New Study Finds Troubling Effects Of Routine Weather Event: 'Not Considered … Extreme'

Read more: See here

The overheating of our planet, fueled by dirty energy usage, has led to changes in our climate, resulting in increasingly frequent and severe extreme weather events. However, it has also led to more weather that is not considered extreme, such as thunderstorms — and these, too, are impacting people's lives, according to a new study, Phys.org relayed .

The study , published in the Journal of Environmental Economics and Management, sought to understand the effects of increased non-extreme weather events on income inequality.

Ultimately, its authors determined that exposure to more thunderstorms had an outsized effect on wage earners, who make up the poorest segments of the population, leading to an increase in inequality.

⁘These are events that, although not considered true extreme phenomena, still cause significant damage, and their frequency leads to an accumulation of damage over time,⁘ said Matteo Coronese, one of the authors of the study and a researcher at the Institute of Economics and the L'EMbeDS Department of Excellence of the Scuola Superiore Sant'Anna.

Time and time again, the effects of pollution and the resulting changes to our climate have been shown to most negatively impact the most economically disadvantaged segments of the population (despite those segments being the least responsible for the pollution in the first place). This is yet another example.

This is true on a country-by-country basis — as small, island nations that produce almost no pollution are being hit the hardest — but also within countries. The study focused on weather events only in the United States between 1991 and 2019 and showed that poorer areas were more negatively affected.

The authors provided clear and simple advice for how the negative effects of these weather events could be mitigated, writing , ⁘We find evidence for a sizable shock-absorbing role of federal assistance.⁘

Millions should prepare for disrupted travel and winter conditions as a fierce storm is set to bring ice, snow and freezing rain to much of the U.S.

These 9 States Are Cutting Income Taxes On Jan. 1. Here's Where Taxpayers Will Get A Break.

More details: Visit website

Some Americans could get a break on their state income taxes this year, with nine states kicking off 2025 with a reduction in their individual income tax rates, according to an analysis from the Tax Foundation, a think tank that focuses on taxes.

The changes are part of a recent push to cut taxes at the state level that started during the pandemic when many states found themselves flush with tax revenue. But the left-leaning Institute on Taxation and Economic Policy (ITEP) has termed the trend an "anti-tax playbook" that could eventually crimp public services.

"The evidence of the past four years indicates that many states understand and value the importance of creating and maintaining a stable, pro-growth and competitive tax code," Tax Foundation analysts noted in a blog post on the 2025 changes.

Here are the states where income taxes will be cut starting on Jan. 1, 2025, based on the Tax Foundation's analysis.

That's a fairly small savings for middle-class residents, according to local news outlet IPB News, which estimates the reduction will result in a tax cut of $33 for a worker earning $65,000 a year.

The new flat tax rate was signed into law by Gov. Kim Reynolds in May, who, along with state lawmakers, have argued that the state was collecting too much money from its residents, the publication noted.

Audit Reform – Where Are We Now?

Source: See here

Headlines:

• Global Efforts to Enhance Transparency:

In June 2022, the European Union (EU) adopted new rules requiring multinational companies to disclose more tax payments, marking a significant step towards increasing transparency in corporate reporting. (Source: EU Press Release) • US Corporate Governance Debate:

A recent survey by the American Institute of Certified Public Accountants (AICPA) found that 81% of Fortune 500 companies have implemented policies to audit climate-related disclosures, "highlighting the growing importance of sustainable practices." (Source: AICPA Press Release) • Hong Kong Protests Spark Call for Audit Reform:

Hong Kong's anti-government protests have led to renewed calls for an independent audit unit to review the city's finances... as concerns over government transparency reach a boiling point. (Source: BBC News) • Switzerland's Auditing Industry Moves Towards Digitalization:

The Swiss Federal Statistical Office has announced plans to digitalize its audit processes... aiming to increase efficiency and reduce costs while maintaining the same level of quality. (Source: Swiss Public Service Media) • IPO Market Reform:

The State Council of China has proposed a new plan to reduce the complexity and costs associated with initial public offerings (IPOs), in an effort to increase transparency and facilitate more companies to go public. (Source: Xinhua News Agency) • Coalition of States Widens in UK Audit Reform Efforts:

UK Home Secretary Suella Braverman and Welsh counterpart Alun Davies have agreed on a new plan for a widened coalition to improve digital collection of tax returns and reduce audit demands for small businesses. (Source: BBC News) • Piece of 2022's Corporate Regulatory Reforms:

The United States has added influential shares of major international companies under increased scrutiny due to bridges to leadership around key publicly available audit and diligence processes.

#news

Stuart Brown of Duncan ⁘ Toplis looks through the recent history of audit reform and whether or not we're starting to see the changes take place.

The UK government has been exploring ways to  reform the audit industry for many years, in order to improve governance and restore trust in the industry.

Auditors are expected to have unwavering honesty, transparency and truthfulness throughout the audit process, and maintaining the trust of clients is vital in upholding integrity.

Over the years, there have been many suggested changes to audit rules and regulations to ensure this is the case, and we're now starting to see significant steps being taken. Here, we take a look at some of these changes and where we are now.

Back in 2018, the outcomes of the Kingman Review of the Financial Reporting Council (FRC) were welcomed by mid-tier accounting firms across the UK, as well as the recommendations of the Competition and Markets Authority (CMA) market study in 2019.

After the collapse of major entities such as Carillion and BHS, it was clear that the regulatory framework and level of competition in the industry had obvious room for improvement.

The Kingman Review outlined that the FRC was not fit for purpose, partly due to it being too close to the big four accounting firms. Not only had it recruited alumni from these firms, but it was also partly funded by organisations it was supposed to be holding to account.

Because of this, Kingman recommended that the FRC be replaced by the Audit Reporting and Governance Authority (ARGA), however, this is yet to come to fruition and there is growing frustration at how long it is taking.

Budget Cost Rises Could Lead To More Firms Going Bust, Warn Experts

Read more: See here

Industry experts are warning that insolvencies and restructuring may surge in early 2025 as businesses face mounting cost pressures.

Businesses are bracing for a hit to their bottom line as they face hikes in National Insurance contributions, an increase in the minimum wage, and other tax rises. These measures were unveiled by Chancellor Rachel Reeves in the autumn Budget to bolster spending.

Ms Fisher commented: ⁘With the changes to employer National Insurance and National Minimum Wage being introduced in April, the next three months will be critical for firms in these industries and others as they work out how they will manage the impact this additional cost will have on their finances.⁘

She also noted: ⁘This could lead to an uptick in restructuring work in the first quarter of this year or a rise in corporate insolvencies between March and June – but at this stage it's too early to tell which of these outcomes is most likely.⁘

Meanwhile, Benjamin Wiles, managing director of restructuring at Kroll, remarked that the outlook for next year is ⁘still uncertainty⁘ acknowledging that while increased costs for firms may be partly balanced by stronger consumer finances due to rising wages, there's been a surge in activity in the construction sector which could persist into 2025 given high borrowing costs.

David Kelly, a partner at PwC, added: ⁘The year ahead is poised to bring fresh challenges, including navigating the implications of the Autumn Budget measures and responding to the evolving actions of clients and suppliers. Ongoing resilience is needed across the corporate sector to weather these pressures.⁘

New Year's Warning For UK Households As Brits Face Up To '6 Months Jail' And Fines

More details: Found here

As New Year's Eve looms, UK households are being sternly reminded of the fireworks regulations in place, with potential fines and even six months behind bars for any breaches. With the festive season reaching its peak, it's crucial to remember that setting off fireworks outside the permitted times – not before 7am or after midnight – could see Brits facing serious consequences for flouting antisocial behaviour laws.

West Yorkshire Police have issued a stark warning: ⁘The penalties for using fireworks outside the above curfew hours are imprisonment (maximum 6 months) and a substantial fine.⁘

The Met Police have also highlighted the various categories of fireworks, which range from category one ('throwdown fireworks' like firecrackers and bangers), to retail 'adult fireworks' in categories two and three, and professional-grade fireworks in category four, available only from speciality suppliers.

He said: ⁘We want people to have fun on New Year's Eve, however, I urge everyone to be sensible and to take a few moments to read our safety tips.⁘

Deb Forder, community safety manager from Oxfordshire County Council's Fire and Rescue Service, added: ⁘Organised fireworks displays are cheaper and far safer than hosting your own fireworks party. However, if you are planning on using fireworks for a private event on December 31, or at other community gatherings, it's key to check out the firework safety and UK law around their use. You can check out the British Fireworks Association's dedicated website for this.⁘

What Makes Austrian Economics Unique?

More details: See here

Capitalism is characterized by the private ownership of capital, coming from Lockean homesteading principles, and not from state coercion and force.

Is The Accounting Profession's Sun Rising — Or Setting?

More details: Found here

Differences of perspective are fascinating, frustrating things. They lead people to eat and dress and dance and vote differently than we do; to see a dress as purple and black, when we all know it's white and gold; to think a photo shows a sunset, when it's clearly a sunrise. On the other hand, they make for horse races, and that's surely worth something.

It seemed (and seems) transparently obvious to me that the profession is not in decline in any way; that in fact, it's thriving. Revenues across the field are strong and growing, demand for accountants' services is at an all-time high, and there are major new service areas opening up on a regular basis. New tools are coming online every day to make the work easier and to enable entirely new services.

It's certainly true that the profession faces challenges. Not enough people are coming into accounting to meet the rising demand, and not enough are becoming CPAs to handle the imminent retirement of the oversized cadre of baby boomer firm leaders. Competitors are hungrily eyeing accountants' lunch, and artificial intelligence looms like a specter.

But in all of those challenges lie opportunities — to use capacity crunches to refocus books of business on a small base of ideal clients, for instance, or to look to private equity or other potential partners outside the profession to help secure partners' retirements. There are plenty of professions and industries that would be delighted to have accounting's challenges.

So perhaps I'm wrong to think that accounting is thriving, with a bright future ahead of it; perhaps the slowdown in people entering the profession really is a sign of decline, and not a short-term demographic blip. I'd love to

know what you think — reach out to me at daniel.hood@arizent.com and let me know if you think accounting is in decline or on the rise, and why, and we'll aim to share the results in a future edition.