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

According to the New York Times, if the acquisition of Bed Bath & Beyond by Overstock.com is approved at bankruptcy court next week, the company will own the intellectual property of the bankrupt home goods retailer.

Questions:

  1. How much did Overstock.com’s stock price rise with the announcement?
  2. Why has Overstock been expanding into home décor and small appliance offerings?
  3. Why is the issue of owning intellectual property so important?
  4. What does intellectual property include?
  5. How will intellectual property be recorded in the financial records? Include account classification and potential journal entries.
  6. What other store did Bed Bath & Beyond own that will be auctioned off separately?

Source:

Holman, J. (2023) Overstock.com Wins $21.5 Million Bid for Bed Bath & Beyond’s Assets. The New York Times, June 23 (Retrievable online at https://www.nytimes.com/2023/06/22/business/bed-bath-beyond-overstock-bankruptcy.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, IFRS, Intermediate Accounting, International Accounting, Managerial Accounting, Uncategorized.

According to the New York Times, a new Canadian law will require technology companies to license news content. Facebook’s owner said it would drop news from the platform.

Questions:

  1. In addition to paying for shared news, what procedures will the new law will require from search engines and social media companies?
  2. What is the law called?
  3. What is the law modelled after?
  4. How should companies report the cost of licensing news content, assuming that the company uses IFRS?
  5. Source:

Ives, M. (2023). Canada Forces Google and Facebook to Pay News Outlets for Linking to Articles. The NEw York Times, June 23 (Retrievable online at https://www.nytimes.com/2023/06/23/business/media/meta-google-canada-news-facebook-instagram.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, Income Taxes, Intermediate Accounting, International Accounting, Managerial Accounting, Uncategorized.

According to the New York Times, TikTok’s chief operating officer is stepping down, and the company is bringing in a new executive to run its communications department.

Questions:

1, Who was TikToks’s COO?

2. Which company did the new COO come from?

3. When did the resigning chief operating officer join TikTok to run its North American business?

4. Will this change in personnel be reported in the annual report and if so, where?

5. What was her reason for quitting?

Source:

Maheshwari, S. (2023). TikTok Shakes Up Leadership Amid Questions About Its Future. The New York Times, June 23 (Retrievable online at https://www.nytimes.com/2023/06/22/business/tiktok-leadership-shake-up-v-pappas.html)

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

According to the New York Times, Ford Motor and its battery manufacturing partner will receive a $9.2 billion loan to build three battery factories in Kentucky and Tennessee from the Department of Energy.

Questions:

  1. How many people will be employed?
  2. What is the Biden Administration goal for electric cars?
  3. How should the loan be recorded in the financial statements?
  4. What industry does Ford expect the newly employed people to transition from?
  5. When or if will you get an electric vehicle? Discuss.

Source:

Ewing, J. and C. Krauss (2023). Ford’s Battery Joint Venture to Get $9.2 Billion Government Loan, The New York Times, June 23 (Retrievable online at https://www.nytimes.com/2023/06/22/business/energy-environment/ford-battery-plants-loan.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, Managerial Accounting, Uncategorized, Video Updates.

According to the New York Times, chemical giant, 3M, reached a $10.3 billion settlement deal with U.S. cities and towns regarding claims that the company contaminated drinking water with so-called forever chemicals used in everything from firefighting foam to nonstick coatings.

Questions:

  1. Over what period will the payout happen?
  2. How many lawsuits did 3M face regarding these forever chemicals?
  3. What types of journal entries and footnote disclosures do you anticipate impacting the 3M annual report?
  4. What is PFAS? As part of the settlement, when will 3M exit the manufacture of PFAS?
Source: Friedman, L and V. Giang. (2023) 3M Reaches $10.3 Billion Settlement in ‘Forever Chemicals’ Suits, The New York Times, June 22 (Retrievable online at https://www.nytimes.com/2023/06/22/business/3m-settlement-forever-chemicals-lawsuit.html)

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

According to the Washington Post, the Federal Reserve announced Wednesday that it would not raise interest rates this month.

Questions:

  1. How many consecutive interest rate hikes over 15 months has the Federal Reserve made to curb inflation up to this point?
  2. What did the Tuesday inflation numbers show just a day prior to this announcement?
  3. How many jobs were added in May?
  4. What are the confluency of issues that make this economic situation a “real head-scratcher?”
  5. How do the interest rate hikes affect most Americans?

Source:

Siegel, R. and A. Bhattarai. (2023). Fed leaves rates unchanged for first time since March 2022. The Washington Post, June 14 (Retrievable online at https://www.washingtonpost.com/business/2023/06/14/fed-expected-leave-rates-unchanged-first-time-since-march-2022/)

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

According to Fortune, McKinsey Global Institute’s new report looks at 63 potential use cases for artificial intelligence (AI) and predicts that generative AI might add between $2.6 to $4.4 Trillion (with a T) to the global economy.

Questions (from the report):

  1. When was ChatGPT released?
  2. What does the report mean when it says we got to generative AI gradually and then all of a sudden?
  3. Across the banking industry, AI technology could deliver value equal to how much annually if the use cases are fully implemented?
  4. What was the most interesting thing that you read about generative AI in the report?   

Source:

Murray, A. and N. Gordon. (2023) Generative A.I. could add $4.4 trillion to the global economy—with 4 use cases accounting for 75% of the value. Fortune, June 14 (Retrievable online at https://fortune.com/2023/06/14/generative-ai-world-economy-use-cases-mckinsey-report/) PAYWALL
 Staff. (2023). The Economic Potential of Generative AI: The Next Productivity Frontier. McKinsey Global Institute, June 14 (Retrievable online at https://www.mckinsey.com/capabilities/mckinsey-digital/our-insights/The-economic-potential-of-generative-AI-The-next-productivity-frontier).

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 The World Financial Review, artificial intelligence (AI) is revolutionizing advancements in small business accounting.

Questions:

  1. What are the benefits of AI in small business accounting?
  2. What are the challenges of AI in small business accounting?
  3. What are some of the implementation integration issues associated with small business accounting processes?

Source:

Staff. (2023). How AI Is Revolutionizing Small Business Accounting. The World Financial Review, June 14 (Retrievable online at https://worldfinancialreview.com/how-ai-is-revolutionizing-small-business-accounting/)

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

According to Accounting Today, the Supreme Court unanimously rejected a Minnesota county’s argument that a 94-year-old woman had no property interest in a condominium they seized from her and later sold for more than her unpaid taxes. 

Questions:

  1. According to the justices, which Constitutional Amendments were violated by the county?
  2. How much equity did the Supreme court say that the Minnesota court took illegally?
  3. According to Russell (2023), what states allow the practice of “home equity theft”?
  4. Which state recently eliminated the practice of “home equity theft”?
  5. How do you think this ruling will impact the states listed in #3 above?

Source:

Cohn, M. (2023). SCOTUS rules for 94-year-old in property tax case. Accounting Today, June 6 (Retrievable at https://www.accountingtoday.com/news/scotus-rules-in-favor-of-94-year-old-in-property-tax-case?)

Russell, R. (2023). Supreme Court examines ‘home equity theft’. Accounting Today, May 16 (Retrievable at https://www.accountingtoday.com/news/supreme-court-examines-home-equity-theft)

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

According to the Washington Post, 61 percent of Americans own stocks, which is the highest number since 2008.

Questions:

  1. According to the article, what type of investment instrument do millennials prefer?
  2. How low did the percentage of Americans owning stock go after the Great Recession in 2013 and 2016?
  3. How much has the U.S. market has gained on an annualized basis over the past decade?
  4. How do investment strategies (like ownership of stocks) impact CPAs?

Source:

Singletary, M. (2023) More Americans own stocks. This is great for their financial future. The Washington Post, June 6. (Retrievable at https://www.washingtonpost.com/business/2023/06/06/american-stock-ownership/)