Accounting & Auditing Highlights for the Week Ending June 29, 2018


U.S. Highlights:

Revenue Recognition

June 25: Shares in BlackBerry Ltd. plunged the most in a year after investors focused on weak growth in software revenues that the company attributed to a change in accounting standards. Click here to read the full story. (Subscription required.)

June 27: Some private company accountants have incorrectly assumed they will need lawyers to help adopt new revenue recognition rules next year to ensure contracts are legally enforceable, U.S. accounting rulemakers said. Click here to read the full story. (Subscription required.)

Pending Standards

June 25: Some of the nation's largest companies are resisting pending accounting changes that would require them to disclose the magnitude of their tax abatements and other government incentives—some $100 billion that some watchdog groups say investors know very little about. Click here to read the full story. (Subscription required.)

FASB

June 26: The main U.S. accounting standard setter might need to defer decisions on some topics, including business combinations, until it has a full board seated, the board's chairman, Russell Golden told a group of senior executives. Click here to read the full story. (Subscription required.)

GASB

June 25: Rating agencies, banks and insurance companies that require financial reports from state and local governments will get better information about construction cost financing for buildings and other capital projects. Click here to read the full story. (Subscription required.)

Business of Accounting

June 26: The digital consulting arms of large accounting firms, including the Big Four, are reaping the benefits of tax reform with increased demand for their services. Click here to read the full report. (Subscription required.)

June 29: The booming $10 billion legal marijuana industry represents a huge opportunity for accounting services, but the number of CPAs willing and able to help growers and retailers remains relatively small. But their numbers are rising. What accountants need to know before working with cannabis clients. Click here to read the full report. (Subscription required.)

Cryptocurrency

June 25: Cryptocurrency regulation is in the crosshairs – is bitcoin a security? As Securities and Exchange Commission staff weigh in publicly, their remarks offer a window into the SEC's evolving thinking on cryptocurrencies, rather than settled policy. Click here to read the full Insight article. (Subscription required.)

Blockchain

June 28: The SEC suspended trading June 26 of Evolution Blockchain Group Inc. stock due to questions about the accuracy and adequacy of information contained in a May 17 press release and whitepaper. Click here to read the full story. (Subscription required.)

Stock Options

June 29: Turbulent markets and White House threats over trade tariffs may be stoking concerns over accounting related to share-based pay at privately held companies. Click here to read the full story. (Subscription required.)

PCAOB Inspections

June 27: The French affiliate of KPMG LLP failed to perform basic elements of a 2017 audit, including verifying inventory, according to a draft inspection report released by the U.S. audit regulator. Click here to read the full story. (Subscription required.)

Accounting Fraud

June 29: The former chief financial officer of Bankrate Inc. pleaded guilty June 28 to federal charges of conspiring to defraud investors by artificially inflating the company's earnings and making false statements to the Securities and Exchange Commission. Click here to read the full report. (Subscription required.)

International Highlights:

IASB

June 25: The move to stop using interest rate benchmarks such as LIBOR could have a “significant” impact on financial reporting, according to the body that sets international accounting standards. Click here to read the full story. (Subscription required.)

June 29: The global accounting standards setter is asking for views on how companies should report some complex financial instruments and admits uncertainty on whether to account for them as debt or equity. Click here to read the full story on accounting for financial instruments. (Subscription required.)

Steinhoff Scandal

June 25: Markus Jooste, who quit as head of Steinhoff International Holdings NV in December amid an accounting scandal, oversaw a complex series of transactions where decisions made by the South African retailer benefited him personally, company filings show. Click here to read the full story. (Subscription required.)

U.K.

June 26: Deloitte LLP has become the last of the big accounting firms to change its legal status so that it can operate as a multi-disciplinary practice in the U.K., integrating legal with accounting and consulting services. “We're planning to use our technology and advisory skills to transform legal services.” Click here to read the full story. (Subscription required.)

June 27: Political calls for investigations into the biggest U.K. accounting firms have intensified, with both KPMG LLP and PricewaterhouseCoopers LLP under pressure over their auditing of public companies. Click here to read the full story. (Subscription required.)

June 29: Deloitte LLP has become the latest of the big accounting firms to come under fire in the U.K. as the country's accounting watchdog announced an investigation into one of the firm's audits, and a partner resigned shortly before the publication of another investigation into Deloitte's auditing work. Click here to read the full report. (Subscription required.)

June 29: A leading accounting organization in the U.K. opposes moves to make online tax returns compulsory because surveys suggest many companies are unprepared for it. Click here to read the full report. (Subscription required.)

Canada

June 26: Deloitte LLP's Canada affiliate has unveiled a guide to help Canadian companies conduct comprehensive reviews of their external auditors to preserve auditor independence and prevent any over-familiarity or self-interest issues. Click here to read the full story. (Subscription required.)

Malaysia

June 27: State investment firm 1Malaysia Development Bhd.’s auditor KPMG LLP told the company not to rely on its reports over three years as they don't show “true and fair” assessment of the troubled state fund's finances. Finance Minister Lim Guan Eng said he was shocked to find that some ministry documents linked to 1MDB were labeled as “red files” and weren't accessible by auditors. Click here to read the full story. (Subscription required.)

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

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