Category Archive: Financial Reporting

Dec 30

General Cable Settles with SEC and DOJ for $82.3 Million

General Cable Corporation announced that it has entered into a joint settlement with the Securities and Exchange Commission (“SEC”) and Department of Justice (“DOJ”) for a total payment of $82.3 million to address investigations into violations of the U.S. Foreign Corrupt Practices Act (“FCPA”) and separate allegations regarding financial restatements. In 2014, General Cable voluntarily …

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Permanent link to this article: http://betweenthenumbers.net/2016/12/general-cable-settles-with-sec-and-doj-for-82-3-million/

Aug 31

Monsanto Whistleblower Obtains $22.4 Million SEC Award

The Securities and Exchange Commission (“SEC”) has awarded $22.4 million to a former Monsanto financial executive, the second-largest whistleblower bounty ever provided. This amount represents the whistleblower’s share of the $80 million penalty paid. The anonymous whistleblower was a former Monsanto financial executive who reported violations of Generally Accepted Accounting Principles (“GAAP”) and misstatements of corporate earnings. …

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Permanent link to this article: http://betweenthenumbers.net/2016/08/monsanto-whistleblower-obtains-22-4-million-sec-award/

Aug 25

FASB Issues New Guidance for Not-for-Profit Entities

The Financial Accounting Standards Board (“FASB”) recently issued ASU 2016-14 “Presentation of Financial Statements of Not-for-Profit Entities” in an effort to improve transparency and understanding.  Changes effected therein include: The 3 formerly applied classes of unrestricted, temporarily restricted, and permanently restricted assets will be simplified into two classes based on whether they are donor-restricted. Additional …

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Permanent link to this article: http://betweenthenumbers.net/2016/08/fasb-issue-new-guidance-for-not-for-profit-entities/

Jun 23

The IRS Wants More Of Your Gambling Winnings

The taxation of gambling winnings is widely misunderstood (or at least widely not followed).  Gambling gains are included in gross income, reported on “other income” on form 1040.  Losses from gambling are allowed to the extent of gambling gains, but only as an itemized deduction.  The amount spent to generate any win reduces the win.  …

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Permanent link to this article: http://betweenthenumbers.net/2015/06/the-irs-wants-more-of-your-gambling-winnings/

May 31

The Cancer Fund of America and Its Related Charities Are Called a Fraud

An alleged fraud was recently uncovered at The Cancer Fund of America and its related entities, including The Breast Cancer Society and The Children’s Cancer Fund of America. James Reynolds and his family members are believed to have stolen $187 million from donors in these charities over five years and spent the monies on lavish …

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Permanent link to this article: http://betweenthenumbers.net/2015/05/the-cancer-fund-of-america-and-its-related-charities-are-called-a-fraud/

May 16

GAO Tells SEC to Look in the Mirror Regarding Internal Control Failures

The U.S. Government Accountability Office (“GAO”), a government watchdog group, recently reported the results of its 2014 audit of the Securities and Exchange Commission (“SEC”) financial statements.  The findings included (i) troubling reports of internal control failures at the very agency tasked with policing the reporting activities of others and (ii) warnings of vulnerability to …

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Permanent link to this article: http://betweenthenumbers.net/2015/05/gao-tells-sec-to-look-in-the-mirror-regarding-internal-control-failures/

May 04

Compliance Officer Gets Whistleblower Award

The U.S. Securities and Exchange Commission (“SEC”) recently announced an award of $1.4 – $1.6 million provided to a compliance officer of a large company. Neither the company’s nor the officer’s name was made public due to confidentiality laws, but the information was reported to having pertained to significant financial harm to the company and/or …

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Permanent link to this article: http://betweenthenumbers.net/2015/05/compliance-officer-gets-whistleblower-award/

Apr 05

New Revenue Recognition Rules Delayed

The Financial Accounting Standards Board (“FASB”) has announced a proposal to delay by one year the effective date of implementation of the new revenue recognition standard under Generally Accepted Accounting Principles (“GAAP”), making the new date of change for public companies those reporting periods beginning after December 15, 2017.  Private companies would have an additional …

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Permanent link to this article: http://betweenthenumbers.net/2015/04/new-revenue-recognition-rules-delayed/

Jan 26

There’s Nothing Extraordinary About Your GAAP Based Financial Statements

The Financial Accounting Standards Board (“FASB”) has issued its first accounting standards update of 2015.  Simply put, FASB wishes to inform preparers of financial statements that there is nothing special about the results they are reporting, i.e., the end of the concept of “Extraordinary Items” on Income Statements. Accounting Standards Update No. 2015-01, Income Statement—Extraordinary and Unusual …

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Permanent link to this article: http://betweenthenumbers.net/2015/01/theres-nothing-extraordinary-about-your-gaap-based-financial-statements/

Jan 23

$1.5 Billion Clerical Error: Appellate Ruling Finds That Authorization Trumps Intent, Reverses Bankruptcy Court’s Opinion

In the recent matter of re: Motors Liquidation Co., et al. the Court of Appeals for the Second Circuit (the “Appellate Court”) ruled that a clerical error which unintentionally rendered $1.5 billion of debt unsecured due to the inclusion of an improper financial statement, was in fact authorized and thus enforceable. The Appellate Court determined …

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Permanent link to this article: http://betweenthenumbers.net/2015/01/1-5-billion-clerical-error-appellate-ruling-finds-that-authorization-trumps-intent-reverses-bankruptcy-courts-opinion/

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