Posts Tagged: securities

Reining in Crypto

Posted by & filed under Accounting Information Systems, Accounting Principles, Advanced Accounting, All Articles, Auditing, Behavioral and Social Issues Related to Accounting, Financial Accounting, Financial Reporting and Analysis, Financial Statement Analysis, Fraud Accounting, Intermediate Accounting, Managerial Accounting, Uncategorized.

According to the New York Times, the SEC fined cryptocurrency lending firm Nexo for violating federal securities law. Questions: Source: Yaffe-Bellany, D. (2023) Crypto Lender Nexo Is Fined $45 Million as Crackdown Widens. The New York Times, Jan. 19 (Retrievable online at https://www.nytimes.com/2023/01/19/business/nexo-sec-crypto-fined.html?)

How Common is Securities Fraud?

Posted by & filed under Accounting Information Systems, Accounting Principles, Advanced Accounting, All Articles, Auditing, Behavioral and Social Issues Related to Accounting, Ethical Dilemma, Financial Accounting, Financial Reporting and Analysis, Financial Statement Analysis, Fraud Accounting, Intermediate Accounting, International Accounting, Managerial Accounting, Uncategorized.

According to a new study, ten percent of public companies commit securities fraud each year. Questions: Source: Livni, E. (2023) Just How Common Is Corporate Fraud? The New York Times, Jan. 14 (Retrievable online at https://www.nytimes.com/2023/01/14/business/dealbook/how-common-is-corporate-fraud.html?)

Executives Defraud Chinese Pharmaceutical Company

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

According to Bloomberg, China’s securities regulator blacklisted six executives for their role in a $4.2 billion accounting scandal at Kangmei Pharmaceutical Co., one of the country’s biggest drugmakers. Questions: What did the executives do? What did the firm admit to that allowed the fraud to occur? What was the problem with the fine ordered for… Read more »

SEC helps the mom and pop investors

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

According to Business Insider, the Securities and Exchange Commission is stepping up scrutiny of mutual fund investments in private companies, according to people with knowledge of the agency’s interest. Questions: What has been the problem with mutual funds investing in companies like Airbnb or WeWork? Which case is notorious for spiking the SEC’s interest in… Read more »

Fraud is quicker than the law?

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.

Without regulation of Bitcoin, consumers have no protection in a Bitcoin economy. The virtual currency continues to result in swindles, with little prospect of a crackdown. Questions: 1. What is a pump-and-dump scheme? 2. What event(s) sent Bitcoin’s price tumbling? 3. In the U.S., the SEC has not ruled that Bitcoin is a security. However,… Read more »

Money Market Funds: A Safe Bet?

Posted by & filed under Accounting Principles, Advanced Accounting, Cost Accounting, Financial Accounting, Intermediate Accounting, International Accounting, Managerial Accounting.

Should we risk another 2008 financial meltdown? The answer is no. However, late last month the Securities and Exchange Commission (SEC) abandoned efforts to impose new regulations on money market funds intended to prevent another panic like the one that occurred then. Because money market funds are typically invested in short-term, low-risk assets (like United… Read more »