Friday Footnotes: Subprime Accounting Magic; A Street Fighting Number-Cruncher; FASB Gets Busy | 11.15.19

Calibre CPA Group, Notice of Data Privacy Event [PR Newswire] Clients of Bethesda-based Calibre CPA Group, consider yourselves warned that the haxz0rs may have your personal information.

In Hong Kong, an accountant by day becomes street fighter by night [Washington Post] “We have started to realize we need to arm ourselves. We are in a war — there is no other choice,” said Kelvin, a 33-year-old accountant, who like the others in the group provided one name for fear of official retribution. “We can’t just be sitting ducks anymore.”

Under Armour defends accounting practices amid federal probes and media reports [Baltimore Sun] Under Armour again Friday defended its accounting practices that have come under scrutiny amid federal probes and media reports that the brand manipulated sales numbers to mask weakening demand for its athletic apparel. The Baltimore-based athletic apparel company confirmed earlier this month that its accounting methods are being investigated by the U.S. Securities and Exchange Commission and the Justice Department.

Accountant, 26, is horrified to discover a handwritten note embedded INSIDE the batter of his KFC chicken order [Daily Mail] And you thought team pizza was bad.

10 M&A questions to ask in a buyer’s market for accounting firms [Accounting Today] The volume and pace of CPA firm M&A over the past 10 years, along with the current age demographics of firm owners, has created what appears to be a buyer’s market — that is, one in which there are more potential sellers than buyers. And those sellers are increasingly concerned about who will buy their firms.

Subprime Lender’s Warning Reflects Aim of New Accounting Rule [Bloomberg Tax] Investors who believe in the company’s earnings potential—like Randy Heck, partner at Goodnow Investment Group—will focus on these adjusted metrics. The new, official accounting does not reflect the true economics of the company, Heck said. Heck has owned stock in the company for 21 years, he said. “I don’t care,” he said of the accounting change. “Because the company, as it’s done in the past 10 years or so, has reported level yield accounting or adjusted earnings. And that’s what the management team reports and what we focus on, regardless of the knucklehead sell-side analysts out there.”

FASB proposes clarifying hedge accounting standard [Journal of Accountancy] The proposed Accounting Standards Update (ASU) issued Tuesday primarily addresses the change in hedged risk in a cash flow hedge. The standard issued in 2017 allowed the risk causing variability in cash flows of the forecasted transaction to change (for example, from one variable interest rate to another, or from one commodity index to a different index for the same commodity) if certain criteria are met. Under the proposal, FASB would clarify whether that change can happen both prospectively (before the forecasted transaction occurs) and retrospectively (after the transaction occurs). The proposal also addresses how hedge accounting guidance should be applied if the change can happen both prospectively and retrospectively.

FASB officially delays 4 major standards [Journal of Accountancy] And more FASB news hot off the presses from the JofA…

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