The case seeks to contrast the lease accounting under the previous standard (ASC 840) and the guidance to be implemented in 2019 (ASC 842). The case is relevant for accounting majors especially those taking Intermediate Financial Accounting II. It is also relevant for business and finance majors dealing with corporate financial statements. It is also useful for professionals in practice/industry interested in how the new rules will affect their company. In the context of a hypothetical CFO and finance function of a domestic airline company, the case requires the performance of a web search and the procurement of information on former and current lease accounting. The case also requires the write-up of responses to questions comparing and contrasting the old and new guidance under ASC 840 and ASC 842, respectively; and, the creation of Right-of-Use Asset (“ROUA”) and lease amortization schedules. The paper is suitable for undergraduate classes. Individuals or groups may be required to simply write-up their answers to the questions posed or present their research to the class for discussion and comment, especially with regard to the last, optional question. Completion of the case should require 5-10 hours outside of class. Classroom discussion should be about two hours.
Most of the world financial market economies have adopted International Reporting Standards (IFRS) as the necessary framework for financial statements. In the United States, Generally Accepted Accounting Principles (GAAP) is still required, but the adoption of IFRS has the support of many accounting firms and professional organizations and is under consideration by the SEC. The revised lease guidelines under GAAP and IFRS shows a similar effect on the financial ratios and eliminate off-balance sheet financing. This case study illustrates the differences in the treatment of leases and the impact of these differences on financial statements and selected financial ratios after the year 2019. In a given situation, students use GAAP financial statements and prepare an IFRS based balance sheet, cash flow statement, and income statement. It is necessary to understand both the revised GAAP and IFRS rules regarding leases to address our case study. Our case study is designed to be used at undergraduate and graduate levels and courses like Intermediate Accounting, Accounting Theory, Analysis of Financial Statements. The instructor/s can offer our case study as an individual case study or as a group project
The aim of this paper is to gain an understanding of tax behavior of companies, particularly multinationals. It draws on previously designed responsible and transparent tax behavior principles, guidelines, scorecards and benchmarks. The author examined 37 Ghanaian listed companies. The companies surveyed were grouped into three branches of industry: Consumer and Industrial Products and Services (n=17); Energy, Utilities and Resources (n=8) and Financial Services (n=12). The results show that Ghanaian listed companies are not fiscally responsible and transparent. The overall percentage of total points scored by the top 10 companies is 45%. Besides, overwhelming majority (73%) of the companies scored below the minimum amount (0-20 points). What is more, an overall transparency rating on the six principles of good tax governance is 29%. These insights have several implications for tax authorities and moral investors
Plagues have been recorded, as a natural part of human history, since time immemorial. They have also acted as trigger points for major socio-political change, in Egypt, according to biblical history, and in the world’s then most powerful and advanced civilization of Athens, millennia ago. Quite possibly we are witnessing something of a similar nature: the unleashing of social fissures, plus expectations of radical systemic and/or institutional change, under the pressure of the current plague. This would seem to potentially parallel the Athens crisis in the most powerful, yet currently most vulnerable nation of the world today -the U.S. Athens succumbed to the new superpower Sparta. America seems to be threatened by a similar challenge from our modern world’s second-most superpower, -China. This paper offers a simplified, pedagogic model of the process of plagues, and the stages that humanity invariably has to deal with. In so doing, it is hoped to reduce the opacity of the phenomenon, together with the deceptions foisted on a gullible populace, by official leaders -both authoritarian and democratic. Its simplicity is intended to encourage the youngest in the world, to be able to actively participate in the epidemiological research effort. The traditional response of vast portions of humanity to consider plagues with resignation, as probably Divine retribution for wrong-doing, could thus be reduced, and supplanted by a set of expectations for plague control, based on rational decision-making and empirical research. Advances in science in the past century have encouraged a change in human expectations, regarding health, longevity and disease control. Political and economic evolution are argued not to have kept up with this scientific evolution. The aspiration is that the youngest generation be offered an institutional opportunity, at a global level, to help change the current disequilibrium.
The purpose of this article is to explore the benefits of experiential learning for students enrolled in MBA programs. As applied learning complements a student’s academic curriculum, internships serve as an opportunity for practical experience that cannot be obtained theoretically in a classroom-based setting. The paper makes an argument for the recommendation of experiential training in MBA programs. The definition of experiential learning, past research relevant to the topic on the graduate level, and recommendations for future inquiry are provided.
This case provides an integrated discussion of several cost and management accounting topics in a realistic setting, including cost behavior, incremental decision making, performance evaluation, and output variances. The case is flexible so it can be used over one 75-minute class session cost or managerial accounting course or expanded to two class sessions for a more in-depth discussion with optional questions, as described in the teaching notes. For a first course in cost or management accounting, this case can be used as a capstone near the end of the term. In an advanced course in cost or management accounting, the case can be used early in the term to review these topics before moving on to more advanced topics.
The author in this article compares the economic development of the Republic of Guatemala from 1945 to 2015 against the theories of the economic development of Latin America as promulgated by the famous Argentinian economist, Raul Prebisch. The obstacles against economic development in Guatemala were social, political, commercial and industrial. Guatemala is still experiencing uncoordinated technological applications in the economy, anti-competitive practices are extant, and a small percentage of the entire population controls most of the land. However, positive changes have been taking place in society, politics, commerce and industry supporting the economic development of the country.
This case study discusses fraud, and illustrates several preventive and detective fraud methodologies as they apply to a historical case study (United States of America vs. Charlene Corley). Criminal fraud cases have emerged with greater frequency over time, which has resulted in improved detection methodologies; such as Embedded Audit Modules and Benford’s Law, and preventive methods, such as budgetary controls. These methodologies are discussed and analyzed in great detail in this paper, and may be implemented by companies to ensure compliance with internal control policies developed by regulatory agencies
The purpose of this article was to indicate the dynamic and systematic assistance small Salvadoran businesses receive from the Government of the Republic of El Salvador, expose the discrepancies that still exist among small business organizations, and demonstrate the corrective and developmental actions such enterprises receive from their national government in order to reduce and eliminate such discrepancies
This paper discusses best practices for the Systems Development Lifecycle (SDLC) based on the Waterfall Model. Topics covered include an introduction to the Systems Development Lifecycle and the Waterfall Model including advantages and disadvantages. It also discusses the six stages of SDLC 1) Requirements Gathering and Analysis, 2) Systems Development, 3) Systems Implementation and Coding, 4) Testing, 5) Deployment, 6) Systems Operations and Maintenance
Nowadays, counterfeit drugs are available in the marketplace more than ever. One has no idea whether they are acquiring the genuine drug or not. Many deaths have occurred because of mistakes made by consuming counterfeit medication. Not only does it alter one’s health but it also crushes their hopes. The data concerning counterfeit drugs are increasingly being published in reports and reviews. It seems like government does not care about the issue since it is ongoing and growing. Governments seem to underestimate the importance of the issue, hence its growing prospect. Harsher sanctions are needed to prove that counterfeiting is not an unpunished crime. Whoever commits that felony has to face the consequences that come along with breaking the law and possibly participating in harming and endangering one’s life.
Most investors know that bond prices move inversely with interest rate fluctuations. These same investors, however, may not fully understand how to assess the interest rate risk of different fixed income investments. This is particularly timely given the improving U.S. economy and Federal Reserve’s expectation of increasing interest rates in the near future. The simplest measure of interest rate risk for the average investor is something called duration. The Financial Industry Regulatory Authority (FINRA) stated that the one number a bond investor should know is duration. This article will explain what duration is, how to use this measure to evaluate risks, examples of how changes in interest rates will impact bonds or bond funds with different durations, and where investors can find this information
This paper investigates the relationship between stock prices and the real money demand for Nigeria using unit root test and the cointegration with structural break. There are five important results for narrow and broad money in Nigeria. First, there is cointegration between narrow and broad money and their determinants, income, interest rate, exchange rate and real stock prices. Second, stock prices are an important determinant since cointegration fails if real stock prices are left out. Third, economic and financial reforms did affect the stability of demand for money in Nigeria over the period 1986:1-2012:4. Fourth, the long run income elasticity is not significantly different from unity with the inclusion of real stock prices. Finally, the results show structural breakpoints and they look to match clearly with corresponding critical financial, economic and political incidents.
According to the WHO’s Global Status Report on Road Safety of 2013, road fatalities were 1.24 million for the 182 countries studied; the injury statistics were as always less precise: depending on definition and recording measures, there were 20-50 million injuries – either extreme of the spectrum would constitute the size of a medium-large nation state. In economic terms the cost of road injuries in 2000 was recorded in the WHO Report as in excess of $1/2 trillion – again equivalent to the GDP of medium-large national economies. Correct helmet use was estimated in the study to reduce the risk of death by 40%, and that of serious injury by 70%. These somewhat sobering statistics provide the backdrop for the empirical study of helmet use by riders of bicycles and motorcycles analyzed by gender, age, number of riders and personal/cargo use, which are presented below. Locations in the following countries were chosen in Central America and the Caribbean, for empirical observation of helmet use: Latin America (Cuba, Costa Rica and Nicaragua) and locations in the following countries in Europe (U.K., Italy and the Netherlands.) The data collected are summarized, analyzed and reviewed; and comparisons between countries and regions made. Policy implications are discussed. Tentative policy recommendations are suggested, subject to more extensive empirical research, for a more pro-active approach to road safety for pedal and motor cycle users – not just operators but also passengers, who constitute some of the most vulnerable road users.
This study examines the real world case of the Peregrine fraud. In this fraud, the CEO Russell Wasendorf, Sr. duped the auditors and the public for years. Wasendorf was able to carry out a fraud using an unsophisticated scheme involving falsified bank statements and falsified audit evidence. Only when an electronic confirmation services was used by the auditors did the fraud unravel. This case provides interesting discussion points for an auditing, fraud detection and deterrence, forensic accounting or ethics class. Students typically need one to two hours of time outside of class to complete the case and instructors should budget approximately one to one and a half hours of class time to discuss the case after the students have completed it.
This paper discusses best practices for validation for an upgrade or new Enterprise Resource Planning (ERP) system. Topics covered include Introduction to ERP Systems, Upgrading ERP Systems, Implementation ERP Systems, ERP Financial and System Document Reports, SQL Command Scripts and Database Design.
This case study is intended for undergraduate students. We aim to have students analyze and propose alternative models for decision making regarding the implementation of administrative and management strategies in a business hotel. Information is presented on a hotel that has 53 rooms and a traditional approach to administration. It was established in 2002, in the city of Cancun, Mexico. Students are given information about: the history of the hotel; key figures involved in the business decision-making; evolution of the management model; and, the current management model within the traditional approach to administration. The hotel has a constant 87% annual occupation rate. The case study asks students to evaluate strategies for the following dilemma: a) modernize the management model; or, b) improve the existing model, based on the performance of the business and the ever-changing context of the tourism industry. Students can suggest alternative courses of action and can assume the role of external consultants. Students should ideally work in teams. Knowledge in administration, management and marketing is necessary. This case study can be developed in a two-hour class and should include a presentation of the results and a discussion at the close of the class.
This paper will examine the critical aspects of the Glass-Steagall Act of 1933 including a detailed analysis of the objective of the act on the banks and the economy. A further review will explore the atmosphere and psychology of the various banking practices that were implemented during the 1980’s and 1990’s. A chronology of pivotal events will prove that the current environment of deregulation and erosion of the distinct line between commercial and investment banks is actually attributed to monetary policies dating back to Alan Greenspan and the Federal Reserve Board actions of the 1990’s. The start of the 21st entury saw the rapid growth of derivative instruments that were not regulated, prompting the moral hazard which caused the mortgage banking industry collapse. A further analysis of the reckless practices will show how these lending practices caused financial chaos. The companies that failed did so because of overleveraging and failure to control risk effectively while rewarding themselves without establishing adequate reserves. The paper will conclude with an analysis of the present arguments to strengthen the core requirements for both the investment and commercial banking
ABSTRACTTechnological innovation is the underlying driving force of economic development, both in a nation's economy and in an organization's competiveness. The first objective of this paper is to map the innovation space available in the Saudi Arabian Basic Industries Corporation, one of the largest petrochemical companies in the Middle East. The second is to suggest modifications to an innovation mapping tool and apply the modified tool to the same company. First, data were collected over a three-year period. They were analyzed and mapped using the 4Ps innovation mapping model. Second, modifications were suggested to eliminate the weaknesses associated with this model. The results showed that the company introduced a total of forty four innovations that were all incremental; the majority fell in the product and process. The implementation process of the 4Ps model showed that it has deficiencies in some cases, due to not having clear dividing lines between pure and combined innovations. It does not allow for mapping innovations that combine product-with-process or position-with-paradigm innovations; furthermore, radical and incremental innovations cannot always be clearly positioned. A modified model was developed that overcomes these weaknesses. A modified model was developed and successfully implemented to map the innovation space in the same company.JEL: O32KEYWORDS: Innovation Management, Innovation Assessment, Innovation Measurement, Mapping Innovation, Modeling Innovation.INTRODUCTIONOver the past few years, technological innovation management has become one of the most attractive and promising areas of studies. Nieto (2004) confirmed this fact as the number of academics who oriented their research towards this field of study has increased, the number of new scientific journals concentrating on the study of innovation has also increased and every year there is consolidation of different academic associations concentrating on innovation. Governments need to pay attention to innovation, particularly in the developing world, because it is the key driver of economic development and is the key instrument in overcoming major global challenges. In spite of the relatively high expenditure on education in some Arab countries such as Saudi Arabia, whose expenditure on education as a percentage of GDP was 5.6% in 2008 (UIS, 2009), the literature shows that Saudi Arabia lags far behind developed countries in terms of science and technology (S&T): most S&T indicators reveal weak performance (Nour, 2005). Moreover, a UNESCO report (2010) noted that there is weak co-ordination between public and private funding for R&D in the Arab states and there is often insufficient capacity within the R&D system to absorb fresh graduates seeking to work in the research fields, especially female graduates. Funding for research and development in the Arab countries remains far below that of most other regions (UNESCO, 2010). Table 1 demonstrates the expenditure on R&D as a percentage of their GDP in some Arab states and other countries from 2007 to 2009 (The World Bank, 2012). It shows that in 2009 expenditure on R&D as a percentage of GDP in Saudi Arabia and Egypt was 0.08 and 0.21 respectively, while in Israel and Finland it was 4.27 and 3.96 respectively.The first objective of this paper is to map innovation space in one of the largest petrochemical companies in Saudi Arabia in order to determine the dominant types of technological innovation produced by the company and to make recommendations for improving innovation. The second objective is to modify and improve a current model for mapping innovation. The paper consists of five parts. The first part examines the literature on the topic of innovation and innovation mapping. The second discusses the case company's background. The third part describes the data and used methodology while the forth part explains the results. And finally, the last part presents the conclusions from the case study analyses. …
J. Drew Procaccino, Rider UniversityMaria H. Sanchez, Rider UniversityCASE DESCRIPTIONThis case examines a real world case of identity theft from start to finish. The case details the victim's experience from the day he was told he had insufficient funds in his bank account and realized that he had been the victim of fraud until the resolution of the fraud. By completing the case, students will learn steps to prevent identity theft and also actions they can take if they do become victims of identity theft. The case was designed to be used in either undergraduate or graduate level classes. It is suitable for an Introduction to Business, an Ethics or a Fraud Detection and Deterrence course. Students typically require one to two hours outside of class to complete the case. The instructor should budget approximately one hour of class time to go over the case in class.JEL: M40, M19KEYWORDS: Identity Theft, FraudCASE INFORMATIONLocal Bank and Checking AccountJim, a resident of the Northeast, returned home from a week spent out-of-state on vacation. Later the same day, Jim went to the local branch of his bank to cash a personal check. The branch was located across the street from his home and some of the bank tellers knew him as a regular customer. Jim was informed by the bank that his account had insufficient funds to cover the amount of the check. Knowing that there should have been approximately $5,000 in the account, he was a little confused. He thought that perhaps he had made a mistake and had inadvertently tried to cash the check on a different checking account. However, he soon realized that it was the correct account and that he had been the victim of fraud. Jim asked the bank teller how his account had insufficient funds to cash his check and he was told that a check had been recently cashed from that account in the amount of $5,200. Jim then asked for a copy of the check in order to see who had signed it. The bank indicated that the signature resembled the one they had on file for him (apparently in a folder), and although while not a match, the signature on the check was close enough for the teller not to question the validity of the fraudulent check. The thief had a fraudulent driver's license with the victim's name on it and the thief's picture, who was a different race than Jim. The teller who accepted the check from the thief was not one of the tellers who knew Jim.A representative from the bank informed the victim that the bank had video of the person who had cashed the fraudulent check. Jim was further told that the video was recorded earlier the same day that he had come into the bank upon returning from vacation. He asked the bank to produce the video, but they never did. Jim demanded that the stolen funds be placed back in his account. However, due to the timing of the thief cashing a check and the Jim's attempt to cash another check, the bank had reason to suspect that the 'victim' might be attempting to 'defraud himself', pretending to know nothing about the situation and then claiming he was the victim of fraud. The bank said that they would only place the funds back in the account if local police were satisfied that he had nothing to do with the situation. After being questioned by detectives, Jim agreed to take a polygraph test at taxpayer expense. The test was delayed for weeks, despite the victim pressing to take it as soon as possible so he could get the funds placed back in his account. Jim demanded to take the test but couldn't get detectives to return his phone calls, and he eventually contacted a supervising officer in the police department. He explained the delay and the lack of response from the detectives. The test was then scheduled to be administered a few days later. Jim passed the test and then took the test a second time to verify the results, which he also passed. (Prior to taking the polygraph, the tester talked with Jim for 10-15 minutes, asking him questions about his family life, parents' occupations, his brothers and sisters, what he does for a living, hobbies, etc. …
