Accounting & Auditing Highlights for the Week Ending Aug. 3, 2018


U.S. Highlights: 

Leasing

July 31: The U.S. accounting standard setter updated leasing rules July 30 with the aim of reducing costs and easing implementation for financial statement preparers. Click here to read the full report. (Subscription required.)

Aug. 2: Companies as varied as Bank of America Corp. and air-conditioning-maker Lennox International Inc. say they plan to take advantage of new changes to an accounting standard related to property leases. Click here to read the full report. (Subscription required.)

Revenue Recognition

July 30: American Airlines, JetBlue, and Sands casinos are among companies taking losses on customer loyalty programs under a new accounting regime adopted by U.S. public companies this year. Click here to read the full report. (Subscription required.)

Auditing

July 31: Investor scrutiny of Facebook’s audit and risk committee underscores the elevated role that audit committees play in the financial markets today. But sixteen years after Sarbanes-Oxley Act became law, audit committee members are still adjusting to the law and the auditing landscape it shaped. Click here to read the full report. (Subscription required.)

Aug. 1: Marcum LLP, one of the 10 largest audit firms in the U.S., didn't ask enough questions about whether a client was still a viable business, among other audit failures identified as part of a routine inspection. Click here to read the full report. (Subscription required.)

Aug. 3: The four largest public accounting firms in the U.S. have locked up audit engagements for the most valuable companies in the U.S.—a dominance that isn’t much different from competition landscape in the U.K. Click here to read the full report. (Subscription required.

Restatements

July 31: DTE Energy Co. restated financial statements for part of last year to reflect a dividend increase to investors. Click here to read the full report. (Subscription required.)

Aug. 3: NIKE Inc.'s management stands by its financial reporting controls and procedures after the company issued an earnings restatement of $2.9 billion. Click here to read the full report. (Subscription required.)

Business of Accounting

July 30: Roughly 1 out of every 100 CPAs in the U.S. identify themselves as black. But Herschel Frierson has led the charge to change that by connecting his firm Crowe LLP with students at a historically black college to add racial diversity to the accounting ranks. Click here to read the full report. (Subscription required.)

Aug. 3: U.S. sports betting is seeing a new kind of numbers person—the accountant. Click here to read the full report. (Subscription required.)

International Highlights:

U.K.

July 30: Corporate pension plan balances can and should be audited better, the U.K. accounting regulator said in the wake of a study on the issue. Click here to read the full report. (Subscription required.)

Aug. 1: The U.K. accounting regulator closed a two-year probe into Grant Thornton U.K. LLP's audit of a collapsed technology company, saying not enough evidence emerged to bring misconduct proceedings. Click here to read the full report. (Subscription required.)

Aug. 1: U.K. accounting firms are pushing strongly to improve diversity after admitting they perform weakly in ethnic and social diversity and in closing the gender pay gap. Click here to read the full report. (Subscription required.)

Aug. 2: A new ranking shows second-tier accounting firms are competing successfully for auditing business from mid-sized U.K. companies, but large firms are squeezing them out of the market for large companies. Click here to read the full report. (Subscription required.)

Aug. 3: The growing chances of a messy Brexit might prevent KPMG LLP's U.K. staff from performing audits in the EU and put extra demands on its consulting business in the event of a late-breaking agreement. Click here to read the full report. (Subscription required.)

Russia

Aug. 1: Auditors in Russia can be required to disclose their business clients’ tax information if the clients don't furnish it themselves under a new law that takes effect Jan. 1. Click here to read the full report. (Subscription required.)

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

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