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

Electronic warfare has broken out between internet users and the $120bn online advertising industry.

Questions:
1. According to the article, by what amount did the number of people using ad blocking software increase last year?
2. Do you agree with Mr. Zaneis, general counsel at the Interactive Advertising Bureau, that the free internet that consumers demand cannot coexist with the continued proliferation of ad blockers? Why or why not?
3. What is Secret Media? Do you see it helping or hurting revenue from ads? Discuss.

Source:
Cookson, R. (2015). Publishers and adblockers are in a battle for online advertising. Financial Times.com, March 29 (Retrievable online at http://www.ft.com/cms/s/2/c84a647e-d3af-11e4-99bd-00144feab7de.html#axzz3Vt9MKfi1)

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

A new legal quirk could bring a surreal ending to foreclosure casess around the country; the debtors may get to keep their homes without ever having to pay another dime.

Questions:
1. Why might tens of thousands of homeowners who have missed more than five years of mortgage payments get to keep their homes without paying?
2. Explain the wild card that might exist in Florida regarding foreclosed properties.
3. Discuss who you think is responsible for this mortgage foreclosure mess.

Source:
Corkery, M. (2015). Foreclosure to Home Free, as 5-Year Clock Expires. The New York Times, March 29 (Retrievable online at http://www.nytimes.com/2015/03/30/business/foreclosure-to-home-free-as-5-year-clock-expires.html?rref=homepage&module=Ribbon&version=origin&region=Header&action=click&contentCollection=Home%20Page&pgtype=article)

Posted by & filed under Accounting Principles, Auditing, Cost Accounting, Financial Accounting, Intermediate Accounting, Managerial Accounting, Uncategorized.

According to the CEO of McDonalds, Steve Easterbrook, McDonald’s has an “urgent need to evolve” after unveiling another slide in worldwide sales, which is the ninth month in a row that sales have fallen at the fast-food chain.

Questions:
1. How does McDonalds propose to get out of this slump?
2. What is Mr. Easterbrook’s background?
3. Who are some of McDonalds competitors that are gaining in sales?
4. What specific move did McDonalds take regarding chicken?

Source:
Rushe, D. (2015). McDonald’s finds lovin’ in short supply as sales fall for ninth straight month. The Guardian, March 9 (Retrievable online http://www.theguardian.com/business/2015/mar/09/mcdonalds-sales-fall-worldwide-nine-straight-months)

McDonalds To Limit Antibiotics In Chicken

Posted by & filed under Accounting Principles, Cost Accounting, Financial Accounting, Intermediate Accounting, Managerial Accounting, Video Updates.

Heinz is going to buy 51% of Kraft in a deal brokered that is by Berkshire-Hathaway and the Brazilian-based private equity company 3G. As a result, Kraft shareholders will get a $10 billion special dividend (about $16.50 a share) under the deal.

Questions:
1. What happened to the price of Kraft shares after this deal was announced?
2. How does the dividend equate with Kraft’s market value?
3. Based on the information in the article, about how many shares of stock are outstanding for Kraft?
4. Research the following question on the web: What type of budgeting does 3G plan to employ at the newly merged company? Why and how does it work? Do you think it is a good idea?

Source: Smith, G. (2015). Heinz, Kraft agree to merge, forming a new food giant. Fortune, March 25 (Retrievable online at https://fortune.com/2015/03/25/heinz-kraft-to-merge-to-form-new-food-giant/

Posted by & filed under Accounting Principles, All Articles, Auditing, Financial Accounting, Intermediate Accounting, International Accounting.

Cathy Engelbert has been named CEO of Deloitte, becoming the first woman CEO of a major U.S. accounting and consulting firm.

Questions:
1. What are the names of the Big 4 accounting firms?
2. How long has Ms. Engelbert been with Deloitte?
3. What distinctions does Deloitte hold with respect to hiring?

Source:
Frizell, S. (2015). Deloitte Names First Female Chief Executive. Time, Feb. 9 (Retrievable online at http://time.com/3701828/deloitte-chief-executive-cathy-engelbert/)

Deloitte Cathy Englebert

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A recent audit of the Social Security Administration revealed that thousands of workers over the age of 100 applied through the U.S. government to verify their employment eligibility in recent years.

Questions:
1. About how many active Social Security numbers in the Administration’s master file belong to people who are at least 112 years old?
2. Even though the auditors proposed that the Social Security Administration take action to correct its death records, what was the agency’s response? Do you agree that this is a better pursuit? Why or why not?
3. What are the risks and costs of maintaining these inaccurate records?
4. What types of internal controls would you suggest to prevent this?

Source:

Hicks, J. (2015). Millions over age 112 have Social Security numbers, and it’s not because we’re living longer. The Washington Post, March 10 (Retrievable online at http://www.washingtonpost.com/blogs/federal-eye/wp/2015/03/10/thousands-of-u-s-workers-older-than-100-that-might-be-social-security-fraud/?tid=pm_politics_pop)

Posted by & filed under Accounting Information Systems, Accounting Principles, Auditing, Cost Accounting, Financial Accounting, Intermediate Accounting, International Accounting, Managerial Accounting.

General Electric Co. has agreed to sell the consumer-lending business of GE Capital in Australia and New Zealand to an investor group. This investor group includes KKR & Co. and Deutsche Bank AG—and the estimated price is about $A8.2 billion or $6.26 billion U.S.

Questions:

1. Why is GE selling its banking business?
2. Why has selling off its consumer-financing arms been a trend for GE since the financial crisis?
3. How is GE stock performing in the market?
4. What is GE’s Price/Earnings Ratio and how would you interpret what it means?

Source:
Thurlow, R. (2015). Investor Group to Buy GE Capital Australia consumer-lending unit for about $6.3 billion. Marketwatch, March 15 (Retrievable online at https://secure.marketwatch.com/story/investor-group-to-buy-ge-capital-australia-consumer-lending-unit-for-about-63-billion-2015-03-15)

MW-DH697_Genera_20150315100409_ZH

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According to a recent study, very few professional investors have actually managed to outperform the rising market consistently over the past few years. In fact, based on the updated findings and definitions of a particular study, it appears that no mutual fund managers have.

Questions:
1. What is a mutual fund?
2. What does the article conclude about probability theory and picking stocks?
3. What is an index fund?
4. What is the take-away idea about skill when predicting stock performance?

Source:
Sommer, J. (2015). How Many Mutual Funds Routinely Rout the Market? Zero. The New York Times, March 14 (Retrievable online at http://www.nytimes.com/2015/03/15/your-money/how-many-mutual-funds-routinely-rout-the-market-zero.html)

The bull market in stocks turned six last Monday, but no mutual funds have managed  to outperform the rising market consistently over those years.

The bull market in stocks turned six last Monday, but no mutual funds have managed to outperform the rising market consistently over those years.

Posted by & filed under Accounting Principles, All Articles, Auditing, Cost Accounting, Financial Accounting, International Accounting, Managerial Accounting, Uncategorized, Video Updates.

Samsung is warning customers not to discuss personal information in front of their smart television set. The warning applies to TV viewers who control their Samsung Smart TV using its voice activation feature. It is possible that this information will be shared with third parties.

Questions:
1. What types of steps has Samsung taken to provide transparency about this potential problem?
2. Which third party company is handling the translation from speech to text on Samsung smart TVs?
3. What other company has run into problems with the data the set collects?
4. Assume that a customer sues Samsung for $4 million for gathering significant personal information that eventually is the focus of an identification theft network. If it is probable that the customer will win the suit for a lesser amount between $1.5 million and $3 million, how should Samsung account for this suit in its current annual report covering the period of suit?

Source:

BBC Staff. (2015). Not in front of the telly: Warning over ‘listening’ TV. BBC.com, Feb. 9 (Retrievable online at http://www.bbc.com/news/technology-31296188)

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

Questions:
1. What type of public relations problem did Urban Outfitter’s have in September 2014?
2. Explain the importance of Urban Outfitter’s ability to exceed analysts predictions for the fourth quarter.
3. Urban Outfitters announced that its board of directors recently approved a repurchase of 20 million shares under a share repurchase program. What are some of the reasons that a company might want to repurchase its own stock?
4.Explain how Urban Outfitters would account for the shares repurchased.

Source:

McGrath, M. (2015) Retail Therapy: Urban Outfitters Earnings Beat Estimate As Quarterly Sales Improve. Forbes, March 9 (Retrievable online at http://www.forbes.com/sites/maggiemcgrath/2015/03/09/retail-therapy-urban-outfitters-earnings-beat-estimate-as-quarterly-sales-improve/)

Company Signs