Accounting & Auditing Update

Ernst & Young Rebrands to EY

Consolidation continues at the Big 4 accounting firms—at least among the firms' names, anyway. Fresh off the arrival of a new global CEO last week, the venerable Ernst & Young announced that it will henceforth abbreviate itself to a simple "EY." The firm also announced a new logo, motto, and CEO, Mark Weinberger.

SEC Names New Top Accountant

Paul Beswick, the deputy chief accountant at the Securities and Exchange Commission who coined the phrase "condorsement" to suggest a possible U.S. path toward international accounting standards, has been appointed acting chief accountant at the SEC. More inside.

2013 Reports to Show Progress, Gaps in Internal Control Audits

The next round of audit inspection reports will show leading audit firms have made progress in their audit of internal controls over financial reporting, but often are still missing the final step in assuring controls are effective, according to Jay Hanson, a member of the Public Company Accounting Oversight Board. More details inside.

2014 GAAP Taxonomy for XBRL Contains Far Fewer Changes

Good news: The 2014 U.S. GAAP taxonomy for XBRL that the Financial Accounting Standards Board previewed last week looks a lot like the 2013 GAAP taxonomy. The proposed 2014 taxonomy is now available for inspection, and preparers will be happy to see that it contains far fewer changes than it has in prior years. More details inside.

2014 Restatements Show Further Declines

2015 audit inspections show some gains, some blown opinions

2016 GAAP Taxonomy Ready for Use, Pending SEC Approval

2016 PCAOB inspection results will deliver mixed results

75% of S&P 100 report non-GAAP earnings, study shows

ABA Pleads for Intervention on Fair-Value Plans

The American Bankers Association is appealing to the U.S. Treasury and the Federal Reserve to stoke the fire over accounting issues at the upcoming G-20 meeting in Pittsburgh Sept. 24-25, especially regarding proposals to require more use of fair value on bank balance sheets.Edward Yingling, ABA president and CEO, sent...

Academics: Move to IFRS Won't Boost Reporting Quality

A group of academics offer some new food for thought in the ongoing debate of when and how to transition the United States to international accounting standards. The professors say the upfront cost of transition won’t necessarily be recouped in lower cost of capital or improved capital allocation because the...

Restatements Rise Among Accelerated Filers for Third Year

Restatements among accelerated filers rose for a third straight year in 2013, with 290 such companies disclosing a need to restate financial statements, although the average dollars-and-cents impact hit an all-time low in the same year. Overall, 846 companies filed restatements in 2013, just a slight increase from the 838 restatements filed in 2012. More details inside.

Accountant Gets First Ever IRS Whistleblower Program Award

The Internal Revenue Service has paid a $4.5 million whistleblower reward to an in-house accountant who reported a $20 million tax liability at a Fortune 500 financial company. The whistleblower's lawyer says his client got 22 percent of the tax recovery, the first such payment since the IRS bounty program began more than four years ago.

Accountants Consider Job Changes As Economy Recovers

Nearly one-fourth of accountants are getting antsy in their current positions, even plotting a job change if and when the economy begins mounting a recovery, according to a recent survey by Ajilon Finance and the Institute of Management Accountants.The two groups polled 458 accountants during a recent webinar series and...

Accountants tally Brexit effect in financial statements

Accounting Boards Split on Rule for Financial Instruments

U.S. and international accounting rulemakers have deadlocked on a new standard on accounting for bad bank loans, a blow to supporters of a converged world. The Financial Accounting Standards Board wants to do yet more research on the proposal for impaired financial instruments, prompting Hans Hoogervorst of the International Accounting Standards Board to say he is "very worried ... that the whole thing is going to unravel again."

Accounting class actions rise again in 2015, analysis shows

Accounting Class-Action Settlements Rise Slightly in 2013

The number of U.S. accounting class-action settlements increased slightly in 2013 to 47, up from 46 in 2011, with an average settlement amount of $26.6 million. The number of cases still remained relatively low compared with the past decade, according to an analysis of securities class-action cases. More inside.

Accounting estimate audit risks get uneven scrutiny, study says

Accounting, Finance Staff Still in Demand, Bonuses Intact

Despite heavy job losses in certain sectors, accountants and finance professions are still in demand, and their pay is fairly steady. The nature of the job is changing, though, focusing more on cost-cutting and risk avoidance.According to staffing firm Ajilon Finance, accounting and bookkeeping in general added 1,600 new jobs...

Accounting, Valuation Leaders Collaborate on Fair Value

Setting the stage for greater harmonization of valuation and accounting standards, the International Accounting Standards Board and the International Valuation Standards Council have issued a "statement of protocols" to cooperate on fair value rules.

Accounting-Related Class-Action Lawsuits Jump in 2014

A Cornerstone Research report says securities class-action filings involving allegations of accounting improprieties jumped sharply from 47 in 2013 to 69 in 2014. Senior adviser Laura Simmons said Cornerstone expected the SEC’s increased focus on financial reporting issues might lead to an increase in class actions with these issues. “Finally, this year we see that come to fruition,” she said. Details inside.

Advisors Seek Ideas on Smoothing Loan Loss Provisions

While regulators and policymakers continue to look for a way out of the maze of market chaos, the Financial Crisis Advisory Group is looking for some input to help shape accounting and financial reporting solutions.The advisory group, formed by the Financial Accounting Standards Board and the International Accounting Standards Board,...

Advisory Group Calls for Independence in Accounting Rules

A group formed to advise accounting rule makers on how to navigate the financial crisis has issued its recommendations, and the suggestions are aimed more at other bodies than the rules or the rule makers themselves.The Financial Crisis Advisory Group says politicians and other special interest groups should keep their...

Advocacy Groups Renew Appeals to New Leaders

Investor advocate groups are renewing their appeal to the new administration and to Congress to resist the temptation to tinker with accounting rules as a solution to the credit crisis and its effects on the economy.The Center for Audit Quality, CFA Institute, Consumer Federation of America, and the Council of...