Posted by & filed under Accounting Information Systems, Accounting Principles, Advanced Accounting, All Articles, Auditing, Behavioral and Social Issues Related to Accounting, Cost Accounting, Financial Accounting, Financial Statement Analysis, Intermediate Accounting, International Accounting, Managerial Accounting, Uncategorized, Video Updates.

According to Bloomberg, the Covid-19 outbreak has depleted America’s meat reserves, and new data from the U.S. shows they still haven’t recovered.

Questions:

  1. What are all the forces surrounding COVID that created the perfect storm for this depletion? In other words, explain the factors at play to cause the shortages.
  2. What has happened specifically to beef reserves?
  3. What has happened specifically to pork as compared to poultry?
  4. Based on additional research, when do you project that meat prices will decrease overall?

Source:

Hirtzer, M., et. al. (2021). High U.S. Meat Prices Are Here to Stay Amid Depleted Reserves. Bloomberg, Sep. 22 (Retrievable online at ttps://www.bloomberg.com/news/articles/2021-09-22/high-u-s-meat-prices-are-here-to-stay-amid-depleted-reserves)

Posted by & filed under Accounting Information Systems, Accounting Principles, Advanced Accounting, All Articles, Auditing, Behavioral and Social Issues Related to Accounting, Cost Accounting, Financial Accounting, Financial Reporting and Analysis, Financial Statement Analysis, Fraud Accounting, Income Taxes, Intermediate Accounting, Managerial Accounting, Uncategorized.

According to Accounting Today, the IRS failed to spot $20.6M in bogus nonresident tax refunds in 2018.

Questions:

  1. How many returns did this account for?
  2. In a short paragraph, explain how this happened.
  3. In a report by the Treasury Inspector General for Tax Administration (TIGTA), what recommendations were made for the improvement of IRS identification and prevention of potentially fraudulent individual international tax returns to avoid situations like this?

Source:

Cohn, M. (2021). IRS didn’t spot $20.6M in bogus nonresident tax refunds. Accounting Today, Sep. 27 (Retrievable online at https://www.accountingtoday.com/news/irs-didnt-spot-20-6m-in-bogus-nonresident-tax-refunds)

Posted by & filed under Accounting Information Systems, Accounting Principles, Advanced Accounting, All Articles, Auditing, Behavioral and Social Issues Related to Accounting, Cost Accounting, Ethical Dilemma, Financial Accounting, Financial Reporting and Analysis, Financial Statement Analysis, Intermediate Accounting, Managerial Accounting, Uncategorized.

According to Accounting Today, professionals in accounting and finance are confronting big obstacles when it comes to environmental, social and governance (ESG) reporting.

Questions:

  1. According to the Financial Executives International’s Financial Education & Research Foundation survey, what percentage of the chief accounting officers and controllers polled had not yet started to integrate ESG reporting with their financial reporting?
  2. The survey noted that ______________ was the biggest single challenge to ESG reporting.
  3. Based on the article and “the groundswell of regulatory actions and stakeholder interest that have quickened in the past year” to make ESG reporting another major role of the finance department’s many responsibilities, what do you believe would be the best approach to promote education of financial executives regarding the nuances of ESG reporting?

Source:

Cohn, M. (2021). Accountants face challenges with ESG reporting. Accounting Today, Sep. 24 (Retrievable online at https://www.accountingtoday.com/news/accountants-face-challenges-with-esg-reporting?)

Posted by & filed under Accounting Principles, Advanced Accounting, All Articles, Auditing, Cost Accounting, Financial Accounting, Financial Reporting and Analysis, Financial Statement Analysis, Intermediate Accounting, International Accounting, Managerial Accounting, Uncategorized, Video Updates.

Deutsche Lufthansa AG plans to raise 2.14 billion euros ($2.5 billion) through a heavily discounted share sale as it strives to repay a German government coronavirus bailout.

Questions:

  1. How will the airline group raise the money to repay this bailout?
  2. What does Lufthansa avoid with full repayment?
  3. What are the expectation of the airline for the number of passengers over the next few months?
  4. What has happened to Lufthansa’s stock over the last year?

Source:

Wilkes, W. and J. Bowker . (2021). Lufthansa to Raise $2.5 Billion to Repay State Bailout Funds. Yahoo! Finance.com, Sep. 20 (Retrievable online at https://finance.yahoo.com/news/lufthansa-raise-2-14-billion-170413598.html)

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

According to the New York Times, a contract dispute between Nabisco and its workers ended on Saturday, after protests and a strike that lasted several weeks.

Questions:

  1. What is the name of the union that Nabisco workers belong to?
  2. Who owns Nabisco?
  3. What issues did unionized employees agree to?
  4. What changes will employees see in their pension plans?
  5. What amount of raises with the employees see and when do they start?
  6. What is the length of time for the new contract?
  7. What issues did the union raise on overtime?

Source:

Vigdor, N. (2021). Nabisco Workers End Weekslong Strike After Reaching New Contract. The New York Times, Sep. 19 (Retrievable online at https://www.nytimes.com/2021/09/19/business/nabisco-union-strike.html)

Posted by & filed under Accounting Principles, Advanced Accounting, All Articles, Auditing, Financial Accounting, Financial Reporting and Analysis, Financial Statement Analysis, Intermediate Accounting, Uncategorized.

According to Accounting Today, the FASB is proposing changes in fair value measurement of equity securities that will improve comparability of financial information from companies with investments in equity securities that are subject to contractual restrictions and might prevent the sale of those securities.

Questions:

  1. Why did fair value measurement complicate things during the 2008-2009 financial crisis?
  2. What is the FASB standard that governs fair value and what does it say?
  3. What is the issue of conflicting guidance that some FASB member believe presents conflicting guidance about the sale of an equity security?

Source:

Cohn, M. (2021). FASB proposes changes in fair value measurement of equity securities. Accounting Today, Sep. 15 (Retrievable online at https://www.accountingtoday.com/news/fasb-proposes-changes-in-fair-value-measurement-of-equity-securities)

Posted by & filed under Accounting Information Systems, Accounting Principles, Advanced Accounting, All Articles, Auditing, Behavioral and Social Issues Related to Accounting, Cost Accounting, Financial Accounting, Fraud Accounting, Intermediate Accounting, Managerial Accounting, Uncategorized, Video Updates.

Credit rating giant TransUnion is buying Neustar, an identity resolution company for $3.1 Billion in cash.

Questions:

  1. When is the deal expected to close?
  2. How much is Neustar expected to generate in 2021?
  3. What is the strategic benefit of Neustar for TransUnion?
  4. Who owned Neustar going back to the 1990s and today?
  5. What part of Neustar will not be sold?
  • Sources:

Spangler, T. (2021). TransUnion to Buy Consumer-Data Aggregator Neustar for $3.1 Billion in Cash. Variety, Sep. 13 (Retrievable online at https://variety.com/2021/biz/news/transunion-neustar-acquisition-1235063047/).

Cooper, R. (2021). Most of Neustar to be Sold in $3.1B deal. Washington Business Journal, Sep. 13 (Retrievable online at https://www.bizjournals.com/washington/news/2021/09/13/most-of-neustar-to-be-sold-in-3-1b-deal.html).

Posted by & filed under Accounting Information Systems, Accounting Principles, Advanced Accounting, All Articles, Auditing, Behavioral and Social Issues Related to Accounting, Cost Accounting, Financial Accounting, Intermediate Accounting, Managerial Accounting, Uncategorized.

Postal Fleet Services, a St. Augustine Florida company,  states that problems with the U.S. Postal Service’s mileage-tracking program have forced them to slash jobs and opened them up to trucker lawsuits in three states.

Questions:

  1. How long has the company been a trucking contractor for the U.S. Postal Service?
  2. Over what period did Postal Fleet Services say that they were shorted money and how much do they claim?
  3. According to the article, what are the problems with the DRO software?
  4. What kind of problems will these pose to an audit trail?
  5. What has happened to first-class mail versus parcels over the period from 2010 to 2020?

Source:

Bogage, J. (2021). Faulty USPS software cost trucking contractor $110 million and led to mass layoffs, company claims, Sep. 10 (Retrievable online at https://www.washingtonpost.com/business/2021/09/10/usps-software-trucking-layoffs/).

Posted by & filed under Accounting Information Systems, Accounting Principles, Advanced Accounting, All Articles, Auditing, Behavioral and Social Issues Related to Accounting, Cost Accounting, Financial Accounting, Fraud Accounting, Intermediate Accounting, Managerial Accounting, Uncategorized.

According to the Washington Post, Coinbase CEO Brian Armstrong said the SEC told the company that the upcoming product it is planning to offer is a type of security that should be registered with the government.

Questions:

  1. What is Coinbase’s proposed product?
  2. Why does the SEC care?
  3. How does Neel Kashkari, president of the Minneapolis Federal Reserve, describe cryptocurrency?
  4. What are customers expected to earn from the product?
  5. What happened to shares of Coinbase after the CEO tweeted this news?
  6. What steps has the FASB taken concerning the accounting for cryptocurrencies?
  7. Based on the article, how do you think the FASB would classify the proposed product?

Source:

Shaban, H. and T. Newmyer. (2021). Coinbase CEO says SEC has threatened to sue over crypto lending program. The Washington Post, Sep. 8 (Retrievable online at https://www.washingtonpost.com/business/2021/09/08/coinbase-sec-wells-notice/)

Posted by & filed under Accounting Information Systems, Accounting Principles, Advanced Accounting, All Articles, Auditing, Behavioral and Social Issues Related to Accounting, Cost Accounting, Ethical Dilemma, Financial Accounting, Fraud Accounting, Intermediate Accounting, Managerial Accounting, Uncategorized, Video Updates.

According to the Miami Herald, a Florida air-conditioning company has been taken to court for the seventh time since 1995 for failing to pay its employees what they are owed.

Questions:

  1. What is the name of the company and where are they headquartered?
  2. What Act have they violated?
  3. What agency brings forth the violation suit?
  4. In the most recent investigation, what violations were listed?
  5. What is the total amount of wages that were not paid in the first six investigations?
  6. What amount of civil penalties were levied?

Source:

Neal, D. (2021). A Florida A/C company has shorted workers $490,000 in pay via repeated violations. The Miami Herald, Sep. 5 (Retrievable online at https://www.miamiherald.com/news/business/article253913478.html)