International

Community News

KPMG Establishes Global Business and Ethics Center

KPMG International, announced this week the establishment of the Global Center for Leadership & Business Ethics, an independent entity designed to recognize those individuals who exhibit extraordinary business ethics and leadership qualities.“The Global Center is being founded on the conviction that leaders are defined by their actions, and that those individuals who exhibit exemplary business ethics should be recognized and honored,” said Mike Rake, chairman, KPMG International.
Community News

Global Accounting Outsourcing to Surpass $47 Billion by 2008

The worldwide finance and accounting (FA) outsourcing market will reach $47.6 billion in 2008, growing at a 5-year CAGR of 9.6%, a new IDC study reveals. Spending on outsourcing of the transaction management function is expected to grow the fastest, at 9.8%, over the next five years. From a regional perspective, the study determined that the U.S. will remain by far the largest FA business process outsourcing (BPO) market, while EMEA will be the fastest growing region in terms of FA BPO spending in the short to mid-term.
Community News

U.K. Delays Action on Auditor Liability Protection

Seeking to cap their liability when a company implodes on their watch, accounting firms in the United Kingdom and throughout Europe were disappointed last week by the U.K.’s decision to delay action on proposals to limit auditor liability, the Wall Street Journal reported.U.K. accounting firms have been trying for nearly a decade to get liability protection and the delay is a setback to accounting firms across the European Union that had been closely watching the U.K.’s action hoping it would begin a trend across Europe.The meltdown of companies such as Enron in the U.S.
Community News

Virchow Krause Launches International Services Group

Recently, Virchow, Krause and Company, LLP announced the launch of an international services group to satisfy the strategic globalization needs of the middle market. The newly created practice group will focus on providing companies with a full range of domestic and international planning and compliance services needed to be competitive in the global marketplace."With the launch of our global services group, we are stepping out to become a different type of company," said Tim Christen, CEO of Virchow Krause. "We have seen an increasing demand from companies looking to grow internationally.
A&A

AICPA Opposes Restrictions on Foreign Housing Benefit

A Senate proposal to limit a housing benefit employers provide to overseas workers has sparked opposition from the AICPA and business groups concerned about the loss of American jobs.The measure would change the 1978 formula for figuring the benefits for U.S. expatriate workers. Currently, overseas workers are allowed to exclude up to $80,000 from U.S. income taxes. If their employers pay for housing, however, they can exclude housing costs as long as they are not "lavish or extravagant," the Wall Street Journal reported.A proposal sponsored by Sen.
Tax

Treasury, IRS Warns Against Abusive U.S. Virgin Islands Tax Reduction Scheme

This week, the Treasury Department and the IRS issued a notice cautioning taxpayers against promoters who market arrangements that purportedly provide reductions in U.S. federal taxation pursuant to the special rules applicable to the U.S. Virgin Islands. These arrangements involve taking positions that are highly questionable with respect to claims that the taxpayer resides in the U.S. Virgin Islands and that the taxpayer's income is from sources in the U.S. Virgin Islands or is connected with a U.S. Virgin Islands business.
Tax

IRS Announces New Procedure for U.S. Tax Certification

A new IRS tax form, Form 8802, Application for United States Residency Certification, will make it easier for U.S. individuals and businesses to establish that they are entitled to lower foreign tax rates provided by U.S. income tax treaties.The United States has tax treaties with many countries, which generally will reduce the statutory tax rate for income paid to U.S. citizens and businesses investing or operating in those countries. Upon receiving proof of U.S.

Accenture Contract Moves Forward

It became less likely Friday that Congress would punish Accenture for being incorporated in Bermuda when lawmakers voted to give the consulting firm part of a $10 billion Homeland Security Department contract, MarketWatch.com reported.The five-year Homeland Security contract comes with an option for a five-year extension and involves a system called US-Visit, which will track non-citizens through digital finger scans and photographs taken at more than 400 air, sea and land points of entry.Accenture’s parent corporation is nominally incorporated in Bermuda, some say so the company can d
Technology

SEC Sues Former Network Associates CFO

The Securities and Exchange Commission on Wednesday filed suit against a former CFO of Network Associates for fraud and insider trading.The SEC accuses Prabhat Goyal, who resigned at the end of 2000, of using the company’s distributors to overstate sales, the Financial Times reported. Court papers filed in federal court also say that Goyal used a Network Associates subsidiary to buy back inventory that had been sold to the company’s distributors.

Accounting Rule on Derivatives Sparks Veto by 4 EU Nations

Four countries have voted down the latest version of a rule on accounting for derivatives, continuing a years-long debate and creating doubt that a full package of accounting standards will be passed by January.France, Italy, Spain and Belgium vetoed the compromise at a meeting of an advisory group called the Accounting Regulatory Committee, according to a European diplomat as reported in the New York Times. The committee is made up of representatives from the European Union’s 25 member states.
A&A

Tax Windfall Possible for Tech, Drug Companies

Technology firms and pharmaceutical companies would win huge tax breaks under a bill that would permit them to bring home profits earned abroad without the heavy tax burden that goes with it.The bill would allow American companies with foreign operations to "repatriate" earnings held overseas at a tax rate of 5.25 percent, versus the current rate of 35 percent, the Wall Street Journal reported.
Community News

PCAOB Adopts Rules For Foreign Audit Firms, Extends July Deadline

On Wednesday, the Public Company Accounting Oversight Board (PCAOB) voted unanimously to adopt its third auditing standard along with rules related to the oversight of non-U.S. firms and certain terminology.The Board adopted Auditing Standard No. 3, Audit Documentation, and a related amendment to an interim auditing standard, which establishes general requirements for documentation an auditor should prepare and retain in connection with engagements conducted pursuant to the standards of the PCAOB.
Technology

Accenture Contract Threatened by Congressional Action

Congress is taking aim at the practice of companies incorporating offshore to avoid paying U.S. taxes, with a multi-billion dollar Homeland Security contract threatened by a provision attached to the department’s budget.The House Appropriations Committee approved a $32 billion budget for the Homeland Security Department but attached a provision that bars the multi-billion dollar contract awarded last week to a coalition of companies led by the U.S.

PCAOB Consider Adopting Audit Documentation Standards, Rules for Oversight of Non-U.S. Firms

Last week the Public Company Accounting Oversight Board scheduled an open meeting for 10:00 a.m. Wednesday, June 9, in the Board’s 8th floor meeting room, 1666 K Street N.W., in Washington, DC. The Board is scheduled to consider:Adopting an auditing standard that would establish general requirements for documentation the auditor should prepare and retain in connection with engagements conducted pursuant to the standards of the PCAOB.
Technology

Accenture Wins U.S. Department of Homeland Security Contract

The Accenture-led Smart Border Alliance has been selected by the U.S. Department of Homeland Security (DHS) to design and implement the United States Visitor and Immigrant Status Indicator Technology (US-VISIT) program. Under the contract, which includes five base years plus five option years, and is worth an estimate $10 billion will help develop and implement a new entry/exit system to be deployed at the nation's more than 400 air, land and sea ports of entry.
Tax

IRS Warns of New Scheme to Steal Identity and Financial Data

The Internal Revenue Service warned on Tuesday of a fraudulent scheme targeting non-resident aliens who have income from a United States source. The scheme uses fictitious IRS correspondence and an altered IRS form in an attempt to trick the foreign persons into disclosing their personal and financial data.
Community News

KPMG to Split off Australian Insolvency Practice

The KPMG practice that has worked on Australia’s most spectacular corporate scandals is being split off into an independent operation.KPMG LLP announced its plans this week in an effort to prevent any conflicts of interest with its banking and financial services clients, the Wall Street Journal reported. The decision was prompted by the tougher regulations in the U.S. that cover consulting services by audit firms.
Tax

EU Reaches Accord With Switzerland Over Savings Tax Issue

After a decade of negotiating, the European Union’s proposal to tax non-residents’ savings appears likely to become reality since a deal was struck between the European Commission and Switzerland.Representatives of the EU's 25 member states last week cleared the way for the deal to be signed on Wednesday, the Financial Times of London reported.

U.S. Companies Faster Than European Firms in Closing the Books

When closing the books on the end of a fiscal year, speed matters and some companies can get it done in just a week or two. A recent study shows that U.S. firms do it twice as fast as European companies, Reuters reported.A recent survey by IBM Business Consulting looked at how fast companies reported their 2003 results, finding that just one European company— Germany's Beiersdorf—was able to do it within 21 days, as compared to more than 20 of the largest U.S.

Canadian Accounting Bodies Pondering Merger

Canada’s two accounting regulating bodies are considering a merger that would make the combined entity one of the world’s largest accounting organizations with about 100,000 members.The Canadian Institute of Chartered Accountants and CMA Canada are the two bodies in question and pending the approval of territorial and provincial bodies, the merger could be effective by the New Year.CMA Canada represents the country’s chartered and certified management accountants.

Pages