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New accounting rule raises revenue for big banks, but not all are highlighting the change

“In first-quarter earnings, Citi said its equity underwriting revenues fell 14% to $216 million, while debt underwriting revenues fell 8% to $699 million” writes Francine Mckenna for marketwatch.com. The bank said it expects the 2018 full-year impact on revenue to be positive by about $1.2 billion.However, it is not clear how much of this decline is related to adoption of the new standard, since the underwriting expenses were not detailed in the press release.JPM said that it expected the new standard to increase revenue and expense for full-year 2018 by…

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GE’s stock falls to pace Dow’s few losers after update to effect of accounting changes

“GE’s stock was by far the worst performer, as the next biggest decliner was Walt Disney Co” writes Reporter Editor for marketwatch.com. What was notable from the GE’s late-Friday release of the financials update was a 17 cents-a-share decline in 2017 earnings, compared with a prior estimate of 16 cents-a-share decline. GE’s stock has tumbled 23.9% year to date, while the Dow has eased 0.6%.GE, -1.41% slumped 1.6% in morning trade Monday, to pace the Dow Jones Industrial Average’s DJIA, +0.90% decliners, after the industrial conglomerate revealed retrospective financials for…

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The Morning Ledger: U.S. Banks Get Reprieve on Accounting Rule

“On Tuesday, China releases data on first-quarter domestic product and monthly business activity (release time is Monday evening in the U.S.)” writes Nina Trentmann Wsj for wsj.com. Meg Gentle –  the chief executive of Houston-based Tellurian Inc. — thinks she has a unique answer, but it is expected to cost $24 billion.Some banks had been concerned that the new rule — issued by the Financial Accounting Standards Board in June 2016 — could cut into their regulatory capital. Source: wsj.com Share This:

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GE stock falls after release of revenue-recognition information

“GE, +2.35% shares declined in after-hours trading Friday, after the company provided retrospective financial information for additional disclosures around new accounting rules” writes Jeremy C for marketwatch.com. “That is simply incorrect – it is a required change in accounting standard that is prompting a host of other companies to similarly issue recasted historic financial information.”. GE stock declined 1.6% in late trading, after closing with a 2.5% gain at $13.51. GE stock has fallen 54.4% in the past year, as the S&P 500 index SPX, -0.29% has gained 14.1%.GE shares…

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Zuora soars in its IPO and the founder’s stake is worth nearly $200 million — 5 years after the company hit rocky times

“We asked Tzuo if being a public company CEO meant he was going to start buttoning his lips” writes Julie Bort for businessinsider.com. “It was the first time doubt started seeping into the company,” Zuora recalls.2018 is shaping up to be the year of the enterprise tech IPO, and cloud accounting software company Zuora just entered the public market with a bang.The company earned $168 million in revenue in its last fiscal year, up from $113 million in fiscal 2017. Source: businessinsider.com Share This:

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GE to restate two years of earnings by April 13

“FILE PHOTO: The General Electric logo is pictured on the General Electric offshore wind turbine plant in Montoir-de-Bretagne Thomson Reuters (Reuters) – General Electric Co said on Wednesday that it planned to provide restated results for 2016 and 2017 to reflect a new accounting standard by April 13” reports businessinsider.com. The updated accounting standard takes into account revenue from long-term contracts, which are being scrutinized by the U.S. Securities and Exchange Commission.GE had said in February that it expected to take a $4.2 billion accounting charge as it switches to…

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LongFin’s stock plunges again, after disclosing SEC probe and accounting weaknesses

“LFIN, -17.09% sank 20% in premarket trade Tuesday, after the financial technology company with a focus on blockchain technology disclosed an investigation by the Securities and Exchange Commission and “material weaknesses” in its controls over financial reporting” writes Reporter Editor for marketwatch.com. The stock has shed 75% year to date through Monday, while bitcoin futures XBTJ8, +4.94% have shed 47% and the S&P 500 SPX, -2.23% has slipped 3.4%. The stock had already plummeted 80% amid a five-session losing streak through Monday, as getting dropped from the Russell 2000 index…

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Harmonic dismisses PwC as its independent public accountant

“HLIT, -2.56% disclosed Friday that it has dismissed PricewaterhouseCoopers LLP as its independent registered public accounting firm for the current fiscal year ending December 2018” writes Reporter Editor for marketwatch.com. The video infrastructure products company said it appointed Armanino LLP as its new public accounting firm, on March 26.The company said in a filing with the Securities and Exchange Commission there were “no disagreements” with PwC on any matters of accounting principles or practices and there were no “reportable events” during fiscal 2016 through March 26, 2018. Source: marketwatch.com Share This:

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New Accounting Rule Moves Moody’s to Reevaluate Leases

“Companies will be required to report operating leases on their balance sheets starting next year, a change that’s prompting Moody’s to alter its own methodology for calculating how leases impact a company’s credit risk” writes Tatyana Shumsky for wsj.com. International accounting rules change on Jan. 1, 2019.Moody’s, like analysts and other credit ratings firms, follows its own procedures for estimating the liabilities associated with operating leases in order to include them in the assessment of a company’s credit risk.Public companies will be required to report operating leases on their balance…

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Senate Report Links Tax Reform To Greater Spend On SMB Accountants

“Tax reform is likely to lead small businesses (SMBs) in the U.S. to pay more for accounting services, according to new analysis from the Senate” reports pymnts.com. Wyden’s report, “Tax Code and Small Business: Even More Bizarre and More Unfair than Before,” is a clear attack on the Republican-led tax law.Republicans have touted tax reform as a major boost to the small business community, saying tax cuts will lead small businesses to reinvest that money into their own companies and into new hiring.Reports in Accounting Today said Senator Ron Wyden…

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