Accounting & Auditing Highlights Week Ending November 24, 2017


 

Accounting Highlights:  

 

Tax Reform

 

November 20: Tax and accounting financial statement preparers worry that tax reform will be so significant that it will prove difficult to evaluate and quantify if enacted quickly and it applies to 2017 financial statements. “The worst thing that could happen is if it gets approved in first quarter ’18 and effective for the 2017 tax year…” Peter Vinci, a consultant at Resources Global Professionals, told Bloomberg Tax. Click here to see the full story (Subscription required).

 

November 20: Banks and financial companies are closely following the timing of a proposed cut in the corporate tax rate because it could cause an abrupt adjustment to deferred taxes, potentially affecting corporate earnings by billions of dollars. Deferred taxes carried by banks would have to be adjusted immediately once a change in the corporate tax rate is enacted by law, Michael Gullette, an American Bankers Association's vice president told Bloomberg Tax. Click here to see the full story (Subscription required).

 

Sustainability

 

November 20: More investors are placing a greater importance on sustainability. “Is there a growth in sustainability investment? Absolutely,” Seb Beloe, Partner, Head of Sustainability Research at WHEB Asset Management, said at the opening day of Bloomberg's Sustainable Business Summit. Click here to see the full story (Subscription required).

 

Internal Revenue Service

 

November 21: There were personnel shifts in the top positions within the IRS's Income Tax and Accounting (IT&A) and Passthroughs and Special Industries (PSI) divisions this week. John P. Moriarty told Bloomberg Tax that he was resuming his permanent job as deputy associate chief counsel for IT&A. Click here to see the full story (Subscription required).

 

Passthrough Entities

 

November 21: Industry groups and the Multistate Tax Commission are moving closer to finalizing a draft model statute for states to adopt next year when addressing the new federal partnership audit regime. Click here to see the full story (Subscription required).

 

Cybersecurity

 

November 22: Financial services providers could be particular targets for cyberattacks, a digital-systems analyst warned. Richard Horne, a partner for cybersecurity at PricewaterhouseCoopers LLP, said that defense companies and nuclear power plants also could be marked for efforts aimed at breaching their electronic security systems. Click here to see the full story (Subscription required).  

Proxy Voting

 

November 22: Goldman Sachs Group Inc., State Street Corp., and 54 other mutual fund groups backed more investor requests for companies to report on their political spending in the first year of Donald Trump's presidency than the year before. Click here to see the full story (Subscription required).

 

Whistleblowers

 

November 22: A former employee of a privately-held company that advised Fidelity failed to convince a federal district court jury that she was forced from her job for questioning her employer's mutual-fund accounting practices. Click here to see the full story (Subscription required).

 

International Accounting Highlights

 

China’s Trade Plan

 

November 20: An ambitious Chinese trade initiative could face major accounting and tax challenges in coming years. China’s Belt and Road strategy in developing infrastructure, telecommunications, and oil and gas pipelines across 65 jurisdictions spanning Asia, Africa, and Europe whose accounting and legal structures differ substantially faces potential pitfalls. Click here to see the full story (Subscription required).

 

Corporate Governance

 

November 21: Two weeks after the Paradise Papers leak brought a wave of scrutiny over Glencore's dealings in the Democratic Republic of Congo, the company is facing another scandal. The issues stem from Katanga Mining Ltd., a Congolese copper producer owned by Glencore, which is under investigation by Canadian regulators for its corporate governance and accounting practices. Click here to see the full story (Subscription required).

 

Alternative Accounting

 

November 22: International financial reporting standards can prove challenging because different jurisdictions use various practices in adopting IFRS, reducing comparability. IFRS adoption is also difficult because of problems in translating IFRS terms into other languages, an analyst said. Click here to see the full story (Subscription required).

 

International Audit Highlights

 

United Kingdom

 

November 22: The U.K. accounting watchdog should look at levying fines of more than 10 million pounds ($13.2 million) in the most serious cases of misconduct by large firms to provide a more meaningful deterrent, according to a new report. Click here to see the full story (Subscription required).

 

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

 

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