Something to look forward to? Bankruptcy in Retirement!

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

According to a recent study, the rate of people 65 and older filing for bankruptcy is three times what it was in 1991. Questions: 1. What are some of the main reasons that this is happening? 2. What is happening to the next generation nearing retirement age and why is this happening? 3. In 2016,… Read more »

Not a good financial plan!

Posted by & filed under Accounting Information Systems, Accounting Principles, All Articles, Auditing, Cost Accounting, Ethical Dilemma, Financial Accounting, Income Taxes, Intermediate Accounting, Managerial Accounting, Uncategorized.

Even though Wall Street and the financial press have been harping for decades on the retirement savings crisis, this article provides some additional perspectives. Questions: 1. According to the Manpower Group, what percentage of millennials plan to work until they die (as their solution to retirement)? 2. Why do so many millennials have such a… Read more »

Dutch Treat?

Posted by & filed under Accounting Information Systems, Accounting Principles, Auditing, Financial Accounting, Financial Reporting and Analysis, Financial Statement Analysis, IFRS, Intermediate Accounting, International Accounting, Managerial Accounting.

According to the New York Times, “Dutch pensions are scrupulously funded, unlike many United States plans, and are required to tally their liabilities with brutal honesty, using a method that is common in the financial-services industry but rejected by American public pension funds.” This article discusses the Dutch belief that each generation should pay its… Read more »

Separation of Power

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

Netflix shareholders will vote on at the company’s annual meeting on Monday is a proposal by two public pension funds to separate the roles of chairman and chief executive. Both are held by Reed Hastings, Netflix’s co-founder. Questions: 1. Who are the backers of this corporate governance issue and why do you think they are… Read more »

Pension Predators – A New York Investigation

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.

Gov. Andrew Cuomo is ordering New York’s top banking regulator to investigate “pension advance” firms. The payments by these firms are advertised as advances. However, they are really cleverly disguised high interest rate loans that target older citizens’ assets. Questions: 1. What are the benefits for the firms on insisting that they are advances rather… 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 »

Rhode Island Nearly Broke?

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

The current general treasurer of Rhode Island, Gina Raimondo, warns that the state will soon be broke due to its debt problems. After decades of drift, denial and inaction, Rhode Island’s $14.8 billion pension system is in crisis. Ten cents of every state tax dollar now goes to retired public workers and that figure will… Read more »

Financial Crisis in Greece

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.

While banks and European leaders hold abstract talks in foreign capitals about the impact of a potential Greek default on the euro and the world economy, something frighteningly concrete is under way in Greece: the dismantling of a middle-class welfare state in real time — with nothing to replace it. Since 2010, the government has… Read more »

Citibank under the Microscope

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.

The SEC has probed certain Citigroup Inc debt funds to assess whether the bank made adequate disclosure to investors about the funds’ risk levels. Three California-based brokers, who worked for the then Citigroup unit Smith Barney, concluded the bank did not adequately disclose the funds’ risks and had also mismanaged them, the newspaper said, citing… Read more »

New Year Resolutions for Audit Committees?

Posted by & filed under All Articles, Auditing.

The Sarbanes-Oxley Act of 2002 increased audit committees’ responsibilities and authority, and raised the bar on the independence of members. As a result, the SEC and the stock exchanges also proposed new regulations and rules to strengthen audit committees. A recent report by the KPMG Audit Committee Institute presents New Year’s guidance for audit committees… Read more »