Clawbacks Trigger Disputes Between CFOs and Auditors [CFO]
A recent study found that more and more companies have clawback policies, which makes CFOs more vigilant about the quality of their financials. However, if a restatement is likely, the claws come out on both sides:
“Yes, [CFOs] probably are being better about the quality of the financial statements upfront. But on the back end,” he adds, “what we may be seeing is that the executives are fighting restatements” in order to avoid clawbacks of their pay.
The CFO pushback intensifies when “lower quality” auditors – ones who lack general audit knowhow and specific knowledge of the client’s industry – propose restatements.
The purpose of such a study was to "investigate executive decision-making after the external auditors have proposed a restatement that will lead to a clawback" and perhaps, unsurprisingly, executives are willing to fight those proposed restatements.
Accounting Marketing Spending Rises [AT]
The average accounting firm spends less than 4% of its revenue on marketing.
Toshiba Shares Dive as Westinghouse Disclosure Spooks Investors [WSJ]
Toshiba disclosed a $1.3 billion write-down to its nuclear division just last week despite the fact that the impairment was known in 2012 and 2013.
You say, "convergence" I say, "convergence with differences":
Russ Golden says they were able to converge revenue recognition but acknowledges there are some differences #feicfri15
— Accounting Today (@AccountingToday) November 16, 2015
In other news:
- How to Work with People Who Are Hard to Work With [HBR]
- Efforts to Rein In Arbitration Come Under Well-Financed Attack [NYT]
- Value-Added Tax Catches On in Republican Presidential Race [WSJ]
- A wrong U-turn in a marathon [The Guardian]
- Men are ditching dress shoes for designer sneakers. [WSJ]