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 Public Company Accounting Oversight Board has disciplined five auditing firms for violating its rules and standards when communicating with audit committees.

Questions

  1. What was the reason for sanctions for three of the firms?
  2. What was the reason for the remaining two firms?
  3. With respect to the PCAOB order and disciplinary action, what did each firm do?

Source:

Cohn, M. (2023) PCAOB sanctions firms over audit committee communications. Accounting Today, July 28 (Retrievable online at https://www.accountingtoday.com/news/pcaob-sanctions-firms-over-audit-committee-communications?)

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

According to Accounting Today, the Internal Revenue Service will be adding extra procedures to deter scammers who have been inundating the agency with bogus claims for the Employee Retention Credit.

Questions:

  1. How many claims for the ERC has the IRS received since the credit was enacted early in the Pandemic?
  2. What is the backlog on handling these claims?
  3. Who qualifies for this tax credit?
  4. What is the main reason for the uptick in fraudulent ERC claims?
  5. What is the period of eligibility?
  6. How long can small businesses file for this credit?

Source:

Cohn, M. (2023) IRS plans new measures to curb Employee Retention Credit fraud. Accounting Today, July 26 (Retrievable online at https://www.accountingtoday.com/news/irs-plans-new-measures-to-curb-employee-retention-credit-fraud?)

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 Bloomberg News, about $24.8 billion of US office buildings were in distress at the end of the second quarter, resulting in a higher amount of real estate worries than the leading commercial real estate laggards — hotels and retail properties.

Questions:

  1. What percentage of offices used by the U.S. Post Office were either under water or repossessed by lenders in first quarter 2023?
  2. Why is it likely to get worse in future quarters?
  3. Comparatively, by what percentage was the total of all troubled commercial properties up in the first quarter of 2023?
  4. Propose a solution for maintaining the solvency of the U.S. Postal Service and why it would be important to enact your solution.

Source:

Gittelsohn, J. (2023). Distressed US Offices Jump to $24.8 Billion, More Than Malls. Bloomberg, July 19 (Retrievable online at https://www.msn.com/en-us/money/other/distressed-us-offices-jump-to-24-8-billion-more-than-malls)

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, International Accounting, Uncategorized.

According to The Hill, wholesale used car prices dropped by the largest monthly amount since the pandemic began.

Questions:

  1. What percentage drop in used car prices occurred between May to June?
  2. The Manheim Used Vehicle Value Index (MUVVI) saw a drop of _____ from a year ago.
  3. What was the percentage drop in the MUVVI in April 2020?
  4. Which types of cars saw the greatest drop in wholesale prices as compared to a year ago? What types saw the smallest drops in wholesale prices since June 2022?

Source:

Sforza, L. (2023). Wholesale Used Car Prices Drop by the Largest Amount Since Pandemic Began. The Hill, July 10 (Retrievable online at https://thehill.com/business/4088856-wholesale-used-car-prices-drop-by-largest-amount-since-pandemic-began/)

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

According to the Associated Press, Bank of America will reimburse customers more than $100 million and pay $150 million in fines for “double-dipping” on overdraft fees, withholding reward bonuses on credit cards, and opening accounts without customer consent.

Questions:

  1. How did the double-dipping work?
  2. When did Bank of America end this practice?
  3. The bank cut down its overdraft fee from what amount to what amount?
  4. After Bank of America voluntarily reduced overdraft fees and eliminated all non-sufficient fund fees in the first half of last year, how was its overdraft revenue affected?
  5. What government bureau will receive these fines?

Source:

Sweet, K. and M. Chapman. (2023). BofA hit with $250 million in fines and customer refunds for ‘double-dipping’ fees, fake accounts. The Associated Press, July 11 (Retrievable online at https://www.msn.com/en-us/money/companies/bofa-hit-with-250-million-in-fines-and-customer-refunds-for-double-dipping-fees-fake-accounts/ar-AA1dIrGm?ocid=msedgntp&cvid=35b0c9f7e1ff427eb780760f55f63106&ei=13)

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 Washington Post, U.S. authorities announced that they have secured a $12 million forfeiture agreement from the daughter of accused antiquities smuggler Douglas Latchford, a man federal prosecutors say was a key figure in the decades-long ransacking of ancient Cambodian temples.

Questions:

  1. Why didn’t U.S. authorities get the smuggled antiquities from Douglas Latchford, rather than his heir?
  2. How did U.S. authorities find out about the millions Latchford received for the stolen goods?
  3. What signal does this seizure signal, according to the article?
  4. Can Latchford’s daughter record this as a deduction on her taxes? Why or why not?
  5. Will Latchford’s daughter have to pay taxes on this inheritance?

Source:

Whoriskey, P. (2023). Heir of accused antiquities smuggler agrees to forfeit $12 million. The Washington Post, June 22 (Retrievable online at https://www.washingtonpost.com/business/2023/06/22/cambodia-antiquities-forfeiture-latchford/)

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)