July 2017 Article Archives

Companies Off to a Slow Start on Lease Accounting Standard

Published on July 24, 2017

Many companies are lagging behind on preparations for the new lease accounting standard as they are still working on the revenue recognition standard, according to a pair of new surveys.

The first survey, by PricewaterhouseCoopers and CBRE Group, found that 23 percent of companies have yet to begin the initial adoption process of the leasing standard, while 47 percent of organizations that started implementation of the leasing standard reported the effort is bigger than they had expected. 

Many companies see the importance of the leasing standard, with 52 percent of the survey respondents indicating they are currently assessing the impact, and 25 percent have already started the implementation in process, according to PwC.

Read More >>

How the New Revenue Standard May Affect a Company's Income Tax Accounting

Published on July 24, 2017

As companies prepare to adopt the new revenue recognition standard, they must consider the potential income tax accounting implications. Adoption of the standard may create new temporary differences or require the remeasurement of existing ones. It also may create process and system challenges if multiple “accounting bases” need to be maintained. Tax professionals should be actively involved in implementation discussions to make sure all implications are considered, regardless of whether the company has reached a conclusion on the pretax effects of adoption on financial reporting. 

Read More >>

New Auditing Disclosure Requirement Takes Effect June 30

Published on July 24, 2017

The Public Company Accounting Oversight Board issued a reminder that the new requirement will be taking effect on June 30. Auditing firms will be required to disclose the names of other participating firms on Form AP, which firms registered with the PCAOB began filing with the PCAOB earlier this year. The initial requirement was for firms to disclose the name of the engagement partner who served on the audit for the most recent period. This week, the new disclosure requirement will begin to take effect, and for audit reports issued on or after June 30, 2017, firms will also need to disclose on Form AP information about other accounting firms that participated in the audit. 

Read More >>

CFOs Losing Sleep Over Financial Reporting

Published on July 24, 2017

The financial reporting process keeps 97 percent of CFOs awake at night, according to a recent survey, with only 3 percent of the senior finance execs polled saying they don’t lose any sleep over their organization’s reporting processes or deadlines. 

The survey, by the financial reporting technology company, Workiva, and the business systems information provider, FSN, polled 977 international CFOs and senior finance professionals across more than 23 industries. 

Fifty percent of the respondents said reporting involved huge amounts of manual checking every time a change is made, while 60 percent of respondents said they spend too much time cleaning and manipulating data.

Read More >>

Machine Learning, Artificial Intelligence - And The Future Of Accounting

Published on July 24, 2017

Take a deep breath. Robots are NOT going to replace all human accountants or bookkeepers (at least not anytime soon). 

White-collar workers who are part of the knowledge economy are beginning to experience what manual laborers have in the past when new technology made their jobs obsolete. Given the improvements we have recently seen in computing, many professionals fear for their future as machines threaten to overtake them. 

Rather than fear changes that machine learning will have on accounting tasks, it’s an opportunity for accounting professionals to be excited. The profession is going to become more interesting as repetitive tasks shift to machines. There will be changes, but those changes won’t completely eliminate the need for human accountants, they will just alter their contributions. 

Read More >>