Accounting

Accounting News & Professional Insight

Accounting Today delivers news, rankings, thought leadership, and analysis for accounting professionals so they can navigate change in standards, firm strategy, technology adoption, talent, and the overall business environment.

Accounting professionals are facing rapid transformation, including shifting professional standards, demographic change, technology disruption, practice consolidation, and changing expectations for advisory services. Our coverage surfaces these strategic dynamics and provides insights and analysis for firms, leaders, and the accounting profession.

Accounting standards

Freddie Mac cuts profits by $220M

Blaming a computer for accounting errors, mortgage financier Freddie Mac announced that it has cut about $220 million in profits from its statements for the first half of 2005. Freddie said that it earned $1.4 billion in the first six months of 2005, not the $1.6 billion it reported on Aug. 31.The company said that the difference "reflects the correction of interest accruals recorded for certain mortgage-related securities stemming from miscalculations since 2001 in a legacy computer system." The company also pointed out that the amended profit represents less than 1 percent of its core capital as of June 30.

December 19
Regulatory actions and programs

Rubin takes over as NASBA chair

Diane M. Rubin, a partner at San Francisco-based Novogradac & Co. LLP, was recently installed as chairwoman of the National Association of State Boards of Accountancy for 2005-06.The election was held on Nov. 1 at NASBA's 98th Annual Meeting in Tucson, Ariz.

December 19
Audit

SEC Considers Easier Steps for Foreign Cos. to Delist

The Securities and Exchange Commission unanimously voted to propose rules to make it easier for foreign companies to stop listing their securities for trading in the country in order to avoid the expense of complying with U.S. securities laws.

December 15
Audit

SEC Ends Taser Probe without Taking Action

Taser International Inc. said that the Securities and Exchange Commission has ended an investigation into the stun gun maker's accounting and recommended that no action be taken against the company.

December 14
Audit

All He Wants for Christmas

Securities and Exchange Commission Chairman Christopher Cox delivered an easier-said-than-done speech earlier this month on the need to simplify accounting rules.

December 14
Audit

Panel: Small Companies Shouldn't Be Held to SOX

An advisory panel to the Securities and Exchange Commission may officially asked the agency to exempt businesses with less than $125 million in revenues from the internal control provisions laid out in the Sarbanes-Oxley Act.

December 12
Audit

Cox Says Accounting Rules Need to Be Simpler

Speaking to an American Institute of CPAs conference, Securities and Exchange Commission Chairman Christopher Cox suggested that accounting rules need to be simplified in order to ensure that financial irregularities aren't hidden.

December 7

Resources

The latest Accounting Today research and discussion:

Predicting the next 15 years in accounting

Take a look at what the accountant and the accounting firm of the future will look like with AICPA chief Mark Koziel.

Sponsored by BILL
The changing world of government financial reporting

The serious new pressures facing governments of all sizes are changing their financial reporting, says GASB Chair Joel Black.

Sponsored by Intuit Quickbooks
Special Report Technology and CAS

Handling the compliance work that is the foundation of modern CAS while also creating time and insights for the advisory overlay that really drives its value to clients requires the careful deployment of a suite of technology tools — and that suite is constantly evolving, meaning accountants need a strategy to keep up.

Sponsored by Canopy

Accounting: Key Questions & Analysis

What are the key trends and strategies emerging from accounting industry leaders?

Top leaders are focused on structural challenges facing firms, including succession planning, evolving service mix, and long-term sustainability of traditional models.

How are accounting firms positioning themselves for the profession’s next phase?

Firm leaders are redefining and evaluating their strategy for growth. This includes investing in people and systems as well as rethinking how firms deliver value to address changing client needs and competition.

What role does professional identity play as accounting continues to change?

Debate continues over how accounting defines itself. This is due to accounting expanding into advisory, consulting, and technology-enabled services. These changes can raise questions about standards, training, and long-term credibility.

How are accounting firms managing leadership and succession risk?

Demographic shifts are accelerating in accounting. This means more firms are confronting leadership transitions and ownership succession which can create critical strategic risks that influence growth, culture, and valuation.