes did Zillow acquire in the second quarter of this year?
  2. What happened to Zillow stock after this announcement on Monday, Oct. 18? How does this compare to 2020 performance?
  3. What is Zillow Offers and how does it work?
  4. Who is Zillow Offers competitor?
  5. What are some of the controversies associated with Zillow?
  6. Briefly explain why Zillow is pausing its homebuying.

Source:

Clark, P. (2021) Zillow Pauses Homebuying as Tech-Powered Flipping Hits Snag. Bloomberg News, Oct. 18 (Retrievable online at https://finance.yahoo.com/news/zillow-pauses-home-purchases-snags-160557830.html)

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.

According to Accounting Today, a new survey by Ernst & Young finds growing worries about transfer pricing among business leaders., as well as global tax changes.

Questions:

  1. How many professionals were polled by the E&Y survey and what was the makeup of the group?
  2. What issues did respondents think are most likely to come under scrutiny when probing the supply chain issues?
  3. How many of the respondents say they will probably be taking steps to modify their organization’s approach to transfer pricing along with their operations, compliance and documentation within the next two years?  

Source:

Cohn, M. (2021). Global tax changes, supply chain woes and pandemic add to transfer pricing uncertainty. Accounting Today, Oct. 15 (Retrievable online at https://www.accountingtoday.com/news/global-tax-changes-supply-chain-woes-and-pandemic-add-to-transfer-pricing-uncertainty)

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

According to Accounting Today, the IRS wants more detailed information about all the business components for which the research and development credit claims relate for each year and for each business component.

Questions:

  1. What is the form that is required under this new direction?
  2. How long have companies been allowed to take this research and experimentation (R&E) or research and development (R&D) tax credit?
  3. Briefly explain why the new requirements for information regarding claims for research credit tax refunds were put in place.

Source:

Cohn, M. (2021) IRS sets new requirements for R&D credit refund claims. Accounting Today, Oct. 15 (Retrievable online at ttps://www.accountingtoday.com/news/irs-sets-new-requirements-for-r-d-credit-refund-claims?)

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 Washington Post, money has flowed from the sugar fields of the Dominican Republic to the burgeoning tax haven of South Dakota.

Questions:

  1. What company does the article refer to?
  2. What have been the allegations against these sugar producers and what do these allegations have to do with the tax haven story?
  3. How much do sugar cane cutters at the company mentioned in the article make and how does this compare to the average monthly salary in the Dominican Republic?
  4. Explain how the United Nations has been recently involved with a company practice.

Source:

Murphy, Z., et al (2021). Bitter Sugar: How money has flowed from the sugar fields of the Dominican Republic to the burgeoning tax haven of South Dakota. The Washington Post, Oct. 9 (https://www.washingtonpost.com/business/interactive/2021/central-romana-tax-haven-south-dakota/?itid=sf_business)

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

According to the New York Times, opportunity zones appear to be providing new ways for the wealthy to cut their tax bills rather than to the direct money to people who live in designated zones. 

Questions

  1. Often, advertising combines opportunity zones tax breaks with other tax breaks. What are some of these?
  2. How many opportunity zones were established by Congress in the 2017 tax bill?
  3. What is the history of the creation of the opportunity zone concept?
  4. What are the “big fixes” that the author believes should be made by Congress? 

Source:

Wessel, D. (2021). The Rich Have Found Another Way to Pay Less Tax. The New York Times, Oct. 10 (Retrievable online at https://www.nytimes.com/2021/10/10/opinion/opportunity-zones-tax-loopholes.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, Fraud Accounting, IFRS, Income Taxes, Intermediate Accounting, International Accounting, Managerial Accounting, Uncategorized, Video Updates.

According to Nicholas Shaxson, the City of London is hiding the stolen money of the world.

Questions:

  1. What is the name of the new data leak exposing financial dealings by more than 330 politicians and public officials from over 90 countries and territories?
  2. In your own words explain why the offshore financial ecosystem is so complicated.
  3. What is the estimated amount of wealth held in tax havens?
  4. Explain whether the “London Loophole” was closed by the U.S. or what efforts may now be working against it.

Source:

Shaxson, N. (2021). The City of London Is Hiding the World’s Stolen Money. The New York Times, October 11 (Retrievable online at https://www.nytimes.com/2021/10/11/opinion/pandora-papers-britain-london.html)