Transparency Improved or Impeded?

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

A little-noticed accounting change is coming down the pike that will have a major impact on business. According to the New York Times, this one has corporate executives up in arms — and scrambling to comply. Questions: 1. What is the title of the new FASB rule? 2. Which equity investments are affected? 3. How… Read more »

Mylan Settles with the Government

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

According to the New York Times, Mylan, the maker of the allergy treatment EpiPen, said Friday that it had reached a $465 million settlement with the Justice Department and other government agencies over questions on whether the company had overcharged Medicaid for the treatment by improperly classifying it as a generic drug. Questions: 1. What… Read more »

The changing world of streaming

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Netflix’s growth in the U.S. has slowed dramatically, and the company is adding new international users slower than expected. Statistically, the company added 1.7 million new subscribers in the last three months, which is less than the 2.5 million the company predicted. Just 160,000 of them were in the U.S. Questions: 1. Netflix is available… Read more »

Here we Go Again? Another Enron?

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Short-seller and hedge fund manager, Jim Chanos, contends that the Alibaba Group is as problematic in its accounting positions as the now-defunct, corrupt energy giant, Enron. Questions: 1. What part of the company’s operations are most problematic and why? 2. What does cash flow have to do with this story? 3. What does Chanos claim… Read more »

Contagion in Earnings Manipulations

Posted by & filed under Accounting Information Systems, Accounting Principles, Auditing, Cost Accounting, Ethical Dilemma, Financial Accounting, Financial Reporting and Analysis, Financial Statement Analysis, Fraud Accounting, Intermediate Accounting, Managerial Accounting, Video Updates.

A new study shows that after one company in an industry is found to have misstated its earnings, others in its industry often followed suit and began massaging their own numbers; this ultimately results in their own restatements. Questions: 1. Why were the regulatory actions in the study so intriguing and what did they indicate?… Read more »

Kaleil Tuzman: The Rest of the Story

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Kit Digital Inc.’s former chairman and chief executive officer and its former chief financial officer were arrested and charged with accounting fraud at the software company. Questions: 1. What was the type of accounting fraud that Tuzman and Smythe are charged with committing? 2. According to the article, how much money was involved and who… Read more »

It’s Too Late for I’m Sorry!

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Volkswagen shares plunged more than 20 percent on Monday, their biggest one-day fall, after the German carmaker admitted it had rigged emissions tests in the United States, and U.S. authorities said they would widen their probe to other manufacturers. Questions: 1. Briefly explain the emissions data scandal. 2. What was the recent challenge to Volkswagen… Read more »

Loss-Prevention Profiling at CVS

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Four former loss-prevention employees from the CVS chain in New York filed a class-action lawsuit on June 3rd against the drugstore chain, accusing their bosses of ordering them to target black and Hispanic shoppers. According to the detectives, they were fired after complaining about racial discrimination, against both customers and themselves. Questions: 1. Why is… Read more »

The More Things Change, The More They Stay the Same

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Walmart’s board elected a new chairman at its annual stockholders’ meeting last week. As only the third chairman in the retail giant’s history, the post was passed on to a member of the founding Walton family. Questions: 1. What type of background does Mr. Penner have that will be beneficial in this post? 2. Why… 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 »