June 18, 2018

Accounting News Roundup: Red Tape, Easy IPOs and Creative Accountants | 04.04.18

White House Turf Battle Threatens to Delay Tax Law Rollout [NYT]
Last week, we mentioned the dance off between Office of Management and Budget Director Mick Mulvaney and Treasury Secretary Steve Mnuchin, and this NYT story reports the latest details. Mulvaney believes “the I.R.S. should be subject to greater accountability,” and that OMB should be the hall monitor. However, adding another level of red tape — “which Mr. Trump famously hates in other areas of regulation” — could slow things down even further, much to the chagrin of businesses and accountants eager for some explanations on the trickier aspects of the new tax law.

Longfin Collapse Puts Focus on Lax IPO Rules [WSJ]
The fintech company listed under the JOBS Act’s Reg A+, allowing it avoid certain “accounting and disclosure standards for conventional IPOs.” Its stock price fell 30 percent yesterday, the day after it disclosed that it was under SEC investigation and “reported material weaknesses in financial controls.”

Accounting watchdog eyes ‘front-to-back’ audit of annual reports [FT]
The U.K.’s Financial Reporting Council “is considering expanding auditors’ responsibilities by requiring them to examine the entirety of companies’ annual reports and accounts” which would include “strategic reports, director reports and corporate governance statements.”

WPP Is Looking at CEO Martin Sorrell’s Possible Misuse of Assets and Allegations of Improper Behavior​ [WSJ]
A spokesman for the mega agency “said the amounts involved weren’t material to the company.”

These 2 accountants ditched their City careers to teach arts and crafts instead [BI]
Diana Muendo and Sam Lehane left EY and KPMG to create M.Y.O. (Make Your Own), a studio that teaches ceramic painting, pottery, and calligraphy.

Previously, on Going Concern…

Our partner, Gleim CPA Review, covered the new CPA Exam renovation that went live on April 1st.

I told everyone to leave Scott Foster, the accountant-turned-Chicago-Blackhawks-folk-hero goalie, alone. He has accounting to do.

Megan Lewczyk wrote about some of the new features in Excel 2019.

In Open Items, someone’s missing the inflation adjustment in starting salaries at Deloitte.

From the archives: Busy Season Problems: Auditing During a Tornado; See also: Selling Pot Out of Your Tax Prep Business Named ‘420 Multi Services’ Will Only Fool People for So Long

In other news:

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Accounting News Roundup: KPMG to Give Olympus Qualified Opinions; Payroll Tax Cut Going Nowhere Fast; Santa Norquist’s List | 12.14.11

Ex-auditor to give qualified approval to statement: report [Reuters]Olympus' former auditor KPMG AZSA LLC will give a qualified approval to three years of financial statements ending in March 2009, saying it could not completely confirm money flows, the Nikkei business daily reported on Wednesday. The Nikkei also said Ernst & Young ShinNihon LLC, which became the […]

Accounting News Roundup: Reasons Why CFOs Are Still Stalling on Cloud Solutions; IASB Trumpets Latest Convergence Steps; OCA Gets a Deputy | 05.28.10

What’s stopping CFOs putting their money on cloud computing? [Silicon.com]
Some CFOs are still hesitant to jump into cloud computing for three main reasons: 1) They aren’t sure what they’re getting for their money 2) Security and information assurance 3) The cost of migrating their data.

All legitimate concerns, however steps can be taken and questions asked in order to address most concerns (or at least put CFOs in a better informed position than before):

1) “Ask providers to clarify how they intend to deliver your service so that you understand the risks involved and know exactly what you are getting for your money.”

2) “Undertake due diligence and ensure that cloud providers can replicate the appropriate security policies and procedures. Agree realistic [Service Level Agreements] and make certain that services are scalable enough to meet present and future requirements. Finally, ensure that everything is clearly written down in the contract.”

3) “Evaluate how much time, effort and money will be required to migrate data and rework business processes.”

IASB unveils profit and loss proposals [Accountancy Age]
It appears that Tweeds and Co. like the U.S. GAAP method of presenting Other Comprehensive Income: “If adopted, these proposals will result in further convergence of IFRSs and US GAAP in an increasingly important part of the financial statements.”

Buffett to Testify to Crisis Panel on Moody’s [WSJ]
This will be a breeze – folksy insights with a dash of sexual metaphors will clear up this area of the crisis. Plus, no one is going to scold an old man.

H & H bagel big cops to $369,000 tax fraud [NYP]
Helmer Toro simply kept the money. He’ll spend 50 weekends in jail for that little stunt.

Brian T. Croteau Named Deputy Chief Accountant for Professional Practice in SEC Office of the Chief Accountant [SEC]
Prior to the new gig, Mr Croteau was a Senior Associate Chief Accountant at the OCA. He joined the OCA after being a partner in the Assurance practice at PwC in the Auditing Services Group. He obviously wasn’t bothered by the Partner to Senior Associate title change. It must have been the “Chief Accountant” suffix.