Attitudes among business leaders about the relationship between business and social change are shifting. On the one hand, executives understand that their businesses have an important role to play in solving social problems. On the other hand, the value of corporate social responsibility isn’t clear and many believe a new approach that delivers more return…
Leer más
Ever since the publication of Milton Friedman’s book; Capitalism and Freedom, there has been constant debate of corporate social responsibility and profits, both in the business world, as well as the academic field. The debates now transcend to another level, whether businesses exist for “reason” or profits. Put his argument in simplicity, Milton thinks that…
Leer más
Corporates have scrambled to meet their corporate social responsibility (CSR) obligations under the new Companies Act, 2013. This is not a surprise, as most companies have not regarded CSR as a business priority. The positive outcome is that the act has compelled an introspection. Jeremy Rifkin’s latest book, The Zero Marginal Cost Society, contains within…
Leer más
Earlier this month, the Nordic Federation of Accountants (NRF) published a consultation on a new Standard for Audits of Smaller Entities (SASE) that, if finalised, will apply in Norway, Sweden, Iceland, Finland and Denmark. We’re concerned about smaller entity audits Smaller entity audits have been a central ICAEW concern for over a decade. There has been a…
Leer más
While enhanced skepticism is a key argument for requiring auditor rotation, a new report suggests that what really happens is the opposite. An intricate experiment reported in a leading accounting journal has cast new light on a contentious issue regarding the auditing of financial statements — namely, whether companies should be required to periodically change…
Leer más
Without trust, there can be no growth. Although the auditing profession has played a significant role in establishing trust for centuries, in the wake of the global financial crisis, concerns have been raised about relevance and the value of auditors’ work. While our work allows us to express opinions on the fairness of financial information…
Leer más
Inconsistencies in ACT from company to company, and even within companies, cloud net-income reporting, an accounting expert says. Every well-controlled company has an asset capitalization threshold (ACT) that should be consistently applied. The ACT is the dollar value at which an acquired asset is capitalized rather than expensed. Pretty basic, right? However, there is no…
Leer más
India is likely to defer the adoption of new accounting standard on revenue recognition (known as Ind AS 115) as more consultation is needed with the industry to clarify the requirements and to give examples to help implementation. Technology and telecom companies are largely going be impacted with this standard. The new accounting standard on…
Leer más
A succession of recent announcements by major Japanese companies—notably relatively young firms like Softbank and Rakuten—that they were adopting the International Financial Reporting Standards has generated great interest. The IFRS accounting rules were originally developed to harmonize standards in the European Union and have since been adopted by countries outside the region; they are now…
Leer más
The Financial Accounting Standards Board has released two proposed accounting standards updates related to derivatives and hedging. The first proposal involves the effect of derivative contract novations on existing hedge accounting relationships. The second proposal, also issued Thursday, pertains to contingent put and call options in debt instruments. The proposed update on derivative contract novations comes from FASB’s…
Leer más
