Not a good argument

Posted by & filed under Accounting Principles, Advanced Accounting, All Articles, Auditing, Cost Accounting, Financial Accounting, Financial Reporting and Analysis, Financial Statement Analysis, Fraud Accounting, IFRS, Intermediate Accounting, International Accounting, Managerial Accounting.

In a ruling on December 23, 2013, the U.S. Tax Court denied a Florida MBA student, with little work experience the claim for deduction of his tuition costs as a business expense. Questions: 1. What was the concentration (major area of study) of the student’s MBA degree? 2. What was the amount of the bill… Read more »

A Back Door or Bribery?

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JP Morgan’s “Sons and Daughters” hiring program is under scrutiny by federal regulators. Confidential documents obtained from the company are being explored to shed light on whether the program indicates wrongdoing by the bank to hire children of China’s ruling elite, in order to secure existing and future business from Chinese-government-run companies. Questions: 1. Based… Read more »

Numbers tell the story

Posted by & filed under Accounting Principles, Advanced Accounting, Auditing, Cost Accounting, Financial Accounting, Financial Reporting and Analysis, Financial Statement Analysis, Fraud Accounting, IFRS, Intermediate Accounting, International Accounting, Managerial Accounting, Uncategorized, Video Updates.

Unless you have been vacationing on another planet, you have probably heard about the government shutdown this week. This video by the New York Times provides some quantification of the situation. Questions: 1. Which number in the video surprised you the most? 2. Explain why not reaching an agreement by Oct 17 on the debt… Read more »

Do you have to be Good at Accounting to Embezzle $16.6 M from a Small Business?

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A fruitcake company, the Collin Street Bakery, in Texas just found out the answer to this question! The company’s controller, Sandy Jenkins, 64, of Corsicana, Texas, was arrested by special agents of the FBI on a federal criminal complaint charging 10 counts mail fraud and allegations that he wrote 888 checks totaling $16.65 million to… Read more »

Donald Trump is in the News Again!

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New York Attorney General, Eric Schneiderman, has sued Donald Trump for $40 million as a result of what he terms a fraudulent educational program through “Trump University.” The program promised to make students rich but instead steered them into expensive and useless seminars. They also failed to deliver promised apprenticeships. Questions: 1. Instead of meeting… Read more »

Gift Scandal in Virginia

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

There has been a growing investigation into gifts that Virginia’s governor and wife have secured from businessman, Jonnie R. Williams Sr. One of the key issues that the FBI is investigating is Governor Bob McDonnell’s ties to a company known as Star Scientific and gifts from its chief executive is Mr. Williams. Questions: 1. Based… Read more »

Deloitte Fined and Banned: Accounting Firm Botches Consulting Engagement Dealing with Bank Regulatory Problems

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

Deloitte was hired by Standard Chartered, a British bank, to independently spot suspicious money transfers routed through its New York branches. However, as the consultants, a final report submitted to state regulators was watered down, indicating misconduct by Deloitte and a lack of autonomy for Standard Chartered’s illicit transfers of billions of dollars on behalf… Read more »

The Goldilocks Number

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Why does Wall Street like a “Goldilocks number” when it comes to job growth? Job growth in May kept up with the year’s monthly average, with 175,000 new jobs added. Meanwhile, the unemployment rate increased slightly to 7.6 percent. Questions: 1. What is the role of the Federal Reserve regarding the risk Wall Street sees?… Read more »

Read the fine print

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It is likely that when you get your first job or when you move to a new job that you will be asked about enrolling in a long-term care insurance benefits program. According to Ms. Siegel, one of the most important reasons for people buy long-term care insurance is to avoid burdening a spouse or… Read more »

Massive Estate Planning Mistakes of Celebrities

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

[Marilyn Monroe]Consider the mistakes of these five celebrities when you make decisions about your estate or advise others about theirs. As Sheyna Steiner reports, problems in life may compound after death as creditors, heirs and the Internal Revenue Service come calling for their share of an estate. Questions: 1. After reading about these five celebrities,… Read more »