Accounting & Auditing Highlights for the Week Ending March 23, 2018


Accounting Highlights:   

Disclosures

March 21: U.S. accounting lawmakers will issue new rules this year to require public companies, such as Amazon.com Inc., to disclose the magnitude of their government support—an estimated $100 billion in total funds that investors know very little about. Click here to read the full story. (Subscription required.)

Discrimination

March 19: A lawsuit accuses PricewaterhouseCoopers LLP of illegally favoring younger job seekers. Middle-aged accountants who applied—and were rejected—for jobs with the global accounting firm claim that by focusing much of its recruitment effort on college campuses, PwC discriminates against older applicants. Click here to read the full story. (Subscription required.)

SEC

March 23: Foreign companies using international accounting standards and trading on U.S. markets need to start using XBRL to file financial reports with the SEC or risk having access to the markets interrupted. Click here to read the full story. (Subscription required.)

March 23: The SEC would get $47 million more in funding this year under the omnibus spending bill the House approved March 22. Click here to read the full story. (Subscription required.)

Tax Reform

March 21: How companies have been accounting for foreign earnings and their use of a new anti-abuse tax under the December 2017 tax overhaul will come under the scrutiny of U.S. standard setters in coming months. Click here to read the full story. (Subscription required.)

Cryptocurrency

March 19: Companies and virtual organizations are leveraging the value of blockchain tokens to compensate and incentivize founders, directors, employees, consultants and other service providers. Just as with issuances of founder's stock, stock options and other traditional equity-based compensation, token-based compensation requires significant consideration from both a securities law and a tax law perspective. Click here to read the full analysis. (Subscription required.)

March 22: The U.S. Justice Department and SEC are urging a federal judge not to dismiss the first criminal securities fraud indictment against an initial coin offering operator, saying the cryptocurrencies he offered fit the definition of securities. Click here to read the full story. (Subscription required.)

Revenue Recognition

March 22: Small private companies may need more time to adopt to changes in how companies report revenue on their annual financial statements. Click here to read the full story. (Subscription required.)

Environmental Reviews

March 22: Merger and acquisition activities should be significant in 2018, driven in part by recent changes in the nation's tax laws. Various factors will lead to a seller's market, resulting in unique due diligence and environmental risk management challenges for bidders. Learn how bidders can strategically approach due diligence in a competitive market, as well as insulate themselves from environmental risk. Click here to read the full story. (Subscription required.)

International Accounting Highlights:

Cryptocurrency

March 20: The rapid evolution of crypto-assets such as Bitcoin may one day make them a threat to the financial system, Mark Carney, chairman of the Financial Stability Board, said in a letter to Group of 20 finance leaders. Click here to read the full story. (Subscription required.)

United Kingdom

March 19: Bloomberg Tax asked Melissa Geiger, KPMG LLP partner and head of international tax in the U.K., about the international tax issues facing multinational companies. Click here to read Part 1 of the series. (Subscription required.)

March 19: Bloomberg Tax asked Melissa Geiger, KPMG LLP partner and head of international tax in the U.K., about the global tax issues facing multinational companies. In Part 2, Geiger highlights her concern about how the U.K.’s efforts to combat perceived tax avoidance among multinationals is hurting the country's attractiveness to global businesses. Click here to read Park 2. (Subscription required.)

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