Tax Compliance Toughens for Intercompany Transactions

As the new administration’s trade policies come into clearer focus, it is obvious that some changes are underway. Actions by the Trump administration could redirect trade flows and incite an all-out trade war. Retaliatory actions by foreign countries could alter the regulatory landscape, leading ...

By Therese Tucker • May 23, 2017

Deere Beats Estimates With $802M Profit in Q2

John Deere posted a bigger-than-expected second-quarter profit and its first sales increase in 13 quarters, apparently confirming its view that key markets for its farm equipment are stabilizing.For the first quarter, the world’s largest farm-equipment manufacturer earned a profit of $802.4 milli...

By Matthew Heller • May 22, 2017

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

Trump’s Tax Cuts Would Offset Interest-Rate Hikes

With a second 2017 interest-rate hike expected in June, businesses are beginning to assess the impact on their current and future debt. The cost of borrowing, however, will have a lesser impact on companies’ bottom lines than the potential boost from a sharp reduction in the U.S corporate tax rat...

By William Fink • May 22, 2017

Alibaba Posts Biggest Sales Increase Since IPO

Alibaba reported record sales growth for the fourth quarter but its earnings missed estimates and the businesses outside its e-commerce core failed to turn a profit.Alibaba’s sales rose about 60% to 38.58 billion yuan ($5.60 billion) in the quarter ended March 31, the biggest quarterly increase s...

By Matthew Heller • May 19, 2017

40 Companies Unite to Rein in Health Costs

A new, 40-company cooperative, representing perhaps the most aggressive attempt to date to curb health-care costs through concerted action, appears to be off to a solid start.The Health Transformation Alliance (HTA) has negotiated contracts with two pharmacy benefits managers (PBMs), CVS Health a...

By David McCann • May 19, 2017

Perspectives on President Trump’s Policy Proposals (Video)

The first-quarter Duke University/CFO Global Business Outlook survey found that among CFOs whose companies are headquartered in the U.S., more than half are not in favor of some of the president’s proposed reforms.Just over half, 55%, say that a proposed 20% border tax — a value-added tax levied ...

By CFO Editorial Staff • May 19, 2017

U.S. Business Optimism Jumps After Trump Win (Video)

U.S. CFOs are much more optimistic about the U.S. economy following the election of Donald Trump, particularly with respect to regulatory and tax reform, according to the latest Duke University/CFO Global Business Outlook. But many companies are still waiting to see the details before taking spec...

By CFO Editorial Staff • May 19, 2017

SEC’s Non-GAAP Guidance Should Be Withdrawn

Let’s say an analyst who is reporting on a computer retailer wants to calculate a basic turnover ratio: sales/average inventory. Typically, the analyst must utilize sales and inventory amounts from company financial statements to calculate this ratio. But the numerator, sales, presents a major pr...

By Charles Lundelius • May 19, 2017

Effects of Latest Non-GAAP Guidance? Too Early to Tell

It is clear that the communication of non-GAAP financial measures will likely continue to be a core part of the fabric of company reporting. Yet the widespread supply of and demand for these metrics should not mask the many lingering concerns associated with them or downplay the need for robust o...

By Vincent Papa • May 19, 2017

CFOs Delaying Investments Until After 2016 Presidential Election (Video)

John Graham of Duke University discusses the results of the third quarter’s Duke University/CFO Global Business Outlook Survey.

By CFO Editorial Staff • May 19, 2017

Ralph Lauren Same-Store Sales Drop 12%

Ralph Lauren’s shares fell to levels not seen since the recession after the apparel chain reported a larger-than-expected decline in same-store sales.For the fourth quarter, comparable sales fell 12% drop in comparable sales, easily missing analysts’ expectations of a 6.5% drop and contributing t...

By Matthew Heller • May 18, 2017

Square-Off: Are the SEC’s Non-GAAP Rules Too Strict?

Few would argue that public companies shouldn’t be allowed to present any performance metrics not provided for in generally accepted accounting principles (GAAP). Just as few would argue that public companies should have free reign to report any numbers they choose in any manner they choose.But t...

By David McCann • May 18, 2017

Non-GAAP Metrics Are a Response to Faulty Reporting Standards

It’s not SEC rules being too strict that is the issue. Rather, it’s the variance in interpretation, guidance, and enforcement of publicly reported non-GAAP measures.Kris Hutton The debate over global financial reporting standards is nothing new and is regularly a hot topic among accounting pundit...

By Kris Hutton • May 18, 2017

Non-GAAP Rules Are Needed to Keep Companies Honest

Companies present non-GAAP financial measures for various reasons. At times, the intent is to overshadow an entity’s results of operations, especially if it doesn’t meet market expectations or isn’t yet profitable.Indeed, non-GAAP financial measures often present a rosier picture of an entity tha...

By Jennifer Biundo • May 18, 2017

Target Boosts Profit But Same-Store Sales Fall

Target reported increased profit that beat analysts’ estimates but another decline in same-store sales indicated the difficulty in stemming the shift to online shopping.The retailer’s net income rose to $681 million, or $1.23 a share, in the first quarter, from $632 million, or $1.05 a share a ye...

By Matthew Heller • May 18, 2017

‘Wannacry’ Spotlights Need for Cyber Liability Coverage

Proof that cyber threats are trending worse, not better, was on hand starting last week, when a massive global ransomware attack infected computer systems in over 150 countries. The aptly named “wannacry” malware was unleashed on business and governmental sectors across the globe.  While there’s ...

By Joshua Gold • May 17, 2017

Do Companies Adjust Revenue in Response to Investor Behavior?

A new study offers fresh evidence that companies may manipulate their financial results in response to investor behavior.The American Accounting Association research, which studied 6,836 public companies over a period of more than 16 years, measured the market’s sensitivity to quarterly revenue a...

By David McCann • May 17, 2017

Retailer Rue21 Takes Road to Bankruptcy

Rue21 has become the latest retailer to file for bankruptcy protection, citing changing fashion tastes and the “significant headwinds” facing the industry.The Pittsburgh-based fashion and accessories retailer had already begun closing nearly 400 of its 1,179 stores before it filed a Chapter 11 pe...

By Matthew Heller • May 16, 2017

TJX Same-Store Sales Growth Slows to 1%

TJX Companies missed revenue estimates and its same-store sales grew at the slowest rate in two years, raising fears that the retail doldrums have spread to the off-price segment.The parent of T.J. Maxx, Marshalls and HomeGoods said Tuesday that profit rose 8% to $536.3 million or 82 cents per sh...

By Matthew Heller • May 16, 2017

Metric of the Month: Transaction Processing

For years, CFOs have talked about the importance of moving finance out of the transaction-processing business and toward a more strategic role.Obviously, the transaction work still has to get done. But nothing wastes intellectual talent like an army of accountants spending most of their time open...

By Mary Driscoll • May 15, 2017

Former SEC Chief Thinks Commission Could Boost Climate Focus

Former Securities and Exchange Commission chief Mary Schapiro thinks the SEC could be doing more to push companies to disclose their climate change risks.Mary Schapiro Following the release of the SEC’s 2010 interpretive guidance on climate change disclosures, the commission “aggressively comment...

By David Katz • May 12, 2017

Macy’s Comp Sales Fall for 9th Straight Quarter

Macy’s shares plunged after the struggling retailer reported a larger-than-expected decline in same-store sales as well as a 39% drop in quarterly profit.Macy’s said Thursday that overall revenue fell 7.5% to $5.34 billion in the first quarter, in part due to store closings, while sales at stores...

By Matthew Heller • May 12, 2017

Ex-SEC Employee Accused of Improper Trading

A former U.S. Securities and Exchange Commission employee has been charged with making improper trades in options and other securities and concealing his trading from the SEC’s ethics office.SEC employees are subject to strict rules designed to prevent even the appearance that they may use their ...

By Matthew Heller • May 10, 2017

PCAOB Trying Different Tack in Selecting Audits

While there’s no evidence that audit firms can predict which audits the Public Accounting Oversight Board will choose to inspect, the PCAOB is taking steps that will limit the chance that a firm could manage to the risk of the inspection process.In remarks before the annual Baruch College Financi...

By Vincent Ryan • May 10, 2017

What Kind of Value Generator is Your Company?

I’ve been working in software now for more than 15 years, and one of the most common questions I’ve heard is, “How do these privately held software companies achieve ridiculously high valuations when they are losing massive amounts of money?” These companies are often dubbed “unicorns” because, l...

By Ken Stillwell • May 9, 2017