Friday Footnotes: Big 4 Firms Talk Inequality; EY Attacks!; .CPA For Sale | 6.5.20

Executive at top U.S. accounting firm details plan to combat racism, says workers ‘want action’ [CNBC] Tim Ryan, the chair of PwC U.S., on Thursday released the company’s plans to combat racism, telling CNBC that employees are insisting real progress gets made. “People are angry. They’re upset. They’re exhausted, and they want action,” Ryan said on “Closing Bell.” “They want a heck of a lot more than just saying, ‘We condemn the killing of George Floyd or many others.’”

KPMG chiefs vow renewed equality drive after George Floyd death [Sky News] Bosses at KPMG have told staff they are committed to eradicating “discrimination and inequality of any kind”, making them the latest in a string of senior corporate figures to respond to George Floyd’s death in Minneapolis last week. Sky News has seen memos sent by Bill Thomas, the professional services firm’s global chair and chief executive, and UK chair Bill Michael in which they pledge to “stand in support” of black communities around the world.

Judge Slams Ernst & Young for Attack on Ex-Partner During Trial [BNN Bloomberg] A London judge slammed Ernst & Young for its treatment of a whistle-blower during a trial the accounting firm lost earlier this year. Judge Tim Kerr said the firm’s lawyers’ attack on the claimant’s character and integrity was “unfair” and “vindictive.” In a ruling released Friday, he said the behavior “must have reflected the rancor and ill will” EY bore against the former partner.

FASB issues limited revenue recognition, lease accounting delays [Journal of Accountancy] FASB issued an update Wednesday that delayed the effective dates of its revenue recognition and lease accounting standards for certain entities in response to the coronavirus pandemic.

Unforeseen Number of Banks Seize Congressional Accounting Relief [Bloomberg Tax] Almost a quarter of all banks that were supposed to overhaul how they account for souring loans this year jumped at an unprecedented congressional pass to delay the major change. Forty-five small banks seized on the provision, part of the $2 trillion coronavirus relief law (Public Law 116-136), that allowed them to blunt the effect the current expected credit loss (CECL) accounting standard on their capital and earnings. The large number of banks that chose the delay surprised analysts who previously thought the provision in the bill was clumsily written and provided little tangible relief.

Dot.CPA Website Domains Available for Firms Beginning July 1, 2020 [CPA Practice Advisor] According to CPA.com: “Another benefit to trust and security is the brand benefits that firms will see with their .cpa domain transition. With an entry into the exclusive club of verified firms, firms (especially small firms) will have the competitive edge as they seek to serve new clients. Additionally, there are other marketing benefits of having a stronger online brand presence with .cpa domain which include being able to be found more easily online by your clients and prospects.”

BMO is latest bank sued over accountant, lawyer fees for PPP loans [Reuters] A U.S. arm of Canada’s Bank of Montreal has been hit with a class action lawsuit accusing it of unlawfully refusing to cover the fees of accountants and lawyers who help prepare applications for loans through the federal coronavirus relief program.

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