04/02/2025

Well, hi there! Sit back, enjoy, and relax as you’re currently on the Daily Accrual.

Every day, I sift through the accounting noise so you don’t have to. I share to you the most relevant, juicy accounting insights that really matter – nothing phony, just some good, accounting testimony! 

📝 Journaling Insider

The Trump administration’s deregulation agenda has raised speculation that the Public Company Accounting Oversight Board (PCAOB) could face restructuring or be merged into the SEC. With Paul Atkins nominated to replace SEC Chair Gary Gensler, industry experts, including Lara Long of Riveron, anticipate a decline in regulatory enforcement. While uncertainty remains, financial markets still recognize the need for audit oversight.

Since 2015, PCAOB enforcement has surged, with 302 auditing actions and $86 million in penalties, 40% of which came in 2024 alone. Violations have increasingly included auditing, quality control, and ethics breaches. However, a Brattle Group report suggests Trump’s return, combined with legal challenges like Jarkesy and Doe vs. PCAOB, may dramatically scale back enforcement, potentially reshaping audit oversight for years to come.

Source: Accounting Today

💰 Making Cents of Accounting

#ExcelledAtFailure💸❌

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Source: Wisdify

💸 Profit & Loss Report

The battle between Coca-Cola and the IRS over a $2.7 billion tax liability has drawn major support from top accounting firms and trade organizations. The dispute stems from transfer pricing adjustments made by the IRS on Coca-Cola’s foreign royalty income, a move the company argues contradicts previous tax methodologies. Tax Court sided with the IRS in 2020, validating its comparable profits method over Coca-Cola’s preferred 10-50-50 agreement. 

Coca-Cola’s appeal with the 11th Circuit has prompted PWC, Deloitte, KPMG, and trade groups like the National Foreign Trade Council and the Chamber of Commerce to file amicus briefs. The IRS abandoned its prior stipulations, established rules inconsistently, and unfairly reallocated foreign income to Coca-Cola. The aforementioned case might set a precedent affecting various multinational companies, making it critical for international tax law.

Source: Thomson Reuters

💎 Rare Accounting Oddities

Did you know that Deloitte, the world’s oldest accounting firm, has been around since 1845? That’s nearly two centuries of audits, consulting, and tax! The founder, William Welch Deloitte, was the first independent auditor of the public company: Great Western Railway. 

Today, Deloitte is a global powerhouse, leading the Big Four with over 415,000 professionals across 150+ countries. Deloitte has proven that accounting isn’t just about numbers — it’s about honesty, innovation, and staying ahead of the curve.

Who says accounting isn’t exciting? Deloitte’s journey proves that accounting isn’t just about numbers — it’s about shaping history.