Barry Minkow in the News

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, Video Updates.

Barry Minkow was the famed entrepreneur who started ZZZZ Best in the 1980’s, only to have it collapse in 1987 under the weight of a discovered Ponzi scheme.  Minkow was convicted of fraud, among other charges, and sentenced to 25 years in prison, but only served 7 years. Minkow now is head of the Fraud… Read more »

Small Discrepancies Grow Into a Giant Fraud

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, Video Updates.

Satyam Computer Services, a leading Indian outsourcing company that served more than a third of the Fortune 500 companies, was at the heart of a huge 2009 fraud perpetrated through the significant inflation of earnings and falsification of accounts and assets for a number of years.  Chairman, Ramalinga Raju, resigned  in January 2009 after revealing that… Read more »

Madoff: Freedom in Prison?

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In an extended expose, the New York Magazine reported that Bernard Madoff described his scheme as a real nightmare to him, as if he were the real victim, and complained about little old ladies bugging him for money. The article goes on to describe his celebrity in prison among the other inmates and his “freedom”… Read more »

Research and Development (R & D): Does This Indicate a Crack in the Foundation of IFRS Convergence?

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When the IASB and FASB began the convergence process in 2002, they considered R & D as a high-priority project, where differences between US GAAP and IFRS were seen as particularly straightforward. However, as this article notes, still no consensus has been reached because IASB’s R&D treatment  appears to defeat comparability in the eyes of… Read more »

Donated Inventory

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Over the next five years, Wal-Mart plans to donate about 1.1 billion pounds of food to food banks and provide $250 million to help them buy refrigerated trucks, improve storage and develop better logistics. The plan to contribute $2 billion in cash and food to the nation’s food banks is considered to be one of… Read more »

Financial Instrument Accounting

Posted by & filed under Accounting Principles, Advanced Accounting, Financial Accounting, Financial Reporting and Analysis, Financial Statement Analysis, Intermediate Accounting.

On Wednesday, May 26, 2010, the FASB released an exposure draft for the purposes of improving accounting for financial instruments. The new rules, projected to take effect in 2013, incorporate both amortized cost and fair value information about financial instruments held for collection or payment of cash flows. Questions: 1. According to the article, how… Read more »

Convergence Delayed

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

The head of the Financial Accounting Standards Board, which sets U.S. accounting rules, said June 1, 2010, that he does not expect FASB to meet a June 30, 2011 deadline for convergence with international accounting rules, as requested by the G20 group of industrial and emerging countries. According to FASB chairman, Robert Herz, changes that… Read more »

Bond Rating Under Fire

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E-mails and other documents were presented as evidence at a hearing examining the causes of the financial crisis on Capitol Hill on April 23, 2010.  This hearing is part of an 18-month investigation by the Senate Permanent Subcommittee on Investigations, led by Senator Carl Levin. Subcommittee assertions are that the rating agencies were well aware… Read more »

Frequent Flyer Miles

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If the merger is approved, United Airlines and Continental Airlines will also be merging their frequent flyer programs.  But what is their track record in terms of rewarding the miles versus actual requests?  Consulting group, IdeaWorks Company, said Continental awarded free tickets 71 percent of the time in response to requests, and United 69 percent… Read more »

FASB Sued for Intellectual Property Infringement

Posted by & filed under Accounting Principles, All Articles, Financial Accounting, Financial Reporting and Analysis, Financial Statement Analysis, Intermediate Accounting.

Joel Jameson, the founder of Silicon Economics, Inc. is suing the FASB.  He filed for a patent for his invention called “EarningsPower Accounting,” and claims that the FASB has infringed upon the patent.  Jameson claims that his invention is a patented method developed by the company to improve the accuracy, validity, and usefulness of financial… Read more »