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The Morning Ledger: Companies Are Finding More Accounting Flubs |
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Cans of Libby's green beans and sweet corn, a brand that Seneca licenses for packaged vegetables and seasonal fruit. PHOTO: DANIEL ACKER/BLOOMBERG NEWS
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Good day. The number of material accounting mistakes made by U.S. public companies declined every year since 2006, but preliminary data for this year indicate a reversal.
Do-over: During the first six months of 2018, 65 companies detected accounting mistakes significant enough to require them to restate and refile entire financial filings to regulators, compared with 60 companies for the same period last year, according to Audit Analytics.
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It's in the details: The uptick came as finance teams were overhauling corporate accounting paperwork to comply with the new U.S. tax law and new revenue accounting rules.
In many instances CFOs and their staffs had to go over past financial reports to recalculate the value of tax credits or liabilities, or to assess how past results would look under new rules. In the process, companies including Seneca Foods Corp. and Camping World Holdings Inc. found errors that triggered restatements.
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Markit will release a preliminary reading of the U.S. manufacturing purchasing managers' index for September at 9:45 a.m. ET. Economists expect the factory activity index to tick up to 55 from 54.7, the final reading for August.
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SEC Grants Exemptions to Hurricane Victims |
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The U.S. Securities and Exchange Commission on Wednesday issued an order that conditionally exempts Hurricane Florence victims from certain requirements of federal securities laws for periods following the weather event.
The regulator also extended filing deadlines for certain reports and forms that companies must submit under regulations governing crowdfunding and public offerings under $5 million.
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Trade Fears Dial Down Optimism Among CFOs |
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Optimism appears to be fading among finance chiefs in North America. Trade, tariffs and talent weighed on the outlook for economic growth, according to several recent surveys, CFO Journal's Tatyana Shumsky reports.
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Amazon is looking to put its Alexa voice assistant at the center of people’s lives. PHOTO: MIKE STEWART/ASSOCIATED PRESS
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In a bid to control the smart home of the future, Amazon.com Inc. is offering makers of electronics a small chip that would let people use their voice to command everything from microwaves and coffee machines to room fans and guitar amplifiers.
Alibaba Group Holdings Ltd. Executive Chairman Jack Ma recanted his promise to create 1 million jobs in the U.S., citing the trade friction between Washington and Beijing.
Alphabet Inc.'s Google told lawmakers it continues to allow other companies to scan and share data from Gmail accounts, responding to questions raised on Capitol Hill about privacy and potential misuse of the information contained in users’ emails.
Caterpillar Inc. has turned to cost cutting -- reducing the number of parts in its designs and the number of people on the factory floor -- to cope with tariffs on steel and aluminum, reports Reuters.
General Electric Co. discovered a flaw in its newest power-plant turbines after a key part failed earlier this month, forcing utility Exelon Corp. to temporarily shut two Texas plants while GE makes repairs.
Wells Fargo & Co. said Thursday that its head count would decline by 5% to 10% over the next three years, reflecting some natural attrition, and what it called “displacements,” or layoffs. That would mean approximately 13,000 to 26,000 people shaved from Wells Fargo’s payroll.
Big oil companies such as Chevron Corp. are using their size to prevent logistical difficulties and streamline operations as they seek to recreate the U.S. shale boom in countries such as Canada and Argentina.
ESPN said it has signed up more than 1 million paying subscribers for the streaming service it launched in April, a boost of confidence for majority-owner Walt Disney Co.’s effort to win over cable TV cord-cutters.
Under Armour Inc. is cutting about 400 jobs globally as the company continues to slash costs to combat weak sales of its athletic apparel.
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Airlines have been making a push for more revenue from surcharges such as flight-change and baggage fees. PHOTO: JAMES LAWLER DUGGAN/REUTERS
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Airlines Fight Push to Regulate Ticket-Change Fees |
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House and Senate lawmakers are negotiating a bill to reauthorize the Federal Aviation Administration’s operations ahead of a Sept. 30 deadline. Within it, some lawmakers want to include a provision that could limit fees passengers pay to change flight reservations.
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SEC: Don’t Judge Enforcement Strength on Case Volume, Fines |
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The Securities and Exchange Commission is still policing wrongdoers, even if the volume of its enforcement actions and dollar amount of its fines drop this year, Stephanie Avakian said Thursday in remarks prepared for a conference in Dallas.
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Denmark Reopens Probe into Russia-Linked Money Laundering Case |
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Danish authorities reopened an investigation into a massive Russia-linked money laundering scandal at their country’s largest bank, as investors looked to assess the impact after the lender admitted to letting $233 billion move through a single Eastern European branch.
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The value of U.S. households’ real estate increased by about $558.9 billion in the second quarter, reflecting ongoing high home valuations. PHOTO: LUKE SHARRETT/BLOOMBERG NEWS
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U.S. Household Net Worth Neared $107 Trillion in Second
Quarter |
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The total net worth of U.S. households rose to nearly $107 trillion during the second quarter of 2018, as higher property and stock prices boosted Americans’ wealth.
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U.S. Existing-Home Sales Stalled in August |
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U.S. home sales stalled in August, highlighting a growing disconnect between the sluggish housing market and the strong economy that is powering stocks to new highs.
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U.S. Jobless Claims Fall to 49-Year Low for Third Straight Week |
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The number of Americans filing applications for new unemployment benefits fell to a new 49-year low for the third straight week, though Hurricane Florence’s effect on the jobs market remains unclear.
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Every weekend we select a handful of in-depth articles we think are worth a bit of your time, either because they peel back the layers on a compelling business story, or somehow make us look at business in a different light.
The wide price variations in the luxury fashion industry are a cautionary tale for every industry, as the misalignment can lead to some sellers getting a huge share of business while leaving others with unsellable inventory. Data science can help organizations gather enough information, pick out metrics everyone can understand and get results and act in real time, writes MIT Sloan Management Review.
Companies want access to more and more of your personal data — from where you are to what’s in your DNA. Can they unlock its value without triggering a privacy backlash? Harvard Business Review examines the issue.
Facial recognition is beginning to make its way out of the realm of security applications—such as searching for bad guys or unlocking our phones—and into bricks-and-mortar retail and other areas of real-world commerce.
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