Compliance

CFO, CEO of solar panel company charged with misusing investor funds

The CFO, Michael Sweaney, identified himself on company communications as Michael Hatton, allegedly to hide a prior securities fraud conviction, the SEC says.
By Robert Freedman • Dec. 12, 2019
Ex-trucking CFO, CEO charged with accounting fraud

The CFO signed misleading reports on how prices were set on trucks the company bought and sold, the SEC alleges.
By Robert Freedman • Dec. 10, 2019
Transformation of GE's closing process aims to improve finance jobs, CFO says

The company created a data lake to help organize a system that includes thousands of legal entities, many of which use their own ERP software.
By Robert Freedman • Dec. 09, 2019
SEC charges CFO, other former Iconix executives with fraud

Former CFO Warren Clamen failed to recognize losses from the company's failing licensees, among other violations of reporting laws.
By Robert Freedman • Dec. 08, 2019
Ex-CFO, others charged in biotech accounting scheme

The CFO is accused of ignoring concerns raised by the company's controller over payment arrangements made with some suppliers.
By Robert Freedman • Dec. 02, 2019
Ex-CFO, others at healthcare ad company charged with $487M fraud

Among other offenses, CFO Brad Purdy "did nothing to correct the financial statements before he provided them to investors," the SEC alleges.
By Robert Freedman • Nov. 26, 2019
Managing a smooth transition to ASC 606 revenue recognition

Decisions made by legal, sales, and other teams can affect how you recognize money coming in and going out. Collaboration is key to staying on the right side of the 700 pages of guidelines.
By Robert Freedman • Nov. 25, 2019
FLSA joint employment, regular rate regs coming in December

The agency also announced plans to fast-track updates to its FMLA regulations.
By Kate Tornone • Nov. 20, 2019
Lower awards will mean fewer SEC whistleblowers, critics say

Several people alerting the SEC to public companies' potential violations have been awarded hundreds of millions of dollars over the years. The agency wants to limit those awards.
By Robert Freedman • Nov. 19, 2019
Understated income tax expense at center of Mattel accounting error

The company is revising its 2018 10-K and has acknowledged material weakness in its internal controls.
By Robert Freedman • Nov. 06, 2019
Shareholder proxy adviser sues SEC for treating it like a solicitor

Institutional Shareholder Services slammed the SEC for changing its policy on proxy advisers in a way it says will hurt investors.
By Robert Freedman • Nov. 04, 2019
Under Armour accounting reportedly under SEC scrutiny

Investigators are learning whether the athletic wear giant smoothed out its revenue over quarters to improve its financial appearance, The Wall Street Journal reported.
By Robert Freedman • Nov. 04, 2019
Audit quality improves when former partners sit on audit committee

When an affiliated partner serves on the audit committee, its financial reporting quality objectives align with the audit firm, an academic analysis found.
By Robert Freedman • Oct. 31, 2019
FASB extends lease accounting standards until January 2021

Private companies and nonprofits get a one-year reprieve on new standards for showing lease obligations in their financials.
By Robert Freedman • Oct. 17, 2019
Since Enron, most countries have adopted accounting standards

The next phase is to gain widespread adoption of investigation and discipline standards — in short, give standards more teeth.
By Robert Freedman • Oct. 14, 2019
Digital coin offering effectively an unregistered IPO, SEC says

The Telegram Group's $1.7 billion sale of its digital coin offering is based on investor expectations they'll benefit from the company's open network, but the SEC argues otherwise.
By Robert Freedman • Oct. 14, 2019
Stopping travel and expense 'leakage' before it becomes a big loss

Employees typically submit $10,150 a year in reimbursements. Make sure your T&E policy provides tools for reining in unnecessary expenses.
By Robert Freedman • Oct. 08, 2019
Look at evidence before splitting up audit firms, accounting coalition says

The International Federation of Accountants and other global accounting associations say firms that combine audit and non-audit work tend to perform better than those that only perform audits.
By Robert Freedman • Oct. 03, 2019
Former auto group CFO faces $50M fine, 20 years for financing fraud

The finance executive of the now-bankrupt auto dealer contrived fake sales that cost Ford Motor Credit millions of dollars.
By Robert Freedman • Oct. 01, 2019
Fiat Chrysler to pay $40M over misleading investors on sales

The company touted uninterrupted sales growth between 2012 and 2016. In months when the streak would have ended, it reported old sales as though they had just occurred, the SEC said.
By Robert Freedman • Sept. 29, 2019
PwC settles with SEC for $7.9M over audit violations, improper conduct

The firm exercised decision-making authority on behalf of some public clients, violating audit independence rules.
By Robert Freedman • Sept. 23, 2019
Former Viking Energy CEO charged with lying about CFO

The company operated without a finance chief despite a CFO signature appearing on annual and quarterly reports.
By Robert Freedman • Sept. 18, 2019
How to meet states' new economic nexus tax collection obligation

As of last year, companies may be required to collect sales and use tax, even without physical nexus in a state, if it conducts a certain amount of business there.
By Robert Freedman • Sept. 18, 2019
SEC fines Marvell Technology $5.5M in revenue manipulation scheme

The company's use of pull-in sales masked a substantial decline in customer demand, a loss of market share and reduced future sales, the agency said.
By Robert Freedman • Sept. 16, 2019
Deep Dive
Living with GILT(I): How to apply the new tax on intangible overseas assets

The Global Intangible Low-Taxed Income (GILTI) calculation is designed to prevent tax base erosion resulting from the transfer of intangible assets to foreign subsidiaries in low-tax countries.
By Ed McCarthy • Sept. 15, 2019