According to PricewaterhouseCoopers research, 13 foreign companies have been sued in shareholder class actions through November 3, 2003.In 2002, PricewaterhouseCoopers Foreign Securities Litigation Study reported an unprecedented 22 foreign issuers who were named in securities class actions, an increase of 47 percent over the 15 cases filed in 2001. (Note: 2001 numbers exclude "IPO Laddering" cases).PricewaterhouseCoopers' research shows that since the start of 2002, foreign issuers have agreed to pay a total of approximately $700 million to settle shareholder class actions in the U.S.

Despite the ongoing scandals surrounding questionable accounting practices, companies are still looking for ways to paint a better picture of their financial condition, with fluctuating tax rates appearing to be their best bet. The Associated Press reported that Coca-Cola’s third quarter tax rate was 18.4 percent, down from the projected 24 percent. The company expects to end the year with a 22 percent rate.

Fannie Mae, the company that guarantees most of America’s mortgages, revealed a $1.2 billion mistake on its third-quarter earnings statement, which it revised on Wednesday.The revision took total accumulated other comprehensive income to minus $15.228 billion from its original statement of minus $16.364 billion and total assets shifted from $1.018 trillion to $1.019 trillion. Reuters reported that the revisions will only impact balance sheet items and would not affect the income statement.

A study by Vanderbilt University researchers has found that audit firms are still likely to produce inaccurate audit opinions to benefit a big client — as long as company officials think they can get away with it."Our study demonstrates that audit firms may lie to keep a profitable audit client if the expected benefits of keeping the client happy outweigh the expected costs of an audit failure if the firm gets caught," said Debra Jeter, co-author of the study and an associate professor of accounting at the Owen Graduate School of Management at Vanderbilt.However, the report also sugges

At its Board meeting on October 8, the FASB decided to defer to the fourth quarter from the third quarter the implementation date for Interpretation No. 46, Consolidation of Variable Interest Entities, issued earlier this year. This deferral only applies to variable interest entities that existed prior to February 1, 2003.

With the threat of criminal prosecution, millions in fines and possible jail time facing them for signing off on corporate reports they know to be false, CEOs and CFOs have been leaving nothing to chance. They can breathe a little easier now that two reports have been taken off the list of those requiring their certification.The Securities and Exchange Commission staff announced last week at a corporate lawyer’s conference that employee benefit plan reports and reports known as 8-Ks will be exempt from certification by top corporate officers.

Wesley H. Cowell, the former chief accounting officer of Enron North America, has agreed to pay a $500,000 fine for his role in fraudulently manipulating the earnings of the bankrupt company's trading arm.According to the SEC notice, Colwell has agreed to be barred from acting as an officer or director of a public company, and will pay $300,000 in disgorgement and prejudgment interest and a civil penalty of $200,000.

Last week, Sun Microsystems CEO Scott McNealy lashed out at accounting standards, the SEC, Sarbanes Oxley and the "absolutely wacko" rulemakers and standard setters in the accounting profession.

Guest Article, submitted by Werner ReisacherThere are as many opinions about the reasons behind the present economic crisis as there are personal interest groups. However, the factors leading up to the present economic situation go beyond opinions and personal interests. They are by far more complex and can be traced back to the 1990’s. During those years, cost reduction exercises were routine. The legacy software systems in place could not support these activities and provide the integrated solutions needed to improve productivity.