Core Insights - The Financial Accounting Standards Board (FASB) has updated on discussions from The Private Company Council (PCC) regarding potential simplifications in accounting processes for private companies [1][2] Group 1: Research Topics - The PCC has requested further research on lease accounting simplifications, subjective acceleration clauses, and methodologies for calculating the effective interest rate as part of its agenda prioritization process [2] - Updates were provided on selected research projects, detailing the research conducted and feedback received from private companies [2][3] Group 2: Technical Updates - The PCC endorsed the Board's decisions on proposed Accounting Standards Updates concerning Debt—Modifications and Extinguishments and Liabilities—Extinguishments of Liabilities, aimed at simplifying accounting for debt exchanges [3][4] - FASB staff briefed the PCC on recently issued standards and their applicability to private companies, ensuring the PCC is informed about new standards impacting accounting practices [4] Group 3: Engagement and Future Meetings - The PCC engaged with the AICPA Private Company Practices Section Technical Issues Committee to discuss lease accounting and effective interest rate determination [5] - The PCC plans to conduct liaison meetings with various industry groups in Fall 2025 and further meetings in early 2026 with groups such as the Institute of Management Accountants [6] Group 4: Public Comment Period - In September 2025, FASB opened a public comment period for a proposed Accounting Standards Update aimed at standardizing the measurement of paid-in-kind dividends on equity-classified preferred stock to improve financial reporting comparability [7]

Core Viewpoint - EY is facing allegations of misleading the UK's Financial Reporting Council (FRC) during its audit of NMC Health, which has led to a £2bn ($2.7bn) negligence trial against the firm [1][2]. Group 1: Allegations and Legal Proceedings - The administrators from Alvarez & Marsal claim that EY overlooked critical warning signs and failed to detect substantial undisclosed borrowing by NMC's principal shareholders during audits from 2012 to 2018 [2]. - The trial, which began in May 2025, focuses on claims that EY misrepresented its access to essential documents to the FRC [2]. - EY partners allegedly misled the regulator into believing they had full access to NMC's risky transactions, while in reality, they could only view documents on a device controlled by NMC personnel [3]. Group 2: Communication and Access Issues - The court heard that NMC staff provided various reasons for not supplying a complete download of journal entries to EY auditors [4]. - An email from one of EY's lead auditors in 2018 expressed skepticism about NMC's claimed technical barriers, indicating potential issues in communication [4]. - The administrators assert that EY did not gain full access to NMC's general ledger and failed to manage communications with NMC's banks effectively [5]. Group 3: Financial Aspects - EY received £14m ($18m) for its audit services but has denied any negligence in its work on NMC's accounts [5].

Auditor BDO has laid off dozens of employees in recent months and halted non-essential travel earlier this year, according to people familiar with the situation https://t.co/vx7sJcZxG5 ...

Core Insights - PKF O'Connor Davies has initiated a firmwide implementation of ChatGPT to automate standard processes and enhance service delivery to clients [1] - The firm is embedding OpenAI's technology into its applications to ensure AI-generated insights are integrated into daily operations [1] Implementation Strategy - An AI Governance Council has been established to oversee the ethical application of ChatGPT technology [2] - A training program has been launched to promote the effective use of ChatGPT, including practical advice, educational modules, and internal case studies [2] Leadership Perspective - CEO Kevin Keane emphasized that the integration of ChatGPT is about reimagining value delivery and ensuring benefits reach all clients [3] - The initiative is designed to evolve alongside the business and its clients, highlighting the importance of empowering team members to utilize the technology effectively [3][4] Program Development - The program is described as a living initiative, combining technology with training and real-world challenges to build confidence and creativity among team members [4] - In February 2025, Darryl Wegner was appointed as managing director to enhance the firm's litigation, forensic, and valuation practice [4][5]

Barry Melancon has been appointed chair of Baker Tilly International with immediate effect. Melancon was appointed non-executive director and chair-elect of Baker Tilly International earlier this year. He takes over from Brian Kreischer who has completed his three-year term as chair. Brian will continue to serve as a member of the Baker Tilly International Board until he retires from his position as chair of member firm Frank, Rimerman + Co LLP next year. Melancon was most recently CEO of the Association ...

The Financial Reporting Council (FRC) has sanctioned KPMG and audit engagement partner Anthony Sykes, following serious breaches in their audit of N Brown Group. These breaches, acknowledged by both parties, relate to the financial statements for the year ending 26 February 2022. KPMG and Sykes have admitted to the breaches, which pertain to the audit work on impairment of non-current assets, a financial reporting aspect that ensures a company's assets are not overstated. The sanctions include a financi ...

Core Insights - The Accounting & Business Show Asia 2025 is set to be a major event for over 4,000 professionals in the accounting and finance sectors, taking place on October 22-23, 2025, at the Sands Expo & Convention Centre in Singapore [1][3] - The event aims to address challenges such as rising costs, digital disruption, and global competition, providing solutions and strategies for business leaders [2] Event Details - The show will feature more than 130 solution providers showcasing innovations across various sectors including accounting, finance, HR, payroll, payments, digital banking, e-commerce, and cross-border growth [5] - Attendees will have the opportunity to earn CPD credits, access all sessions, and network with peers [3] Speaker and Program Highlights - The event will host over 180 expert speakers, including notable figures from various industries, providing insights on employee engagement, cross-border expansion, and sustainable success [5] - New stages dedicated to 'People' and 'Customer & Commerce' will focus on key topics relevant to SME leaders [5]

Core Viewpoint - The SEC is considering a rule change to allow public companies to file semi-annual reports instead of quarterly ones, which could save companies time and money while impacting the audit business of the Big Four accounting firms [1][8]. Group 1: Impact on Companies - Transitioning to semi-annual reports could potentially halve the costs and labor associated with quarterly filings, with expenses for preparing a 10-Q report ranging from $50,000 for smaller companies to over $1 million for larger firms [2]. - The SEC Chair indicated that any change would allow companies the option to choose their reporting schedule, suggesting that the market should determine the appropriate cadence for reporting [1][8]. Group 2: Impact on Big Four Accounting Firms - The Big Four accounting firms (Deloitte, EY, KPMG, PwC) could lose up to 15% of their annual audit fees if the rule change is implemented, significantly affecting their business model [4]. - Firms may need to consider cost-cutting measures, including hiring fewer employees and increasing the use of artificial intelligence tools, to offset the loss of revenue from reduced audit work [4][5]. - PwC has already indicated plans to hire one-third fewer graduates by 2028, with a 39% reduction in audit roles, partly due to the rise of AI [5]. Group 3: Historical Context and Industry Response - The proposal for semi-annual reporting is not new; it was previously suggested by Trump in 2018 but did not gain traction at that time [6][7]. - In 2018, the Big Four expressed strong support for maintaining quarterly reporting, citing its benefits for investors and capital markets, including minimizing information asymmetry and reducing market uncertainty [9][10]. - Despite their opposition to the rule change, the firms acknowledged the SEC's authority to review financial reporting requirements, indicating a willingness to consider improvements that could reduce compliance burdens [10].

Core Insights - CFOs are adapting to ongoing economic uncertainty, which has become the new norm, emphasizing the need for strategies to manage variability [2][3] - The CFO confidence score increased to 5.7 from 5.4, with only 19% of CFOs in North America currently viewing the economy as good, though 34% expect improvement within a year [3] - 90% of CFOs reported better financial prospects for their companies compared to three months ago, a significant increase from 48% in Q2 [5] Economic Outlook - The Federal Reserve cut interest rates for the first time in 2025, with potential for further cuts before year-end [4] - Despite external uncertainties, CFOs are optimistic about their organizations, with a notable increase in confidence regarding financial prospects [5] - 46% of CFOs believe U.S. equity markets are overvalued, while 34% think they are undervalued, indicating a divided outlook on market conditions [12] Internal Risks - Talent acquisition and retention are identified as the top internal risks, with a focus on upskilling and reskilling to build a tech-savvy workforce [8] - The finance industry faces a talent shortage as many baby boomer accountants retire, necessitating the attraction of more Gen Z professionals [8] External Risks - CFOs remain concerned about inflation, interest rates, and cybersecurity threats, particularly as companies invest in advanced technologies [9] - Risk appetite is low, with nearly two-thirds of CFOs believing it is not a good time to take on greater risks, especially in the financial services sector [10] M&A Activity - North American M&A activity reflects a global trend of decreased deal volume, although overall deal value remains steady due to an increase in megadeals and strategic acquisitions [11]

Core Viewpoint - The Association of Chartered Certified Accountants (ACCA) supports the simplification of regulatory procedures for small and medium-sized enterprises (SMEs) in the EU, responding to the European Commission's consultation on the proposed 28th Regime – The European Innovation Act [1][2]. Group 1: Regulatory Simplification - ACCA endorses the European Commission's efforts to streamline regulations, emphasizing the need to reduce the regulatory burden on businesses to promote growth and enhance cross-border commerce [2][5]. - The association identifies the nurturing of the SME sector as a critical priority for the EU, advocating for a partnership approach to support businesses in workforce skills development [2][3]. Group 2: Skills Gap and Workforce Development - ACCA highlights the skills gap as a significant challenge for European businesses, recommending that the European Commission ease administrative burdens related to training and the recognition of professional qualifications across member states [3][6]. - The organization suggests that promoting cross-border recognition of qualifications through guidance and best practices can help address the skills shortage [6]. Group 3: Confidence and Coordination - ACCA emphasizes that the framework of the 28th Regime must instill confidence and meet the needs of businesses, fostering consistency and coordination between member states [4][5]. - The association calls for the 28th Regime to complement existing initiatives like the EU Startup and Scaleup Strategy [5].