Accounting & Auditing

In recent weeks, several prominent companies have announced or engaged in stock repurchase plans, including PG&E, Gap, Comcast, IAC/InterActiveCorp, and others. Stock repurchases can raise “earnings per share” by reducing the number of shares outstanding. But experts note that the move can also produce more stable EPS figures for companies that are facing significant hits […]

The New York Stock Exchange has proposed a second round of changes to the definition of “immediate family member” in the corporate governance rules of its Listed Company Manual. The NYSE originally proposed changes to its governance rules back in early August, and the latest amendment reflects consideration of comments from the public and the […]

The Public Company Accounting Oversight Board will increase its staffing by 50 percent next year, from 300 to 450, following the approval of a $152.8 million budget for calendar year 2005. The board expects to spend nearly two-thirds of the total budget on staffing, including salary, benefits and hiring expenses. The majority of those new […]

In the interest of global consistency, the International Accounting Standards Board has agreed to adopt U.S. tax rules that overlook the prospective tax liability associated with foreign-invested earnings—at least for now. The issue involves foreign earnings that are invested outside a parent company’s home tax jurisdiction. International and U.S. rules (International Accounting Standard No. 12, […]

Last week, the Financial Accounting Standards Board delayed the effective date of its intended stock option expensing requirements by six months, giving compliance-weary companies and auditors more time to digest and implement new standards. At the same time, FASB members also reviewed and rejected a proposal issued by a handful of technology companies regarding how […]

Last week, the International Auditing and Assurance Standards Board approved two new exposure drafts to stiffen audit documentation requirements and to clarify the language that sets forth professional requirements. The IAASB is the independent standard-setting body for the International Federation of Accountants, charged with establishing professional standards to make the accounting practice more uniform globally. […]

Last week, the California Board of Accountancy sanctioned Ernst & Young over questions about the firm’s independence in its dealings with former client PeopleSoft. According to the California board settlement (see box at right), E&Y will pay $100,000 and face three years of probation. Also, the firm will be required to hire an independent consultant […]

Last week, the International Federation of Accountants released a study identifying the obstacles to adopting international financial reporting standards, achieving global convergence to international accounting and auditing standards. Wong The report, titled “Challenges and Successes in Implementing International Standards: Achieving Convergence to IFRSs and ISAs,” details the major challenges to international convergence, makes a case […]