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, tax policy used to be fairly boring and predictable. But in the past decade, it has become dynamic in a way that tax advisers don’t like: It changes with the political party in power.

Questions:

  1. According to the article, changes for tax advisers with the political party in power make what particular decisions difficult?
  2. What important tax changes are expected under the new Biden administration?
  3. How will the pandemic affect the timing of tax policy changes?

Source:

Krugman, P. (2021). The Estate Tax May Change Under Biden, Affecting Far More People. The New York Times, Jan. 15 (Retrievable online at https://www.nytimes.com/2021/01/15/your-money/estate-tax-biden.html?smid=tw-dealbook&smtyp=cur)

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

According to the Washington Post, Total is the first major petroleum company to leave the influential trade group, the American Petroleum Institute (API).

Question:

  1. Why did Total leave the influential API trade group?’
  2. What other oil companies have left trade groups? Name the trade groups and companies.
  3. How much has Total invested in the U.S. over the past five years?
  4. What is Total’s role in exporting liquefied natural gas in the U.S.?
  5. In what U.S. firm does Total maintain a position as major stakeholder?

Source:

Mufson, S. (2021) French oil giant Total quits American Petroleum Institute. The Washington Post, Jan. 15 (Retrievable online at https://www.washingtonpost.com/climate-environment/2021/01/15/french-oil-giant-total-quits-american-petroleum-institute/)

The logo of French oil and gas company Total. (Pascal Rossignol/Reuters)

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

According to the Washington Post, Dollar General workers who get the COVID vaccine will be rewarded with four hours of pay. This makes the company one of the first major retailers to incentivize inoculations for its workforce.

Questions:

  1. What is the base rate for Dollar General workers?
  2. What barrier does the company hope to break down with this incentive?
  3. Are retailers required to report infection rates or deaths due to the coronavirus?
  4. According to the United Food and Commercial Workers Union estimates to Jan. 5, how many workers have been infected and how many workers have died in the retail, grocery, food processing and other front-line industries?
  5. Will the employees have to provide proof of vaccination? Do you agree with this policy? Discuss.
  6. Summarize the financial profit and investment data in the article relating to the pandemic period.

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, highly paid college sports coaches (and some hospital executives) are are targets of a 21 percent excise tax by the IRS if these nonprofit employees receive $1 million or more in salary.

Questions:

  1. What is the big loophole in the law?
  2. Who pays the tax? Employee or nonprofit organization?
  3. What is the “limited hours exception” in the law?
  4. How does the excise-tax provision align some of the tax rules for nonprofits with that for public corporations?

Source:

Davison, L. and McQuillan, S. (2021). Colleges paying top dollar for coaches will pay extra to IRS. Accounting Today, Jan. 12 (Retrievable online at Colleges paying top dollar for coaches will pay extra to IRS | 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, Financial Accounting, Fraud Accounting, Intermediate Accounting, Managerial Accounting, Uncategorized.

According to the Insights Commentary, the U.S. Congress recently passed the National Defense Authorization Act (“NDAA”) for Fiscal Year 2021, which includes important changes to the Securities and Exchange Commission’s (“SEC”) ability to seek disgorgement. Although President Trump vetoed the bill, the House of Representatives and Senate voted to override the veto on December 28, 2020, and January 1, 2021, respectively.

Questions:

  1. What was the context leading to the new provisions of disgorgement?
  2. For disgorgement, what is the statute of limitations for fraud-based violations according to the new legislation?
  3. What challenges does the additional time allowed by the statute of limitations pose for the SEC?
  4. What are the three takeaways from the new provisions?

Source:

Staff. (2021) Defense Bill to Expand SEC Powers and Authority. Jones Day Publications, Jan. 4 (Retrievable online at https://www.jonesday.com/en/insights/2020/12/defense-bill-to-expand-sec-powers-and-authority)

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)

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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)