02/26/2025

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! 

💸 Profit & Loss Report

Zimbabwe’s central bank now requires listed companies to report financial results in the local currency, Zimbabwe Gold (ZiG), forcing them to adopt hyperinflationary accounting under IAS 29. The changes in financial reporting methods increase costs, need financial revaluations, and pose operational challenges. The Zimbabwe Stock Exchange (ZSE) is seeking clarity, as only 30% of transactions use ZiG, while most businesses prefer US dollars. Companies like Delta Corp Ltd. had already switched to dollar-based reporting in 2023 to avoid currency instability.

FBC Holdings Ltd. warns the rule might lead to inflation risks, software adjustments, and regulatory burdens. The ZiG, Zimbabwe’s sixth attempt at a stable currency since 2009, has lost 95% of its value amid exchange-rate volatility. Businesses fear renewed instability, as similar policies were abandoned when the Zimbabwean dollar was last in use. The struggling economy has already driven Deloitte LLP and PwC LLP to exit Zimbabwe, highlighting the worsening business climate under the new rules.

Source: Bloomberg

💎 Rare Accounting Oddities

Imagine having to go to an entirely different state just to take the CPA exam. For John W. Cromwell, Jr., that was his reality, packing his bags in 1921 and went to New Hampshire — the only state allowing a Black man to sit for the exam—and made history as the first Black CPA in the U.S. He later shaped future accountants as a professor and comptroller at Howard University.

Moreover, he wasn’t the only trailblazer: Christine Ross defied gender norms in 1898, scoring second-highest on her CPA exam and becoming the first female CPA in the U.S.

There’s also Mary Thelma Washington, who didn’t just break walls, but made one herself as the first Black woman CPA in 1943. She then established a firm that became one of the largest Black-owned accounting firms in the country.

Pioneers didn’t just crunch numbers - they rewrote history itself. Accounting isn’t just about balancing financial statements; it’s about breaking walls. Now, who’s next?

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Source: Wisdify

📝 Journaling Insider

The Public Company Accounting Oversight Board (PCAOB) has sanctioned PwC Israel for improper exam cheating on mandatory training exams from 2017 to 2022. Hundreds of employees were involved by sharing or receiving access to test questions and answers related to U.S. auditing, professional independence, and ethics training. PwC Israel failed with adequate quality control measures in preventing these violations, leading to a $2.75 million fine due to internal failure.

Without denying the findings, PwC Israel has agreed to review and enhance its quality control policies and report compliance within 150 days. PCAOB Chair Erica Y. Williams emphasized the board's zero-tolerance stance on unethical behavior, stressing that audit integrity is necessary for investor trust. This case marks the latest series of enforcement actions, with the PCAOB having sanctioned ten firms since 2021 for identical quality control deficiencies related to internal exam misconduct.

Source: PCAOB Organization

💰 Making Cents of Accounting

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