News Articles

<< Older Articles
Newer Articles >>

To Hold Someone Accountable, First Define What Accountable Means

Published on July 25, 2016

At the end of a meeting, most leaders know that they should recap next steps and determine who is accountable for each. As prescribed in the commonly used responsibility models — RACI, RAPID, and the others — accountability should fall to one (and only one) person per item, even if the work involved requires input and contributions from others. Unfortunately, over the years we’ve spent advising organizations, we’ve found that the word “accountable” can mean different things to different people.

Read More >>

Keeping Up with Tech Is Accountants' Biggest Annoyance, Survey Says

Published on July 25, 2016

The biggest technology “annoyance” faced by accountants is keeping up with changing software, according to a recent survey, with security and risk management in second place.

The accountants responding to the recently released Third Annual Accounting Firm Operations and Technology survey also reported several challenges in their day-to-day practice. The biggest one, unchanged from previous years, is workflow efficiency (34 percent). A new category for this year, security, came in second place with 19 percent citing it as their biggest concern. Fourteen percent of respondents indicated that getting clients on board with working with the firm in a more digital way is their biggest challenge.

Read More >>

How to tackle implementation of multiple high-profile accounting standards

Published on July 25, 2016

A wave of significant accounting standard setting has created heavy compliance burdens that many company finance departments are struggling to handle.

Just 37% of more than 140 companies surveyed by KPMG LLP said they are on the right track in their implementation of the new revenue recognition standard issued by FASB and the International Accounting Standards Board (IASB), which takes effect at the beginning of 2018 for public companies.

Meanwhile, new lease accounting requirements have companies attempting a challenging process of locating all their lease agreements and extracting data points from them that haven’t been necessary for accounting in the past.

Read More >>

Companies Still Behind on Implementing Revenue Recognition Standard

Published on June 23, 2016

The majority of companies admit they are behind on implementing the new revenue recognition standard from the Financial Accounting Standards Board, according to a new survey, despite a delay of the effective date by one year.

FASB and the International Accounting Standards Board released a long-awaited converged revenue recognition standard in May 2014, but later decided to extend the date it takes effect by one year to give companies more time to implement it.

However, according to a new survey by KPMG LLP of 140 companies, 60 percent of respondents indicated that they are running behind schedule in their overall implementation of the standard, which has an effective date as early as Jan. 1, 2018, for many organizations.

Read More >>

Phishing, Hacked Passwords Are Top Reasons for Data Breaches

Published on June 23, 2016

Phishing, Hacked Passwords Are Top Reasons for Data Breaches
Verizon released its ninth annual Data Breach Investigations Report last month, which reports on the major security breaches and methods used by hackers to compromise businesses and governmental organizations. When it comes to hacking, organized crime syndicates lead the way with phishing email schemes that are culpable in 89 percent of security breaches, followed by “state-affiliated actors,” which accounted for another 9 percent of attacks.

Read More >>

Recognizing the Unconventional Keys to Your Company's Success

Published on June 23, 2016

If you want to change something in your company, you start with single-minded attention and promotion. The same applies when trying to replicate more of a good thing. Successful companies, in the constant pursuit of well-rounded teams, look for and find the intangibles that help drive performance. 

Here are three unconventional yet important and under-recognized keys to sustained success: 

Thinking and problem solving.
Are you recognizing independent thinking and problem solving? Great companies have an ability to both retain and promote the right people. They put into action a development plan that instills the right qualities they want in all their current and future leaders. Independent thinking and problem solving are sought-after qualities all companies seek in their leadership teams, yet are often under-coached. In fact, in some organizations, top performers rise rapidly through the ranks without any real challenge to their cognitive abilities. 

Read More >>

Accountants Rescued by the 'Magnificent Seven'

Published on June 23, 2016

Forget about Yul Brynner, Steve McQueen, Charles Bronson, James Coburn, Robert Vaughn, Horst Buchholz and Brad Dexter. Accountants need a “Magnificent Seven” set of attributes to survive in today’s business environment, according to new research from the Association of Chartered Certified Accountants. 

To define what the 2016 finance professional must look like, the ACCA has developed a set of seven Professional Quotients—a mix of technical knowledge, skills and abilities formed with interpersonal behaviors and qualities. 

Read More >>

Five Things to Consider Under the New Lease Accounting Standards

Published on May 24, 2016

The Financial Accounting Standards Board (FASB) released the long-awaited lease accounting standard on Feb. 25. The first exposure draft on the topic was originally released in August 2010 and has undergone several revisions. 

Although there are several elements of the standard, the most significant is the requirement for lessees to include the future lease payments on the balance sheet as a liability and a related right-of-use asset. Leases with terms less than one year are excluded from recognition. 

Read More >>

The Raw Nerve of Materiality

Published on May 24, 2016

FASB’s plan to use only the U.S. Supreme Court’s definition of materiality draws fire.

Last year, when the Financial Accounting Standards Board first proposed jettisoning existing accounting lingo in favor of a legal definition of the word “material,” the board members may have thought they were making a confusing issue clear, according to former FASB chairman Robert Herz. 

Instead, the board’s issuance of a proposed accounting standards update last September that would shed previous descriptions of materiality in favor of the U.S. Supreme Court definition “touched a raw nerve,” he observed in an interview with CFO earlier this year. 

Read More >>

New Product or Different Presentation?

Published on May 24, 2016

Courts and the IRS differ over a key qualification for the domestic production activities deduction.

Since its inception, the Sec. 199 domestic production activities deduction (DPAD) has caused great confusion to many taxpayers trying to comply with its provisions. Though its intent was simple—to provide relief to U.S. manufacturers—its implementation has spawned a labyrinth of litigation, administrative rules, and procedures. 

The IRS recently published proposed regulations (REG-136459-09) to better define and provide guidance on various DPAD provisions. Though the proposed regulations have implications for a wide range of the deduction's aspects, this article focuses on a key but often problematic provision—that qualifying production property (QPP) eligible for the DPAD must have been manufactured, produced, grown, or extracted by the taxpayer in whole or in significant part within the United States (Sec. 199(c)(4)(A)(i)(I)). 

Read More >>
<< Older Articles
Newer Articles >>