Security Chips and Bearing the Cost of Fraud

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

New payment cards, issued over the last year, come with a small square security chip that can help make in-person transactions more secure. However, retailers complain that they have spent billions of dollars upgrading their payment terminals to accommodate a system that cuts down on the fraud shouldered by banks, but not merchants. Questions: 1…. Read more »

Release Cards: Another High Interest Problem?

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As this article points out, unlike consumer debit cards, prison-issued cards are unregulated and subject to exorbitant fees. Questions: 1. What are the typical charges for these cards? 2. For the person that had $120 and was able to use only $70, calculate the percentage of fees. 3. Who is making the money on these… Read more »

Litigation Finance

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This article discusses the trend of litigation finance, where individuals and companies are turning to private companies to front the money for legal costs in expensive litigation. Despite having in-house counsel, even larger companies are selling off pieces of lawsuits to improve cash flow and reduce risk. Questions: 1. Between 2013 and 2014, how much… Read more »

To PIN or not to PIN?

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

Some big U.S. retailers are stepping up efforts to use personal identification numbers, or PINs, with new credit cards embedded with computer chips in a bid to prevent counterfeit card fraud. Questions: 1. Why is this being resisted by banks? 2. Which retailers are leading the movement? 3. Discuss the costs and benefits of the… Read more »

Vintage Frauds

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The issue of fake wines started to become headline news a few years ago when the so-called Thomas Jefferson bottles, several old bottles of Bordeaux, claimed to have belonged to Thomas Jefferson were offered by a German wine collector named Hardy Rodenstock. Bill Koch, the brother of the notorious Charles and David Koch, bought four… Read more »

What’s going on with Walmart stock?

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The four members of the Walton family controlling more than half the shares of Wal-Mart Stores Inc. had $11 billion of their combined net worth evaporate Wednesday as shares of the retailer plunged on a lower earnings outlook for the coming fiscal year. Questions: 1. Who are the four Waltons that the article is talking… Read more »

It’s Too Late for I’m Sorry!

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Volkswagen shares plunged more than 20 percent on Monday, their biggest one-day fall, after the German carmaker admitted it had rigged emissions tests in the United States, and U.S. authorities said they would widen their probe to other manufacturers. Questions: 1. Briefly explain the emissions data scandal. 2. What was the recent challenge to Volkswagen… Read more »

“A Very Dangerous Process”

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Specialists in infectious disease are protesting a gigantic overnight increase in the price of Daraprim,a 62-year-old drug that is the standard of care for treating malaria and toxoplasmosis. Questions: 1. What are the causes of price increases for drugs like Daraprim? 2. What is the past controversy associated with Martin Shkreli, the founder and chief… Read more »

Tax Accounting Fraud – A Chinese Way of Life

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This article describes how businesses in China have to give out invoices called fapiao in order to ensure that taxes are being paid. However, as you will learn from Mr. Ding’s experience, the fapiao or the very mechanism intended to keep businesses honest, is the key to cheating on taxes. Questions: 1. What was the… Read more »

Buffett’s New Move

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

Warren Buffett is paying a hefty price for the biggest bet of his career as his Berkshire Hathaway Inc (BRKa.N) has agreed to buy Precision Castparts Corp (PCP.N), valuing the maker of aerospace and other parts at $32.3 billion. Questions: 1. According to the article, Berkshire’s new deal joins a foray of companies within other… Read more »