Accounting & Auditing Highlights for the Week Ending March 16, 2018


Accounting Highlights:   

Audit

March 12: The Public Company Accounting Oversight Board was busy in 2017 enforcing its auditor independence rules, which the staff describes as a “high priority” area. Cathy Allen explores what CPAs can learn from the cases. Click here to read the full story. (Subscription required.)

March 14: Internal audit departments that harness artificial intelligence and robotics processing are providing better results and are seen as more valuable to their companies, according to the findings of PricewaterhouseCoopers LLP's annual State of the Internal Audit Profession report. Click here to read the full story. (Subscription required.)

Revenue Recognition 

March 13: The IRS is still working on guidance that would align tax accounting procedures with new changes in how companies report revenue on their annual financial statements. Click here to read the full story. (Subscription required.) 

March 16: New accounting standards for revenue recognition will help shrink electric-car maker Tesla's equity deficit by at least $520 million, according to the company's annual financial statement. Click here to read the full story. (Subscription required.) 

Executive Departures 

March 12: Tesla Inc.’s chief accounting officer has left the company, the latest in a string of management departures from the electric-car maker. Click here to read the full story. (Subscription required.) 

SEC 

March 14: Foreign affiliates of KPMG, Deloitte & Touche, and BDO International agreed to fines to settle SEC charges that they failed to fully comply with the U.S. audit regulator's registration and outside auditor requirements. Click here to read the full story. (Subscription required.) 

March 15: Perkins Coie LLP attorneys discuss the Securities and Exchange Commission's recently released guidance to assist public companies in preparing disclosures regarding cybersecurity incidents and risks. The authors detail several areas of focus and offer some practical tips for public companies. Click here to read the full story. (Subscription required.) 

Blockchain 

March 15: U.S. accounting rulemakers are researching whether to develop rules for blockchain, the digital transaction ledger whose advocates say can't meet its potential in capital markets unless standard setters fashion an accounting system for them. Click here to read the full story. (Subscription required.) 

March 16: Auditors and their professional judgment will still have a job in a world where blockchain tracks and audits transactions in real-time, a study by the American Institute of CPAs and CPA Canada concluded. Click here to read the full story. (Subscription required.) 

Digital currency 

March 16: The SEC has “dozens” of investigations open in the cryptocurrency space, a senior agency official said March 15. Click here to read the full story. (Subscription required.) 

March 16: Less than ten years after the launch of the first decentralized virtual currency, known as bitcoin, total market capitalization in the space stands at over $458 billion. So it’s no surprise that virtual currency has captured the attention of regulators. Learn more about the virtual currency marketplace as well as the applicable regulatory frameworks in place to date. Click here to read the full story. (Subscription required.) 

Sustainability 

March 16: Public companies’ disclosures about the effect of global warming on their businesses have evolved over the last decade. And the risk of coastal flooding seems to be much greater than appreciated just a few years ago. Tom Mounteer explores what more investors will be told about the risk of loss to industries operating along the U.S. coastline. Click here to read the full story. (Subscription required.) 

Banking

March 16: Small and mid-size banks have seen a significant uptick in credit card losses in recent months, part of a general trend at banks that has caught the attention of regulators and analysts. Click here to read the full story. (Subscription required.) 

International Accounting Highlights:

Accounting 

March 15: A community of accountants worldwide are collaborating to provide international charities in Africa, Asia, Latin America, and elsewhere, with better access to accounting and business management best practices. Click here to read the full story. (Subscription required.) 

European Union 

March 14: European Union finance ministers reached a deal requiring the mandatory reporting of tax planning schemes to national tax authorities, to help crack down on tax avoidance. Click here to read the full story. (Subscription required.) 

United Kingdom 

March 13: Under pressure over how they compiled their gender pay gaps in the U.K., Deloitte, PwC and EY agreed to revise their figures to include high-earning partners. Click here to read the full story. (Subscription required.) 

March 14: Tax policy leaders at the world's largest accounting firms have cast doubt on the prospects countries can find a common solution on reforming tax laws for internet-based companies. Click here to read the full story. (Subscription required.) 

Russia 

March 14: Russia's high court annulled regulations from 1998 and 1999 that required all businesses to file monthly and quarterly financial statements. Click here to read the full story. (Subscription required.) 

March 14: Russia approved a new set of amendments to international financial reporting standard (IFRS) to remeasure previously held interests in acquired businesses. Click here to read the full story. (Subscription required.)

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