Disney reported a rare quarterly loss Tuesday — nearly $5 billion. Most of its business segments, from theme parks to cruise lines, are faring poorly in the pandemic. There was a bright spot, though: Steep losses were somewhat offset by the performance of its media business. Disney explained that one big reason has to do with an accounting decision it made.
Disney pays for the rights to broadcast sports like baseball and basketball. And under corporate accounting rules, when companies crunch their quarterly numbers, they're not supposed to factor in costs from a purchase like that until they see the revenue. In this case, after the games air.
Quite a lot has been going on:
Accountants leverage RPA amid coronavirus | Accounting Today
Robotic process automation has been spreading across accounting and finance departments, according to a report from the Institute of Management Accountants. That trend may accelerate as companies deal with the novel coronavirus pandemic and look for ways to cut costs.
"What we found is that nearly all enterprises that begin RPA start in the accounting and finance function," said Loreal Jiles, director of research, digital technology and finance transformation at the IMA, who wrote the report. "Generally finance and accounting professionals are performing those tasks that are the most suitable for robotic process automation technology. That means they possess certain characteristics, like they're routine and they're rule based.
Accountants lower economic expectations as coronavirus rages | Accounting Today
After recovering in July from May and June's record lows, the Accountants Confidence Index dropped back slightly as more and more coronavirus hotspots appeared across the country.
Many of the respondents noted that they were working remotely and avoiding interacting with clients and staff in person, while others had aggressive cleaning and social distancing efforts in place.
The ACI, published in partnership with ADP, is a monthly economic indicator that leverages the insights of accountants into the strength and prospects of businesses in the U.S. The 3-Month ACI hit 44.34, down slightly from the previous month's 45.35 (though still far below the 50 mark that separates expectations of growth from expectations of contraction). The 6-Month ACI, meanwhile, came in at 50.6, down from last month's 52.07, and edging back toward contractionary territory.
How picking its preferred accounting rules lets a lender sweep losses under rug
On Thursday, Credit Acceptance reported that earnings sank in the first half of the year by 96 percent to $12 million under generally accepted accounting principles, or GAAP. But after waving its magical-accounting wand, Credit Acceptance showed that "adjusted" earnings actually grew to $330 million.
There's a lot of that sort of wishful thinking going around. Companies regularly report "adjusted EBITDA," which is earnings before interest, taxes, depreciation, amortization and other stuff they'd rather you forgot about. You even see companies report "EBITDAC," which is what they guess earnings would be if it weren't for COVID-19.
Were you following this:
ANIZDA delays vote on reappointment of allocation accounting firm | Lehigh Valley Regional News |
Property Accounting Startup Proper Raises $4.8M – Commercial Observer
Property accounting startup Proper has raised $4.8 in a rolling seed round led by MetaProp , Commercial Observer has learned.
The San Francisco-based Proper uses its own proprietary software to provide accounting services to multifamily landlords. The services are targeted at landlords with anywhere from 200 to 10,000 units, founder and CEO Mark Rojas told CO, but the sweet spot is between 500 and 2,000 units.
The 2020 Managing Partner Elite | Accounting Today
Accounting Today 's annual MP Elite list always represents the profession's most outstanding firm leaders, but this year's class of managing partners is notable for exemplary leadership amid the extraordinary events and challenges of 2020.
This is no coincidence. While the 2020 MP Elite were chosen by the same parameters we have used to evaluate candidates in the past — sustainable firm growth, strategic planning, diversity and inclusion, cultivating a strong culture, and innovation in technology and processes — this year, we took into account how each managing partner is navigating their firm through the current unique circumstances.
Local accounting firm adds three to staff - Crawford County Now
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In North Carolina, cases among people ages 18 to 49 began to spike in July, accounting for the largest growth in CO… https://t.co/odiXv7cd8z newsobserver (from Raleigh, NC) Thu Aug 06 12:00:42 +0000 2020
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