SEC Task Force Probes Use of Non-GAAP Metrics [WSJ]
Your made-up financial measures won't stand a chance! " 'We're looking at non-GAAP measures,' said David Woodcock, chairman of the SEC's new Financial Reporting and Audit Task Force, referring to companies' customized measures that don't comply with generally accepted accounting principles, or GAAP. Mr. Woodcock, who was speaking at an American Institute of Certified Public Accountants conference, didn't mention any specific companies that the task force is looking at. While other regulators have touched on some of the same issues in recent months, Mr. Woodcock's comments are the first indication that the SEC is looking at these metrics with an eye toward possible enforcement cases."
Who Has The Last Word On “Network” Audits of US-Listed Companies? [Re:The Auditors]
Francine McKenna's writes that about a small loophole that the PCAOB's proposal on naming audit partners has left wide open for Engagement Quality and Appendix K (i.e. foreign associated firm) reviews.
FASB, IASB to Tackle Lease Issues in January [CW]
Prepare for wailing and gnashing of teeth: "Feedback on the boards' joint proposal to overhaul lease accounting has ranged from broad support to suggestions the boards should scrap the project and instead develop new disclosure requirements. Users of financial statements generally told FASB and IASB they support putting leased asset and the related liabilities on the balance sheet and believe there are economic differences between real estate and property leases that should be reflected. FASB's own Investor Advisory Group, however, suggested FASB should go back to the drawing board and focus on a way to simply draw out new disclosures on lease obligations."
Accountant sentenced to prison for embezzlement [TNG]
Neal Freeman, 59, was sentenced to 37 months in prison for embezzling $860k from his former employer, Champaign Builders Supply Company. Although the article states that Freeman didn't explain why he stole the money, it does suggest that there was an epic man cave involved: "Champaign police detective Pat Kelly learned that Freeman spent the money on such things as a $16,000 Bobcat, a motor home, a pickup truck, a sport utility vehicle and the transformation of a spare garage into a 'man cave' with such amenities as a flat-screen TV, an entertainment center, wet bar, juke box, popcorn machine and pool table. He also traveled to NASCAR racing events."
Capitol Leaders Agree to a Deal on the Budget [NYT]
Huh. Wouldja look at that? "House and Senate budget negotiators reached agreement Tuesday on a budget deal that would raise military and domestic spending over the next two years, shifting the pain of across-the-board cuts to other programs over the coming decade and raising fees on airline tickets to pay for airport security. The deal, while modest in scope, amounts to a cease-fire in the budget wars that have debilitated Washington since 2011 and gives lawmakers breathing room to try to address the real drivers of federal spending — health care and entitlement programs like Medicare and Social Security — and to reshape the tax code."
CFO Likes Having Few Finance Staffers Who “Do Lots” [CFO]
So I guess this means "More with less" is an actual strategy now? "I love capacity constraints on a team. It forces us to eliminate nonessential tasks," says Chris Lynch, CFO of Sprinklr.
Tacos or death, sword-wielding robber demands [SAEN]
A San Antonio man named Adam Kramer was NOT interested in paying for his tacos: "Kramer ordered six tacos at Alondras De Jalisco on South Loop 1604 at about 2:30 p.m. on Dec. 2, according to documents released Friday. When the waitress told Kramer how much he owed, he responded that he was going to take them for free, officials said. When the waitress told Kramer that he had to pay for his food, he allegedly started sliding what is described as a large sword in and out of a black sheath on his waist, the affidavit says. The waitress asked the cook to come talk with Kramer, who left the building when the phone rang, according to the affidavit. Kramer went to his vehicle before walking back to the restaurant, still allegedly carrying the large sword, so the waitress locked the door, documents state. 'Mr. Kramer was yelling that he wanted his free tacos or somebody was going to die,' the affidavit says." Then he drove away but was picked up by sheriff's deputies the next day.
Financial-Rules Redo Passes Major Hurdle [