THQ Files Restated Results

THQ Inc. restated its results going back to 2004. The video game maker, which earlier this month said an independent investigation of its historical stock-option grant practices found no evidence of fraud or misconduct, is one of at least 198 companies that have launched internal probes, or are b...

By Stephen Taub • Jan. 22, 2007

Krispy Kreme Files Late Reports

Krispy Kreme has finally filed its delayed financials for the second and third quarters of its fiscal 2007 year. However, the doughnut retailer, which held a gastronomic mystique over many of its customers until it got caught up in a major accounting scandal, still has not filed its three-month r...

By Stephen Taub • Jan. 22, 2007

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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

SEC Charges 13 in Ahold Fraud

The Securities and Exchange Commission has filed complaints against 13 individuals for allegedly participating in a massive financial fraud at the U.S. Foodservice subsidiary of Dutch food conglomerate Royal Ahold.All were employees of or agents for vendors, many of them household names, that sup...

By Stephen Taub • Jan. 22, 2007

GE Snagged by Derivatives Accounting

General Electric has disclosed that it will restate its results for the five years ending in 2005 as well as its quarterly reports for the first three periods of 2006. The company will adjust its accounting for interest-rate swaps used to fix certain otherwise variable-interest costs in a portion...

By Stephen Taub • Jan. 19, 2007

Bye, Bye Enron, Regulators Say

If their latest words on how banks should handle the risks of complex structured-finance deals are any indication, banking and securities regulators think it’s high time to put the ghost of Enron behind them.In a final guidance on high-risk structured finance released on January 5 by the Securiti...

By David Katz • Jan. 17, 2007

Tax Stunner: FASB Rejects FIN 48 Delay

At its board meeting today, the Financial Accounting Standards Board stunned tax experts and companies alike when it unanimously rejected calls for a one-year delay in the implementation of FIN 48, Accounting for Uncertainty in Income Taxes. The accounting rule is effective for fiscal years begin...

By Helen Shaw and Marie Leone • Jan. 17, 2007

Ex-Cendant Chairman Gets 12+ Years

Former Cendant chairman Walter Forbes was sentenced to 12 years and seven months in prison and ordered to pay $3.275 billion in restitution for orchestrating the largest accounting fraud of the pre-Enron era.Forbes was accused of inflating earnings by $252 million at CUC International, where he w...

By Stephen Taub • Jan. 17, 2007

FASB Delay Eases Tax Uncertainty

Companies have been vigorously lobbying the Financial Accounting Standards Board to delay FIN 48, Accounting for Uncertainty in Income Taxes. As of press time, it is all but certain that the accounting standards-setter will, at its board meeting on January 17, postpone the interpretation’s implem...

By Helen Shaw • Jan. 16, 2007

Ex-CA Lawyer Gets Two Years

Another onetime CA executive is headed to prison.Former chief counsel Steve Woghin was sentenced to two years behind bars, three years of supervised release, and a yet-to-be-determined fine for his role in the company’s $2.2 billion accounting scandal, reported Newsday. He pleaded guilty in Septe...

By Stephen Taub • Jan. 16, 2007

Failing Grades for E&Y, KPMG

The Public Company Accounting Oversight Board issued its 2005 inspection reports on Ernst & Young and KPMG on Thursday, citing multiple failures in audits by the two Big Four audit firms. The report on E&Y identifies 10 companies for which audits were deficient, and says that in “some cas...

By Marie Leone • Jan. 12, 2007

IRS, China, Wal-Mart Reach Tax Accord

The Internal Revenue Service announced Friday that it reached the first advance pricing agreement, involving Wal-Mart Stores, between the United States and China.“We’re working closely with China as they develop their tax administration system,” said IRS commissioner Mark Everson in a statement.T...

By Helen Shaw • Jan. 12, 2007

In Whose Best Interest?

Later this year, the six largest accounting firms plan to hold open forums on their reform proposals for the industry. Those proposals, as outlined in a report called “Global Capital Markets and the Global Economy,” offer half a dozen changes that the firms say will better align the financial rep...

By Karen M. Kroll • Jan. 12, 2007

Deloitte Settles with Parmalat

Deloitte & Touche SpA and Dianthus SpA have agreed to pay $149 million in damages to Parmalat to settle U.S. claims stemming from the collapse of the Italian dairy conglomerate. The parties have also agreed to withdraw all pending actions and allegations between them.“The settlement follows y...

By Stephen Taub • Jan. 12, 2007

EU Looks to Smooth Global Audit Vetting

Spurred by worries about overregulation that echo those of U.S. companies, the European Union is looking for ideas about how to streamline the inspection and registration of non-EU auditors working for companies listed on European exchanges.On Thursday, the European Commission, the EU’s administr...

By David Katz • Jan. 11, 2007

FASB Weighs One-year Delay for FIN 48

The Financial Accounting Standards Board will consider a one-year delay in the implementation of FASB Interpretation No. 48, Accounting for Uncertainty in Income Taxes, at its January 17 meeting.Issued last July, FIN 48 is now effective for fiscal years beginning after December 15, 2006. The poss...

By Helen Shaw • Jan. 11, 2007

Hollywood Empties Its Gift Baskets

Actors Steve Carell and Eva Longoria won’t have to check their mailboxes for Golden Globe Award presenter gift boxes this year. That’s because the Hollywood Foreign Press Association (HFPA), which sponsors the Golden Globe Awards and had made a habit of sending lavish gift boxes to award presente...

By Marie Leone • Jan. 10, 2007

THQ to Restate over Options

Video-game maker THQ announced that an independent investigation of its historical stock-option grant practices found no evidence of fraud or misconduct.Nevertheless, the company it will record an additional $11 million in non-cash stock-based compensation expense for the period from January 1, 1...

By Stephen Taub • Jan. 9, 2007

Litany of Woes for Mills Corp.

Mall and entertainment center developer The Mills Corp. and its operating subsidiary, The Mills Limited Partnership, disclosed that they will restate financials for 2001 through 2004 and the first three quarters of 2005 to correct certain accounting errors. The impact on shareholders equity could...

By Stephen Taub • Jan. 9, 2007

Charges for Ex-CEO of Aspen Technology

David McQuillin, former chief executive officer and president of Aspen Technology, surrendered to authorities on Monday in connection with a scheme to falsify revenues at the software company, according to an announcement from the U.S. Attorney for the Southern District of New York.McQuillin was ...

By Stephen Taub • Jan. 8, 2007

Six Companies Reprice Options

(Correction: This article has been revised to reflect the fact that Sharper Image, as well as the other five companies listed below, cited IRC Section 409A in the relevant public filings.)At least six companies recently adjusted the exercise price of some stock options held by executives. Citing ...

By Stephen Taub • Jan. 5, 2007

Coming Soon: FASB’s Fair-Value Statement

The Financial Accounting Standards Board is moving closer toward issuing a final statement on its proposed fair-value option for financial assets and liabilities.The board expects to issue a statement in mid-to-late February, according to Robert Wilkins, a FASB project manager on the fair-value o...

By Helen Shaw • Jan. 5, 2007

Give & Take

Click here to download the complete results for the 2007 State Tax Survey.You know the pitch:Move your business to our state and we’ll give you economic-development funds and juicy tax breaks. Maybe we’ll throw in a free buckeye tree or some Texas rib-eyes.Yet just down the hall from where the st...

By Kate O'Sullivan • Jan. 4, 2007

FASB Creates Investors’ Committee

The Financial Accounting Standards Board has established an Investors Technical Advisory Committee to solicit more input from investors and other users of financial information in the standard-setting process.The 12 initial members of FASB’s new committee will draw on their strong technical accou...

By Stephen Taub • Jan. 4, 2007

KMPG Tax-shelter Charge Dismissed

A federal judge has agreed to dismiss a criminal charge against KPMG LLP that had accused the Big Four accounting firm of conspiring to sell illegal tax shelters, according to published accounts.U.S. District Judge Loretta A. Preska approved the request U.S. Attorney Michael J. Garcia to dismiss ...

By Stephen Taub • Jan. 4, 2007

Misgivings

Relief International, a Los Angeles–based nonprofit that provides disaster-recovery services around the world, reported that it had collected more than $11 million in grants and contributions for 2005. Yet the organization claims in its audited financial statements that it didn’t spend a dime on ...

By Joseph McCafferty • Jan. 4, 2007