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.

In Itta Bena, Mississippi, it is not uncommon to receive an electricity bill that is more than you pay for a monthly mortgage.

Questions:

  1. When residents complained about the high cost of electricity, what did they find out?
  2. What type of structural changes are contributing to the high utilities prices in this small town?
  3. What is the historic background of Itta Bena?
  4. Did you get a clear understanding of why the city was so much in debt? What could be the possible reasons from a control risk point of view?
  5. What types of resolutions do you see possible regarding the problems raised in this article?

Source:

Waller, A. (2020). Mississippi City Spared Loss of Electric Service. The New York Times, Nov. 1 (Retrievable online at https://www.nytimes.com/2020/11/01/us/itta-bena-mississippi-debt.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, International Accounting, Managerial Accounting, Uncategorized.

According to the New York Times, if you decided to ride out the pandemic at your out-of-state vacation house or with your parents in the suburbs, you may be in for an unpleasant reality: a hefty tax bill.

Questions:

  1. What are the rules if you work in one state and live in another?
  2. Is there a standard number of days that you must live in one state to pay taxes but live in another state?
  3. Which 13 states have agreed not to tax workers who have moved there temporarily because of the pandemic?
  4. According to the article, a number of people have moved to Florida, Texas, Nevada or Wyoming during the pandemic. What do this states have in common?

Source:

Gross, J. (2020) Here’s How Moving Remotely Could Affect Your Taxes. The New York Times, Aug. 25 (Retrievable online at https://www.nytimes.com/2020/08/25/business/coronavirus-nonresident-state-taxes.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, Income Taxes, Intermediate Accounting, Managerial Accounting, Uncategorized.

According to the Washington Post, there is a legacy of systemic racism that our government created and in many ways still isn’t doing enough to eradicate.

Questions

  1. Based on the article, how would you briefly explain redlining?
  2. By what percentage are equivalent Black homes in neighborhoods similar to white neighborhoods undervalued?
  3. What is the key to net worth of most Americans?
  4. What persistent myth about Black homeownership did the author emphasize?
  5. Prior to reading this article, were you aware of the mapping system established in the 1930s, regarding mortgage loans?

Source:

Singletary, M. (2020) Being Black lowers the value of my home: The legacy of redlining. The Washington Post, Oct. 26 (Retrievable online at https://www.washingtonpost.com/business/2020/10/23/redlining-black-wealth/?arc404=true)

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

According to the Washington Post, the IRS is pushing to finish distributing payments to people who have yet to receive relief funds authorized earlier this year.

Questions:

  1. What is the act that provides for these stimulus checks?
  2. What is the deadline that the IRS set for people to use the non-filers tool?
  3. What is the estimate of the number of people that have yet to collect a stimulus payment, because they don’t typically file a tax return, according to the agency?  

Source:

Singletary, M. (2020). The IRS is making a final push to get stimulus payments to millions of Americans. The Washington Post, Oct. 26 (Retrievable online at https://www.washingtonpost.com/business/2020/10/26/stimulus-check-deadline-extended/)

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

According to Accounting Today, the SEC loosened independence rules as part of a deregulatory push in recent years.

Questions:

  1. According to the article, what will the amendments to Rule 2-01 of Regulation SX do?
  2. How do the new and old rules vary on the following situation: An auditor is with a firm that audits a lender that provided the individual auditor with his/her student loan.
  3. What was some of the dissention against the change?

Source:

Cohn, M. (2020). SEC loosens auditor independence rules. Accounting Today, Oct. 16 (Retrievable online at https://www.accountingtoday.com/news/sec-loosens-auditor-independence-rules?)

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

According to Accounting Today, two senior executives at Botswana supermarket chain, Choppies Enterprises Ltd., are suing former auditors PwC for 653 million rand ($40 million) for not signing off on the company’s 2018 accounts, leading to a share price collapse.

Questions:

  1. What are the actual allegations?
  2. How much did Choppies shares lose between September 2018 and their suspension on Nov. 1 of that year?
  3. Do you think that the cost of being cautious is a good topic for auditors to debate?

Source:

Prinsloo, L. (2020). PwC hit by $40M lawsuit from Botswana supermarket chain. Accounting Today, Oct. 19 (Retrievable online at https://www.accountingtoday.com/articles/pwc-hit-by-40m-lawsuit-from-botswana-supermarket-chain?)

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.

Amazon’s extravaganza sale, Prime Day, is frequented by people who pay  annual or monthly fees to be specially treated with more ways to spend. But is this once a year event about really saving money or just being manipulated via behavioral finance?

Questions:

  1. According to the article, what is behavioral finance?
  2. According to the article, the offer of a discount makes people do what?
  3. What tips did the article offer regarding curbing your enthusiasm for discount deals?
  4. In your opinion, what was the most interesting issue in the article?  

Source:

Singletary, M. (2020). The dirty secret of Amazon Prime Day: Shoppers aren’t saving as much as they think. The Washington Post, Oct. 13 (Retrievable online at https://www.washingtonpost.com/business/2020/10/13/amazon-prime-day-savings/)

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

According to the Washington Post and the regulatory filing, the Securities and Exchange Commission warned General Electric that it faces legal action in connection with its troubled insurance business.

Questions:

  1. What is a Wells notice that the SEC issued to GE?
  2. What is the reason for the notice to GE, specifically?
  3. What will happen next if the government choses to proceed?

Source:

Shabar, H. (2020). GE is warned it faces SEC action tied to accounting investigation. The Washington Post, Oct. 6 (Retrievable online at https://www.washingtonpost.com/business/2020/10/06/ge-sec-insurance-wells-notice/)

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.

According to the Washington Post, Supreme Court justices pressed Google to explain why its use of software code to develop its Android mobile operating system didn’t amount to theft, in a closely watched case that could determine how copyright law applies to software.

Questions:

  1. What is Google’s argument?
  2. Who challenged Google’s assertion and what was his argument?
  3. What are the broad ramifications for the software industry?
  4. Would this ruling affect any accounting issues related to accounting for technology companies?

Source:

Greene, J. (2020). Google, Oracle square off on landmark copyright case at the Supreme Court. The Washington Post, Oct. 7 (Retrievable online at https://www.washingtonpost.com/technology/2020/10/07/google-oracle-supreme-court/)

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

According to the New York Times, the picturesque Gard area of France, famous for Rhone wines, desperately needs more employment, but environmentalists are pushing back at the possibility of Amazon’s looming “blight.”

Questions:

  1. According to the article, what is the extent of the “blight” that Amazon’s new warehouse would cause in the area?
  2. What is the Yellow Vest movement? Why was it mentioned in the article?
  3. How many warehouses does Amazon already have in France?
  4. What is the unemployment rate in the Gard area and how does it compare to France’s national unemployment rate?

Source:

Alderman, L. (2020) Are Amazon Jobs Worth 1,400 Loads of Traffic? French Region Is Split. The New York Times, Oct. 11 (Retrievable online at https://www.nytimes.com/2020/10/11/business/amazon-warehouse-france.html)