Thought Leadership

Circuit Board and Processor

Audits Home in on Cybersecurity

In 2018, U.S. organizations that suffered a data breach lost an average of $7.91 million as a result. That’s the highest average organizational cost of all the countries and regions covered in the 2018 Cost of a Data Breach Study by IBM and independent research firm Ponemon Institute. Malicious or…

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Modern Wall of Windows

ESG Issues: To Report or Not to Report?

Securities and Exchange Commission (SEC) Chairman, Jay Clayton, recently stated that public companies should not be required to disclose information concerning environmental, social and governance (ESG) matters in their financial statements, using a standardized format. Currently, these disclosures…

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Stack of Papers and Files

Simplifying the Accounting Rules for Convertible Debt and Equity

Distinguishing between liabilities and equity on a company’s balance sheet may seem straightforward. But difficulties arise when it comes to the terms of complex securities and financial contracts like redeemable equity instruments, equity-linked or indexed instruments, and convertible instruments.

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Magnifying Glass and Financial Report

Reporting for Business Segments Still in Discussion

Last year, the Financial Accounting Standards Board (FASB) opened the question of how to improve the information public companies report about their business segments. Then in February, the FASB announced that it plans to reach out to more investors to ask what data they’d like to see disclosed. It…

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Binders Stacked

What’s the Risk in Related-Party Transactions?

During an external financial audit, the auditors may particularly scrutinize related-party transactions. These transactions aren’t bad, necessarily, but they do raise concerns about the risk of misstatement or omission in financial reports. Back in 2014, the Public Company Accounting Oversight…

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Modern Office

New Revenue Recognition Standard: Are You Ready?

Sweeping new revenue recognition requirements go into effect this year for private companies that follow U.S. generally accepted accounting principles (GAAP). However, many CFOs and controllers companies still have considerable work to do before they can comply. If you haven’t yet started…

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Orange Traffic Cone

Spotting Financial Warning Signs for Nonprofits

Board members governing nonprofit organizations can’t miss signs of financial distress such as losing funding sources, defaulting on loans or leaving employees unpaid. Most of the time, though, such crises aren’t sudden; instead, there were subtle indicators that went unnoticed. By keeping an eye…

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Stock Index Dynamics Graph

Interactive Data Reporting Urged for All Public Companies

As the Securities and Exchange Commission (SEC) considers whether interactive data requirements for financial statements are too difficult or expensive for smaller public companies, investors and accounting professionals have warned against exempting those companies from the rules. These commenters…

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