Accounting & Auditing Highlights Week Ending March 9, 2018


Accounting & Auditing Highlights Week Ending March 9, 2018

Accounting Highlights:   

Leasing

March 7: Companies that think new lease accounting rules aren't relevant to their operations, and therefore haven't paid much attention to them, might be in for a surprise: hidden embedded leases in contracts that can leave them with little time to prepare for the new rules. Click here to read the full story. (Subscription required.)

Revenue recognition

March 5: A substantial number of U.S. public companies are having trouble getting set for their first use of broad revenue reporting rules—even at this late date. Click here to read the full story. (Subscription required.)

March 5: Car rental companies, many of which offer loyalty programs to attract and retain customers, won't generate much revenue from those reward perks in the near term thanks to new revenue accounting rules that took effect this year. Click here to read the full story. (Subscription required.)

Tax Reform

March 6: Provisions of the new tax law have several definitional issues that concern businesses, which can lead to accounting problems, a tax practitioner said. Click here to read the full story and see a video. (Subscription required.)

March 6: With changes to the tax code's transfer pricing rules, the new tax law gave the IRS backing for arguments the agency has long been making with little success. Click here to read the full story. (Subscription required.)

March 8: The IRS is weighing the applicability of the 2017 tax law's limits on deductibility of business interest payments to corporations with exempted subsidiaries, an official said. Click here to read the full story. (Subscription required.)

Securities and Exchange Commission

March 6: The watershed moment that all companies feared when the Securities and Exchange Commission published its first guidance on cybersecurity disclosure under the federal securities laws in 2011 has arrived. How companies should prepare. Click here to read the full story. (Subscription required.)

March 8: The SEC lacks the funds to provide some cybersecurity enhancements that could help the commission better safeguard its data, agency Commissioner Michael Piwowar said March 7. Click here to read the full story. (Subscription required.)

International Accounting Highlights:

Latin America

March 8: Chile is sticking to a tight schedule of deadlines for the first tax collection under its complex new system of corporate income taxation, although overworked accountants are begging for a breather. Click here to read the full story. (Subscription required.)

March 8: Brazil's tax agency has given financial institutions, such as banks and insurance firms, instruction on how to implement common reporting standards for an initial exchange of company financial information with other countries set for later this year. Click here to read the full story. (Subscription required.)

United Kingdom

March 5: The world's four largest accounting firms have warned the U.K. Treasury against imposing a levy on the revenue of digital companies like Facebook Inc. and Google Inc. to make them pay “fair” taxes. Click here to read the full story. (Subscription required.)

March 9: Deloitte's U.K. division said its female staff are paid 43.2 percent less on average than male employees -- one of the wider gender gaps reported so far, but also one that included the high-earning partners that similarly structured firms have been excluding from their data. Click here to read the full story. (Subscription required.)

Sustainability

March 9: Environmentally sustainable investment is at the heart of European Union proposals that could change the way companies such as Aviva Investors, BNP Paribas SA, and Deutsche Bank AG do business. Click here to read the full story. (Subscription required.)

China

March 9: Shanghai transfer pricing economist Glenn DeSouza examines how China's State Administration of Taxation is using artificial intelligence to exploit big data to more effectively monitor U.S. multinationals’ compliance with China's tax laws. Click here to read the full story. (Subscription required.)

Composed and Compiled by Gery Brownholtz, Accounting Editor, Bloomberg BNA

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