Accounting news roundup / Neil McIntyre, CA

Accounting news roundup

Congress wants financial reporting simplified for easier understandability. I can’t honestly say their desire for more regular updates on what the industry is doing to modernize itself is a bad thing, however. Seems like a good prod for the stiff collars at the helm.
Here in Canada, there are rumors the federal government may tie the income trust tax to the upcoming budget. The effect would be to make the income trust issue a confidence motion which, if defeated, would trigger an election. Recent polls showing the governing Tories padding their lead over the Liberals add fuel to this fire.
In the UK, PwC and E&Y ranked at the top of accounting firms in terms of brand strength according to Business Superbrands Council. Brands were rated according to “quality, reliability and distinctiveness within their sector.” I guess they mean the distinctiveness of the logos at the top of the auditors’ report?
Nortel is going to be restating their results again. I’m really starting to feel sorry for those guys. Nothing epitomizes the current shortage in accountants quite like Nortel’s difficulties.

Category: Accounting
Tags: brand, Canada, Ernst & Young, government, income trust, Nortel, PwC, reporting, trust tax

1 Krupo // Mar 5, 2007 at 2:48 am

D&T’s going to be pissed to hear that their much vaunted Green Dot didn’t take first prize in the UK.

Reading the Nortel press release, er CBC article, suggests actuaries, rather than accountants, were to blame though.
2 Neil // Mar 6, 2007 at 1:03 am

Chief financial officer Peter Currie told analysts in a conference call that the restatement involves calculation errors related to the recognition of revenue and pension and post-retirement plans.

The errors cover 2004, 2005 and the first nine months of 2006, as well as “third-party actuarial calculation errors which originated prior to 2000.”

Currie said the company discovered the problems while looking over past documents related to North American pension plan changes.

Yeah you’re right. They must be getting the hang of this stuff. Who’s their actuary?
3 Krupo // Mar 8, 2007 at 10:58 pm

I don’t think it’s us.