Berkshire Hathaway Reports Mixed Earnings

Berkshire Hathaway’s operating profit from its businesses rose 6.6% in the third quarter but net income fell due to lower investment gains.Warren Buffett’s conglomerate had operating earnings of $4.85 billion, amounting to $1.97 per Class B share or $2,951 per Class A share, in the three months t...

By Matthew Heller • Nov. 8, 2016

Metric of the Month: Personnel Cost Errors

When forecasting how much a company will need to spend on labor, precision is vital. If CFOs get the personnel cost forecast wrong, the ripple effect is felt throughout the organization. Nobody feels it more than business-unit managers, who must find a way to get the work done when recruitment an...

By Mary Driscoll • Nov. 8, 2016

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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

Sysco’s Profits Get Boost From Brakes Deal

Sysco’s profits rose by nearly one-third in the first quarter amid a surge in international sales fueled by its recent acquisition of U.K. food-service distributor Brakes Group.Net income increased to $324 million from $244 million a year earlier while overall revenue was up 11% at $14 billion. E...

By Matthew Heller • Nov. 8, 2016

Sotheby’s Loss Widens to $54M in 3rd Quarter

Sotheby’s posted a steep loss in its latest quarter but assured investors the deficit was seasonal and the art market may be headed for a rally.The auction house said Monday it lost $54.5 million for the third quarter, compared to an adjusted net loss of $17.9 million a year ago. It attributed th...

By Matthew Heller • Nov. 7, 2016

M&A Activity Surges Prior to Election

While M&A activity typically slows down in the run-up to a presidential election, this year’s atypical contest is having the opposite effect in its final month. According to Dealogic, U.S. companies have struck $248.9 billion of merger agreements in October, topping the previous record of $24...

By CFO Editorial Staff • Nov. 5, 2016

Multinationals Dodged Bullet on ‘Earnings Stripping’ Rules

Many kinds of U.S. multinational companies, including  S-corporations, REITS, and financial services companies apparently dodged a bullet last month when the U.S. Treasury Dept. issued its final, substantially revised rules aimed at curtailing “earnings stripping.”U.S. Treasury Secretary Jacob Le...

By David Katz • Nov. 4, 2016

Fitbit’s Profits Hit By Manufacturing Problems

Fitbit, the maker of wearable fitness-tracking devices, posted lower than expected earnings and a dismal fourth-quarter outlook on Wednesday, sending stocks plummeting in after-hours trading and suggesting the device maker could be in for a gloomy holiday season.While quarterly revenue increased ...

By Sean Allocca • Nov. 3, 2016

Companies More Reluctant to Deploy Short-Term Cash

More U.S. companies hoarded cash again in the third quarter, according to the latest Corporate Cash Indicators data from the Association for Financial Professionals, and their finance leaders expect to continue to maintain high levels of liquidity in the final quarter of 2016.The difference betwe...

By Vincent Ryan • Nov. 3, 2016

IASB Plans Revamp of Financial Term Definitions

The International Accounting Standards Board is aiming to make it easier for investors to understand financial reports by providing new definitions of common financial terms.The board is responsible for setting the International Financial Reporting Standards, which are applied in more than 120 co...

By Matthew Heller • Nov. 2, 2016

Internal Auditors Strain under Unethical Pressures

Almost a quarter of all internal auditors experience pressure to change or suppress unfavorable audit findings, but the true prevalence of such pressure might be far greater.Socrates: Father of Ethics In a new report from the Internal Audit Foundation, based on a survey of more than 14,500 audit ...

By David McCann and Sean Allocca • Nov. 2, 2016

S&P 500 Firms Beefing Up Audit Disclosures

The percentage of S&P 500 companies that disclose information on key areas of external auditor oversight has more than doubled in the past two years, according to a new survey.The 2016 Audit Committee Transparency Barometer, issued jointly by the Center for Audit Quality and Audit Analytics, ...

By Matthew Heller • Nov. 2, 2016

How CFOs Can Shift Operating Focus to Value Creation

CFOs are now business value architects rather than cost controllers — and their operating models are being reshaped to reflect that. To re-architect outdated operating models, CFOs are finding new ways to adapt their organizations to a new value proposition. In many cases, that can be an uphill c...

By Christian Campagna and Accenture • Nov. 1, 2016

PwC Auditor Accused of VC Fund Audit Failures

A PricewaterhouseCoopers audit partner has been charged with failing to conduct proper audits of a venture capital fund from which biotech investor Steven Burrill looted millions of dollars.The U.S. Securities and Exchange Commission said Adrian D. Beamish signed off on audit opinions for Burrill...

By Matthew Heller • Nov. 1, 2016

Shell, BP Profits Beat Estimates in 3rd Quarter

Better-than-expected results from Royal Dutch Shell and BP fueled optimism that the oil industry is adapting to the oil price downturn.Both companies said they had made progress with efforts to stabilize profits by making further cuts in spending. “Shell delivered better results this quarter, ref...

By Matthew Heller • Nov. 1, 2016

Navigating Changes to Employment Laws

For CFOs charged with overseeing HR, it is imperative to keep abreast of employment law and regulations. This is particularly pertinent as the new Department of Labor overtime rule are about to kick in. Here are five articles to help finance chiefs from running afoul of when the company hires, fi...

By CFO Editorial Staff • Oct. 29, 2016

Coke Beats Estimates for 7th Straight Quarter

Coca-Cola’s third-quarter earnings beat analysts’ estimates as higher prices for sodas and strong demand for water and sports drinks in North America offset continued sales weakness abroad.The company on Wednesday reported a profit of $1.05 billion, or 24 cents a share, down from $1.45 billion, o...

By Matthew Heller • Oct. 26, 2016

Reducing Uncertainty with Predictive Modeling

The business corollary of the popular quote, “The only thing that is constant is change,” by the Greek philosopher Heraclitus, is that the only thing constant in business is uncertainty.How businesses deal with that uncertainty is everything. It can limit opportunities and hamstring the business,...

By Shaheen Dil • Oct. 26, 2016

SEC Clarifies New Rules on Executive Pay

The U.S. Securities and Exchange Commission has clarified what data companies can use to comply with its new rule requiring disclosure of the relationship between executive pay and performance.The pay-for-performance proposal is part of the Dodd-Frank law’s disclosure package involving executive ...

By Matthew Heller • Oct. 24, 2016

Stock Options Help Firms Keep Workers Quiet

Companies offer stock options to rank-and-file employees to deter them from reporting financial misconduct, according to a new study that may have implications for regulatory efforts to encourage whistleblowing.The study found firms involved in financial reporting violations granted more rank-and...

By Matthew Heller • Oct. 21, 2016

The End of Accounting?

Although the title of the new book Baruch Lev has co-authored, “The End of Accounting,”  provocatively suggests the finale of financial reporting as we know it, he cautions that he really isn’t calling for its absolute elimination.Baruch Lev Baruch Lev“We don’t recommend getting rid of financial ...

By David Katz • Oct. 20, 2016

New ISO Standard Is an Anti-Bribery Game-Changer

As of Oct. 14, there is a new global standard for anti-bribery and corruption (ABC) management systems, courtesy of the International Organization for Standardization. Called ISO 37001, it means there is now an internationally recognized set of measures to prevent and detect bribery.David Lawler ...

By David Lawler • Oct. 20, 2016

Goldman Sachs Posts 58% Increase in Profit

Goldman Sachs reported surprisingly strong earnings on Tuesday, breaking out of a recent slump amid a surge in revenue from its core trading division.CFO Harvey Schwartz said the third quarter was Goldman’s best in five quarters, with revenue increasing 19% to $8.2 billion and profit climbing 58%...

By Matthew Heller • Oct. 18, 2016

How to Choose a 401(k) Plan Auditor

For startup companies or others that are putting a 401(k) plan in place, the details may seem endless.Generally, audits of such plans with 100 or more participants are required as part of the Form 5500 filing for employee benefit plans. For 2015, the instructions for the form ran 82 pages. By com...

By Robert J. Rojas • Oct. 18, 2016

Banks Take on the Fintechs

While there is great uncertainty about the future of banking, one thing is becoming increasingly clear: the digital revolution that has pitted fintechs and banks against each other, in recent years, is beginning to approach an inflection point. Competition in many markets is tightening as new pla...

By Kenny Smith • Oct. 18, 2016

BofA Crushes Estimates With 6.6% Profit Gain

Bank of America on Monday reported its first profit increase in three quarters, benefiting from a surge in trading revenue and its cost-cutting efforts.The bank’s top and bottom lines beat analysts’ estimates as profit rose 6.6% to $4.45 billion, or 41 cents a share, and revenue increased 3% to $...

By Matthew Heller • Oct. 17, 2016