Accounting

More good stuff for auditors – 3-12-14

2 Comments / Accounting, Audits /

A few links and comments of interest to auditors. Big firms book increasing amount of consulting work and whether the PCAOB’s definition of audit failure a bit too broad.

3/3 – Accounting Onion – Accounting Complexity: What if “Truth in Labeling” were and Accounting Principle? – If we applied ‘truth in labeling’ to property, plant, and equipment, we’d have to call it something like

undepreciated cost stated in ancient units of purchasing power.

If we did that, what in the world would be a truthful label for right of use asset under the proposed lease rules?

…

More good stuff for auditors – 3-12-14Read More »

More good stuff for auditors – 3-12-14 Read More »

More good stuff for auditors – 3-3-14

Leave a Comment / Accounting, Audits /

A few links and comments of interest to auditors –

2-1 – CPA-Scribo – Code of Ethics Codification Approved by AICPA – Charles Hall has the news flash that the codified rewrite of the ethics rules has been approved. Will be effective 12/15/14. See his post for a summary and link to the current version, which is subject to editing.

2-3 – Thriveal – Accounting for what? – Here’s a great thought question. …

More good stuff for auditors – 3-3-14Read More »

More good stuff for auditors – 3-3-14 Read More »

Growing complexity will increase. That will make auditing even more challenging.

Leave a Comment / Accounting, Audits, Pondering /

The overall rate of change today is increasing. This carries over to the business world. Commerce is getting more complex with every quarter that passes.

That will carry over to us as practitioners.

That’s the comment from a speaker at a recent conference.

…

Growing complexity will increase. That will make auditing even more challenging.Read More »

Growing complexity will increase. That will make auditing even more challenging. Read More »

More good stuff for auditors – 1-28-14

Leave a Comment / Accounting, Audits, Pondering /

Eight articles on the ‘net you might find helpful as an auditor –

The long simmering dispute over the PCAOB getting access to audit workpapers of firms working on China-based companies has stepped up to another level.  An administrative law judge banned the China-based subs of the Big-4 from signing opinions for six months. This is several orders of magnitude removed from my practice. I’m also guessing it’s outside the practice all the readers of my blog, but that is what makes it fascinating to watch:

1-23 – Wall Street Journal – Judge Suspends Chinese Units o Big Four Auditors – Michael Rapoport gives a great overview.

1-25 – re:The Auditors – One Way or Another: The SEC Versus The Chinese Big Four Firms – Francine McKenna provides lots of quotes & links, color commentary, accompaniment of a song from Blondie (“One way or another I’m gonna find ya / I’m gonna getcha getcha getcha getcha /One way or another I’m gonna win ya / I’m gonna getcha getcha getcha getcha”), and two suggestions how the SEC could reach out and ‘getcha’ some Big 4 firms: …

More good stuff for auditors – 1-28-14Read More »

More good stuff for auditors – 1-28-14 Read More »

11 bloggers you really oughta’ be following

Leave a Comment / Accounting, Audits, Social media /

In his New Year column, Jim Peterson gives a list of writers on accounting who you really should add to your RSS feed so you can read all they have to say:  Re:Balance – Welcome to a Happy New Year – Or Is It?

Before giving you the list, I’d like to summarize his first post of the year.

He begins by bemoaning the same-o same-o in accounting stories for the last few months of 2013. Seems like it is the same foolishness and silliness we’ve seen the whole year. Another multi-billion settlement from JPMorgan.  More blithering on accounting convergadoption. Blah, blah.

His knowledge of human nature leaves him optimistic the New Year will be brighter. It won’t take long for accounting & finance bloggers to have fresh examples of folly, mischief, break-downs, malfeasance, manipulators, and miscreants enough to keep everyone’s fingers dancing on the keyboard.

Alas, I agree.

…

11 bloggers you really oughta’ be followingRead More »

11 bloggers you really oughta’ be following Read More »

Q: Should costs of developing a web site and other software costs be capitalized in a small NPO? Four answers.

Leave a Comment / Accounting /

This post is cross-posted from my other blog, Nonprofit Update. It might be helpful to give your clients an introduction to the issue of whether to capitalize software costs. Anything more than a survey will need your input. You can apply the rules to your client’s specific situation.

One word answer: Yes

Sure-you-want-to-bother answer: Think carefully in terms of materiality. If you have no external reporting obligation, think really seriously whether it makes any difference for your internal reporting. If you issue compiled, reviewed, or audited financial statements to outsiders, evaluate carefully whether the amounts involved are actually material.

What passes for a brief answer from a CPA:  …

Q: Should costs of developing a web site and other software costs be capitalized in a small NPO? Four answers.Read More »

Q: Should costs of developing a web site and other software costs be capitalized in a small NPO? Four answers. Read More »

eBook ‘Tragedy of Fraud’ now available in multiple formats

Leave a Comment / Accounting, Books you might enjoy, Fraud /

Fraud has tragic effects on innocent people who didn’t commit the fraud. The person who did the deed will pay a severe price far beyond what the judge imposes. Just like a stone thrown into a pond causes ripples all across the water, so a fraud ripples out to cause all sorts of harm.

tragedy-cover

Only 99 cents.

Available in Epub for iPad, iBooks, Nook, and Sony Reader.

Also in mobi for Kindle, PDF for desktop reading, and 5 other formats.

Newest versions can be found here.

Has been available at Amazon since February.

…

eBook ‘Tragedy of Fraud’ now available in multiple formatsRead More »

eBook ‘Tragedy of Fraud’ now available in multiple formats Read More »

Description of IFRS in practice – – nation-based, a la carte, & locally tweaked. Now ‘carve-in’. For the public good.

1 Comment / Accounting /

Mentioned in an earlier post that the EU is having second thoughts about IFRS. They want formal authority to pick-and-choose which pieces of new IFRS rules to adopt.

Here’s an article from Reuters supporting the idea that pick-and-choose is the preferred approach: EU seeks to increase influence on global accounting rules.

They are wanting to go from a yes/no approach to accepting IFRS rules in full or skipping an entire rule. The new word is they want to “carve-in”: …

Description of IFRS in practice – – nation-based, a la carte, & locally tweaked. Now ‘carve-in’. For the public good.Read More »

Description of IFRS in practice – – nation-based, a la carte, & locally tweaked. Now ‘carve-in’. For the public good. Read More »

While on IFRS death watch, GOA calls subject of said watch a swindle

2 Comments / Accounting /

Even though there are no detectable signs of life and all visible conceptual support has evaporated, we still wait for IFRS to be declared officially dead. While on death watch, Grumpy Old Accountant Anthony Catanach ponders The Great IFRS Swindle: Accountants Scamming Accountants.

…

While on IFRS death watch, GOA calls subject of said watch a swindleRead More »

While on IFRS death watch, GOA calls subject of said watch a swindle Read More »

Background articles on 2 new sources of “small GAAP” – one is from PCC and one is called ‘FRF for SMEs’

Leave a Comment / Accounting /

Since I was in college, CPAs have been calling for an alternative to the full GAAP accounting model that can be used for small companies. So many have longed for ‘small GAAP.’

It is time to celebrate because the day has finally arrived.

In fact, there are two alternatives.

…

Background articles on 2 new sources of “small GAAP” – one is from PCC and one is called ‘FRF for SMEs’Read More »

Background articles on 2 new sources of “small GAAP” – one is from PCC and one is called ‘FRF for SMEs’ Read More »

Direct cash flow method – Tentative decisions from FASB about NPO reporting

Leave a Comment / Accounting /

On 10-23-13, FASB tentatively decided to require NPOs to use the direct method when preparing a statement of cash flow.

You can see the discussion here.

My summary of some other minor changes:

  • Donor contributions with restrictions for long-term assets would be an operating cash flow instead of financing.
  • Outflows to meet those restrictions would likewise be operating instead of financing.
  • Investment income would be investing cash flow instead of operating.

These items will show up in a future ED. Lots of other issues are on the table for future discussion.

(Thanks to Bill for the tip.)

Direct cash flow method – Tentative decisions from FASB about NPO reporting Read More »

“Once Upon Internal Control” fable now available in multiple formats

Leave a Comment / Accounting, Books you might enjoy /

I just published my short book, “Once Upon Internal Control” at Smashwords, which means it is now available in several formats:

  • Epub – readable on your iPad, Nook, Sony Reader and lots of other e-reading devices
  • Kindle
  • PDF
  • RTF

You can preview 30% of the book for free.

What’s this book about? …

“Once Upon Internal Control” fable now available in multiple formatsRead More »

“Once Upon Internal Control” fable now available in multiple formats Read More »