FedEx Sues U.S. Government Over Export Rules After Huawei Dispute

FedEx filed a lawsuit against the U.S. government on Monday, arguing that it should not be required to enforce the recent federal government export bans.The move comes after FedEx mishandled a couple of deliveries for Huawei and failed to deliver a Huawei smartphone shipped from London to the Uni...

By Lauren Muskett • June 25, 2019

Global Cannabis Sales Could Hit $15B This Year

Global cannabis sales could reach $15 billion in 2019, a 36% increase year-over-year, according to a report published by Arcview Group and BDS Analytics.The report, “The State of Legal Cannabis Markets,” evaluated sales of medical and recreational cannabis at dispensaries, hemp-derived delta-8-TH...

By Lauren Muskett • June 20, 2019

What Happens When the CFO Is the COO, Too?

A notable development in corporate governance over the past two decades is that CFOs have considerably expanded their management role, in some instances taking on the additional position of chief operating officer.While the increase in CFO/COO duality and the resultant savings in C-suite salaries...

By David McCann • June 20, 2019

Companies Scramble to Ease Impact of China Tariffs

Even while some economists are predicting that the ultimate effect of President Trump’s tariffs on Chinese goods could actually be lower prices, many companies aren’t waiting to take action.Employing a smorgasbord of tactics, 100-plus companies surveyed by KPMG this spring reported that they’d be...

By David McCann • June 19, 2019

Puerto Rico Reaches Deal Over $35B in Debt

The Commonwealth of Puerto Rico’s Financial Oversight and Management Board, the body tasked with overseeing the restructuring in billions of dollars of the island’s debt, has reached an agreement with holders of around $35 billion of its bonds, accounting for nearly half of its total bonded debt....

By Lauren Muskett • June 18, 2019

Do Tariffs Really Raise Prices?

Will prices in the United States rise substantially because of President Trump’s import duties on Chinese goods, especially if he makes good on his threat to expand the tariffs to all Chinese products coming into the United States?It’s a loaded question, because contrary to popular belief, tariff...

By David McCann • June 18, 2019

Audit Firms’ Problems Are Also Cultural

Is cheating on an exam worse than using data stolen from an industry watchdog? Probably not, but the revelations in a Securities and Exchange Commission order against KPMG do not cast audit professionals or the firm in a good light.The SEC charged KPMG on Monday with altering past audit work in c...

By Vincent Ryan • June 18, 2019

Sizing Up Uber’s Fate in Transfer Pricing Audits

Nearly all multinational enterprises face tax and transfer pricing examinations, both at home and abroad, at one time or another.The good news is that companies frequently receive a clean bill of health for their tax and transfer pricing policies, documentation, and tax positions. Where there are...

By David McCann • June 14, 2019

Financial Application Buyers Are Stuck in the Present

Most organizations will fail to realize the full value from purchasing new financial applications because they’re not accounting for digital capabilities they’ll need in the future, according to Gartner.Finance departments should seek solutions that will enhance their ability to innovate, rather ...

By David McCann • June 13, 2019

More U.S. Companies to Allow Remote Working

Forty-three percent of U.S. businesses said they expect to allow more employees to work remotely in the next year, according to a global workplace study from Condeco Software. More than half (54%) of U.S. companies said they offer remote working to increase employee retention.Only 9% of companies...

By Lauren Muskett • June 12, 2019

Spreadsheet Risks Still Being Ignored by C-Suite: Study

Companies are exposing themselves to financial and reputational risk by overlooking the vulnerabilities in spreadsheets, according to survey results released on Wednesday by Forrester Consulting and Incisive Software.In a survey of manager-level and above personnel at 170 midsize and large North ...

By Vincent Ryan • June 12, 2019

Tax on Nonprofits Could Snare Companies, Too

Companies with affiliated tax-exempt entities could find themselves surprised to be on the hook for a new tax, in light of interim guidance recently released by the Internal Revenue Service.A controversial provision of the Tax Cuts and Jobs Act imposes a 21% excise tax on compensation that exceed...

By David McCann • June 11, 2019

Ex-EY Partner Sanctioned Over Inadequate Audit

Audit regulators have fined a former EY auditor $25,000 for failing to properly evaluate a client’s internal control deficiencies during a 2013 audit.The Public Company Accounting Oversight Board said William Trainor and his engagement team identified “pervasive” deficiencies in controls for two ...

By Matthew Heller • June 7, 2019

Beyond Meat Sales Go Beyond Estimates in Q1

Beyond Meat shares soared in extended trading on Thursday after the maker of plant-based meats delivered better-than-expected revenue in its first quarterly earnings report since going public.In the first quarter of 2019, Beyond Meat’s net sales jumped 215% to $40.2 million, driven by increased s...

By Matthew Heller • June 7, 2019

Tax Departments Are Starving for Technology Investment

While finance teams are busily automating a growing assortment of processes, many tax departments remain on the outside looking in when it comes to technology investment. That should change, according to a new report from Deloitte.Tax departments increasingly need software bots to take over repet...

By David McCann • June 5, 2019

Campbell Soup Tops Q3 Earnings Estimate and Lifts 2019 Outlook

Campbell Soup posted stronger-than-expected third quarter earnings on Wednesday, and boosted its full-year profit outlook.Much of this positive activity is being credited to U.S. snack sales following last year’s $6.1 billion purchase of Snyder’s-Lance.Campbell Soup said adjusted earnings for the...

By Lauren Muskett • June 5, 2019

PwC to Restructure U.K. Audit Practice

Audit company PwC said it would split its U.K. assurance practice, recruit 500 experienced auditors, and spend $38 million to restore the trust of investors as part of a restructuring of its practice in the United Kingdom.PwC, one of the Big Four accounting firms that includes Deloitte, Ernst &am...

By Lauren Muskett • June 5, 2019

GameStop Shares Drop 29% After Dividend Halt

GameStop shares plunged in extended trading Tuesday after the struggling video game retailer reported another tough quarter and halted its dividend.GameStop’s revenue fell 13.3% in the first quarter to $1.5 billion and comparable store sales dropped 10.3% amid slowing demand for video games. Anal...

By Matthew Heller • June 5, 2019

Blackstone Buys GLP Warehouse Properties

Blackstone Group reached an agreement to buy U.S. industrial warehouse properties from Singapore-based logistics provider GLP for $18.7 billion, the companies announced.The portfolio includes about 1,300 properties and 179 million square feet of urban logistics assets. The companies said it was t...

By Lauren Muskett • June 3, 2019

Metric of the Month: Total Cost of Budgeting and Forecasting

Plans, budgets, and forecasts can be some of the most valuable contributions that finance makes to the business. Ideally, they help organizations know what’s coming down the road and remain agile enough to respond to uncertainty and to keep the business moving forward. At the same time, planning,...

By Perry D. Wiggins • June 3, 2019

Flower Delivery Service FTD Files Bankruptcy

Flower delivery company FTD filed for bankruptcy on Monday, saying its financial performance has wilted under the strain of integrating its acquisition of ProFlowers.The nearly 110-year old company had been reviewing “strategic alternatives” since last year, warning in March that it could go out ...

By Matthew Heller • June 3, 2019

Brazil’s 0.2% GDP Drop Fans Recession Fears

Brazil’s economy contracted in the first quarter of 2019, fueling fears that the country is heading toward another recession.According to official government data released on Thursday, Brazil’s gross domestic product declined by 0.2% from the previous quarter. It was the first drop in GDP since t...

By Matthew Heller • May 31, 2019

How to Modernize the Treasury Department

Treasury departments can provide advanced value to companies by aiding with planning and meeting goals for efficient operations, innovative credit and cash management, and other market opportunities.Yet traditional treasury departments today are still focused on processing, with a majority of res...

By David McCann • May 31, 2019

J.Jill ‘Disappointed’ with First Quarter Financial Results

J.Jill shares fell 52% Thursday after the women’s apparel brand reported first-quarter profit and sales declines and gave weak guidance.With 283 stores and an e-commerce platform, the retailer reported total net sales for the 13 weeks ended May 4, 2019, were $174.5 million versus $181.5 million f...

By Lauren Muskett • May 30, 2019

Why Terminating a Pension Plan May Be Unaffordable

Put simply, when companies terminate defined benefit pension plans, they’re looking to save money. But: they still may not be able to afford it.How’s that?First, the cost of the termination will typically exceed the book value of plan liabilities by 15% to 35% for non-retirees and 5% to 10% for r...

By David McCann • May 29, 2019