Jul 02
The Financial Accounting Standards Board (“FASB”) recently issued a proposal to improve practices surrounding the responsibility for assessing and reporting whether an entity is a “going concern”. Financial statements prepared in accordance with Generally Accepted Accounting Principles (“GAAP”) have an inherent presumption that the entity is able to continue with its operations, realizing its assets and honoring its …
Permanent link to this article: https://betweenthenumbers.net/2013/07/fasb-stepping-in-on-going-concern-assessments-and-disclosure/
Jun 11
The AICPA has issued a new Financial Reporting Framework (“FFR”) for Small and Medium Sized Entities (“SMEs). These smaller enterprises are often not required to prepare financial statements in accordance with Generally Accepted Accounting Principles (“GAAP”). Yet all financial statements are presented in accordance with some financial reporting framework, however defined. This new FFR provides …
Permanent link to this article: https://betweenthenumbers.net/2013/06/aicpa-issues-financial-reporting-framework-for-small-and-medium-sized-entities/
May 31
Even after the increased regulation associated with the Sarbanes-Oxley Act (SOX) in July 2002, the audit profession continues to deal with questions of whether they are truly independent from the companies who employ them and overall audit effectiveness. A recent report commissioned by the Center for Audit Quality (“CAQ”) specifically examines Securities and Exchange Commission …
Permanent link to this article: https://betweenthenumbers.net/2013/05/battling-auditor-enabled-fraud/
May 25
A recent study in The Journal of Financial Economics suggests that a compensation structure that relies on financial performance measures can be tied to incidences of fraud. Generally, the study concludes that individuals are more likely to engage in financial misstatements when the there is little downside and high upside. The implication is that this relationship can have …
Permanent link to this article: https://betweenthenumbers.net/2013/05/7613/
Permanent link to this article: https://betweenthenumbers.net/2013/04/gaap-exception-buffet-offer-for-private-companies/
Feb 22
The U.K. Competition Commission has released preliminary findings that conclude that the audit market is not serving shareholders, citing “the tendency for auditors to focus on satisfying management rather than shareholder needs”. Overall, the commission found fault with the lack of effective competition, noting that 67 percent of FTSE 100 companies and 52 percent of …
Permanent link to this article: https://betweenthenumbers.net/2013/02/commission-reports-the-big-four-dont-provide-enough-competition-for-the-u-k/
Feb 05
KPMG recently released their Global Audit Committee Survey (See the KPMG survey here). The survey contains the views of 1,800 audit committee members worldwide regarding topics such as financial reporting and disclosures, audit quality, oversight of internal and external auditors, risk management and crisis readiness, emerging technologies and audit committee effectiveness. The survey highlighted the …
Permanent link to this article: https://betweenthenumbers.net/2013/02/survey-of-audit-committee-members-indicate-significant-concerns/
Nov 25
HP is going to take an $8.8 billion write-down related to its $11.1 billion acquisition of British company Autonomy Corporation PLC in October 2011. HP asserts that much of the write down (approximately $5 billion) is required because of accounting irregularities, allegedly fraud, contained in the financials statements relied upon in association with the purchase. Among …
Permanent link to this article: https://betweenthenumbers.net/2012/11/hp-claims-5-billion-of-overpayment-was-due-to-fraudulent-financial-reporting/
Sep 21
The Securities and Exchange Commission (SEC) recently released a report required by Section 917 of the Dodd-Frank Wall Street Reform and Consumer Protection Act. The study’s legislative mandate includes addressing: 1. the existing level of financial literacy among retail investors, including subgroups of investors identified by the Commission; 2. methods to improve the timing, content, …
Permanent link to this article: https://betweenthenumbers.net/2012/09/sec-report-is-relevant-to-litigators-presenting-financial-information/
Aug 12
In July 2012, the Financial Accounting Standards Board (FASB) voted to drop a controversial project that would have required companies to disclose more about contingent losses, including most notably those arising from litigation. The now-withdrawn proposal would have required significant additional disclosure of litigation. The vast majority of those commenting on the proposal opposed it, …
Permanent link to this article: https://betweenthenumbers.net/2012/08/proposed-changes-to-litigation-accounting-disclosures-are-dropped/
Apr 23
GAAP Exception Buffet Offer for Private Companies
April 23, 2013
In 2012, the Private Company Council (PCC) was formed to establish exceptions and modifications to U.S. GAAP appropriate for private companies. Such differences may include alternative recognition, measurement, disclosure, display, effective date, or transition guidance. Proposed differences for private companies must be agreed to by both the PCC and FASB and include a period for consideration of public comment …
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