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Accounting News 12/2012



Sarbanes-Oxley Has Failed to Address the Problem of Audit Firm Independence
A recent report from the federal accounting industry watchdog agency, the Public Company Accounting Oversight Board, found that the incidence of deficient audits performed by the Big Four accounting firms doubled in 2010, reaching a somewhat horrifying ...

Hewlett-Packard's $11 billion Autonomy fiasco was preceded by many red flags
Long before Hewlett-Packard (HPQ) paid $11 billion for what turned out to be its disastrous purchase of Autonomy, a handful of industry experts were raising red flags about the British software company's accounting practices and claims of continuous ...

Mid-Atlantic Accounting Firm Determines Santa's Operational Cost Is $42.3 Billion
Bill Gates, with an estimated net worth of $66 billion, could be Santa Claus one year and still have about $20 billion left over, according to calculations done by a Mid-Atlantic accounting firm. ParenteBeard, a regional accounting firm with locations ...

Nuts and bolts of tax accounting standards
Current accounting practices permit the capital approach of recording government grants, whereby these are recorded in the nature of promoter's contribution or capital reserve. This is not permitted under TAS. Grants should be either reduced from the ...

Autonomy founder demands details on HP's fraud allegations
NEW YORK (CNNMoney) -- Mike Lynch, founder of embattled Hewlett-Packard subsidiary Autonomy, lashed out at HP on Tuesday after the tech giant accused him of overseeing a company that engaged in accounting fraud. In an open letter, Lynch said ...

2013's Top Three Priorities for Accounting Marketing
It's that time of the year again – we have tweeted, connected, pinned, blogged, and vlogged our way through 2012 – and now it's time to look at what's on accounting marketers' bucket lists for 2013! I asked my peers about their top accounting marketing ...

Firms must pay their fair share of tax – this is war
The overall picture is by now familiar to anyone interested in the news: Google, Amazon, Starbucks and many other multinationals are using different jurisdictions and complex accounting rules to avoid paying corporation tax. What the report lays out ...

Is government too scared of Google, Amazon and Starbucks?
Which is why today's report by the Public Accounts Committee (PAC), which points out that as huge and clever multinationals they exploit legal devices to minimise their liability to corporation tax in the UK, is of moment. The thing about Google ...

HP's woes persist as Autonomy deal goes bad
HP now acknowledges that Autonomy was overvalued, but it blames the alleged accounting fraud for its inability to accurately assess the company's worth. Facing tough competition in the server and PC markets, HP had hoped the high profit margins and ...

Company Announcements: Week of December 3, 2012
BDO USA, LLP announced that Grand Rapids-based assurance director, Patricia Duperron, has been appointed to the American Institute of Certified Public Accountants (AICPA) State and Local Government Expert Panel. Duperron's appointment is a ...

Industry Focus: Accountants
With taxes a hot topic nationally and over concerns with what the new year will bring for businesses, accountants have their hands full keeping up with new requirements and changing laws. However, working to service clients in a dwindling economy and ...

Doeren Mayhew Merges With Houston-Based CPA Firm MFR, P.C.
3, 2012 -- /PRNewswire-iReach/ -- In line with its commitment to continuously find new avenues for growth, Doeren Mayhew, a Michigan-based certified public accounting and advisory firm with locations in Troy and Houston, today announced a merger with ...

SEC charges Chinese affiliates of 5 big US accounting firms with impeding ...
SEC charges Chinese affiliates of 5 big US accounting firms with impeding ...

SEC Charges Accounting Firms' Chinese Affiliates
The U.S. Securities and Exchange Commission has charged the Chinese affiliates of several major accounting firms with violating U.S. securities laws by refusing to produce audit work papers and other documents related to China-based companies under ...

SEC charges top accounting firms over China data
WASHINGTON — US market regulators charged the China affiliates of five top accounting firms Monday with violation of securities laws for refusing to provide audit data related to China-based companies. "The audit materials are being sought as part of ...

SEC charges China affiliates of 'Big 4' accounting firms
"Only with access to work papers of foreign public accounting firms can the SEC test the quality of the underlying audits and protect investors from the dangers of accounting fraud," Robert Khuzami, director of the SEC's enforcement division, said in a ...

SEC Files Charges Against Chinese Arm Of Major Accounting Firms
The Securities and Exchange Commission charged five affiliates of major accounting firms with U.S. securities law violations by refusing to produce audit work papers and documents related to Chinese firms under investigation for possible accounting ...

Marcum Begins Tracking Commercial Construction
Marcum's Construction Services Group provides accounting, audit, consulting and taxation services to construction clients ranging from startups to multi-billion-dollar enterprises. The initial edition index found that total nonresidential structures ...

Taking His Fight Against HP to the Web
The company has said there were “serious accounting improprieties, disclosure failures and outright misrepresentations” at the British software maker and has taken an $8.8 billion accounting charge tied to the deal. It has referred its internal inquiry ...

Regulator issues report on NMFA fake audit
Inadequate staffing in the authority's accounting department, "antiquated" accounting practices and failures by the authority's outside accounting firm also contributed to breakdowns that allowed the fake audit to happen, regulators said. "The lack of ...

Europe takes on tech giants and their tax havens
The British Parliament's public accounts committee said Amazon, by accounting for the profits made in the U.K. elsewhere in the EU, paid 1.8 million pounds ($2.9 million) in British tax in 2011, on revenue of 207 million pounds. In Italy, the ...

Malloy misses accounting target
"If I run for re-election, whether I'll be re-elected ... it won't be on GAAP," Governor Malloy told an audience at Fairfield University recently. Malloy said, "It (GAAP) takes too damn long to explain it to people." GAAP stands for Generally Accepted ...

SEC charges Chinese arms of 5 accounting firms over data
Regulators on Monday charged the Chinese arms of five top accounting firms with securities violations over their refusal to produce certain audit papers, raising questions about whether talks between the United States and China to resolve the issue ...

Insurance sector: SECP notifies draft of accounting rules
The Securities and Exchange Commission of Pakistan (SECP) has notified draft of accounting rules and regulations for the life and non-life insurance companies. The drafted revised accounting formats and regulations for published financial statements ...

SECP notifies accounting rules draft for insurance cos
The drafted revised accounting formats and regulations for published financial statements and regulatory returns by insurance entities have been notified in the official gazette of Pakistan to elicit public and stakeholders comments. By issuing these ...

US Sues Big Firms Over China Audits
The U.S. Securities and Exchange Commission, investigating alleged accounting fraud in China, has charged the Chinese affiliates of five major accounting firms for refusing to produce audit work papers. The WSJ's Ken Brown talks about how this may ...

SEC charges Chinese accounting firms over audits
WASHINGTON — The Securities and Exchange Commission charged China-based affiliates of the five largest U.S. accounting firms on Monday with violating securities laws, saying that the firms failed to produce work papers from their audits of several ...

FRC Unveils Accounting System for Churches, Mosques, Others
In order to ensure accountability and probity in churches, mosques and other not-for-profit organisations, the Financial Reporting Council (FRC) Monday unveiled the Statement of Accounting Standards (SAS) 32. Speaking at a public presentation of the ...

SEC learns true cost of China accounting goodwill
China's shaky accounting practices are a sound target for U.S. regulators. Or at least, they would have been ten years ago. The Securities and Exchange Commission's action against China-based auditors, including affiliates of big accountants like KPMG ...

Engineering, Honors Accounting Among New Course Proposals for District 99
Students at Downers Grove North and South high schools could have several new classes to choose from next year—including advanced accounting and engineering courses. Administrators from both schools were on hand at the Community High School ...

Three Fee-Laden Checking Accounts to Avoid
Interest checking accounts. Interest paid was a paltry average of 0.253 percent in early November, according to Bankrate. And expect to pay high bank fees or meet high minimum balance requirements, says Ed Mierzwinski, consumer program director at the ...

Top accounting firms' China units charged by SEC
WASHINGTON/SINGAPORE - U.S. regulators have charged the Chinese arms of the world's five top accounting firms with securities violations, raising tensions in a regulatory standoff which experts say could kill off U.S. listings for Chinese firms if not ...

The Two Main Problems With Life Insurance Accounting
I am not an FSA, but I am an actuary. That said, I am not presently practicing inside a life insurance company, so as I write this, there may be some things that I get wrong. There are two areas that concern me in life insurance accounting at present ...

Massey Consulting Launches Webcast Series for CPAs with 'CPAs and Social ...
Massey Consulting Launches Webcast Series for CPAs with 'CPAs and Social ...

US, China in Cold War Over Accounting Rules
Ernst & Young Hua Ming, Deloitte Touche Tohmatsu Certified Public Accountants, KPMG Huazhen, and PricewaterhouseCoopers Zhong Tian CPAs have been charged “with violating the Securities Exchange Act and the Sarbanes-Oxley Act, which requires ...

SecureState Releases Project Mayhem
4, 2012 -- /PRNewswire/ -- If hackers were able to manipulate the world's accounting systems, governments and corporations would be in a frenzy. Guess what? Hackers can and will. SecureState today announced that Tom Eston and Brett Kimmell will unveil ...

AICPA Committed to Constructive Dialogue with Regulators
One only has to look at the numerous complex issues on the agendas of the US Securities and Exchange Commission (SEC) and the Public Company Accounting Oversight Board (PCAOB) to get an idea of the challenges CPAs face, American Institute of ...

Accounting firms caught between the laws of China and the US
The world's top five largest accounting firms facing a US regulatory probe relating to allegations they withheld documents under mainland state secret laws, have called on China and the US to prevent them being sandwiched between the laws of the two ...

Allison Schrager on Tax-Advantaged Savings Accounts
Tax-advantaged savings accounts have become popular in developed economies as a way to promote saving for retirement. You can put pre-tax money into an account you can't access (without a penalty) until you retire. It accrues while you work and then ...

Baidu, Sina drop on SEC/China accounting impasse [updated]
The clash between the US Securities and Exchange Commission and China over accounting regulatory standards probably won't come to a head for another ten months. But the prospect that the SEC's high-profile attack on the Chinese affiliates of the Big ...

Area Minority High School Students 'Explore Accounting' at ...
Area Minority High School Students 'Explore Accounting' at ...

Accountants trying to work around 'fiscal cliff'
GRAND RAPIDS (WZZM) -- It's the number one topic in the world of finance -- the inability of President Obama and lawmakers to reach a deal on the fiscal cliff. The deadlock is also creating a headache for tax accountants. Some in the accounting ...

Investors Searching for Global Returns Face Local Pitfalls
The legal action taken by the Securities and Exchange Commission against the Chinese affiliates of the Big Four accounting firms, along with one other firm, is the latest example. While the SEC believes it must be able to investigate the work of firms ...

Development Authority sues accounting firm over embezzlement
CLARKSBURG — A Clarksburg accounting company is to blame for not nipping a Harrison County Development Authority em-ployee's embezzlement in the bud, the authority contends in a lawsuit. The recent filing in Harrison County Circuit Court lists Tetrick ...

Accounting error costs SC State nearly $6 million
The school, which has been dealing with leadership turmoil and dwindling enrollment, learned of the deficit when an audit found a $5.8 million accounting error involving research funds. S.C. State trustees chairman Walt Tobin of Columbia said he was ...

Citi Expects Compromise Between SEC, Accounting Firms Over US-Listed ...
Citi Expects Compromise Between SEC, Accounting Firms Over US-Listed ...

Accounting standards must reflect new trends: Experts – KPMG holds 2-day ...
Accounting standards must reflect new trends: Experts – KPMG holds 2-day ...

Hershey Joins Sustainability Accounting Standards Board Advisory Council
The Hershey Co. will join the Advisory Council of the newly founded Sustainability Accounting Standards Board (SASB) as part of Hershey's commitment to reporting on its expanding sustainability practices. As a member of the Advisory Council, Hershey ...

Towards green accounting
Conventional GNP accounts omit many of the inputs which the environment provides to the economy. GNP (Gross National Income) is the aggregate money value of all final goods and services produced in a country in a given year. GNP accounts do not ...

'Black Swan' Stocks Could Lose 50% or More Due to Accounting Practices
GMI has since produced a second list of 40 companies with a market capitalization north of $5 billion that it believes have extraordinarily aggressive accounting practices. “Inclusion in this list,” said GMI CEO James A. Kaplan, “signifies an elevated ...