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Accounting News Roundup: Auditors’ Clients and Nonaudit Fees; KPMG Gets American Airlines’ Rose; Nonequity Partnerships | 03.04.14

Auditors Draw Some Clients Closer [CFOJ]
Emily Chasan reports that nonaudit fees are creeping higher again: "At least 300 companies in the U.S. and Europe paid their auditors as much for add-on services as they did for audit work, according to public filings from the past two years reviewed separately by data provider Audit Analytics and stock-research firm Exane BNP Paribas SA." 

American Airlines picks KPMG over Ernst & Young as auditor [DMN, 8-K]
Sorry to bring it up EY. The breakup is probably still fresh: "On February 28, 2014, AAG advised E&Y of its determination and that it would be terminating its engagement with E&Y effective as of the date of E&Y’s completion of audit services for the fiscal year ended December 31, 2013 and the filing of the 2013 Annual Report on Form 10-K of AAG. Also promptly after the Audit Committee made its determination, AAG engaged KPMG as its new independent registered public accounting firm to perform audit services beginning with the fiscal year ending December 31, 2014."

The pros and cons of nonequity partnerships [JofA]
Career paths, recruiting, retention, getting out/in and compensation are all addressed.

25 Interesting Features of Camp’s New Tax Reform Plan [Tax Analysts]
Martin Sullivan does a pret-tay, pret-tay, pret-tay good job summarizing the 979-page bill. Including: "Lawyers, doctors, and CPAs take a hit. Big and midsize professional firms would face a major tax increase because they would no longer be allowed to use the cash method of accounting."

SolarCity to Restate Results to 2012 on Accounting Error [Bloomberg]
This sounds like a big Excel error. SolarCity's cost of sales will increase from $16 million to $20 million for the 9 months ended September 30 and $20 million to $23 million for 2012 after messing up how a formula "allocat[es] overhead expenses between operating lease assets and the cost of solar-energy system sales."   

Accounting Complexity: What if “Truth in Labeling” were an Accounting Principle? [Accounting Onion]
Tom Selling addresses the FASB's latest quixotic quest.

Apple's Finance Chief to Depart [WSJ]
Don't rush to polish your CV. Luca Maestri is taking over. 

Posted in ANR