Accounting & Auditing Highlights for the Week Ending July 6, 2018


U.S. Highlights: 

Accounting Standards

July 3: Museums will be able to use more revenue to cover the cost of maintaining their collections because of a definition change that accounting rulemakers are proposing. Click here to read the full report. (Subscription required.)

Business of Accounting

July 2: Deloitte confirmed to Bloomberg Tax that the Big Four accounting firm's board of directors has started the nomination process. CEO Cathy Engelbert's four-year term ends in May 2019. Click here to read the full report. (Subscription required.)

July 2: The consulting arms of accounting firms are taking on Madison Avenue, competing with traditional ad agencies for clients. Click here to read the full report. (Subscription required.)

Auditor Liability

July 3: PricewaterhouseCoopers LLP was ordered to pay the Federal Deposit Insurance Corp. more than $625 million for negligence in the audit of Colonial BancGroup Inc., an Alabama bank holding company that failed during the financial crisis. Click here to read the full report. (Subscription required.)

Blockchain

July 3: A look how blockchain could be used for tax and transfer pricing purposes plus why waiting too long to could prove costly. Click here to read the full Insight article. (Subscription required.)

Revenue Recognition

July 6: BKD’s Brian Matlock explores how the new revenue recognition standard affects oil and gas companies and what SEC comment letters to early adopters could mean for the energy sector. Click here to read the full Insight article. (Subscription required.)

Investigations

July 3: MiMedx Group Inc. Chief Executive Officer Parker “Pete” Petit will step down following external and internal investigations of the medical-product company's sales tactics and government contracts. Click here to read the full report. (Subscription required.)

Cost Accounting

July 5: The government is “shaking down” The Boeing Co. for $1 million in the parties’ contract accounting dispute because the government hasn't paid any increased costs under the long-standing practice of cost-offsetting, the company told the U.S. Court of Federal Claims. Click here to read the full report. (Subscription required.)

International Highlights:

Audit Scandal

July 2: The Audit Quality Forum, a government-established body, has commissioned a fundamental review of auditing in the U.K. that could result in legal changes to expand auditors’ responsibilities. Click here to read the full report. (Subscription required.)

July 5: The Financial Reporting Council has launched another investigation into KPMG LLP, two weeks after castigating the firm for an “unacceptable deterioration” in the quality of its audits over the past year. Click here to read the full report. (Subscription required.)

July 6: An influential Parliament committee has demanded more details from the U.K. accounting regulator of its investigation into a collapsed retailer and complained the regulator lacks the authority to investigate the scandal more widely. Click here to read the full report. (Subscription required.)

U.K.

July 5: U.K. arms of the biggest accounting firms have expanded aggressively into the legal services area in recent years, changing their legal status to compete with attorneys and capitalize on their global presence to win multinational clients. Click here to read the full report. (Subscription required.)

July 6: Accounting firms have joined forces with other professions to present U.K. Prime Minister Theresa May with a list of requirements for professional-service firms to survive Brexit unscathed. Click here to read the full report. (Subscription required.)

Steinhoff Scandal

July 2: Steinhoff International Holdings NV seeks to recover lost cash from third-party deals as the embattled retailer sifts through the wreckage of an accounting scandal. Click here to read the full report. (Subscription required.)

July 2: A South African police unit is probing three cases of fraud at Steinhoff International Holdings NV after the embattled retailer submitted a series of allegations against former Chief Executive Officer Markus Jooste. Click here to read the full report. (Subscription required.)

Ukraine

July 2: Ukraine has adopted a blueprint to reform its financial reporting regulations for transactions in the state-run sector until 2025. Click here to read the full report. (Subscription required.)

India

July 6: Audit firms of at least 30 listed companies abruptly resigned in the first five months of the year. These departures come as India's regulators are cracking down on governance lapses and outright corporate fraud. Click here to read the full report. (Subscription required.)

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

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