Square discontinues adjusted revenue metric following SEC warning
Square is discontinuing the use of adjusted revenue following receipt of a comment letter from the SEC, which has been eyeing reports for use of measures not in compliance with its updated revenue standard.
FRC review of IFRS 16 disclosures highlights weak spots
Companies applying the new standard on lease accounting need to provide more information on its effects, according to a new review by the U.K. Financial Reporting Council, which highlights where it expects companies to provide more comprehensive disclosure in their upcoming annual reports.
Under Armour facing SEC, DOJ accountancy probes
Following disclosure of the federal government’s investigation into allegations of sales manipulation dating back to 2017, sports apparel company Under Armour maintains its accounting practices are “appropriate.”
IFAC: Strong support for international accounting standards
A first-of-its-kind report from the International Federation of Accountants shows “strong and sustained support” for both the adoption and implementation of international standards.
e-Book: Light at the end of the tunnel for lease accounting?
New deadlines for the lease accounting standard have given companies more time to overcome implementation and adoption challenges.
FRC reveals key trends in U.K. accountancy profession
A new report from the U.K.’s Financial Reporting Council says the Big Four increased their combined “total fee income” by 4.7 percent—even amid a year fraught with accounting scandal.
PCAOB sanctions Deloitte, BDO affiliates
The PCAOB, recently under fire for its lack of enforcement, has imposed sanctions on Deloitte Korea and BDO Mexico for altering audit documentation in anticipation of inspections.
Mattel ousts CFO after accounting probe reveals weaknesses
Following an investigation spurred by a whistleblower letter, Mattel announced it has uncovered material weaknesses in its internal controls over financial reporting and is now working to remediate the issues.
Big Four stranglehold on U.K. audit market widens
The Big Four’s dominance of the U.K. audit market has grown even further in the past year, according to the Financial Reporting Council’s latest report.
EY accused in U.K. gold-laundering scheme
Big Four audit firm EY has been accused of covering up evidence of smuggling by an organized crime gang that was laundering British drug money through gold dealings, according to an investigation by the BBC.
White paper: The Case for a Comprehensive Equity Compensation Solution White Paper
Compensation structures continue to evolve, with new and added award types, a greater demand to tie pay to performance, more complex accounting, and more time being spent addressing participant questions and issues.
Unethical practices at Infosys? SEC opens probe
The SEC has launched an investigation into Infosys based on an anonymous letter the agency received from several Infosys employees alleging CEO Salil Parekh forced them to engage in “disturbing unethical practices.”
Big Four to FASB: Guidance needed on supplier financing arrangements
The Big Four accounting firms are asking FASB to provide guidance regarding the financial statement disclosures that should be provided by companies that have entered supplier finance programs involving their trade payables.
Senators call out SEC over PCAOB whistleblower report
A letter sent by two senators addressed to SEC Chairman Jay Clayton critiques the regulator’s oversight of the PCAOB as showing “questionable judgment and an alarming lack of transparency.”
FASB announces upcoming CECL implementation workshops
FASB has announced upcoming workshops designed to help community banks and credit unions of all sizes implement the standard on current expected credit losses.
FASB votes to approve standard delays, including CECL
FASB has voted to approve a previously proposed delay to its upcoming rule change for credit losses, in addition to standards for hedging and leasing.
PCAOB swaps board members, faces whistleblower report
The SEC has ousted Kathleen Hamm as a board member at the PCAOB, replacing her with White House aide Rebekah Goshorn Jurata. The swap, along with a whistleblower report, signal internal strife at the audit regulator.
Ex-PCAOB leader gets prison time for role central to KPMG scandal
Former PCAOB Inspections Leader Jeffrey Wada was sentenced to nine months in prison for providing the confidential information central to the long-running KPMG inspections scandal.
IRS updates guidance on tax treatment of virtual currencies
As part of a wider effort to assist taxpayers, the Internal Revenue Service has issued two new pieces of guidance for those who engage in transactions involving virtual currency.
ProPetro shuffles leadership team amid accounting probe
ProPetro Holding has announced a shuffling of its executive leadership team following the completion of a review conducted by its audit committee into a series of internal control failures.
BDO warns about state of ‘broken’ U.K. audit market
The head of one of the United Kingdom’s biggest accountancy firms has said the audit market is “clearly broken” and “trust needs to be restored,” though how that should be done is “not clear.”
Report: Nissan stopped audit chief’s plan to expand misconduct probe
A high-ranking Nissan executive reportedly quashed a recommendation to establish a special committee to determine whether any additional disciplinary actions were necessary surrounding allegations of financial misconduct.
Former KPMG co-lead pleads guilty in inspections scandal
Former KPMG partner David Britt pleaded guilty to one count of conspiracy to commit wire fraud as the fallout from the cheating scandal that has plagued the firm for nearly two years appears to be nearing its conclusion.
Study: Small firms more likely to report ineffective ICFR
A recent study from Audit Analytics that analyzed SOX 404 disclosures in the past 15 years reveals some interesting trends surrounding large and small companies’ internal control over financial reporting.
FRC investigates EY over Thomas Cook’s books
The U.K. Financial Reporting Council is investigating EY over the audit work it carried out at travel firm Thomas Cook, which recently declared bankruptcy.
SEC ends accounting probe into PPG
PPG announced the SEC and Department of Justice have ended their investigation into alleged accounting irregularities by the company and will not be issuing a financial or any other penalty.
Proposed bill targets FASB rulemaking procedures
Rep. Blaine Luetkemeyer (R-Mo.) on Friday introduced a bill that would subject the Financial Accounting Standards Board to the rulemaking guidelines of federal financial regulators.
Mylan finalizes $30M EpiPen settlement with SEC
Mylan has finalized a previously disclosed $30 million settlement with the SEC for alleged accounting and disclosure failures surrounding its popular EpiPen.
SEC: PwC to pay $8M for auditor independence violations
PwC will pay approximately $8 million in monetary relief to settle charges with the SEC for allegedly violating auditor independence rules and engaging in improper professional conduct.
House approves PCAOB whistleblower program
The U.S. House of Representatives has passed a bill to move the creation of a whistleblower program at the PCAOB forward. While some praised the development, others cautioned it’s a redundant and flawed measure.
SEC explores possible new rules on auditor independence
SEC Chairman Jay Clayton has instructed staff to follow up on concerns raised in public comments with respect to auditor independence requirements.
Nov. 19 | How to reduce audit burdens
Webcast details: November 19, 2019 – 2 p.m. ET | CPE Credit(s): 1
Banks finalize CECL prep, but others have work to do
Big banks are making progress in preparing for CECL, but non-bank operating companies are likely to face a heavier lift as they approach the fourth quarter.
LIBOR report suggests steep uphill climb still ahead
Despite warnings to prepare, financial institutions still face a lot of work and uncertainty around the demise of LIBOR, a new assessment suggests.
Lease rule implementation still a slog, poll says
Halfway through the first year reporting under new lease accounting rules, only one-fourth of public companies said their implementations were complete, according to a recent Deloitte poll.
Auditors develop practice aid to compare notes on CECL
Auditors are comparing notes on how they will interact with audit committees regarding CECL, developing a practice aid that might also interest preparers.
EY analysis: Audit committees increasing their disclosures to shareholders
Audit committees continue to increase the amount of disclosures they are providing to shareholders across a wide variety of categories, according to a recent analysis conducted by EY.
Webcast: Reducing time, cost & risk with accounting automation
Company management and their auditors might not see eye to eye on everything. But clients and their third-party examiners typically agree that the audit process could be improved.
Ex-KPMG leader atop 'chain of corruption' gets a year and a day in jail
A former KPMG leader was sentenced to one year and one day in federal prison and three years of supervised release for his role in a scheme to subvert the regulatory inspection process.
Merrill Lynch to pay $300K for failing to ‘promptly’ produce audit trail data
Merrill Lynch must pay a $300,000 civil monetary penalty for failing to promptly produce to the CFTC certain required records and, separately, failing to supervise its employees and agents.
PCAOB sanctions Marcum over auditor independence issues
The PCAOB has settled disciplinary actions with audit firm Marcum, an affiliated firm, and its former auditor independence leader over independence violations.
Investors want more from banks on CECL, says FASB member
Investors want more information from leading banks over how financial statements will be affected by the adoption of the new CECL approach to credit losses.
FASB offers changes to ease reference rate transition
FASB is proposing guidance intended to ease the potential accounting burden companies expect to face as they navigate reference rate reform.
Government watchdog group targets PCAOB performance
The PCAOB is taking heat from a government watchdog group, which says the audit regulator is “doing a feeble job” protecting investors.
Migration to new SOX technology picks up pace, report says
Amid persistent cost and compliance challenges with internal controls, the pace of migration toward new accounting technologies appears to be picking up.
Unclaimed property filing deadlines loom large
Deadlines are fast approaching for state unclaimed property filings, with roughly 40 states setting filing dates on Oct. 31 or Nov. 1.
Auditors ID 1.8 CAMs per large accelerated filer, report says
Large accelerated filers saw an average of 1.8 issues called out as critical audit matters in their first round of reporting, according to a new analysis.
GE whistleblower report shines light on insurance liability
Recent whistleblower allegations against GE have put a spotlight on mounting liabilities that will hit corporate balance sheets when insurance accounting rules shift.
e-Book: CECL: Don’t get left behind on FASB’s credit loss standard
The Financial Accounting Standards Board has approved delays for its credit loss standard, a.k.a. CECL, but companies—especially financial institutions—still have a long way to go.
KPMG CEO elects not to seek second term
Lynne Doughtie, chairman and CEO of KPMG, has decided she will not seek re-election when her term expires next summer.