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)

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 Department of Justice, three family members were arrested in New York for misrepresenting employee payroll figures to receive COVID-19 loan funds for a chain of family-owned nail salons.

Questions:

  1. According to the report, how was the payroll misrepresented by this family?
  2. What federal organizations were involve in the identification of these fraudsters?
  3. When the bank froze the funds to the Victoria Nails & Spa , what else did the article say was frozen?

Source:

Department of Justice. 2020. Three defendants arrested for over $13 million fraud scheme to obtain loans intended to help small businesses during COVID-19 pandemic. News Press Release, Dec. 10 (Retrievable at https://www.justice.gov/usao-sdny/pr/3-defendants-arrested-over-13-million-fraud-scheme-obtain-loans-intended-help-small)

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

The AICPA takes issue with Charles Rettig, IRS Commissioner, for penalizing taxpayers and businesses when the IRS is failing to process returns on time.

Questions:

  1. Who is the Congressional member who entered the AICPA letter into the Congressional Record, regarding this issue?
  2. What is the aggregate backlog of mail at the IRS?
  3. Why isn’t the IRS paying the Economic Impact Payments in a timely manner?
  4. What measures is the AICPA asking the IRS to implement?

Source:

Cohn, M. (2020). AICPA disagrees with IRS commissioner Rettig on penalty relief. Accounting Today, Nov. 20 (Retrievable online at https://www.accountingtoday.com/news/aicpa-disagrees-with-irs-commissioner-rettig-on-penalty-relief)

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

Kyle Walters asks the question: ” As an accountant, would you rather be a dentist or a surgeon?”

Questions:

  1. What does Walters’ question have to do with establishing an accounting firm?
  2. Which structure of an accounting firm best fits your goals and work habits?
  3. What is scope creep?
  4. What are the three components to consider when you establish your own firm?

Source:

Walters, K. (2020). As an accountant, would you rather be a dentist or a surgeon? Accounting Today, Nov. 20 (Retrievable online at https://www.accountingtoday.com/opinion/dentist-or-surgeon-which-would-you-rather-be?position=editorial_5)

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

According to CBS, Sacramento, a fleeing Ponzi scheme suspect is now in custody after a daring escape on a submersible scooter from FBI agents.

Questions

  1. Who is the subject and what is alleged?
  2. Where did this take place?
  3. How long had the subject been under FBI surveillance?
  4. What is the sentence that the subject faces?
  5. What was the modus operandi of the subject in the Ponzi scheme and where are the assets?

Source:

Durden, T. (2020). FBI Arrests Ponzi Suspect After Daring Escape On Underwater Scooter. Zerohedge.com, Nov. 20 (Retrievable online at https://www.zerohedge.com/personal-finance/fbi-arrests-ponzi-suspect-after-daring-escape-underwater-scooter?utm_source=wnd&utm_medium=wnd&utm_campaign=syndicated)

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, International Accounting, Managerial Accounting, Uncategorized.

This very interesting article in the New York Times details how robotics has helped revive Savile Row, an area in London where tailoring companies established as early as 1819, work to survive the pandemic.

Questions:

  1. In what ways does the company use robotics?
  2. How did the quarantines sap profits and the way the companies usually operate in the area?
  3. What are some of the other solutions for the pandemic detailed in the article?
  4. What was the most interesting thing that you learned in the article?

Source:

Segal, D. (2020) To Survive the Pandemic, Savile Row Cuts A Bespoke Strategy. The New York Times, Nov. 15 (Retrievable online at https://www.nytimes.com/2020/11/15/business/savile-row-covid.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, Intermediate Accounting, International Accounting, Managerial Accounting, Uncategorized.

According to the New York Times, sports leagues, large employers and colleges are turning to devices that could usher in more invasive forms of surveillance.

Questions:

  1. What are the benefits of these devices?
  2. What are the costs of these devices?
  3. What fact in this article was the most interesting to you?
  4. How would you feel if you had to wear one of these devices?
  5. If you were an accountant for a large firm that required these devices, how would you account for them?

Source:

Singer, N. (2020) The Hot New Covid Tech Is Wearable and Constantly Tracks You. The New York Times, Nov. 15 (Retrievable online at https://www.nytimes.com/2020/11/15/technology/virus-wearable-tracker-privacy.html)

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 the New York Times, PNC Financial Services said that it plans to acquire the U.S. business of the Spanish lender BBVA for $11.6 billion.

Questions:

  1. Where is BBVA USA Bancshares headquartered?
  2. How many customers does PNC serve?
  3. What did PNC sell earlier this year to provide cash for other acquisitions?

Source:

Hirsch, L. (2020). PNC Strikes $11.6 Billion Deal to Buy U.S. Operations of Spanish Bank BBVA. The New York Times, Nov. 15 (Retrievable online at https://www.nytimes.com/2020/11/15/business/dealbook/pnc-spanish-bank-bbva-sale.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, Intermediate Accounting, Managerial Accounting, Uncategorized, Video Updates.

This time of year is usually when America’s luxury hotels are starting to prepare for busy holiday parties and New Year’s Eve festivities. Unfortunately, most of these luxury hotels have lost well over half their business and told most of their staff that they are not needed.

Questions:

  1. According to the article, the hotel industry was the first to be hit by the economic fallout of the pandemic. How long is it projected before it recovers?  
  2. According to the article, what distinguishes these landmark hotels from the competition and why will it be hard to recover that?
  3. What are some of the occupancy numbers mentioned for these landmark hotels and how have they changed?
  4. What landmark hotels have closed for good or are closing for good?

Source:

O’Connell, J. (2020) America’s luxury hotels on the brink. The Washington Post, Oct. 30 (Retrievable online https://www.washingtonpost.com/road-to-recovery/2020/10/30/luxury-hotels-in-trouble/)

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.

According to the Washington Post, while the Federal Reserve has done a lot to help keep our economy afloat, they have set the stage for problems ahead for pension funds and potential pension recipients, particularly those with bond-heavy portfolios.

Questions

  1. How are near-zero interest rates are worsening the financial problems  of Social Security?
  2. How are near-zero interest rates affecting private pensions?
  3. How bad is the underfunding afflicting state and local government pension funds?
  4. What are some of the problems with assumptions used to calculate pension earnings?

Source:

Sloan, A. (2020). Lucky enough to have a pension? The Fed’s low interest rates mean it may no longer guarantee a secure retirement. The Washington Post, Oct. 21 (Retrievable online at https://www.washingtonpost.com/business/2020/10/21/fed-low-interest-rates-pensions/)