Peeling away financial reporting issues one layer at a time

Category for Accounting manipulation

More Not to Like about Deferred Taxes: The Foreign Earnings Loophole

A seasoned accountant and regular reader of my blog wrote that, until my last post, he had seen little discussion of the potential to manage the effective tax rate upwards. He has, however, [Read More...]

Was Donald Trump Complicit in a Securities Fraud?

What do the race for U.S. President and financial reporting have in common?

Non-GAAP performance measures!

It’s looks like a stretch, I know, but stay with me. If you will give me a moment to tell you about [Read More...]

Reining in “Non-GAAP Financial Measures”

At the recent AICPA-sponsored mega-conference on SEC and PCAOB developments (see KPMG’s summary, here), the SEC staff, and even its chair, devoted a significant amount of bandwidth to non-GAAP measures of financial performance.  Some [Read More...]

What is the FASB’s Simplification Initiative, Really?

The FASB’s “simplification” proposals are coming fast, and some of them are making me furious.  Proposed ASU No. 2015-260, which would roll back important anti-abuse provisions in ASC Topic 805—Business Combinations, is a [Read More...]

Oil Stocks are Taking a Beating — But in 10-K’s, Not So Much

I have already warned you that if high quality financial statements from oil and gas companies are what you are looking for this year,  you won’t find much of that in 2014 annual [Read More...]

Accounting Estimates: What Investors Should Want

Last week, the PCAOB convened its Standing Advisory Group to discuss the topic of auditing accounting estimates and fair values.  I was invited to be on a panel providing investors’ perspectives.*

This post mainly consists [Read More...]

On Golden’s Con — and Bain Capital’s Travels to Lilliput

There is so much I would like to write about, yet so little time…

I could write about the latest half measure on the accounting for repurchase agreements (ASU 2014-11)— and that Tom Linsmeier’s [Read More...]

The EBITDA Epidemic Takes Its Cue from Standard Setters

On October 4th, Jon Weil published “An Accounting Lesson for Twitter.”  Here’s how it starts:

Whether he prevails at his insider-trading trial or winds up paying a fine to the Securities and Exchange Commission, [Read More...]

Stock Compensation Accounting: A Drop in the Ocean Against a Tide of Management Greed

When FAS 123R came into effect in 2005, it had been finally ordained that stock option grants must be accompanied by some modicum of expense recognition.  The FASB had fought the good fight and [Read More...]

Do Survey Results Mean that External Audits Don’t Protect Against Earnings Manipulation? (What a Surprise!)

The results of a recent E&Y survey investigating financial manipulation must stun even the most cynical observers of accounting practice,:

Of the board members and senior management surveyed from companies in Europe, Middle East, India [Read More...]