Microsoft Corporation [MSFT] filed its annual report on August 1, 2019, and, in addition to the wealth of information provided in the 10-K, we came across one of the first disclosures of critical audit matters from a large accelerated filer.1 … Continue reading
Category Archives: Accounting Policies
Slow Adoption Progress of ASC 842 – Leases
Note: This article was first available to subscribers of Accounting Quality Insights by Audit Analytics on Bloomberg, Eikon, FactSet, and S&P Global. Now that the new lease accounting standard ASC 842 is effective, we see that public companies are progressing … Continue reading
Recognizing Challenges of New Revenue Recognition Rule
Note: This article was first available to subscribers of Accounting Quality Insights by Audit Analytics on Bloomberg, Eikon, FactSet, and S&P Global. For recent updates, please contact us. Introduction For nearly two years, we have monitored U.S. public companies’ progress … Continue reading
Can Tenure Requirement Provide Insight into Engagement Partner Rotation?
Who audits public companies? This question is continuously of interest to investors, audit firms and academics alike. Firm-level information is, and always has been, available from the audit opinions included in the annual reports. However, until recently, information regarding engagement … Continue reading
PayPal: The Importance of Intangible Asset Impairments
In July 2017, PayPal Holdings, Inc. [PYPL] acquired Canadian payment-processing company TIO Networks for $238 million. The purchase price consisted of $66 million of technology and customer-related intangible assets, net assets of approximately $2 million and initial goodwill of approximately … Continue reading
Impact of New Revenue Recognition Rule on the Russell 3000
As Russell 3000 public companies with December year-ends implement the new revenue recognition standard, we are beginning to see a pattern – smaller companies provide fewer details and generally are not as prepared as larger companies. Smaller companies may lack … Continue reading
What You Should Know About General Electric’s Revenue Recognition Announcement
Note: This post has been updated to include the full, unabridged FactSet article made available on November 12, 2018. General Electric Co [GE] released an update on April 13, which among other things, clarified issues related to the adoption of … Continue reading