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February 2, 2023

Accounting News Roundup: Mischievous Non-GAAP Reporting; More Bad News for KPMG South Africa; Theranos Losers | 05.04.18

SEC chief accountant warns against mischief in non-GAAP reporting [AT] On a panel at Baruch College’s Financial Reporting Conference, SEC Chief Accountant Wesley Bricker mentioned that there can be a “mischievous quality to non-GAAP reporting,” and now I can only imagine CFOs with toothy grins and little top hats. Also notable were comments from Kyle Moffat, the Chief Accountant in the Division of Finance, who said that the SEC “won’t beat up” on companies in the first year of the new revenue recognition rule.

Related: Buffett’s Berkshire Braces for ‘Wild’ Swings From New Accounting

Barclays Africa fires KPMG over Gupta connections [FT]
Aside from the bar of KPMG from performing work for the South African government, the loss of Barclays is the biggest blow yet to the firm there.

Elsewhere in KPMG South Africa implosion: KPMG still operates the ethics hotline for troubled retail conglomerate Steinhoff International. And although the lines are operated with their “own unique telephone number and are answered in the name of the organisation” all KPMG lines use the same hold music: “Celebration” by Medwyn Goodall.

Theranos Cost Business and Government Leaders More Than $600 Million [WSJ]
The heirs to the Walton fortune, Rupert Murdoch, and the family of Education Secretary Betsy DeVos are among the big losers in Theranos, now arguably one of the most audacious frauds in history. “To say they’re highly disappointed in Theranos as a company and an investment is an understatement,” the DeVos family COO said.

Ex-Wilmington Trust CFO Guilty of Loan Fraud [CFO]
Not only the CFO, but also Wilmington Trust’s former president, chief credit officer, and controller were found “guilty of 15 counts, including conspiracy to defraud the United States and making false entries in banking disclosure documents.” The CFO, David Gibson, had three false certifications in financial reports convictions, too, for good measure.

Previously, on Going Concern…

In Open Items, someone is deciding between PwC M&A and Deloitte International Tax.

From the archive: California CPA Under the Impression That CPA Exam Is Still an Infernal, Multi-day Event That Drives You to Drink

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