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November 26, 2022

Accounting News Roundup: Lots of European Audit Firms Dodging Inspections; You Think Your Firm Is Understaffed?; Bonus Depreciation | 02.20.14

The Auditing Roadblock: It’s Not Just China [Economix/NYT]
Floyd Norris took a look at the PCAOB's have-not-inspected list and found that Europe is where the Board is really missing all the fun: "for sheer numbers, Europe is the biggest scope of the problem. Forty of the audit firms are based in the European Union, where each country can decide for itself if it wants to be cooperative, and some are distinctly more eager than others to do so. Italy, France and Sweden lead the European list with five uninspected audit firms each, followed by Belgium with four. There are none in Britain, and only one in Germany. The other countries with at least one uninspected audit firm are Austria, Cyprus, Czech Republic, Denmark, Greece. Hungary, Ireland, Luxembourg, Poland, Portugal and Spain."

IRS Commissioner Sees Further Appeals on Tax Preparer Lawsuit as Unlikely [AT]
John Koskinen doesn't see this thing going to the SCOTUS: “We're disappointed with the decision, although the decision is fairly final in the sense that the only appeal would be to apply for a writ of certiorari to the Supreme Court. And getting a writ granted by the Supreme Court is unlikely in most cases, and probably unlikely in this one as well.”

Here's Li & Co.'s most recent inspection report. Four partners, five professional staff, forty-one issuer clients.

Expired ‘Bonus Depreciation’ Tax Break Could Be Cash Flow Drag [CFOJ]
And it has a mixed track record. But never fear, Deere is here! "[I]t isn’t clear if the bonus depreciation will be extended in whole or in part. Bonus depreciation is 'expensive, has a spotty track record as a stimulus and it’s lapsed in the past,' [David] Zion, [an ISI analyst] noted. Last year, the Congressional Research Service published a report saying the perk 'had no more than a minor effect' on business investment. Companies are still optimistic. Farm machinery seller Deere & Co., said last week it expects the tax break, which has propelled farm equipment sales in the past few years, to be renewed. But the company expects the deduction level to be capped at $250,000 rather than the previous $500,000 level."  

Another U.S. Company Moves to Ireland for Tax Reasons [Tax Foundation]
Welcome to the club, 
Actavis!

Is XBRL the Future of Financial Reporting? (YES!) [Accounting Onion]
Tom Selling sees it as a Field of Dreams: "
For many of the financial reporting questions of the day, the right way forward is self-evident and direct. 'Build it and they will come,' I say. But far too often, policy makers allow themselves to be bogged down by executive-class luddites and their minions who will say or do almost anything to preserve the advantages conveyed to them by the status quo. The resistance to XBRL is a prime example. I will grant that a good-faith exchange of ideas can take place about how to 'build' the XBRL disclosure system; but the 'will they come?' question is a no-brainer that has to trump the cavils of the luddites."

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