Compliance: Page 2

Employers face liability under payroll tax deferral guidance

Many employers could opt out of President Trump's pandemic relief order on concerns they could be left holding the bag for back taxes.   

By Robert Freedman • Aug. 31, 2020

PPP loan forgiveness could result in big tax bills

Unless Congress intervenes, the IRS will not allow businesses to write off wages and rent paid for with Paycheck Protection Program funds.

By Jenn Goodman , Joe Bousquin • Aug. 31, 2020

SEC charges Herbalife with foreign accounting violations

The multi-level marketing company will pay $123 million to settle charges the Securities and Exchange Commission, Department of Justice and the U.S. Attorneys Office for the Southern District of New York brought against it.  

By Robert Freedman • Aug. 28, 2020

BorgWarner materially misstated its financial statements: SEC

In a settlement over its accounting for asbestos-related liability, the motor vehicle parts manufacturer agreed to pay a $950,000 penalty.   

By Robert Freedman • Aug. 27, 2020

Super Micro Computer, CFO charged with speeding up revenue recognition

In the settlement, the company will pay $17.5 million, the CFO will pay $350,000, and the CEO will have $2.1 million in stock profits clawed back.  

By Robert Freedman • Aug. 26, 2020

CFOs must grapple with pandemic-related payroll tax nexus

With employees working remotely, often in another state from the office, payroll tax and other calculations are complicated by economic nexus issues. 

By Ed McCarthy • Aug. 24, 2020

Wall nonprofit said to have used shell entities to pass donations to officers

We Build the Wall is charged with using a shell nonprofit, a veiled corporation and two anonymous associates as part of an effort to pass payments to officers.

By Robert Freedman • Aug. 24, 2020

Improper revenue recognition tops SEC fraud cases

Attorneys who work with SEC whistleblowers walk through the 10 most common types of fraud in an Accounting Today analysis.  

By Robert Freedman • Aug. 20, 2020

Opinion

3 tips for CFOs looking to migrate to a subscription pricing model

Tip one: Resist moving revenue recognition outside of your ERP, otherwise you decrease visibility into the success of your subscription model and create reporting, tracking and compliance problems. 

By Katrina Gosek • Aug. 19, 2020

SEC charges Hertz's former CEO with aiding financial reporting violations

Mark Frissora has agreed to settle the charges and repay Hertz nearly $2 million in incentive-based compensation.

By Robert Freedman • Aug. 18, 2020

Interactive Brokers fined $38M for suspicious activity lapses

The company repeatedly failed to flag transactions suspected of involving fraud or lacking an apparent lawful business purpose. 

By Robert Freedman • Aug. 12, 2020

Financial irregularities at heart of lawsuit to dissolve NRA

Whistleblowers within the organization's finance department helped shed light on practices targeted by a New York Attorney General's lawsuit.

By Robert Freedman • Aug. 10, 2020

Pharma, former executives charged with misleading financial disclosures

Quebec, Canada-based Valeant Pharmaceuticals misstated revenue transactions and included erroneous revenue allocations, the Securities and Exchange Commission said. 

By Robert Freedman • Aug. 05, 2020

CFOs urged not to wait on devising LIBOR transition plan

Companies face both legal and reputational risk by failing to deal with contracts using the soon-to-be-obsolete benchmark. 

By Ted Knutson • Aug. 05, 2020

HeadSpin said to be returning $95M after review finds irregularities

The app-testing startup was on pace to have $15 million in annual recurring revenue, not $100 million it had told investors, according to The Information.

By Robert Freedman • Aug. 04, 2020

SEC charges aircraft parts leasing company, CEO with fraud

Integrity Aviation & Leasing raised $14 million from investors, little of which went towards purchasing engines and other aircraft parts for leasing to major airlines as promised, the SEC said.  

By Robert Freedman • Aug. 02, 2020

Audits helped identify embedded leases, survey finds

Companies' first audits since transitioning to ASC 842 lease accounting standards led to control and efficiency improvements.

By Robert Freedman • July 28, 2020

False claims expected to be principal source of Main Street loan enforcement

Companies who act in good faith and can back up their certifications "have little to fear" from federal enforcement, the Department of Justice says.

By Robert Freedman • July 27, 2020

SEC charges tech platform with $18.5M offering fraud

The company presented itself as a thriving startup, but it had little business, and much of its capital raise went to personal uses.  

By Robert Freedman • July 24, 2020

Silicon Valley machine-learning startup charged with fraud

Mountain View-based startup YouPlus claimed it had 100 customers using its video-analysis software, but only had four.

By Robert Freedman • July 21, 2020

Your financial controls probably don't work under today's conditions

With staff remote, executives in survival mode, and hundreds of billions in assistance pouring into the economy, the chances of mistakes and abuse getting past safeguards are heightened, accounting specialists say.

By Robert Freedman • July 14, 2020

New bankruptcy process a 'game-changer' for COVID-hit small businesses

Subsection 5 favors owners keeping their equity through a quicker and cheaper reorganization than exists under regular Chapter 11 rules.

By Robert Freedman • July 13, 2020

'Bonus depreciation' rule fix makes property improvements more attractive

Companies have a new tax incentive to remodel property post-COVID now that qualified improvement property can receive the 15-year recovery treatment, with retroactive relief available. 

By Ed McCarthy • July 12, 2020

Contracting practices in spotlight in DOJ-FTC vertical merger guidelines

The guidelines give federal antitrust regulators a roadmap for determining if a proposed merger would benefit consumers or harm competition.

By Ted Knutson • July 08, 2020

Alexion pharma settles SEC false books charges

Subsidiaries of the company allegedly paid foreign government officials to provide favorable regulatory treatment for, and falsified records about, one of its drugs. 

By Robert Freedman • July 05, 2020