Former Refco CFO Indicted

The former chief financial officer of Refco Inc. was indicted on Tuesday for the role he played in a scheme to defraud investors that resulted in losses that exceeded $1 billion.Robert C. Trosten was charged with assisting former Refco chief executive officer Phillip R. Bennett in hiding from Ref...

By Stephen Taub • Oct. 25, 2006

FASB To Change Derivative Accounting

The Financial Accounting Standards Board voted on Wednesday to push ahead a proposed change aimed at easing the volatility in the income statements of asset-backed and mortgage-backed securities investors—such as community banks and insurance companies.The proposal would affect FASB Statement No....

By Helen Shaw • Oct. 25, 2006

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

Odyssey to Restate 5 Years of Results

This story originally ran on October 18, and can be accessed via this link.Odyssey Re Holdings announced on Monday that it will be holding a November 3rd earning call.

By Stephen Taub • Oct. 24, 2006

Will a Driver Shortage Cost Companies?

The transportation industry is struggling to keep their driver’s seats filled. High turnover, new regulations for drivers who work at ports, and the stigma of what some consider an undesirable occupation have truck operators spending more time and resources on retention. In turn, the extra costs ...

By Sarah Johnson • Oct. 24, 2006

Ford Restatement Triggered by SFAS 133

Ford Motor Co. said it will restate its results from 2001 through the second quarter of 2006 to correct the accounting for certain derivative transactions. The embattled auto giant added that the final restatement amounts have not yet been determined.However, company officials did say that that F...

By Stephen Taub • Oct. 23, 2006

COSO: Controls Help Is on the Way

Companies that have been asking for more guidance on how to assess internal controls over financial reporting will get some help soon.The Committee of Sponsoring Organization of the Treadway Commission (COSO) has issued a request for proposal to develop guidance to help companies monitor their in...

By Helen Shaw • Oct. 23, 2006

Beyond Backdating: Fair-Value Fraud Risk

Hard as it is to believe, backdating may not be the only risky area in stock-option accounting. Independent auditors should also be able to sniff out fraud when their corporate clients start monkeying with the metrics they use to gauge the fair value of option grants, the Public Company Accounti...

By David Katz • Oct. 20, 2006

FASB Change Could Help PIPEs Flow

An accounting policy that some say has made it more difficult for smaller public companies to raise capital through private investment in public equity (PIPE) transactions is about to change.Under EITF 00-19, “Accounting for Derivative Financial Instruments Indexed To, and Potentially Settled In,...

By Helen Shaw • Oct. 18, 2006

PepsiCo to Record $600M Tax Benefit

Now, this is what you call a nice tax refund.PepsiCo Inc. said it expects to record a non-cash tax benefit of about $600 million in the fourth quarter of 2006. The soft-drink giant said the windfall stems from an Internal Revenue Service examination of its income tax returns for the years 1998 th...

By Stephen Taub • Oct. 18, 2006

AS2, 404: Up for Debate at Year End?

The Securities and Exchange Commission and the Public Company Accounting Oversight Board may simultaneously ask for public feedback regarding two controversial standards later this year.The SEC has been developing management guidance for Sarbanes-Oxley’s Section 404. The commission will hear its ...

By Sarah Johnson • Oct. 17, 2006

Should Internal Audit Report to the CFO?

Can an internal auditor examine a company’s books and controls with an objective eye if the person ultimately responsible for those books and controls is his or her boss? Increasingly, audit committees — whose job includes protecting the independence of internal auditors — are hearing that the an...

By Sarah Johnson • Oct. 13, 2006

CFO Act Agencies’ Reporting Lags

When President Bush signed the Federal Funding Accountability and Transparency Act into law last month, he promised that a newly created database would boost federal agencies’ “accountability and reduce incentives for wasteful spending.”But federal agencies—the majority of which have continually ...

By Sarah Johnson • Oct. 11, 2006

Politics and the R&D Credit

Lobbyists representing American industry are keeping busy this fall. Representatives from a variety of technology and manufacturing associations are pushing to convince senators to extend the expired Research & Experimentation Tax Credit, also known as the R&D credit.On July 31, the House...

By Elaine Appleton Grant • Oct. 11, 2006

Farmer Mac to Restate Over SFAS 133

The Federal Agricultural Mortgage Corporation (Farmer Mac) will restate three years’ worth of financial statements. The company, chartered by Congress to establish a secondary market for agricultural real estate and rural housing mortgage loans, said it is correcting its accounting for derivative...

By Stephen Taub • Oct. 10, 2006

Former WorldCom Accountant Suspended

The Securities and Exchange Commission has suspended a former WorldCom finance executive for engaging in “improper” accounting activities.Mark P. Abide, former WorldCom director of property accounting, was barred from appearing or practicing before the commission as an accountant. However, he can...

By Stephen Taub • Oct. 5, 2006

Report Slams CFO Act Agency Disclosures

The Federal Government’s auditor has raised new concerns about how certain federal agencies have restated previously issued financial statements. The Government Accountability Office said in a new report that all nine agencies it recently reviewed “could have greatly enhanced the adequacy, effect...

By Stephen Taub • Oct. 5, 2006

Rewriting AS2 Tops PCAOB’s To-Do List

Revising the controversial Auditing Standard No. 2 is the highest priority on the Public Company Accounting Oversight Board’s list of standard-setting projects, its chief auditor said today.As CFO.com reported last month, the PCAOB recently submitted a draft of changes to AS2 to the Securities an...

By Sarah Johnson • Oct. 5, 2006

PCAOB Chief Administrator to Leave

The chief administrative officer of The Public Company Accounting Oversight Board is stepping down at the end of the month to pursue a job more in line with his career interests. Specifically, Paul Schneider wants to work with start-up companies or in turnaround situations, PCAOB spokesperson Chr...

By Marie Leone • Oct. 5, 2006

Arbinet to Restate over Options

Arbinet-thexchange, Inc., plans to restate its 2004 and 2005 year-find financial statements. In a press release published Monday, the telecommunications company reported that its audit committee has noted that the company’s financial statements incorrectly treated some five-year stock option arra...

By Sarah Johnson • Oct. 2, 2006

Ahold to Avoid U.S. Prosecution

Royal Ahold NV will not face criminal prosecution for the accounting scandal at its US Foodservice (USF) subsidiary, according to an announcement from Michael Garcia, U.S. Attorney for the Southern District of New York.Under the deal, the Dutch food conglomerate will not be prosecuted for the acc...

By Stephen Taub • Sept. 29, 2006

KLA-Tencor to Restate Results

KLA-Tencor Corp. says it will restate prior results to correct past accounting for stock options. The supplier of tools for making microchips says an internal review concluded that incorrect measurement dates for certain stock-option grants were used for financial-accounting purposes, mostly from...

By Stephen Taub • Sept. 29, 2006

CSK Uncovers Accounting Errors

Auto parts retailer CSK Auto Corp. announced that it will restate its financials for the past five years after an internal investigation uncovered accounting errors and irregularities. The company also said that president and chief operating officer Martin Fraser and chief administrative officer ...

By Stephen Taub • Sept. 28, 2006

Judge Dismisses Suit Against ConAgra

A federal judge dismissed a derivative lawsuit against ConAgra Foods that accused company officials of mismanagement and violating the Sarbanes-Oxley Act, according to the Associated Press. U.S. District Judge Lyle Strom said the shareholders failed to prove their case, the wire service added.The...

By Stephen Taub • Sept. 28, 2006

SEC Accuses Ex-CFO of Channel Stuffing

The Securities and Exchange Commission has accused the former chief financial officer of Lantronix Inc. of engaging in a scheme to overstate financial results for personal gain.On Wednesday, the Commission noted in its cease-and-desist proceedings against the company that Steven Cotton, the forme...

By Stephen Taub • Sept. 28, 2006

Bulldog Accounting?

Corporate accounting scandals may be fading from the front pages, but the nonprofit sector is coming under more scrutiny.In July, Yale University announced that the Department of Health and Human Services, the Department of Defense, and the National Science Foundation subpoenaed documents relatin...

By Allan Richter • Sept. 27, 2006