Category: Financial Reporting

Private Company Accounting May Become Simpler.

On May 23, the Financial Accounting Foundation (FAF) Board of Trustees established a new body to improve the process of setting accounting standards for private companies. The need for such a group has been debated for decades. The new group, the Private Company Council (PCC), will determine whether exceptions or modifications to existing nongovernmental U.S. …

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Between the Numbers of Salesforce.com

Salesforce.com.com (NYSE: CRM) reported its yearly earnings in February. As a publicly traded company, Salesforce.com is required to issue annual financial reports in accordance with Generally Accepted Accounting Principles, or “GAAP”. While Salesforce.com presents GAAP-based earnings in its SEC filings, its management touts a different metric as the preferred method of measuring the company’s performance.  …

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Permanent link to this article: http://betweenthenumbers.net/2012/05/between-the-numbers-of-salesforce-com/

Over $30 Million Allegedly Misappropriated from City Funds

Rita Crundwell, longtime comptroller of Dixon, Illinois, is alleged to have defrauded the city of over $3 million in the last few months and misappropriated $30 million over the last six years.  The town of Dixon is small, with a population of under 16,000. Crundwell lived a luxurious lifestyle that exceeded her $80,000 annual income.  …

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Permanent link to this article: http://betweenthenumbers.net/2012/04/over-30-million-allegedly-misappropriated-from-city-funds/

Ignore Investments that Rely On the JOBS Act’s Loosened Requirements

With President Obama’s signature, the Jumpstart Our Business Startups Act, also known as the JOBS Act, is now law. The law raced through Congress with bipartisan support. Practically every investor advocate and investment regulator is aghast. In this article, we explain cost of capital, and how this might (or might not) be impacted by the …

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Permanent link to this article: http://betweenthenumbers.net/2012/04/ignore-investments-that-rely-on-the-jobs-acts-loosened-requirements/

Hated financial reporting standard will remain

On March 20, the Financial Accounting Standards Board (FASB) announced that it would not revisit one of its more controversial rules. FIN 48 (also known as Topic 740) is here to stay. In the FASB’s Gift to the IRS, we summarize the rule and its ramifications. The rule has been effective for fiscal years ending …

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Permanent link to this article: http://betweenthenumbers.net/2012/03/hated-financial-reporting-standard-will-remain/

EU proposes Big Changes for the Big Four Auditors

In October, we summarized a leaked draft that proposed significant restrictions in the European Union regarding public accounting firms. On November 30, the revised proposal was made public. The released European Commission’s proposal includes: Requiring mandatory auditor rotation after six years. A four-year period would be required before a firm could audit the same client …

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Permanent link to this article: http://betweenthenumbers.net/2011/12/eu-proposes-big-changes-for-the-big-four-auditors/

CFOs are dissatisfied with Big 4 Accounting firms

If you have $32,400 to spend on a survey of the Big Four accounting firms, then BTI Consulting will sell you their recent survey of chief financial officers of major U.S. public companies.  But, our headline is free.  Only 6 in 10 clients would recommend their Big 4 auditor to others, and 18.5% of companies are …

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Permanent link to this article: http://betweenthenumbers.net/2011/06/cfos-are-dissatisfied-with-big-4-accounting-firms/

Shapiro’s veiled threat to the accounting profession

Ultimately, the SEC has the ability to (at least indirectly) change accounting standards, and change the standard setters. So, when Mary Shapiro, the SEC Chairperson, starts to make even veiled threats, it quickly gets accountants’ attention. In a speech on May 25, 2010, Shapiro said: At the SEC, we have heard from investors that they …

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