Audit Woes in U.K. Hit KPMG’s 2019 Profit

KPMG posted record annual revenues but its profit in the United Kingdom fell sharply as it invested heavily in an audit practice that has suffered a series of blows to its reputation.In fiscal 2019, the Big Four accounting firm’s revenues grew 6.2% to $28.96 billion, beating last year’s record of...

By Matthew Heller • Dec. 13, 2019

To Better Manage Health Care Costs, Ditch the Silos

With health care spending growing faster than the economy and likely to reach 20% of GDP by 2027, U.S. employers are forced to make health care cost control a top priority, sometimes to the detriment of their employees and business performance.But the fragmented approach most employers have taken...

By David McCann • Dec. 13, 2019

Oracle Misses on Sales Again Despite ERP Gains

Oracle shares fell nearly 3% in extended trading Thursday after the enterprise software giant reported another quarterly revenue miss despite strong growth in its Fusion and NetSuite cloud applications businesses.For the second quarter, Oracle earned an adjusted 90 cents per share, up from 80 cen...

By Matthew Heller • Dec. 13, 2019

Nestlé Sells U.S. Ice Cream Business

Nestlé has reached an agreement to sell its U.S. ice cream business to Froneri, an ice cream-focused joint venture Nestlé created in 2016 with private-equity firm PAI Partners, for $4 billion, the companies said. The deal gives Froneri a strong presence in the largest ice cream market in the worl...

By Lauren Muskett • Dec. 12, 2019

Upgrading the Engagement

Emerging technologies such as artificial intelligence (AI), machine learning (ML), predictive analytics, and sophisticated mobile devices can potentially improve the quality of audits. And they couldn’t be arriving at a better time. The Big Four accounting firms and their smaller competitors have...

By Lauren Muskett • Dec. 12, 2019

Watchful Waiting

Amid growing fears of economic turmoil, pessimism appears to have crept into the perspectives of some finance executives. More than half (53%) of 225 U.S. CFOs surveyed by Duke University and CFO Research in the third quarter believe that the nation will be in a recession by the third quarter of ...

By Lauren Muskett • Dec. 12, 2019

Exxon Cleared in Landmark Climate Change Trial

Exxon Mobil has defeated the New York attorney general in a landmark fraud trial as a judge ruled the company did not mislead investors by downplaying the potential costs to its business from future climate regulations.Exxon’s victory in the second climate change lawsuit to reach trial in the U.S...

By Matthew Heller • Dec. 11, 2019

Digital Rework Brings Overdue Innovation to Accounting

The storied history of accounting has undergone three disruptive innovations. From its invention in ancient Mesopotamia more than 7,000 years ago to the debut of double-entry accounting in the Middle Ages, the interval between disruptions clocked in at a mind-boggling eight millennia.The next inn...

By David McCann • Dec. 10, 2019

Biden Unveils Plan for $3.2 Trillion in Tax Hikes

Democratic presidential candidate Joe Biden has released a package of fiscal proposals that would raise about $3.4 trillion in new tax revenues — significantly less than the plans of his more liberal rivals.The Biden package contrasts with Sen. Elizabeth Warren’s proposed $30 trillion to pay for ...

By Matthew Heller • Dec. 5, 2019

International Tax Reporting Standard Is Finalized

Thousands of companies may soon be reporting tax-related and other financial information on a country-by-country basis, following Thursday’s finalization of a proposal by the Global Reporting Initiative (GRI), a sustainability standards-setting body.Three-quarters of the world’s largest companies...

By David McCann • Dec. 5, 2019

An Empowered Audit Team Can Be the Ultimate Safeguard

For multinationals operating in today’s political and regulatory environment, maintaining compliance with the endless stream of new and revised regulatory requirements feels a lot like tap dancing in a minefield.From the ongoing U.S. trade war with China to the introduction of localized digital t...

By Vincent Ryan • Dec. 4, 2019

Workday Tops Q3 Estimates But Stock Dips 1.9%

Workday beat quarterly earnings estimates but its stock price dipped after its CFO dashed hopes it will get an immediate boost from its push into financial software.The enterprise software company said third-quarter revenue rose 26% to $938.1 million as subscription services revenue jumped nearly...

By Matthew Heller • Dec. 4, 2019

Simplified Cost Structuring Spurs ‘Efficient Growth’

The largest companies in the world are experiencing a rate of growth in costs that Gartner calls “untenable.”Specifically, from 2014 through 2017, the S&P Global 1,200 firms saw their compound annual growth rate (CAGR) of costs increase 1.8 times as much as their revenue CAGR, Gartner says in...

By David McCann • Dec. 3, 2019

Audits Are Broken. Here’s a Radical Way to Fix Them.

First Under Armour and then Mattel recently confirmed that they are the subject of federal probes of their accounting practices. This is yet another in a series of examples that suggest the auditing process for U.S. public companies requires a significant overhaul. The health of our investment...

By Michael Whitmire • Nov. 27, 2019

Crypto Market Loses Over $40B in A Week

The cryptocurrency market has lost more than $40 billion over the last week, with bitcoin (BTC) dropping below $7,000 for the first time since May, data platform CoinMarketCap shows.What HappenedThe crypto market has been experiencing a downtrend over the last week, with major cryptocurrencies be...

By Vincent Ryan • Nov. 26, 2019

China Tariffs to Eat Into Dollar Tree Q4 Profits

Dollar Tree shares tumbled on Tuesday after the discount retailer cut its forecast for the holiday season, citing costs from tariffs on Chinese goods.Dollar Tree has been trying to mitigate the tariff costs by negotiating price concessions with vendors and canceling orders. But in its third-quart...

By Matthew Heller • Nov. 26, 2019

Private Equity CFOs Face Extra Complexities

A successful CFO acts as the gatekeeper for all financial activities (and in many cases HR, administration, and/or other functions) and serves as a conduit for the presentation of operational performance to financial reports.But, having served as finance chief for several sponsor-backed portfolio...

By David McCann • Nov. 25, 2019

Pure Storage Shares Dive on Weak Guidance

Pure Storage shares tumbled on Friday after the data center storage equipment maker offered lower-than-expected guidance, citing falling prices and “a little bit of global economic headwinds.”Pure said it expects sales of $484 million to $496 million in the fourth quarter, below the $511.3 millio...

By Matthew Heller • Nov. 22, 2019

Gap Beats Estimates But Comp Sales Dip 4%

Gap reported another tough quarter while reiterating its commitment to spinning off its Old Navy brand.For the third quarter, the struggling retailer earned an adjusted 53 cents per share as revenue fell 2% to $4.00 billion. The results beat analysts’ expectations of earnings of 51 cents per shar...

By Matthew Heller • Nov. 22, 2019

Macy’s Posts First Comp Sales Drop in 2 Years

Macy’s reported better-than-expected quarterly earnings but same-store sales declined for the first time in two years, reflecting weak traffic at some shopping malls.For the third quarter, the retailer’s net income fell to $2 million, or a penny a share, from $62 million, or 20 cents, a year earl...

By Matthew Heller • Nov. 21, 2019

Outside Board Service Boosts Inside Accounting Quality

Few CFOs serve on boards of directors of outside companies. That probably reflects concerns about the amount of time board service entails, according to a new study, especially since a majority of finance chiefs on outside boards are members of the time-consuming audit committees.Yet the study co...

By David McCann • Nov. 20, 2019

JCPenney Loss Narrows to $93M, Shares Jump

JCPenney’s shares jumped on Friday after it reported a lower-than-expected quarterly loss, boosting investor confidence in its turnaround strategy.CEO Jill Soltau, who has been leading the turnaround effort since joining the ailing retailer last year, described the third quarter as “an exciting a...

By Matthew Heller • Nov. 15, 2019

Cisco Sees Revenue Drop Amid Weak Demand

Cisco Systems shares fell more than 5% in extended trading Wednesday after the company projected its first quarterly revenue decline in more than two years amid continued weak demand.For the first quarter, Cisco earned an adjusted 84 cents per share, up from 75 cents a year ago, as revenue rose 0...

By Matthew Heller • Nov. 14, 2019

DOJ Lays Out a Path to Reduced Corporate Penalties

Every year in C-suites around the world, CEOs, CFOs, and chief legal officers find themselves facing the prospect of a criminal prosecution of their company for alleged misconduct. The potential results are not only negative publicity and mandated remedial measures, but also a massive monetary pe...

By David McCann • Nov. 14, 2019

Slaughterhouse Fire Singes Tyson Beef Sales

Tyson Foods missed quarterly earnings estimates on Tuesday after a fire at a Kansas slaughterhouse delivered a hit to beef sales and pushed up its costs.Excluding items, the largest U.S. meat producer earned $1.21 per share as sales rose nearly 9% in the fourth quarter to $10.88 billion on the st...

By Matthew Heller • Nov. 12, 2019