Every filing season has its fair share of surprises. The current one presents the drama of Valeant Pharmaceuticals (NYSE: VRX), which, as a main attraction, is by no means an everyday affair. After all, how often does one see the loss of $10 billion … Continue reading
Monthly Archives: October 2015
Are Lengthy Audit Report Lags a Warning Signal?
Are Lengthy Audit Report Lags a Warning Signal?, ask authors Alan I. Blankley, David N. Hurtt, and Jason E. MacGregor in their July 2015 paper in Current Issues in Auditing. In this “practitioner summary” of a research paper published last year … Continue reading
Netflix Change in Amortization Estimate
In its Q3 2015 10-Q, Netflix, Inc. (NASDAQ: NFLX) disclosed a change in accounting estimate made to their amortization of certain intangible assets. 1. Basis of Presentation and Summary of Significant Accounting Policies In the third quarter of 2015, the … Continue reading
Q3 2015 IPOs: Auditor Market Share
Overview There were 42 initial public offerings in U.S. markets between July 1, 2015 and Sep 30, 2015, representing a decrease of 33% from the same period last year when there were 63 IPOs. The total amount raised this quarter was $6.7 … Continue reading
An Auditor Merry-go-Round
There has been much discussion in recent years concerning auditor tenure, with most of the attention fixed on companies with exceptionally long auditor relationships. In a previous post, we noted that the average auditor tenure among the Russell 3000 was 16 years. … Continue reading
Fair Value Estimates and SEC Comment Letters
The Impact of SEC Disclosure Monitoring on the Uncertainty of Fair Value Estimates, by Daniel Bens, Mei Cheng, and Monica Neamtiu, (2015 Accounting Review, forthcoming) examines the effectiveness of SEC comment letters to increase transparency in fair value estimates disclosures. The authors postulate … Continue reading