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.

HSBC announced that CEO, John Flint, was leaving the bank after only 18 months in the role. 

Questions:

  1. What issues is Europe’s biggest bank grappling with currently?
  2. What specific strategic reason does the Board give for his departure?
  3.  What is the revenue risk that HSBC faces?

Source:

Reuters Staff. (2019). HSBC CEO John Flint leaves abruptly after only 18 months in role. Economic Times, August 5 (Retrievable online at https://economictimes.indiatimes.com/news/international/business/hsbc-ceo-john-flint-leaves-abruptly-after-only-18-months-in-role/articleshow/70530466.cms)  

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

Lowe’s announced that it will be laying off thousands of workers, including maintenance workers, service workers, and furniture and grill assemblers.

Questions:

  1. How does Lowe’s plan to fill this void?
  2. What will it offer the laid-off workers?
  3. What is the health of Lowe’s stores overall?

Source:

Dockery, W. (2019). Lowe’s Layoffs 2019: Why The Hardware Retail Giant Will Cut Thousands Of Workers. International Business Times, August 4 (Retrievable online at https://www.ibtimes.com/lowes-layoffs-2019-why-hardware-retail-giant-will-cut-thousands-workers-2810686)

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According to Business Insider, when in 2018, CVS Health acquired Aetna, combining a chain of nearly 10,000 pharmacies dispensing prescriptions and selling snacks and soda with one of the biggest US health insurers, the company also took greater steps to promote healthier options.

Questions:

  1. What was CVS’s stand regarding the sale of cigarettes?
  2. Where does CVS Health Chief Marketing Officer, Norman de Greve, think that CVS growth will come from?
  3. As CVS starts to focus its physical presence more on health, how important do you believe its focus on healthy choices will be for the company’s stock price?  

Source:

Ramsey, L. (2019). CVS wants to change where millions of Americans go when they get sick. Here’s how it plans to get them in the door in the first place. Business Insider, July 29 (Retrievable online at https://www.businessinsider.com/cvs-health-chief-marketing-officer-degreve-on-future-of-pharmacy-2019-7)

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

According to Business Insider, the Securities and Exchange Commission is stepping up scrutiny of mutual fund investments in private companies, according to people with knowledge of the agency’s interest.

Questions:

  1. What has been the problem with mutual funds investing in companies like Airbnb or WeWork?
  2. Which case is notorious for spiking the SEC’s interest in the issue of illiquid securities?
  3. The SEC enacted rules earlier this year regarding mutual funds. Briefly summarize the issues that these focused on.

Source:

Saacks, B. and D. Campbell (2019). The SEC is scrutinizing whether mutual funds need to shed more light on stakes in unicorns like WeWork and Airbnb — and it could mean more protections for mom-and-pop investors. Business Insider, July 29 (Retrievable online at https://www.businessinsider.com/sec-steps-up-scrutiny-of-private-stakes-held-by-funds-2019-7)

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

According to the Washington Post, nearly half of all Americans were affected by the 2017 Equifax data breach, where hackers stole personal data for more than 147 million people: credit card numbers, Social Security numbers and other identifying information. Now, as part of a settlement agreement with the Federal Trade Commission, the people whose data was stolen can get some compensation: 10 years of free credit monitoring, or maybe $125, depending on how badly you were affected.

Questions:

  1. According to the article, why is there a good chance that you won’t actually get the full $125 that Equifax and the FTC are talking about?
  2. If you have spent or lost money as a result of the hack (legal or accounting fees, or the money you lost because someone stole your identity and charged a large amount of money on accounts in your name, what can you do?
  3. What is the only option in which you keep your right to sue Equifax in the future and what is the deadline?
  4. How should Equifax record the settlement in their accounting records?

Source:

Brice-Saddler, M. (2019). An Equifax hack settlement promises a $125 payout. The truth is more complicated. The Washington Post, July 26 (Retrievable online at https://www.washingtonpost.com/business/2019/07/27/equifax-settlement-guide-how-get-money-what-you-need-know/?utm_term=.5be02ff449f1)

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

According to the Washington Post, now is a good time to book fall getaways because rates are dropping.

Questions:

  1. By month, what drops are expected in airline rates?
  2. What is the peak travel month?
  3. When are the most expensive times for travel?
  4. Do sales that airlines advertise the best rates? Discuss.

Source:

Sampson, H. (2019). Airfare is dropping — and you can enjoy the trend through September. The Washington Post, July 15 (Retrievable online at https://www.washingtonpost.com/travel/2019/07/15/airfare-is-dropping-you-can-enjoy-trend-through-september/?utm_term=.210b875902dc)

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

Goldman Sachs has a plan to combine five investing teams into a single alternatives unit. This plan has been doubted internally and has led to interesting drama within the firm.

Questions:

  1. Who is Goldman’s CEO who announced this plan?
  2. Why is this move important to outside investors?
  3. Why is the debate centering around Goldman’s two most profitable units?
  4. What are these units?
  5. Explain the sentence in the article: ” The CEO wants to take advantage of the growth in alternatives, but to do so means moving away from the limitations of Goldman’s balance sheet.” 

Source:

Campbell, R. (2019). Goldman Sachs execs are jockeying for power in the firm’s big new private investing unit — and the stakes couldn’t be higher. Business Insider, July 15 (Retrievable online at https://www.businessinsider.com/theres-drama-with-goldman-sachs-private-investing-unit-plan-2019-7)

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

According to Business Insider, six trucking companies have already folded during 2019. As a result, more than 2500 truckers are unemployed.

Questions:

  1. Explain the spot market for trucking companies and what has happened to it.
  2. What are the trucking companies that have gone bankrupt in 2019 and how many truckers were left unemployed by each bankruptcy?
  3. What company do many of these firms blame for their bankruptcies? Explain why.

Source:

Premack, R. (2019). At least 2,500 truck drivers have lost their jobs in 2019 as the transportation ‘bloodbath’ unfolds — here’s the full list of bankrupt trucking companies. Business Insider, July 15 (Retrievable online at https://www.businessinsider.com/trucking-companies-bankrupt-list-truckers-react-to-industry-bloodbath-2019-7#starlite-trucking-28-truck-drivers-1 )

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

According to Accounting Today, the Financial Accounting Standards Board’s (FASB’s) recent accounting standard update adjusts production costs of films and episodic content produced for TV and online streaming services such as Netflix and Hulu.

Questions:

  1. How has the accounting for costs adjusted with the way we now consume media?
  2. What does the accounting standard eliminate?
  3. Explain the convergence model used in the accounting standard related to films and episodic content produced.
  4. What does the standard do to disclosure requirements?
  5. How do you anticipate the monetization of TV and movie content will affect you?

Source:

Cohn, M. (2019). FASB standard on film and TV episode costs may have an impact on what you watch next year. Accounting Today, July 5 (Retrievable online at

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

Deloitte LLP was fined 4.3 million pounds for audit failures of a unit of Serco Group Plc. Additionally, audit engagement partner, Helen George, was fined 97,500 pounds for failure to act in accordance with the fundamental principle of professional competence and due care.

Questions:

  1. After admission of misconduct by both Deloitte and Helen George, what happened?
  2. Serco Group Plc agreed to pay 19.2 million pounds to settle a six-year fraud probe into false accounting related to what intentional mistatement?
  3. Deloitte’s fine comes just weeks after PricewaterhouseCoopers fine for what?
  4. How much was PWC’s fine in #3 above?

Source:

Miller, H. (2019) Deloitte fined $5.4M over Serco Group audit failings. Accounting Today, July 5 (Retrievable online at https://www.accountingtoday.com/articles/deloitte-fined-54m-over-serco-group-audit-failings?utm_campaign=audit%20%26%20accounting-jul%208%202019&utm_medium=email&utm_source=newsletter&eid=57251c705b8682bf40d8936b8b0be222)