International

Community News

Poor Controls Over 'Self-Reporting' Costs Companies Millions

Companies with third-party suppliers, business partners or vendor relationships that are based on the concept of “self-reporting” lose millions of dollars each year because of insufficient controls over such business models, says a new report by KPMG LLP, the audit, tax and advisory firm.The Self-Reporting Economy: A Matter of Transparency and Trust outlines how corporate risk has grown unnecessarily in a burgeoning $300 billion “self-reporting” economy in which each business partner provides the other with pert

SEC to Scrutinize Companies Doing Business in Rogue Nations

The Securities and Exchange Commission is looking to hire five full-time staff members to take a hard look at companies with ties to rogue nations.The staff will work for the new Office of Global Security Risk, the Wall Street Journal reported. Congress, in its fiscal 2004 funding bill, required the SEC to identify companies operating in countries linked to terrorists and provide investors with information about the activities.The idea is to help investors who don’t want their money tied to companies that do business in countries that sponsor terrorists or violate human rights.
Community News

PCAOB to Set New Registration Deadline for Non-U.S. Firms

The Public Company Accounting Oversight Board will consider a final vote on changing the registration deadline for non-U.S. accounting firms at the open meeting scheduled for 9 a.m. Tuesday, March 9. At the same meeting, the Board will vote on an auditing standard for audits of internal control over financial reporting, as well as two other matters.As previously announced, the meeting will be held in the East Room of the Mayflower Hotel, 1127 Connecticut Avenue N.W., in Washington, DC.
Tax

EU Begins $4 Billion in Sanctions Against U.S.

Pascal Lamy, the European Union's trade commissioner, last week put U.S.
Tax

IASB Issues Standard on Share-based Payment

The International Accounting Standards Board (IASB) last week issued International Financial Reporting Standard 2 Share-based Payment (IFRS 2) on accounting for share-based payment transactions, including grants of share options to employees. Recent events have emphasised the importance of high quality financial statements that provide neutral, transparent and comparable information to help users make economic decisions.
Technology

Intel Says IRS Inspecting Old Returns

Intel Corp. disclosed that its 2001 and 2002 tax returns are being examined by the Internal Revenue Service, which disputes how the computer chip maker handles tax issues associated with export sales.In an annual filing with the Securities and Exchange Commission (SEC), Intel revealed that the IRS started looking at its old returns in January. The IRS has disagreed with Intel, and other Silicon Valley companies, over export issues and how revenue is transferred between U.S.
Tax

Roman Catholic Church of England: 'Love Your Taxes'

Could an 11th commandment—love your taxes—be far off in England? The Roman Catholic Church of England and Wales has launched a campaign to encourage its 4.6 million members in the U.K. and Northern Ireland to embrace their inner taxpayer.

Japan Announces Plans to Comply With Global Standards by 2005

Earlier last week, the Xinhua News Agency reported that the Business Accounting Council of Japan announced its plans to introduce international accounting standards by 2005. According to the agency, the move would make it easier for Japanese companies to raise funds from financial and capital markets around the world and help create a better business environment between Japan and Europe. The European Union (EU) has made it clear that listed companies in EU member states will be obliged to introduce international accounting standards from 2005.
Education & Careers

Outsourcing to India Grows While Legislation Aims to Apply Brakes

The trend towards outsourcing accounting work to India added another brick to its foundation this week, with the announcement of the launch of a new U.S. based company to assist with the transactions.Accountants in India (AII) is the brainchild ofaccounting profession veterans Wayne Harding (formerly with AICPA's CPA2Biz) and KC Truby (Bridge 21). The outsourcing matchmaker was launched Thursday to help lower costs for U.S. accounting firms by hiring full-time accounting professionals in India.
Tax

Jailed Parmalat Founder's Children Among New Arrests

Italian police on Tuesday arrested the son and a daughter of jailed Parmalat founder Calisto Tanzi in a widening probe into Europe’s largest white-collar crime.Stefano Tanzi, president of the soccer club owned by Parmalat, also sat on the board of Parmalat Finanziaria, the holding company of the failed food group. Stefano's elder sister, Francesca Tanzi, headed the Tanzi family's tourism business Parmatour.
Tax

WMU Beta Alpha Psi Chapter Provides Free Tax Help to Intl. Students

Fifty volunteers from the Western Michigan University’s branch of the national accounting honor society Beta Alpha Psi will receive some real-world accounting experience while providing valuable community service.The students are teaming up with members of the National Association for Black Accountants to help international students with their U.S.

Global Accounting Standards Mired in Dispute

The lofty goal of one world: one set of accounting standards remains just out of reach as three major players in the world economy grapple over some major sticking points.The European Union is insisting that Japan use international accounting standards rather than Japan’s generally accepted accounting principles (GAAP) if Japanese companies want to list in Europe in 2005, Dow Jones Newswires reported.

Europe Looks to SEC as Regulatory Model in Light of Scandals

The European Parliament believes business and finance needs to be regulated across Europe rather than on a country-by-country basis.In an overwhelming vote Thursday, the European Parliament recommended creating a regulatory body similar to the Securities and Exchange Commission in the U.S., the Wall Street Journal reported. The way it works now, individual European countries write laws and implement them, but in light of the massive accounting scandal centering on Parmalat, the fallen Italian food giant, Parliament recommended a new course of action.
Community News

Deloitte & Touche Plans to Double Staff in Singapore

In an effort to make Singapore the company’s third "centre of excellence" in Asia, Deloitte & Touche announced plans to double its staff there to 2,200 in the next few years, which would take the company from the smallest to the largest of the Big Four accounting firms in Singapore.At 1,100 staff currently, Deloitte plans to add Singapore to Tokyo and Hong Kong as one of it is centres of excellence, William Parrett, global chief executive of Deloitte Touche Tohmatsu, told The Business Times.The Times reported that Deloitte’s plans took the industry by surprise as the trend has been t
Community News

EU Considers Audit Firm, Lead Partner Rotation Rule

The European Union is considering rules that would require publicly listed companies to rotate auditors every seven years or to change the senior partner in charge of the audit every five years, Financial Times reported.The proposed rules changes come from the European Commission in the wake of the Parmalat scandal in Italy, which was Europe’s version of Enron.

HealthSouth Probe Now Includes Possible Kickbacks

The Justice Department is now looking into whether HealthSouth officials offered bribes in an attempt to secure business in Saudi Arabia, which would be a violation of federal laws that prohibit such payments to secure business oversees.Specifically, federal prosecutors are investigating a deal signed in 2000 by HealthSouth to manage a 400-bed rehabilitative hospital outside of Riyadh, Saudi Arabia.
Tax

EU Official Seeks Tighter Rules to Prevent Future Scandals

A senior European Union official called for tougher accounting rules Tuesday, and said the Parmalat scandal in Italy may prove to be even worse than the collapse of Enron in the U.S.EU Internal Market Commissioner Frits Bolkestein recalled that after the Enron scandal erupted in the U.S., the commission stated that Europe must not be complacent and that scandals of a similar scale could also happen in Europe."Fortunately, the commission already set in motion in May 2003 action plans to improve both auditing and corporate governance in Europe," he said.

Adecco Executives Resign Amidst Accounting Probes

The Swiss temporary-staffing company Adecco SA announced Friday that its chief financial officer and the head of its North American branch have resigned as the result of an accounting investigation into alleged accounting problems.Adecco acknowledged that the U.S. Securities and Exchange Commission and the U.S.
Tax

New Arrest in Parmalat Scandal, Accounting Firms Named in Probe

The investigation into food giant Parmalat widened Monday, as a former director was arrested and two of the bankrupt company’s former audit firms face an official inquiry.Milan magistrates launched formal investigations into Deloitte & Touche’s Italian branch and the former Italian arm of Grant Thorton.
Community News

Grant Thornton Severs Ties With Italian Unit

According to a Reuters report, on Thursday, Grant Thornton told reporters it has severed all ties with its Italian unit Grant Thornton SpA., in light of the Parmalat scandal, now being dubbed the “European Enron.” "We have lost confidence in Grant Thornton SpA and are therefore acting clearly and decisively to protect our clients and the reputation of all of the other independent firms in the international network," Grant Thornton's global Chief Executive David McDonnell said.

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