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, Video Updates.

According to Business Insider, real eiderdown is one of the warmest natural fibers you can find, but it doesn’t come cheap; an eiderdown double duvet could cost you over $8,000.

Questions:

  1. Which part of the processes do you think is most expensive?
  2. How much is produced each year?
  3. Is harvesting the down a destructive process to the wild birds?
  4. How does it compare to duck down?
  5. If you had an extra $8,000 to use for something, would you use it to buy an eiderdown double duvet? Why or why not?

Source:

Floyd, C. (2020). Why Icelandic Eiderdown Harvested from Wild Ducks is So Expensive. Business Insider, August 20 https://search.yahoo.com/search?fr=mcafee&type=E211US105G0&p=Why+is+Icelandic+Eiderdown+so+expensive)

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

According to Accounting Today, the Financial Standards Accounting Board’s recent roundtable discussions centered on new guidance about lease implementation for public and nonpublic organizations, and what we can expect for non-public implementation next year.

Questions:

  1. Why didn’t participants at the Sep. 2020 FASB Roundtable want sweeping changes to lease guidance?
  2. According to the article, why would private companies welcome practical expedience to reduce the cost and complexity associated with determining the incremental borrowing rate?
  3. Separate from the Roundtable, the FASB issued October proposals designed to improve three targeted areas of its lease accounting guidance for public companies? What are these three areas?
  4. What would the delay of similar guidance for non-public implementation cause?

Source:

Ohm, A. (2020) FASB: Don’t make big changes to the lease standard. Accounting Today, December 24 (Retrievable online at https://www.accountingtoday.com/opinion/fasb-dont-make-big-changes-to-the-lease-standard)

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, Intermediate Accounting, International Accounting, Managerial Accounting, Uncategorized.

One of the most read articles by the BV Wire in 2020 was one summarizing the thoughts on the impact of the crisis on valuations by the Business Valuation Update Editorial Advisory Board, in both the U.S. and around the globe.

Questions:

  1. Edwina Tam, partner at Deloitte in Hong Kong, suggested that issues to be considered in business and valuation assumptions included “store or facility closures.” Give at least five examples of store closures during 2020.
  2. Harold Martin, partner-in-charge of valuation and forensic services for Keiter in Richmond, Virginia, suggested that valuations should consider reporting material developments as subsequent event. What particular examples can you list that would be material developments when the COVID virus started to spread in early March?
  3. John-Henry Eversgerd, senior managing director of the valuation and litigation consulting practice in the Sydney Australia’s office of FTI Consulting, suggested that significant asset impairments would be reported in a number of industries. Discuss what industries these were and why.

Source:

BV Wire Staff. (2020). Thoughts and advice on valuations amid the COVID-19 crisis. BV Wire, March 25 (Retrievable online at Thoughts and advice on valuations amid the COVID-19 crisis | Business Valuation Resources (bvresources.com)

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, Video Updates.

According to Engadget.com, Walmart announced that they have decided to cancel their original plans to have robots to track and check inventory after they discovered that actual human employees were capable of performing the tasks just as well.

Questions:

  1. According to the article, which function(s) were humans better at?
  2. When did Walmart start testing the robots?
  3. In your opinion, what was the bottom line take-away concept of this project?

Source:

Dent, Steve. (2020) Walmart abandons plan to have robots check store inventories. Engadget.com, Nov. 3 (Retrievable online at Walmart abandons plan to have robots check store inventories | Engadget)

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

According to Bloomberg, Amazon, Facebook, Walmart and other corporate giants may soon give Wall Street a run for its money as a key U.S. regulator smooths the path for nonbanks to get into lending.

Questions:

  1. Why is the banking industry against this? List at least two reasons.
  2. What is the loophole that the article talks about?
  3. This new slippery slope to allow industrial loan companies (ILCs) began with conditional deposit-insurance approval for mobile payments firm Square Inc. and student lender Nelnet Inc. Now, what is the new major test case for a non-financial firm to break down the traditional barrier between banking and commerce?
  4. Explain the three parts of Steve Hall’s statement as legal counsel advocating for tougher financial rules objection against ILCs: “(A) Those combinations cannot be adequately supervised, (B) they pose instability risks, and (C) they can even foster unfair competition.”

Source:

Hamilton, J. (2020). FDIC eases path for Amazon and Facebook to become lenders. BenefitsPro.com, Dec. 22 (Retrievable at FDIC eases path for Amazon and Facebook to become lenders | BenefitsPRO)

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)