Accounting firms and the public interest – strangers in the night?

A recent New York Times article examines How Accounting Giants Craft Favorable Tax Rules from Inside Government Here are some extracts: The largest U.S. accounting firms have perfected a remarkably effective behind-the-scenes system to promote their interests in Washington. Their tax lawyers take senior jobs at the Treasury Department, where they write policies that are…

Disaggregating revenue – we won’t settle for less!

A European example of issues arising in disaggregating revenue for disclosure purposes Here’s another of the issues arising from extracts of enforcement decisions issued in the past by the European Securities and Markets Authority (ESMA); this is from their 24th edition: The issuer is a producer of primary minerals and secondary mineral sand products (‘secondary…

Investing in advocacy, or: raise our voices!

I was intrigued by a recent article on Why Sustainable Investment Means Investing in Advocacy, by Alan Schwartz and Reuben Finighan The article points out that sustainable investment movements “however promising, assume there’s no need for a trade-off between returns and social and environmental impact. They are grounded in the idea that investors and corporations…

Identifying control – we forgot to be practical!

A European example of identifying control under IFRS 10 Here’s another of the issues arising from extracts of enforcement decisions issued in the past by the European Securities and Markets Authority (ESMA); this is from their 24th edition: The issuer is an industrial company that holds 39% of the capital of Company X. The issuer…

Financial reporting at Kraft Heinz – we cook it all!

SEC Charges The Kraft Heinz Company and Two Former Executives for Engaging in Years-Long Accounting Scheme, announces a recent news release Here are some extracts: The Securities and Exchange Commission today charged The Kraft Heinz Company with engaging in a long-running expense management scheme that resulted in the restatement of several years of financial reporting.…

Decision-making in the age of complexity: it ain’t easy!

CPA Canada has issued Complexity and the professional accountant: Practical guidance for ethical decision-making, the first of four thought leadership papers. The paper builds on a collaborative exploratory paper and global roundtable event held jointly with the Institute of Chartered Accountants of Scotland and the International Federation of Accountants. The broad guiding notion is as…