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

According to the New York Times, Carlos Ghosn, former automobile CEO who proclaims his innocence, was aided in his escape from Japan by an American security consultant on a Turkish chartered jet.

Questions:

  1. Who was the American security consultant?
  2. How did MNG Jet, the charter company, allow Ghosn on the plane?
  3. After Ghosn got to Lebanon, what did he say in a released statement?
  4. What happened to the four pilots and operations manager for MNG Jet?

Source:

Dooley, B. and D. Yaffe-Bellany. (2019). Carlos Ghosn Was Aided in Flight From Japan by Former Green Beret. New York Times, Jan. 4 (Retrievable online at https://www.nytimes.com/2020/01/03/business/carlos-ghosn-cameras.html)

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According to the Washington Post, U-Haul will no longer hire nicotine users in 21 states as of Feb. 1.

Questions:

  1. Why are they applying this policy in only 21 states?
  2. How many employees does U-Haul employ across the United States and Canada?
  3. What will U-Haul require of new hires regarding the new nicotine-free policy?
  4. Besides nicotine and tobacco products, what other goods are covered by the policy?

Source:

Beachum, L. (2019). U-Haul will stop hiring smokers, to foster ‘a culture of wellness’ — and cut health-care costs. The Washington Post, Jan. 3 (Retrievable online at https://www.washingtonpost.com/business/2020/01/03/u-haul-will-stop-hiring-smokers-foster-culture-wellness-cut-health-care-costs/)

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At the time of this writing, Carlos Ghosn has unexpectedly left Japan.

Questions:

  1. What charges is Carlos Ghosn facing?
  2. In exchange for Mr. Ghosn’s release from prison on bail, earlier this year, what were the terms?
  3. In which country are anonymous sources reporting that Mr. Ghosn is staying?

Source:

Flitter, E. (2019). Carlos Ghosn, Fallen Nissan Boss, Has Unexpectedly Left Japan. The New York Times, Dec. 30 (Retrievable online at https://www.nytimes.com/2019/12/30/business/carlos-ghosn-left-japan.html)

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

The U.S. remains the only industrialized country that doesn’t guarantee workers paid family leave.

Questions:

  1. What pressures on U.S. employers are causing them to expand benefits in order to attract and retain workers?
  2. What are some of the increasing trends to cover things that plague families beyond parental leave?
  3. According to the Bureau of Labor Statistics, what percentage of civilian workers in 2018 could get paid time off from work to care for a new child or ill family member? What percentage of workers at small companies could get the same time off?
  4. What is the new bill that President Trump signed with respect to Paid Family Leave?

Source:

McGregor, J. (2019). The new paid family leave. The Washington Post, Dec. 30 (Retrievable online at https://www.washingtonpost.com/business/2019/12/30/new-paid-family-leave/?arc404=true).

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, Video Updates.

After Bishop Michael J. Bransfield was banished from his post as head of the Catholic Church in West Virginia, the church-owned residence he had lived in was put up for sale.

Questions:

  1. Why do you think the diocese was willing to take a $3.4 Million Loss?
  2. Why do you think that the diocese did not hire a real estate agent, advertise the property’s sale online, or hold an open house?
  3. In addition to his home, what other excessive spending is attributed to Bishop Bransfield?
  4. Was this case considered a “fraud?” Why or why not?

Source:

Davis, A.C. (2019). Disgraced bishop spent $4.6 million on mansion that sold for only $1.2 million. The Washington Post, Dec. 29 (Retrievable online at https://www.washingtonpost.com/investigations/disgraced-bishop-spent-46-million-on-mansion-that-sold-for-only-12-million/2019/12/29/6d7ad002-225f-11ea-a153-dce4b94e4249_story.html).

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Elon Musk has implied that the $420 stock price he floated for taking Tesla private was not a covert reference to weed, contrary to widespread speculation.

Questions:

  1. What number is a widely recognized coded reference to marijuana and why?
  2. Which media outlet interviewed Elon Musk when he mentioned the 420?
  3. Based on past news items about Elon Musk, do you believe the interview or the speculated “weed” backstory about the number? Why or why not?
  4. What do they mean about the “premium” and “going private” in the story? Explain.
  5. When was $420 a reality for Tesla?

Source:

Bostock, T. (2019). Elon Musk’s $420 target for Tesla stock probably wasn’t a reference to weed. Businessinsider.com, Dec. 23 (Retrievable online at https://www.businessinsider.com/elon-musk-denies-his-420-stock-about-weed-wasnt-high-2018-8)

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According to Accounting Today, Bernie Ebbers, infamous for the World Com fraud was granted early release for health reasons.

Questions:

  1. What is the First Step Act and why did the author think that this had a bearing on the case?
  2. How long had Bernie Ebbers served?
  3. When MCI went bankrupt as a function of the fraud, which company acquired it?
  4. If you had been an investor, would you have approved of early release? Why or why not?
  5. At the end of the article, what other fraudsters were mentioned and what were the outcomes of their appeals?

Source:

Dolmetsch, C. (2019). WorldCom’s Ebbers wins early release . Accounting Today, December 20 (Retrievable online at https://www.accountingtoday.com/articles/worldcoms-bernard-ebbers-wins-early-release-from-prison?position=editorial_10&campaignname=ACT%20Daily-12232019&utm_source=newsletter&utm_medium=email&utm_campaign=ACT_Daily_Daily_TEST%2B%27-%27%2B12232019&bt_ee=dTd6MPjduXoPmCpPvg4x7ppeZw01kzXlFdPM5isNbuk%3D&bt_ts=1577098906745)  

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According to the New York Times, Boeing fired its chief executive officer, Dennis A. Muilenburg, on Monday after investors became weary of Muilenburg’s clumsy handling of the 737 Max crisis that angered lawmakers, airlines, regulators, and victims’ families.

Questions:

  1. Who is going to replace Muilenburg?
  2. When do the Boeing Board and Washington insiders typically meet for a telephone conference and why?
  3. How much has Boeing’s stock fallen during the crisis and how many companies are affected by changes in its supply chain?
  4. What is the Starliner and what happened to it this week?

Source:

Gelles, D. and N. Kitroelf. (2019). Boeing Fires C.E.O. Dennis Muilenburg. The New York Times, Dec. 23 (Retrievable online at https://www.nytimes.com/2019/12/23/business/Boeing-ceo-muilenburg.html)

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According to the Washington Post, Boeing will halt production of its new 737 MAX commercial jetliner in January 2020.

Questions:

  1. How long will the production halt last?
  2. How many employees will be laid off?
  3. How much is it estimated that the entire U.S. gross domestic product for a period this year has been impacted by the problems with the 737 MAX?
  4. What other companies do you think have been impacted by the 737 MAX problems?

Source:

Gregg, A. (2019) Boeing will halt 737 MAX production in January as FAA reviews software fix. The Washington Post, Dec. 16 (Retrievable online at https://www.washingtonpost.com/business/2019/12/16/boeing-will-halt-max-production-january-faa-reviews-software-fix/)

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According to BusinessInsider.com, the Trump Administration is pushing for funds meant for low-income neighborhoods to be funneled to the NFL for a new stadium.

Questions:

  1. Who proposed the rule change and to whom?
  2. When was the law or rule passed?
  3. What are the pros and cons for putting stadiums in opportunity zones?
  4. Do you agree with using this funding for stadiums? Why or why not?

Source:

Zeballos-Roig, J. (2019). The Trump administration may allow banks to treat NFL stadium financing as aid for the poor – and they could even get a big tax break. BusinessInsider.com, Dec. 16 (Retrievable online at https://markets.businessinsider.com/news/stocks/trump-administration-may-allow-nfl-stadium-financing-designate-aid-poor-2019-12-1028766746)