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 »

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

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

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 »

E&Y Sues Wirecard AG

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According to Bloomberg News and Accounting Today, accounting firm Ernst & Young was sued over its work for Wirecard AG, just two days after Wirecard’s headquarters were raided as part of a market manipulation probe. Questions: What is Wirecard AG? What does E&Y’s suit allege? Discuss what the issues are related to Wirecard’s purported fraud…. Read more »

Huge Digital Shift

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According to the Guardian, News Corp Australia has confirmed that more than 100 local and regional newspapers will become digital only or disappear entirely, and there will be a significant number of job losses. Questions: What does News Corp say has accelerated this move? Why is News Corp keeping the three Sydney newspapers in print… Read more »

Executives Defraud Chinese Pharmaceutical Company

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According to Bloomberg, China’s securities regulator blacklisted six executives for their role in a $4.2 billion accounting scandal at Kangmei Pharmaceutical Co., one of the country’s biggest drugmakers. Questions: What did the executives do? What did the firm admit to that allowed the fraud to occur? What was the problem with the fine ordered for… Read more »