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, Managerial Accounting, Uncategorized.

According to the Washington Post, New York Gov. Kathy Hochul (D) is backing a proposal to change the state’s method of accounting for greenhouse gas emissions, after state modeling estimated significant cost increases for buying gas and heating homes.

Questions:

  1. When did the law originally pass?
  2. The change is from a ___ year metric to a ____ year metric.
  3. Which metric do you think is best and why? Discuss.
  4. What other state is currently following the same metric as New York?
  5. What are cap-and-invest programs?
  6. According to modeling of the current law, it would cost New Yorkers ___ percent more to buy a gallon of gas and ___ percent more to heat their homes when the cap-and-invest program takes effect.

Source:

Joselow, M. and V. Montalbanos (2023). New York, citing consumer costs, may ease its greenhouse gas accounting rules. The Washington Post, April 4 (Retrievable at https://www.washingtonpost.com/politics/2023/04/04/new-york-citing-consumer-costs-may-ease-its-greenhouse-gas-accounting-rules)

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, Managerial Accounting, Uncategorized.

According to the Washington Post, the NBCUniversal CEO Jeff Shell will leave the company “effective immediately” following an investigation into a complaint of inappropriate conduct.

Questions:

  1. How long has Shell been with the company?
  2. When was he named CEO?
  3. NBCUniversal is the parent company for what other entities?
  4. What did Shell say about his predecessor, which is probably true in his own case?

Source:

Kaur, A. (2023). NBCUniversal CEO departs after ‘inappropriate relationship’. The Washington Post, April 23 (Retrievable online at https://www.washingtonpost.com/business/2023/04/23/jeff-shell-ceo-nbcuniversal-leaves)

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, Managerial Accounting, Uncategorized.

Recently, we have heard many things about the dangers of artificial intelligence (AI). Today, the New York Times published an article about the firing of the editor of German celebrity magazine Die Aktuelle that used the AI-generated responses of retired Formula 1 driver, Michael Schumacher.

Questions:

  1. How long had the editor been at the magazine?
  2. When did Schumacher have his skiing accident?
  3. What action was the family of Schumacher planning to take?
  4. What should the editor have done to assure that the responses, which sounded deceptively real, were in fact real?
  5. What types of AI problems do you anticipate in the professional accounting workplace, if any?

Source:

Holpuch, A. (2023) German Magazine Editor Is Fired Over Fake Michael Schumacher Interview. The New York Times, April 24 (Retrievable online at https://www.nytimes.com/2023/04/24/business/media/michael-schumacher-ai-fake-interview.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, Video Updates.

According to the New York Times, Bed Bath & Beyond (BB&B) failed to fully reckon with the rise of online shopping, leading to its bankruptcy filing.

Questions

  1. If you have a Bed Bath & Beyond gift card, what is your deadline to use it?
  2. After this deadline, what is the journal entry that BB&B accountants should make for the unused card amounts?
  3. Explain what you think the term “the Darwinism of retail” means as mentioned by Michael Lasser.
  4. When did the company actually start?
  5. What was its first name?
  6. When did it go public?
  7. What happened to the company during the 2008 crisis?

Source:

Holman, J. and M. Hirsch (2023). Bed Bath & Beyond Files for Bankruptcy. The New York Times, April 23 (Retrievable online at https://www.nytimes.com/2023/04/23/business/bed-bath-beyond-bankruptcy.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, Managerial Accounting, Uncategorized.

According to the New York Times, while government aid and organizations can ease the burden of major losses, disaster victims are burdened by small expenses to rebuild their lives.

Questions:

  1. What were the costs that surprised you most?
  2. Why didn’t homeowners mentioned in Kentucky have flood insurance? List multiple reasons.
  3. Why can’t flood victims depend totally on FEMA assistance?

Source:

Hagerty, C. (2023). When Floods Destroy Homes, Hidden Costs Can Devastate Survivors. The New York Times, April 22 (Retrievable online at https://www.nytimes.com/2023/04/22/business/flood-damage-home-costs.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, IFRS, Income Taxes, Managerial Accounting, Uncategorized.

According to the New York Times, as Japan’s population shrinks, more than 10 million abandoned properties are available for as little as $25,000.

Questions:

  1. What is the Japanese word for “empty house”?
  2. What is the quantitative forecast of “empty houses” in Japan by 2033?
  3. Explain why the empty housing situation has not impacted urban markets.
  4. What are the problems with renovating Japanese houses?
  5. What are the tax problems associated with the empty houses?

Source:

Hornyak, T. (2023). Japan Has Millions of Empty Houses. Want to Buy One for $25,000? The New York Times, April 19 (Retrievable online at https://www.nytimes.com/2023/04/17/realestate/japan-empty-houses.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, Fraud Accounting, Intermediate Accounting, Managerial Accounting, Uncategorized.

According to Compliance Week, JPMorgan Chase Bank was fooled into wildly overpaying for a student loan assistance company after the bank dropped its guard on how carefully to vet the startup’s customer database.

Questions:

  1. According to the Nicodemus article, what was the basic fraud of the case orchestrated by Ms. Javice?
  2. How much did JP Morgan pay to acquire Frank?
  3. What is the internal control procedure that the article is promoting to prevent this type of fraud?
  4. What was Ms. Javice’s cover in the dispute?

Source:

Nicodemus, A. (2023). Alleged fraudster cited privacy in duping JPMorgan into $175M merger. Compliance Week, April 5 (Retrievable online at https://www.complianceweek.com/opinion/alleged-fraudster-cited-privacy-in-duping-jpmorgan-into-175m-merger/32925.article)

Reuters Staff (2023). JPMorgan shuts down financial planning website Frank after suing founder. Reuters, Jan. 12 (Retrievable online at https://www.reuters.com/legal/jpmorgan-shuts-down-financial-planning-website-frank-after-suing-founder-2023-01-12/)

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

After a 21-day manhunt, Roy C. McGrath, a fugitive who had been a top aide to Larry Hogan when he was Maryland’s governor, died Monday as the result of a confrontation with the FBI in the Knoxville, Tennessee area. 

Questions:

  1. What triggered the manhunt?
  2. What was the indictment related to?
  3. How long did McGrath serve as chief of staff?
  4. Why were a number of officials caught off guard by the charges?

Source:

Thompson, S., O. Wiggins, P. Stein, and M. Wells. (2023). Former Hogan chief of staff Roy McGrath dies after confrontation with FBI. April 3 (Retrievable online at https://www.washingtonpost.com/dc-md-va/2023/04/03/roy-mcgrath-hogan-manhunt-fugitive-tennessee/)

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

According to the New York Times, a former Tesla factory worker, who is Black, challenged a judge’s earlier award of $15 million, but came away with less in a new trial.

Questions:

  1. Two years ago, a jury awarded Owen Diaz how much for the discrimination?
  2. What was Diaz’s role at the Fremont Tesla factory?
  3. What type of racial discrimination did Diaz experience?
  4. Did you agree or disagree with any views regarding the award in the article? Explain.

Source:

Chokshi, N. (2023) Jury Says Tesla Must Pay Worker $3.2 Million Over Racist Treatment. The New York Times, April 3 (Retrievable online at https://www.nytimes.com/2023/04/03/business/tesla-racist-treatment-jury-award.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, Financial Reporting and Analysis, Financial Statement Analysis, Income Taxes, Intermediate Accounting, Managerial Accounting, Uncategorized.

According to the New York Times, the satellite launch company, founded by Richard Branson, announced sweeping cuts last week as it struggled to recover from a high-profile rocket failure in January.

Questions:

  1. What was the unusual way that the company was going to get satellites into space?
  2. In the most recent attempt by the company to launch the satellites, how many were lost?
  3. When the company was “unable to secure meaningful funding,” how many employees were laid off and what percentage was that of the total number of employees employed?
  4. In U.S. Bankruptcy Court, what amount of assets did the company list and what amount of debt did the company list?
  5. How does this compare to the net worth of the company when it went public in 2021?

Source:

Granville, K. (2023) Virgin Orbit Files for Bankruptcy After Failed Launch and Lack of Funding. The New York Times, April 4 (Retrievable online at https://www.nytimes.com/2023/04/04/business/virgin-orbit-bankruptcy.html)