The Case for a Corporate Tax Cut Doesn’t Hold Up

The corporate income tax is once again under attack. Republican presidential candidate Donald Trump proposes to cut the corporate tax rate by more than half, from 35% to 15%, while Libertarian candidate Gary Johnson would repeal the tax entirely. Both argue that the corporate tax makes the United...

By Robert McIntyre • July 13, 2016

Slow-to-No Business Investment Growth Seen

Business investment is slowing down dramatically amid a sputtering global economy, heightened political uncertainty, a contraction in trade, and low commodity prices, according to the Equipment Leasing & Finance Foundation.Equipment and software investment is expected to increase by just 0.9%...

By Christopher Hosford • July 13, 2016

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

Warner Bros. Faulted Over Game Promotion

Warner Bros. Home Entertainment has been charged with misleading consumers by failing to disclose adequately that it paid YouTube “influencers” to post glowing video reviews of its Middle Earth: Shadow of Mordor game.The U.S. Federal Trade Commission said Monday that the reviews were “essentially...

By Matthew Heller • July 12, 2016

Are New Tax Rules for Out-of-State Retailers Unconstitutional?

It’s a wild and scary time in the history of sales tax collection. Okay, for those of you who don’t live and breathe tax every day, putting “wild” and “sales tax” in the same sentence may feel like a stretch. But bear with us.Clark Calhoun The long-standing rules that protect out-of-state retaile...

By Andy Yates and Clark Calhoun • July 11, 2016

Evaluating Cash Flow Strategies in the Wake of Global Uncertainties

Heightened by uncertainty in the wake of Brexit and the upcoming U.S. presidential election, forward-thinking finance executives are re-examining their cash management strategies. Improving the accuracy, consistency, and quality of cash data as well developing more accurate cash forecasts are top...

By CFO Editorial Staff • July 9, 2016

CFO Week in Review

In case you missed them, CFO offers the week’s most-read stories.The New-Look CFOModern finance chiefs have diverse professional backgrounds, meaning that accounting experience isn’t always the path to becoming CFO.Delta Reports $450 Million Loss on Fuel HedgeThe airline’s latest hedging loss hig...

By Kerry Maruna • July 9, 2016

Nordstrom Invests in Supply-Chain Software

Nordstrom has acquired a minority stake in supply-chain software firm DS Co. in a move to expedite delivery of online orders while keeping costs down.The retailer has been pursuing initiatives to increase efficiencies across its supply chain amid a sharp decline in sales at its luxury sales. It h...

By Matthew Heller • July 8, 2016

Goldman Sachs: Stocks Will Fall as Uncertainty Rises

Expect the stock market to be negatively impacted for the rest of the year by a variety of factors, including the vote by Britain to leave the European Union, the uncertainty of the current U.S. presidential campaign, and slow growth internationally, says Goldman Sachs, in a new note to clients.D...

By Christopher Hosford • July 8, 2016

U.S. Banks Offer Support for London as Financial Center

Four major U.S. investment banks pledged to help London maintain its position as the world’s leading financial center, despite shaky prospects following last month’s referendum by the U.K. to leave the European Union.Executives of Bank of America Merrill Lynch, Goldman Sachs, JPMorgan, and Morgan...

By Christopher Hosford • July 7, 2016

Dairy Deal: Danone to Acquire WhiteWave

Danone, the multinational food company known for its Dannon and Activa yogurt lines, will acquire WhiteWave Foods Co. in an all-cash deal representing a total value of about $12.5 billion.Danone, based in Paris, will pay $56.25 per share for Denver-based WhiteWave, manufacturer of plant-based dai...

By Christopher Hosford • July 7, 2016

Boeing Takes Steps to Improve Cash Flow

Boeing has extended its vendor payment schedules and reduced factory inventory as the aerospace giant continues to try to conserve cash.The new payment terms are being rolled out this year, Reuters reported, with Boeing taking up to 120 days to pay, rather than 30 days as in the past. Inventories...

By Matthew Heller • July 7, 2016

Verizon Users Get Higher Rates, More Data

Verizon Wireless has revamped its pricing plans, betting that customers will pay higher rates for service in return for increased data allowances and other features.Verizon’s cheapest, or “S,” plan will now offer 2 gigabytes of shared data for $35 per month, up from $30 for 1 GB, while the medium...

By Matthew Heller • July 7, 2016

Tax Foundation Says GOP Tax Plan Boosts Economy

A tax-reform proposal offered by Republicans in the House of Representatives would lead to the creation of 1.7 million jobs, raise wages by 7.7%, and boost gross domestic product by 9%, according to a report by The Tax Foundation, a conservative-leaning organization.That cost of the proposal, if ...

By Christopher Hosford • July 6, 2016

States Fight to Enforce Online Sales and Use Taxes

The explosive growth of online retailing over the last 20 years has increased the pressure on states to seek to enforce sales and use taxes on online purchases. This year, many states have taken significant steps to enhance their ability to enforce payment of the taxes, and to expand their taxing...

By William H. Gorrod • July 6, 2016

Fatal Tesla Crash Raises Disclosure Questions

Tesla Motors is facing scrutiny of its disclosure practices after failing to report a fatal crash involving its autopilot technology when it sold shares in May.The May 7 accident in Florida killed Joshua Brown, 40, while he was driving a Tesla Model S on autopilot. The automaker disclosed June 30...

By Matthew Heller • July 6, 2016

Can Technology Save the Corporate Tax Shell Game?

CEOs around the world are staring down a growing operational risk that has the power to tarnish the reputations of even the most successful Wall Street darlings: tax. More specifically, the public perception of tax avoidance.Brian Peccarelli It doesn’t matter if a public company has achieved doub...

By Brian Peccarelli • July 5, 2016

The Fed Approves Capital Plans of 30 Banks

The Federal Reserve Board, in its most recent report of capital adequacy of major U.S. banks, approved the capital plans of 30 bank holding companies. However, the Fed objected to the plans of two banks, including Deutsche Bank.Plans approved by the Fed under its Comprehensive Capital Analysis an...

By Christopher Hosford • July 5, 2016

Bank of England Pares Banks’ Capital Requirements

The Bank of England, in an attempt to mitigate fallout from the United Kingdom’s vote to leave the European Union, has lowered the amount of capital banks must hold in reserve, Reuters reported. The goals are to enable banks to keep lending and to prevent insurers from getting rid of corporate bo...

By Christopher Hosford • July 5, 2016

The New-Look CFO

Finance chiefs of the future will have diverse professional backgrounds, meaning that accounting experience will not always be required. In these five articles, industry experts weigh in on the most sought-after attributes of the modern CFO.The Optimal CFO? Depends on Industry Growth Rate“Account...

By CFO Editorial Staff • July 2, 2016

CFOs on the Move: Week Ending July 1

Things aren’t getting any easier for SunEdison, a bankrupt solar energy company. On Tuesday, a week after CEO Ahmad Chatila resigned, Ilan Daskal, who had been designated in March as the company’s next CFO, resigned before assuming the post. He was to have replaced Brian Wuebbels, who was slated ...

By David McCann • June 30, 2016

Who Should Decide Whether to Keep Funding a Project?

New research provides some surprising evidence regarding a perennial issue that bedevils capital projects: how to avoid cost underestimates that can lead to budget-busting cost overruns.Commonly proffered advice for avoiding overruns addresses decision-makers’ tendency to escalate their commitmen...

By David McCann • June 30, 2016

With Focus on Revenue, FASB Eyes Nonfinancial Assets

The intense corporate focus on the Financial Accounting Standards Board’s revenue recognition rules has prompted FASB to try to clarify how companies should account for sales of nonfinancial assets — assets not part of their regular dealings with customers.Following up on problems it unearthed in...

By David Katz • June 29, 2016

Making Cybersecurity a Business Function Poses Challenges

Thanks to the constant stream of mega-breaches, cybersecurity has moved from the server room to the boardroom. While it’s become evident that cyber defense requires board-level input and attention, translating deeply technical cybersecurity and risk factors into business terms has been an ongoing...

By Elon Kaplan • June 29, 2016

U.K. Firms’ Shares Tumble on Brexit Concerns

U.K. firms Foxtons and easyJet saw their shares tumble Monday after they warned investors that profits this year could be hurt in the fallout of the Brexit vote.London-based real estate firm Foxtons said the run-up to the referendum created “significant uncertainty” across London residential mark...

By Katie Kuehner-Hebert • June 27, 2016

CFO Week in Review

In case you missed them, CFO offers the week’s most-read stories.Welcome to ‘Risk Accounting’Academics have codified a new accounting technique that could revolutionize enterprise risk management.The Longest Cash CycleCan the asset-backed security market cure wireless carriers’ elongated cash cyc...

By Kerry Maruna • June 26, 2016