Posts Tagged: Disclosure Issues in Financial Reporting

JPMorgan Chase: Transition from Model Citizen to Problem Child in the Eyes of the Government

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

According to The New York Times, government investigators have found that JPMorgan Chase devised “manipulative schemes” that transformed “money-losing power plants into powerful profit centers.” In addition, they allege that one of its most senior executives gave “false and misleading statements” under oath. Questions: 1. Who is Jamie Dimon; who is Blythe Masters? 2. At… Read more »

Pension Advances to be Scrutinized by Congress and the Consumer Financial Protection Bureau

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.

This New York Times article discusses the allure of borrowing against pensions, which underscores an abrupt reversal in the financial fortunes of many retirees in recent years. The offers, known as pension advances, are having devastating financial consequences for a growing number of older Americans, both threatening their retirement savings and exacerbating mounting debt within… Read more »

Shareholders – 1; Corporations – 0; SEC – Tie Breaker

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.

This year’s proxy season is showing signs of greater activism by shareholders. The proxy advisory service Institutional Shareholder Services is projecting that there could be as many as 17 contests for the election of directors, which is slightly up from last year. The difference is that the contests are much bigger and include six at… Read more »

Just helping a friend

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.

On Thursday, April 4, federal prosecutors and the Securities and Exchange Commission filed criminal and civil charges against fired KPMG accounting partner Scott London for conspiracy to commit securities fraud through insider trading. The accountant provided confidential information about KPMG audit clients Herbalife Ltd., Skechers USA Inc., Uggs maker Deckers Outdoor Corp., RSC Holdings and… Read more »

What’s Martha Stewart Doing in Court Again?

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

In the latest Martha Stewart saga, Macy’s alleges Martha Stewart Living Omnimedia violated exclusivity terms of its contract when it agreed in 2011 to open Martha Stewart stores inside J.C. Penney’s stores. Questions: 1. Martha Stewart denied Macy’s allegations that she did anything unethical and said she was only looking to expand her brand. After… Read more »

Justice for Dixon Illinois?

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

In November 2012, Rita Crundwell, comptroller of Dixon, Illinois, pleaded guilty to wire fraud and admitted that she stole approximately $53 million, admitting she stole the money from the city of Dixon while she was comptroller. She still faces 60 separate but related state felony charges for theft in Lee County. She has pleaded not… Read more »

Hyundai & Kia overstated mileage

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.

Hyundai Motors America and Kia Motors America are being forced to lower the fuel economy estimates on the majority of their 2012-13 models after an investigation by the Environmental Protection Agency found that the companies overstated the fuel efficiency numbers for their vehicles in previous years. Based on the audit, they will also have to… Read more »

CEO Quits Effective Immediately

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

In a surprise move, Citigroup announced on Tuesday that Vikram S. Pandit, the bank’s chief executive, had resigned, effective immediately. While his unexpectedly fast departure has raised many questions, critics said there were many signs that the end was near for Pandit. Questions: 1. How long had Mr. Pandit been chief executive of Citigroup? 2…. Read more »

Exploding Water Pipe – Fraud Alert

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

Forty-five government entities are now joining whistleblower John Hendrix’s suit against JM Eagle. The suit alledges that the largest PVC pipe manufacturer committed fraud by intentionally selling pipe to governments, where the company’s internal quality controls showed 50 to 80 percent failure rates. Questions: 1. What was Hendrix’s position with the firm and what did… Read more »

Aporkalypse? Not So.

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

A bacon shortage was part of the headlines this week as a result of a September 20 press release from Britain’s National Pig Association, a trade group that describes itself as “Fighting for the growth and prosperity of the British pig industry.” While the pork industry is currently under serious stress, the reality is that… Read more »