July 20, 2018

Accounting News

Accounting News Roundup: Big 4 Get Share of Blame for Carillion and Apology Letters for Embezzlement | 05.16.18

Key findings from the MPs’ report into Carillion’s collapse [The Guardian] Two parliamentary committees spread the blame around for the collapse of the British construction company, with the Big 4 getting its fair share. The report called KPMG, Carillion’s auditor, “complicit” for “complacently signing off its directors’ increasingly fantastical figures.” Deloitte, the internal auditor, “too […]

Accounting News Roundup: GOP Donors Get Stingy Over Tax Law; Seattle vs. Amazon | 05.15.18

Top GOP donors close wallets over tax law [CNN] Wealthy hedge fund guys like Paul Singer, Ken Griffin, and Dan Loeb are miffed about “favored treatment for corporations under the law” and are withholding donations to Republican candidates and the party’s national committee as punishment. Collectively, the boycotters donated $50 million during the 2016 election […]

Accounting News Roundup: Tardy Audited Financial Statements; Avalara’s IPO; Too Many Food Choices | 05.14.18

No, I do not want to go to the stupid prom with you. Xerox Drops Fujifilm Merger Plan, Strikes a Deal With Activists [WSJ] The saga of Xerox and Fujifilm has taken a new turn, as the company has abandoned its merger plans to work with and activist investors Carl Icahn and Darwin Deason. How […]

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Accounting News Roundup: PwC Faces Whistleblower Retaliation Suit | 05.11.18

PwC Whistleblower Alleges Fraud in Audits of Silicon Valley Companies [POGO] The Project on Government Oversight has a nice scoop on the tale of Mauro Botta, a former PwC senior manager who after spending a dozen years in the firm’s Silicon Valley office, became a whistleblower. Botta told the Securities and Exchange Commission in a […]

Accounting News Roundup: A Murder of Crowes and Bad Legal Advice | 05.10.18

Crowe drops Horwath from its brand [AT] Over 200 member firms around the world will now be known as “Crowe,” and I suppose that collectively, they will be known as “a murder of Crowes” which is cool-sounding but perhaps a little too terrifying to actually put into practice. Still, just for fun, let’s try working […]

Accounting News Roundup: Talent Shortage Fears; Big Stock Compensation; Jay-Z | 05.09.18

Think There’s a Talent Shortage Now? Just Wait [CFO] Is there a worrier near you? If so, forward them this Korn Ferry study that has enough doom and gloom to keep them busy for the next dozen years: By 2030 — no more than a couple of economic cycles away, in all likelihood — the […]

Accounting News Roundup: Tesla’s Numbers; Valeant’s New Name; Deloitte’s Cybersecurity Spending Spree | 05.08.18

This Is Why Tesla Should Answer Boring Questions [Bloomberg] Bloomberg columnist Liam Denning expressed some surprised as to how Tesla’s gross margin improved despite sales going down in the first quarter. It involved some accounting sleight of hand: One big factor was a change in how Tesla accounts for vehicles it leases. Whereas previously many […]

Accounting News Roundup: Buffett’s Nightmare, Musk’s Drama, AmTrust’s Probe | 05.07.18

Buffett Accounting ‘Nightmare’ Fuels First Loss in Nine Years [Bloomberg] Although new rules that require unrealized gains and losses from equity investments “will produce some truly wild and capricious swings in our GAAP bottom line,” Uncle Warren recommends looking at Berkshire Hathaway’s operating income as “a better barometer” of the company’s performance. It increased 49 […]

Accounting News Roundup: Mischievous Non-GAAP Reporting; More Bad News for KPMG South Africa; Theranos Losers | 05.04.18

SEC chief accountant warns against mischief in non-GAAP reporting [AT] On a panel at Baruch College’s Financial Reporting Conference, SEC Chief Accountant Wesley Bricker mentioned that there can be a “mischievous quality to non-GAAP reporting,” and now I can only imagine CFOs with toothy grins and little top hats. Also notable were comments from Kyle […]

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Accounting News Roundup: EY Settles With Partner Over Sexual Harassment | 05.03.18

Ernst & Young settles sex-harassment suit from partner [NYP] Jessica Casucci has agreed to leave the firm as part of a settlement over the allegations in a complaint filed with the Equal Employment Opportunity Council last month. The Post reports that John Martinkat, the partner at the center of the allegations, has been fired from […]