Accounting & Auditing Highlights for the Week Ending May 25, 2018


U.S. Accounting Highlights: 

Leasing

May 21: Companies should think carefully about why and what they lease before trying to figure out how to comply with the new lease accounting standard that takes effect for public entities next Jan. 1. Click here to read the full story from the Deloitte-Bloomberg Tax leasing conference. (Subscription required.)

May 21: Time is running out for companies that haven't started preparing to adopt a new accounting standard for leases. Click here to read the full story from the Deloitte-Bloomberg Tax leasing conference. (Subscription required.)

May 23: Involving auditors and stakeholders across the company plus prioritizing which leases to scrutinize are among the steps that Microsoft Corp. and Bristol-Myers Squibb Co. leaders say are crucial to adopting a new lease accounting standard. Click here to read the full story. (Subscription required.)

Insurance

May 25: A 10-year project to update accounting standards for long-term insurance products is headed toward the finish line, but new concerns raised by insurers could delay the pending standard yet again. Click here to read the full story. (Subscription required.)

Revenue Recognition

May 25: Investors are torn over the results of a new accounting standard that streamlined how businesses recognize revenue across industries. Click here to read the full story. (Subscription required.)

Auditing

May 23: The chief auditor of the U.S. auditing standards setter and enforcement agency will leave his post at the end of May. Click here to read the full story. (Subscription required.)

May 25: Deloitte LLP will pay a $500,000 penalty for missing significant accounting errors in three audits of a Missouri software company. Click here to read the full story. (Subscription required.)

Disclosures

May 25: Software companies are pushing back against a proposed change by accounting regulators for how they are required to attribute costs associated with moving data to the cloud. Click here to read the full story. (Subscription required.)

Accounting Violations

May 23: PPG Industries Inc. faces a shareholder suit accusing the paint manufacturer of misleading investors about its first quarter financial reports and the quality of its internal controls after an executive was fired for directing employees to make improper accounting entries. Click here to read the full story. (Subscription required.)

GASB

May 25: A significant source of funding for the accounting standard-setter for state and local governments remains intact after congressional efforts to overhaul bank regulations put it in jeopardy. Click here to read the full story. (Subscription required.)

Pass-Through Entities

May 21: Industry guidance that says partnerships don't have to hold reserves in case of a potential tax audit could create problems when potential investors are looking to buy into the partnership. Click here to read the full story. (Subscription required.)

Tax Reform

May 21: The IRS is circulating draft regulations internally to clarify carried interest issues in the new tax law. Click here to read the full story. (Subscription required.)

May 25: The IRS is putting all of its resources into the new tax law, pushing other regulatory projects to the back of the line. Click here to read the full story. (Subscription required.)

Pensions

May 23: Prudential Financial Inc. has a warning for the more than half of S&P 500 companies that have underfunded pensions: Waiting for the market to ease the pain of that shortfall won't help. Click here to read the full story. (Subscription required.)

Cryptocurrencies

May 24: Factions among cryptocurrency exchanges may be hindering forward movement toward forming a self-regulatory organization two months after a federal regulator first proposed the idea. Click here to read the full story. (Subscription required.)

International Accounting Highlights:

Sustainability

May 25: The European Union kick-started a process of classifying parts of its economy as environmentally sustainable, or not, in a drive to direct more investment to green activities such as renewable energy and low-carbon buildings. Click here to read the full story. (Subscription required.)

Russia

May 22: Russia is taking steps toward establishing a taxation system for digital currencies. Click here to read the full story. (Subscription required.)

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

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