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

According to the Wall Street Journal, Representative Luetkemeyer, a Republican from Missouri, introduced a bill on September 27 in Congress requiring the Financial Accounting Standards Board (FASB) to formally study the impact of new accounting standards before finalizing them. 

Questions:

  1. What Act does the bill seek to apply?
  2. What are the three major effects that the bill seeks to have investigated?
  3. What subcommittee does Mr. Luetkemeyer sit on?
  4. What will Mr. Luetkemeyer’s bill be called?
  5. What is the Financial Accounting Foundation (FAF) and the FASB’s position on this bill?

Source:

Maurer, M. (2019) Congressman Introduces Bill Requiring FASB to Study New Standards. The Wall Street Journal, Sep. 27 (Retrievable online at https://www.wsj.com/articles/congressman-introduces-bill-requiring-fasb-to-study-new-standards-11569624940)

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.

According to Drugs.com, vape device maker Juul Labs said Wednesday it is stopping all print, digital and television advertising, and its CEO, Kevin Burns, is stepping down.

Questions:

  1. Who is the new CEO?
  2. Who owns a 35% share of Juul?
  3. Who is investigating e-cigarettes and why?

Source:

Staff. E-Cigarette Maker Juul Stops All Advertising, Replaces CEO. Drugs.com, Sep. 25 (Retrievable online at https://www.drugs.com/news/e-cigarette-maker-juul-stops-all-advertising-replaces-ceo-85374.html?utm_source=ddc&utm_medium=email&utm_campaign=Daily+News+Summary+-+September+26%2C+2019&utm_content=E-Cigarette+Maker+Juul+Stops+All+Advertising%2C+Replaces+CEO)

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

According to the Washington Post, Nissan will pay $15 million, and former chairman Carlos Ghosn will pay $1 million to settle allegations by U.S. regulators that they hid more than $140 million of Ghosn’s retirement benefits from investors.

Questions:

  1. How long was Ghosn CEO of Nissan?
  2. What punishment did the SEC impose on Ghosn? Was it for hiding retirement or something else?
  3. When will Ghosn stand trial and will it be civil, criminal, or both?

Source:

Court Staff. (2019). Business Digest: Nissan, Ghosn to pay fines in fraud case. The Washington Post, Sep. 23 (Retrievable online at https://www.washingtonpost.com/business/economy/business-digest-nissan-ghosn-to-pay-fines-in-fraud-case/2019/09/23/f196347a-de27-11e9-be96-6adb81821e90_story.html)

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

According to the Washington Post, minority women are starting firms at a pace more than double that of woman business owners overall, and nearly five times the pace of all company owners.

Questions:

  1. Who sponsored the new report?
  2. What was the growth rate for minority women between 2014 and 2019?
  3. What were the main industries where this growth took place?

Source:

Rosenberg, M. (2019). Minority women business creation jumps, report says. Washington Post, Sep. 23 (Retrievable online at https://www.washingtonpost.com/business/minority-women-business-creation-jumps-report-says/2019/09/23/ba4b82c6-de37-11e9-be7f-4cc85017c36f_story.html)

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

According to Business Insider, hundreds of thousands of tourists have been left stranded after UK Prime Minister Boris Johnson refused to grant the collapsed travel firm Thomas Cook a bailout of £150 million, or about $186 million.

Questions:

  1. Explain Johnson’s idea of a moral hazard.
  2. How large is the Thomas Cook fleet of planes and jets?
  3. How long are some travelers expected to be stranded?
  4. How many U.K. and global employees does Thomas Cook have?
  5. What factors have contributed to the Thomas Cook bankruptcy?

Source:

Bienkov, A. Boris Johnson says he refused £150 million bailout for Thomas Cook because it risked ‘moral hazard’ for other firms. Business Insider, Sep. 23 (Retrievable online at https://www.businessinsider.com/boris-johnson-refused-grant-150-million-bailout-for-thomas-cook-2019-9/

Slotnick, D. Roughly 600,000 travelers are stranded around the world after the British travel provider Thomas Cook declares bankruptcy. Business Insider, September 22 (Retrievable online at https://www.businessinsider.com/thomas-cook-bankrupt-airline-stranded-rescue-2019-9?r=US&IR=T)

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

Iran denies a recent drone attack on Saudi Arabia, as the strikes halve Saudi oil facility output, and President Trump vows to tap U.S. oil reserves.

Questions:

  1. What has happened to oil futures as a result of the attack?
  2. How is the Pentagon weighing in on the latest conflict?
  3. What was Secretary of State Mike Pompeo’s response?
  4. Discuss the Saudi production of oil and the significant effect that it may have on prices at the gas pump.

Source: Fahim, K., A. Gearan, E. Cunningham, and S. Mufson. (2019). Iran denies role in attacks on Saudi oil facilities; Trump says U.S. is ‘locked and loaded.’ The Washington Post, Sep. 15 (Retrievable online at https://www.washingtonpost.com/world/iran-dismisses-allegations-it-carried-out-crippling-attack-on-saudi-oil-facilities/2019/09/15/021b6822-d731-11e9-8924-1db7dac797fb_story.html)

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

According to Business Insider, some CEO pay plans are so complicated that a powerful mathematical technique originally developed to understand the behavior of neutrons in an atom bomb explosion is now the most effective way to estimate what they are actually worth.

Questions:

  1. Where did the inspiration for the Monte Carlo simulation come from (according to a retrospective article)?
  2. As part of its policy on executive pay disclosure, what does the SEC require corporations to publish regarding executive compensation packages?
  3. In the last several years, it’s become increasingly common for CEOs and other top executives at public corporations to have their compensation packages tied to various financial performance goals and what does the Monte Carlo simulation provide to help us understand executive compensation?

Source:

Kiersz, E. (2019). A mathematical technique originally developed to help build the atomic bomb is now used to figure out how much CEO pay packages are worth — like with Elon Musk. Business Insider, Sep. 15 (Retrievable online at https://www.businessinsider.com/monte-carlo-simulations-calculate-value-of-ceo-pay-2019-8)

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 Business Insider, with debt sitting at $9.2 trillion for the U.S. lending market, the industry has been the slowest to digitize and have had little incentive to remove friction from the customer application process.

Questions:

  1. What has Rocket Mortgage added to the industry to become the largest residential mortgage originator by volume?
  2. According to this article, how are legacy lenders responding to digital competitors like Rocket?
  3. Until now, why haven’t legacy lenders overhauled the application process?

Source:

Digalaki, E. (2019). How banks are striking back against Quicken Loans and other digital-first lenders in the $9 trillion US mortgage market. Business Insider, July 11 (Retrievable online at businessinsider.com/the-online-mortgage-lending-report-2019-7)

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 a new study by the National Community Reinvestment Coalition, Black and Hispanic men seeking small business loans face more scrutiny and worse treatment from bank officers than less qualified white men.

Questions:

  1. What were the declines in government-backed lending to black business owners from 2008 to 2016?
  2. According to the study, what type of preferential treatment did white prospective borrowers receive?
  3. Which group was the only one that asked about their education level?
  4. According to the article, banks need better policies and training with respect to what area of lending?

Source:

Jan, T. (2019) Banking while black: Minority business owners with better credit scores than white counterparts face worse treatment and more scrutiny. The Washington Post, Sep. 6 (Retrievable online at https://www.washingtonpost.com/business/2019/09/06/banking-while-black-minority-business-owners-with-better-credit-scores-than-white-counterparts-face-worse-treatment-more-scrutiny/)

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 New York Times, while Google, Amazon, Apple, and Facebook faces regulator scrutiny, Microsoft, which is worth more than all of these four combined, watches from the side-line.

Questions:

  1. According to this article, what has Microsoft learned from past antitrust investigations?
  2. How do market shifts and the evolution of Microsoft’s business over the years help explain the transformation?
  3. According to the article, which Microsoft CEO has helped Microsoft undergo a corporate personality change, becoming more outward looking and seeking the views of policymakers, critics and competitors?

Source:

Lohr, S. (2019). How Top-Valued Microsoft Has Avoided the Big Tech Backlash. The New York Times, Sep. 8 (Retrievable online at https://www.nytimes.com/2019/09/08/technology/microsoft-brad-smith.html )