Beware the Bursting Bubble

Can history repeat itself? That’s a question CFOs might want to ask themselves concerning a recently decided case that harks back to the early days of this century, when the bottom fell out of a supercharged stock market.The case, Gudmundsson v. United States, has implications for finance chiefs ...

By Robert Willens • April 11, 2011

The Regulator over Your Shoulder

The increased tax enforcement that often follows state tax amnesties may well deter financial-reporting fraud, according to a new study. Large public companies “are significantly less likely to intentionally misreport their financial statements in the two years following state tax amnesty program...

By David Katz • April 8, 2011

Explore the Trendline➔

Tax policy shifts: What CFOs need to know to stay ahead

Discover how evolving tax policies are creating new opportunities and challenges for CFOs.

By CFO.com staff

The Regulator over Your Shoulder

The increased tax enforcement that often follows state tax amnesties may well deter financial-reporting fraud, according to a new study. Large public companies “are significantly less likely to intentionally misreport their financial statements in the two years following state tax amnesty program...

By David Katz • April 8, 2011

Spreadsheets: Rank Items in a Pivot Table

Editor’s Note: To read more about spreadsheets, share a tip with other readers, or suggest a topic for Bill Jelen to cover in an upcoming column, click here to visit CFO.com’s Spreadsheet Tips Page.Gothard F. wins an autographed copy of Pivot Table Data Crunching for his question: “I would like t...

By Bill Jelen • April 7, 2011

Senate Passes 1099 Repeal

The onerous provision in the health-care reform law that would require businesses to file innumerable 1099 forms is on its way out. On Tuesday, by an 87 to 12 vote, the Senate passed the House version of a bill to repeal the provision. The bill also contains an alternative way of raising the tax ...

By Alix Stuart • April 5, 2011

Senate Passes 1099 Repeal

The onerous provision in the health-care reform law that would require businesses to file innumerable 1099 forms is on its way out. On Tuesday, by an 87 to 12 vote, the Senate passed the House version of a bill to repeal the provision. The bill also contains an alternative way of raising the tax ...

By Alix Stuart • April 5, 2011

An Ounce of Prevention May Be Tax-Deductible

Although it may not always be true that sound corporate risk-management practices coincide with tax deductions, there are times when they clearly do. In a letter ruling issued by the Internal Revenue Service on February 19, for example, a company’s action to insure itself against liability risks ...

By Robert Willens • April 4, 2011

An Ounce of Prevention May Be Tax-Deductible

Although it may not always be true that sound corporate risk-management practices coincide with tax deductions, there are times when they clearly do. In a letter ruling issued by the Internal Revenue Service on February 19, for example, a company’s action to insure itself against liability risks ...

By Robert Willens • April 4, 2011

State Insecurity

Click here to download the complete results of the 2011 State Tax Survey.When it comes to state-tax enforcement, it’s getting scary out there for corporate taxpayers. Witness the Securities and Exchange Commission’s entry into the state-tax fray with an apparently unprecedented action against Hud...

By David Katz • April 1, 2011

State Insecurity

Click here to download the complete results of the 2011 State Tax Survey.When it comes to state-tax enforcement, it’s getting scary out there for corporate taxpayers. Witness the Securities and Exchange Commission’s entry into the state-tax fray with an apparently unprecedented action against Hud...

By David Katz • April 1, 2011

A Three-Step Plan for CFOs

The latest news about the Lehman Brothers audit committee is startling — that they appeared to hew to the letter of the law but missed the fact that one of the firm’s UK subsidiaries may have been engaged in quarter-end accounting shenanigans. This is just the most recent illustration of how over...

By Robert Pozen • April 1, 2011

No Need for Smooth Moves

It turns out the effort that many finance chiefs have made over the years to show consistent earnings growth may have been for naught. According to a new study by McKinsey & Co., there is no evidence that smooth earnings produce higher returns for shareholders. Indeed, says Tim Koller, a McKi...

By Kate O'Sullivan • April 1, 2011

The Price of Uncertainty

When Catherine D’Amico, CFO of Monro Muffler, sought relief from volatile commodity prices, she found it in the form of tires — some $8 million worth.The automotive-services firm upped its total inventory by 11% between March and December of 2010, to almost $100 million. Two-thirds of that increa...

By Sarah Johnson • April 1, 2011

A Three-Step Plan for CFOs

The latest news about the Lehman Brothers audit committee is startling — that they appeared to hew to the letter of the law but missed the fact that one of the firm’s UK subsidiaries may have been engaged in quarter-end accounting shenanigans. This is just the most recent illustration of how over...

By Robert Pozen • April 1, 2011

When Do Dividends Really Matter?

Throughout the financial crisis, there have been substantially fewer dividend increases and an abnormally large number of dividend cuts. These generally stingy dividend policies were often in response to a true liquidity crunch. But for many, dividend prudence merely reflected general conservatis...

By Gregory V. Milano • April 1, 2011

Tax Apportionment Shift Hits Multistate Companies

For many finance executives and corporate tax directors, the biggest headache when it comes to state taxation is the issue of how income is apportioned among the various states. With many localities changing their rules in an attempt to replenish depleted revenue, such headaches are starting to t...

By David Katz • March 31, 2011

Tax Apportionment Shift Hits Multistate Companies

For many finance executives and corporate tax directors, the biggest headache when it comes to state taxation is the issue of how income is apportioned among the various states. With many localities changing their rules in an attempt to replenish depleted revenue, such headaches are starting to t...

By David Katz • March 31, 2011

Business Failures Down, but Not Done

Bankruptcy has been in the headlines recently, thanks to the high-profile Chapter 11 filings of companies such as gourmet-food retailer Harry & David and bookseller Borders. But business failures overall have been declining, according to the most recent data from Dun & Bradstreet. Formal ...

By Alix Stuart • March 30, 2011

When Embezzlers Can Deduct Legal Fees

Believe it or not, corporate executives found guilty of embezzlement or records falsification can in some cases take a tax deduction for their legal fees. Take the case of Daniel L. Gordon. Hired in 1998 by Merrill Lynch to start an energy trading division called Global Energy Markets, Gordon bec...

By Robert Willens • March 28, 2011

When Embezzlers Can Deduct Legal Fees

Believe it or not, corporate executives found guilty of embezzlement or records falsification can in some cases take a tax deduction for their legal fees. Take the case of Daniel L. Gordon. Hired in 1998 by Merrill Lynch to start an energy trading division called Global Energy Markets, Gordon bec...

By Robert Willens • March 28, 2011

CFOs Exit Restating Companies, Study Finds

Restatements of financial reports usually convey bad news about a company to the stock market, and CFOs, as chief stewards of financial reports, tend to like nothing less than bearing such tidings. In fact, when companies restate, their finance chiefs show a pronounced tendency to leave, new rese...

By David Katz • March 23, 2011

CFOs Exit Restating Companies, Study Finds

Restatements of financial reports usually convey bad news about a company to the stock market, and CFOs, as chief stewards of financial reports, tend to like nothing less than bearing such tidings. In fact, when companies restate, their finance chiefs show a pronounced tendency to leave, new rese...

By David Katz • March 23, 2011

When Financial and Tax Accounting Diverge

Issuers of convertible debt that has fallen “out of the money” (the conversion price is more than the applicable stock price) sometimes want to encourage conversion of the debt into its equity securities anyhow. To do that, they can provide an incentive, lasting for a brief period, for holders of...

By Robert Willens • March 21, 2011

When Financial and Tax Accounting Diverge

Issuers of convertible debt that has fallen “out of the money” (the conversion price is more than the applicable stock price) sometimes want to encourage conversion of the debt into its equity securities anyhow. To do that, they can provide an incentive, lasting for a brief period, for holders of...

By Robert Willens • March 21, 2011

Spreadsheets: Open to Today’s Date

Reader David H. wins a copy of Office VBA Macros You Can Use Today for submitting this question: “I have a column which has each day of the month in it (e.g., 1, 2, 3, 4, etc.). This is what I’d like Excel to do: when I open the spreadsheet, I want to go to the cell that has today’s day of the mo...

By Bill Jelen • March 16, 2011