Greece will close its banks on Monday to try to avert financial collapse. The anticipated closure is expected to last about a week. This temporary decision was made along with keeping the stock market closed on Monday after the European Central Bank said it would not expand an emergency loan program to prop up Greek… Read more »
Posts Categorized: IFRS
The World of Drones
At a farm in Dublin, Ireland, Paul Brennan took a video that has gone viral for its creativity in using drones – rounding up sheep. Questions: 1. Put on your thinking cap. Is there any task that a drone could do in the future to assist the accountant or auditor? 2. Besides Amazon, what other… Read more »
No longer Big Brother watching – Now its Big Teacher!
At Rutgers University, online student must download Proctortrack, a new anti-cheating technology, prior to taking exams. Questions: 1. Did you agree or disagree that the software was intrusive? Discuss the pros and cons of it. 2. Do you agree or disagree that human behavior in test taking can be reduced to an algorithm? Discuss. 3…. Read more »
It’s Not Over Yet!
Looking at GDP reporting GDP on a quarter-on-quarter basis, it turns out that Greece’s six-year recession is over, but recovery is far from near. The country’s economy grew at a 3.2 percent annual pace in the first quarter, 1.2 percent in the second, and 2.8 percent in the most recent one. However, unemployment is 25.9%…. Read more »
Ouch! This may sting a little.
According to the New York Times, officials are saying that short-term pain is necessary to put the European economy back on track. Regulators in the United States forced a similar catharsis on American banks in 2009, helping set the stage for the current recovery. Questions: 1. What was the result of the timid approach taken… Read more »
Dutch Treat?
According to the New York Times, “Dutch pensions are scrupulously funded, unlike many United States plans, and are required to tally their liabilities with brutal honesty, using a method that is common in the financial-services industry but rejected by American public pension funds.” This article discusses the Dutch belief that each generation should pay its… Read more »
The Big Wash Machine for Mexican drug cartels
Turning dirty cash from drug sales into clean, usable currency has become harder for Mexican drug gangs as a result of tighter banking regulations at home and in the U.S. However, the latest money laundering schemes are piggy-backing on cross-border trade. Questions: 1. What is a “suspicious activity report” filed by banks in the U.S…. Read more »
Operating Leases
For years, there has been a debate about whether operating leases should be capitalized. In a recent IASB project update report, it is estimated that the long-term liabilities on the balance sheet are underestimated by as much as 46% due to non-recognition of operating leases. Many wonder whether the IASB will scrap the dual lease… Read more »
A Complex Financial Crime Story
Stephen Flatow, a grieving father, charged that Iran financed the Gaza bus bombing that killed his 20-year-old daughter in 1995. Buried in court filings, the suit alleged that money from a charity “fronted” financial transfers to terrorists from the Iranian government. In fact, the charity, known as the Alavi Foundation, actually operated and owned a… Read more »
Barclay’s Dark Pool
Despite Barclay’s private and public assurances to investors in its pool that they were continually shielded from high-speed trading, the bank is being sued for actively attracting high-speed traders to its venue, as well as bolstering high-speed trader strategies with privileged information about the pool. Questions: 1. Summarize why the article essentially called this a… Read more »