June 19, 2018

Financial Reporting

fasb accounting standard simplification

Simplifying Accounting Standards Still Complicated

Too bad accounting standard simplification doesn’t follow the same rules as Marie Kondo’s The Life-Changing Magic of Tidying Up. Eliminating the available for sale security classification doesn’t exactly spark the joy. Every time the FASB drops a new Accounting Standard Update (ASU), it leaves you feeling weary. Maybe all the U.S. GAAP decluttering and other […]

coso erm

COSO’s ERM Framework Has Fresh Paint, New Open Concept

I remember in college, I’d turn in a paper and feel a sense of relief knowing that I never had to look at it again. Feedback from the instructor was informative but required no further action. Man, do I miss that. Don’t you? I’m sure PwC, who authored the COSO Enterprise Risk Management (ERM) Framework, […]

SEC Fines Company for Failing to Mention That They Paid for CEO’s Lavish Perks (and Some Non-GAAP Stuff, Too)

Normally I'd reserve mis-adventures in non-GAAP accounting for the news roundup, but it's not every day that an SEC order includes this: MDCA is New York-based marketing company MDC Partners and gosh, how do you fail to disclose the cosmetic surgery? Everything else is pretty standard fare as far as extravagant perks go, but if […]

FASB Might Take a Breather on Standard Setting After Some People Yelled at Them

I'm sure working at the FASB is harder than I imagine it to be. What I imagine it to be is a bunch of people who like to read about accounting reading a lot about accounting. Then every once in awhile a few people get together to kick around crazy ideas about how to make […]

Weatherford International Gets in Trouble for Letting Execs Choose Their Own Numbers

Going Concern history buffs will recall a period in 2011-2012 when oil services company Weatherford International had some chronic problems with its tax accounting. Manipulations by two of its former accounting executives — James Hudgins and Daryl Kitay — resulted in a $500 million restatement in 2011. This was followed by two more restatements in […]

New SEC Rules Have Made GAAP Great Again (in Press Releases Anyway)

For some time now, I've been featuring various worries by various people about non-GAAP reporting in the morning roundup. You see, lots of people think that GAAP = Good and non-GAAP = Bad because non-GAAP reporting often presents a rosier picture of a company's financial performance. This made non-GAAP reporting immensely popular among public companies […]

When It Come to Overcomplication, Accountants Take the Cake

According to Richard Thaler, “If you want to encourage someone to do something, make it easy.” Man, did accountants miss that memo. We really can’t deny it… it comes across in our nitpicky GAAP rules. More billable work for us, I guess, but, there has to be a better way. At least the FASB was […]

House Lannister’s Balance Sheet (Unaudited) Isn’t Looking So Hot

On April 24th, Game of Thrones premiered its 6th season on HBO and fantasy literature nerds everywhere shook their fists in the air at George R.R. Martin. For those of you who imagine me to be a duplicitous ‎villain not worthy of the Mother’s mercy, you won’t be surprised to learn that House Lannister is […]

Simplifying Financial Reporting Is Hard

As a concept, business is simple. Someone willing to buy a thing or a service gives you money for that thing or service. If you sell lots of things or services then you’ve really got something good going. Hooray! You’re an entrepreneur.

This 8-K From Valeant Is Something to Behold

This morning, troubled drug company Valeant announced a restatement and that its CEO Michael Pearson would be stepping down. This all started, you may remember, last fall when reports from the Southern Investigative Reporting Foundation and Citron Research published reports questioning Valeant's relationships with pharmacies, accounting, etc. etc. and it culminates with this. Oh, who […]