According to the New York Times, Delta Airline’s foray into oil refining in 2012 illustrates some of the reasons that the business was in trouble even before the pandemic. Questions: What was the bold experiment that Delta Air tried? What were the flaws in Delta’s strategy? What is the most immediate concern of the refinery… Read more »
Posts Categorized: International Accounting
Golden Arches wants their Money Back
According to the Washington Post, McDonald’s,the fast-food giant claims Steve Easterbrook, whose severance package is said to be worth $42 million, destroyed a paper trail of his “inappropriate personal behavior.” Questions: What did Mr. Easterbrook cover up? Why did the company reopen the firing case back up in July? How did the company find out… Read more »
SEC Looks at Unusual Transactions
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 »
IRS makes it easier to tap your retirement account
With no agreement on a second round of stimulus payments, the IRS made it easier for people to pull money from their retirement plans without a costly penalty. Questions: Who makes up the category of individuals who can tap their retirement plan without penalty, according to the IRS’s new guidance? If an employer allows an… Read more »
Death May Not Cancel Lucrative Relationships
In recent relationships beyond the grave, some people are finding that it is not easy to cancel accounts of deceased loved ones. Questions: According to the article stories, which one did you find to be the most ridiculous? Why do you think these particular entities had such ridiculous answers to the issue of death? Which… Read more »
Accounting for Coronavirus
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
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
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
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
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 »