SEC Looks at Unusual Transactions

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The Securities and Exchange Commission launched a probe of circumstances surrounding Eastman Kodak (KODK) and a $765 million government loan it received last week to make pharmaceutical ingredients at its U.S. facilities. Questions: What happened to Kodak stock between the announcement of its government loan to make pharmaceutical ingredients and the announcement of the SEC probe? Which… Read more »

Accounting for Coronavirus

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According to the Washington Post, some companies are adopting an innovative approach to accounting for the impact the coronavirus pandemic has had on their earnings: they’re leaving it out. Questions:  What is Ebitda and why is it so important? How does Ebitdac work? Who’s using it? What is your opinion of this practice? Source: Lindell,… Read more »

Chevron’s Big Merger

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Despite the sharp decline for oil and gas, Chevron agreed on Monday to buy Noble Energy for roughly $5 billion. Questions Why might this be such an important move? Why did Noble decide to sell? How many North American oil producers have filed for bankruptcy this year? Source: Krauss, C. (2020). Chevron Deal for Oil… Read more »

COVID-19 Leads to Borrowing Binge

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According to the New York Times, during the pandemic,along with the sharpest economic downturn in history, the solution by most companies has been to take on more debt. Questions: Why does this borrowing binge turn conventional wisdom on its head? Does the article make it sound like there will be many defaults to the Fed… Read more »

Closing its Doors

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According to the New York Times, the famed discount department store, Tati in Paris, is closing its doors. Questions: Why is the store so famous? Why is the store closing? Who is the owner of Tati? What store in the U.S. would you compare Tati to, based on the article description? Source: Nossiter, A. (2020)…. Read more »

Interesting News: Open-Source Protective Filter

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According to Forensic Magazine, consumers of media content today face a number of challenges in determining the trustworthiness of the information they find online, particularly with the new phenomena of deepfakes. Questions: Has this been used yet to perpetrate a financial fraud? Can you think of a way that it could be used for fraud… Read more »

KPMG Turns the Page

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According to Accounting Today, KPMG is appointing new leaders to its U.S. audit, tax and advisory businesses, as well as a new leader in charge of growth & strategy, in an effort to boost its reputation after a number of scandals. Questions: What was the scandal involving PCAOB inspections of the firm? What were the… Read more »

Can you keep up with the algorithm?

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Accounting Today has an article warning remote workers about the new start-up called Enaible. Questions: What does Enaible do? How do they measure it? What type of score is measured with “Trigger-Task-Time?” Do you agree with this type of monitoring? Why or why not? Source: Marks, G. (2020). Spying on remote workers, and other tech… Read more »