Bramwell's Lunch Beat: BDO USA Leads in New SEC Audit Clients in Q2by
BDO USA big winner in SEC client gains
BDO USA LLP once again led all major accounting firms in new US Securities and Exchange Commission (SEC) audit clients in the second quarter of 2015 with 16 wins and a net gain of nine, according to a blog by research firm Audit Analytics and an article by Accounting Today. Among the Big Four accounting firms, Deloitte & Touche LLP led with a net gain of five new large accelerated filers in the second quarter. Other firms that did well in the second quarter are Hein & Associates LLP, which had a net gain of three new accelerated filers (companies with public float between $75 million and $700 million), and MaloneBailey LLP, which had a net gain of 36 smaller reporting companies.
US watchdog refers PwC to ethics panel over audit of charity
A US Department of Justice internal watchdog has referred PricewaterhouseCoopers (PwC) to a professional ethics panel over what it called âextensive deficienciesâ in an audit of federal grant compliance by Big Brothers Big Sisters of America, wrote Dena Aubin of Reuters. In a report released on Tuesday, the Office of the Inspector General said it found multiple omissions in PwC's work on the mentoring organization Big Brothers, which received more than $23 million in Justice Department grants between 2009 and 2011. The inspector general said it questioned $19.5 million in funding that Big Brothers received and recommended that $3.8 million in funds not yet disbursed be put to better use. After problems were pointed out to PwC by the inspector general, the audit firm pulled its audit report on Big Brothers and issued a revised one in January this year.
House Republican to roll out âinnovation box' plan
Rep. Charles Boustany (R-LA) will roll out a plan on Wednesday to cut taxes for income spurred by intellectual property, as House Republicans lay the groundwork for a potential major highway and tax reform deal, wrote Bernie Becker of The Hill. Boustany said his so-called âinnovation boxâ would be a central part of the House GOP's plan to revamp how the United States taxes multinational corporations, which he expects House Ways and Means Committee Chairman Paul Ryan (R-WI) to introduce this fall. A bipartisan group of lawmakers have shown an interest in innovation or patent boxes in recent months. Under those sorts of proposals, companies could pay a lower tax rate on patents, copyrights, trade secrets, and other intellectual property. House Republicans are broadly in favor of using an international tax agreement that would include an innovation box to fund a full six-year highway bill.
Senate appropriators adopt $10.48 billion IRS funding bill
The Senate Appropriations Committee on July 23 approved legislation that would continue the ongoing budget cuts at the IRS and yet would seek to improve taxpayer services, wrote Kat Lucero of Tax Analysts. The Financial Services and General Government Appropriations 2016 Act, which passed 16-14, would provide the IRS with $10.48 billion for fiscal 2016, cutting its coffers by 4.3 percent from the current funding level. The reduction continues budget cuts at the beleaguered agency that have been ongoing since 2010. The only area that would see a funding increase is taxpayer services, which would receive a 4.2 percent boost, to $2.28 billion, from the current year's amount. The legislation, now on its way to floor consideration, shares its status with the House's financial services appropriations bill, which would provide the IRS with $10.1 billion and would similarly boost taxpayer services funding.
Toshiba to cut interim CEO pay by 90 percent on accounting scandal
Reuters reported that Toshiba Corp. will slash the monthly salary of interim CEO Masashi Muromachi by 90 percent for the next two months following revelations of improper accounting at the Japanese conglomerate. Muromachi's monthly salary will be reduced by 50 percent on top of the 40 percent cut already in place. Toshiba said on Wednesday it would also dock the pay of other senior executives, and that a shareholders' meeting in September would consider any additional measures.
California Film Commission receives 254 applications for tax credits
The California Film Commission said 254 projects had applied for the second round of the state's newly expanded film and television tax credit, wrote Richard Verrier of the Los Angeles Times. Between July 13 and July 25, the commission said it received 32 applications for studio films and 222 for independent features projects, underscoring the strong demand for film incentives intended to keep production in California. Due to limited funds, however, only a fraction of the applicants will be selected. The $55.2 million round includes $48.3 million for studio feature films and $6.9 million for independent projects. Under the program, a single large-budget feature could receive a credit for as much as $20 million. The state Legislature last year agreed to triple annual funding for the state's film tax credit program to $330 million.