Accounting & Auditing Highlights for the Week Ending April 13, 2018


Accounting & Auditing Highlights for the Week Ending April 13, 2018

Accounting Highlights:

Auditing

April 9: Wells Fargo & Co. is under pressure to ditch its longtime auditor KPMG LLP because of the bank's fake accounts scandal. Click here to read the full story. (Subscription required.)

Disclosures

April 9: Public companies would be well-served to give fresh consideration to their cybersecurity risks and the adequacy of their current disclosures given recent guidance from the Securities and Exchange Commission. Read the full Insights report here. (Subscription required.)

Banking

April 11: When is a non-performing loan not a non-performing loan? When it's in another country. That's the conclusion of a Bank for International Settlements survey, which found that different rules and accounting standards can identify a debt as bad in one jurisdiction and just fine in another. Click here to read the full story. (Subscription required.)

Accounting Standards

April 13: Pharmaceutical, biotech and medical device companies must confront a set of financial reporting challenges unique from other industries, stemming from a series of new and upcoming accounting standards. Here's a look at the top four accounting changes facing the industry. Click here to read the full story. (Subscription required.)

Revenue Recognition

April 12: Sturm Ruger & Co., the nation's biggest supplier of hunting and assault rifles, might see a 5 percent decline in first-quarter profits from adopting new revenue accounting rules—the effects of which it will report in May. Click here to read the full story. (Subscription required.)

SEC Enforcement

April 10: Nauman Aly engaged in securities fraud when he manipulated prices by filing false documents on the SEC's public database, a federal judge said. Click here to read the full story. (Subscription required.)

Tax

April 11: U.S. companies are expecting more inspections of their accounts due to the global tax reports they will file this year, highlighting the impact of increased financial transparency for multinational businesses. Click here to read the full report. (Subscription required.)

April 13: The IRS plans to issue guidance on the tax treatment of payments made in advance under the new tax law, which codified a method of accounting allowing some taxpayers to defer those payments to the end of the following tax year, rather than include them in income for the year in which they are received. Click here to read the full story. (Subscription required.)

Digital Currency

April 12: Initial coin offerings have raised billions of dollars for startups while attracting criminals and authorities around the globe. Now, the young market may get some help cleaning up from the Big Four consulting firms. Click here to read the full story. (Subscription required.)

April 13: If you thought trading Bitcoin was wild, try figuring out how to pay taxes on it. Click here to read the full story. (Subscription required.)

Disclosures

April 12: More than 1,000 publicly traded companies have disclosed their fiscal 2017 pay CEO-to-worker comparisons to investors this year, with thousands more set to file as proxy season heats up. Click here to read the full story. (Subscription required.)

International Accounting Highlights:

Auditing

April 9: Deloitte LLP should be held liable for the damage suffered by shareholders in Steinhoff International Holdings NV, the retailer that's lost more than 90 percent of its value amid an accounting scandal, according to a Dutch investor group. Click here to read the full story. (Subscription required.)

April 11: Steinhoff International Holdings NV said two 2017 payments to former chairman and biggest shareholder Christo Wiese didn't follow proper governance and disclosure processes, dragging the South African billionaire deeper into an accounting crisis. Click here to read the full story. (Subscription required.)

Banking

April 12: Conflicting financial regulations are taking a $780 billion toll each year on banks, insurers, money managers and the global economy. Click here to read the full report. (Subscription required.)

European Union

April 10: The European Union risks undermining the success of a global tax reporting regime if it begins requiring multinational companies to publicly release annual statements, an OECD official warned. Click here to read the full story. (Subscription required.)

April 11: The European Parliament continues to jockey for the EU to formally name the U.S. a tax haven. Click here to read the full story. (Subscription required.)

South Korea

April 9: The South Korean tax authority will be more easily able to flag companies for audits once large firms begin publishing their governance structure. Click here to read the full story. (Subscription required.)

Vietnam

April 9: Vietnam's excitement for a raft of new trade deals comes with the side effect of lower tariff revenues, so tax collectors will help cover the shortfall with more audits in the coming year, especially for transfer pricing. Click here to read the full story. (Subscription required.)

Composed and compiled by Amanda Iacone, accounting reporter for Bloomberg Tax.

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