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, IFRS, Income Taxes, Intermediate Accounting, International Accounting, Managerial Accounting, Uncategorized, Video Updates.

According to the New York Times, despite the fact that Jack Ma and other entrepreneurs have prospered under Beijing’s laissez-faire attitude toward the business side of the internet, new investigations by China’s authoritarian government indicate that the dynamic is shifting as the companies have grown in power.

Questions:

  1. What is the investigation into Alibaba about?
  2. Who is the tycoon associated with Alibaba?
  3. According to the article, increased scrutiny of Alibaba coincides with what efforts of the U.S. and the EU to curb Internet power?
  4. What was the most interesting thing that you read in this article?

Source:

Zhong, R. (2020). With Alibaba Investigation, China Gets Tougher on Tech. The New York Times, December 23 (Retrievable online at https://www.nytimes.com/2020/12/23/business/alibaba-antitrust-jack-ma.html

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, Income Taxes, Intermediate Accounting, International Accounting, Managerial Accounting, Uncategorized.

According to a new KPMG report, audit committees will have fuller plates than usual in the coming year as a result of managing agendas packed with new risk management responsibilities amid the fallout from the coronavirus pandemic and other crises of 2020

Questions

  1. How many issues has KPMG identified that audit committees will have to deal with?
  2. According to the report, what percentage of audit committee members surveyed said that COVID-19 has prompted them to reassess the scope of their agenda and their risk management responsibilities?
  3. What were the issues listed in order of importance according to the article?

Source:

Hood, D. (2020) COVID disclosures, extra risks top audit committee agendas for 2021. Accounting Today, December 23 (Retrievable online at COVID disclosures, extra risks top audit committee agendas for 2021 | Accounting Today)

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, Managerial Accounting, Uncategorized.

According to Accounting Today, the Institute of Management Accountants reported record growth in 2020 despite the impact of the COVID-19 pandemic on the accounting profession.

Questions:

  1. What is the 10-year compound annual growth rate for CMA candidates?
  2. How many global IMA members are there?
  3. In your opinion, why do you think that the IMA is seeing such growth?

Source:

Cohn, M. (2020) IMA sees growth in 2020 despite coronavirus upheaval. Accounting Today, Dec. 24 (Retrievable online at IMA sees growth in 2020 despite coronavirus upheaval | Accounting Today)

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, Income Taxes, Intermediate Accounting, Managerial Accounting, Uncategorized, Video Updates.

According to Accounting today, General Electric Co. was fined $200 million for allegedly misleading investors about the finances of its gas-power unit, as well as a run-off insurance business.

Questions:

  1. According to the article, what did GE fail to explain to its shareholders?
  2. What is GE required to report for the first year to the SEC as part of its settlement?
  3. Where is GE based?

Source:

Robinson, M and R. Beene. 2020. SEC’s GE accounting probe ends in $200M fine. Accounting Today, Dec. 9 (Retrievable online at https://accountingtoday.com/articles/secs-ge-accounting-probe-ends-in-200m-fine?)

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, Intermediate Accounting, Managerial Accounting, Uncategorized.

According to Accounting Today, the U.S. Securities and Exchange Commission (SEC) said it has settled charges against Cheesecake Factory Inc. over “materially false and misleading” statements after the restaurant chain failed to disclose the financial impact of the coronavirus pandemic earlier this year.

Questions:

  1. What was the penalty?
  2. According to SEC’s order, how much was the Cheesecake Factory losing per week between March 23 and April 3?
  3. How much cash did the company have left?

Source:

Clough, R. 2020. Cheesecake Factory Settles SEC Charges over COVID Statements, Accounting Today, Dec. 7 (Retrievable online at accountingtoday.com/search?q=Cheese+Cake+Factory#nt=navsearch)

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, Income Taxes, Intermediate Accounting, Managerial Accounting, Uncategorized.

According to the Department of Justice, three family members were arrested in New York for misrepresenting employee payroll figures to receive COVID-19 loan funds for a chain of family-owned nail salons.

Questions:

  1. According to the report, how was the payroll misrepresented by this family?
  2. What federal organizations were involve in the identification of these fraudsters?
  3. When the bank froze the funds to the Victoria Nails & Spa , what else did the article say was frozen?

Source:

Department of Justice. 2020. Three defendants arrested for over $13 million fraud scheme to obtain loans intended to help small businesses during COVID-19 pandemic. News Press Release, Dec. 10 (Retrievable at https://www.justice.gov/usao-sdny/pr/3-defendants-arrested-over-13-million-fraud-scheme-obtain-loans-intended-help-small)

Posted by & filed under Accounting Information Systems, Accounting Principles, Advanced Accounting, All Articles, Auditing, Behavioral and Social Issues Related to Accounting, Ethical Dilemma, Income Taxes, Managerial Accounting, Uncategorized.

The AICPA takes issue with Charles Rettig, IRS Commissioner, for penalizing taxpayers and businesses when the IRS is failing to process returns on time.

Questions:

  1. Who is the Congressional member who entered the AICPA letter into the Congressional Record, regarding this issue?
  2. What is the aggregate backlog of mail at the IRS?
  3. Why isn’t the IRS paying the Economic Impact Payments in a timely manner?
  4. What measures is the AICPA asking the IRS to implement?

Source:

Cohn, M. (2020). AICPA disagrees with IRS commissioner Rettig on penalty relief. Accounting Today, Nov. 20 (Retrievable online at https://www.accountingtoday.com/news/aicpa-disagrees-with-irs-commissioner-rettig-on-penalty-relief)

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, IFRS, Income Taxes, Intermediate Accounting, International Accounting, Managerial Accounting, Uncategorized.

Kyle Walters asks the question: ” As an accountant, would you rather be a dentist or a surgeon?”

Questions:

  1. What does Walters’ question have to do with establishing an accounting firm?
  2. Which structure of an accounting firm best fits your goals and work habits?
  3. What is scope creep?
  4. What are the three components to consider when you establish your own firm?

Source:

Walters, K. (2020). As an accountant, would you rather be a dentist or a surgeon? Accounting Today, Nov. 20 (Retrievable online at https://www.accountingtoday.com/opinion/dentist-or-surgeon-which-would-you-rather-be?position=editorial_5)

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, Fraud Accounting, Intermediate Accounting, Managerial Accounting, Uncategorized, Video Updates.

According to CBS, Sacramento, a fleeing Ponzi scheme suspect is now in custody after a daring escape on a submersible scooter from FBI agents.

Questions

  1. Who is the subject and what is alleged?
  2. Where did this take place?
  3. How long had the subject been under FBI surveillance?
  4. What is the sentence that the subject faces?
  5. What was the modus operandi of the subject in the Ponzi scheme and where are the assets?

Source:

Durden, T. (2020). FBI Arrests Ponzi Suspect After Daring Escape On Underwater Scooter. Zerohedge.com, Nov. 20 (Retrievable online at https://www.zerohedge.com/personal-finance/fbi-arrests-ponzi-suspect-after-daring-escape-underwater-scooter?utm_source=wnd&utm_medium=wnd&utm_campaign=syndicated)

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, International Accounting, Managerial Accounting, Uncategorized.

This very interesting article in the New York Times details how robotics has helped revive Savile Row, an area in London where tailoring companies established as early as 1819, work to survive the pandemic.

Questions:

  1. In what ways does the company use robotics?
  2. How did the quarantines sap profits and the way the companies usually operate in the area?
  3. What are some of the other solutions for the pandemic detailed in the article?
  4. What was the most interesting thing that you learned in the article?

Source:

Segal, D. (2020) To Survive the Pandemic, Savile Row Cuts A Bespoke Strategy. The New York Times, Nov. 15 (Retrievable online at https://www.nytimes.com/2020/11/15/business/savile-row-covid.html)