Financial Reporting


FINANCIAL REPORTING

A recent study by the Financial Executives Institute says the overall quality of corporate financial reporting is high, with relatively isolated, but significant, deficiencies. For example, in 2000, the earnings restatements of only 10 companies caused almost the entire decline in market value ( www.fei.org/download/QualFinRep-6-7-2k1.ppt ).

New forms of deceptive financial reporting are misleading investors, according to SEC Commissioner Isaac C. Hunt, Jr., who also says the agency is monitoring the effects of regulation FD on corporate disclosure and will, if necessary, amend the rule to stimulate the flow of information to the public ( www.sec.gov/news/speech/spch497.htm ).

NEWS

IRS sets start date for tax season

The IRS announced that tax season will start in late January and that it will issue refunds to taxpayers despite the partial shutdown of the federal government.

PODCAST

Why CPAs can’t wait on automation tools

What do accounting firms waiting on others to develop AI, automation, and data analytics tools have in common with a baseball fan sitting in a stadium filling with water at an exponential rate? The answer could determine your firm’s fate.