Reference no: EM133633591

Question 1. In November 2022, Alphabet's Google agreed to pay $391.5 million to settle a lawsuit that accused the company of illegally tracking users' locations. The search engine allegedly deceived users into thinking their data were no longer collected when they turned off its location-tracking services. However, Google continued to track the location of users via services like search, maps and apps, thereby helping it sell targeted ads (Google had $111 billion of revenue from advertising in the first half of 2022 - more than any competitor). In addition to the payment, Google will also be required to be more transparent with users in the future and allow them to delete location data more easily. Discuss the accounting implications of this settlement.

Question 2. In 2020, oil and gas prices plummeted, which left major oil and gas companies, such as Shell (a British multinational company listed on the London Stock Exchange) and Exxon Mobil (an American multinational company listed on the NYSE) with plunging asset values. In 2022, with the war in Ukraine, oil and gas prices have soared and oil companies are making huge profits. According to commentators, some stranded assets are "being resurrected from the dead" but this "resurrection will not affect all oil firms equally." Discuss these statements and explain the accounting implications of the soaring oil and gas prices on long term assets.

Question 3. The Disney Company is a major US corporation that employs thousands of people, including actors and actresses. "A-list" and upcoming actors/actresses often feature in its movies while many unknown actors/actresses perform live in Disney's theme parks. Most actors/actresses receive a fixed salary for their services, but "A-list" actors/actresses often receive a fixed salary plus a variable consideration that depends on the revenues that the movie raises. Discuss how Disney should account for the salaries of actors/actresses it employs.