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The Daily

NEWS HIGHLIGHTS FOR THURSDAY - 12.15.16

By:
Maya Lindsay
Published Date:
Dec 15, 2016

NYSSCPA Members in the News

NYSSCPA Marijuana Symposium
Getting respect
Reno News & Review
In Manhattan this week, the New York State Society of Certified Public Accountants held something called a “Marijuana Symposium: Business, Tax and Legal Implications.” Nothing gives a stronger sense that this industry is here to stay than professional meetings on how accountants can keep businesspeople out of trouble. “As the marijuana industry continues to grow rapidly, as well as generate jobs and profits, CPAs have been asked to provide their services to businesses that cater to the ever-growing medical marijuana industry,” said a statement from the Society.

Chris Anderson (Syracuse)
The $68 billion question: Will Trump, GOP cost NY its most popular tax deduction?
SiLive.com
New York taxpayers stand to lose about $68 billion that they now deduct from their federal taxes if President-elect Donald Trump and House Speaker Paul Ryan move forward with their tax reform plans next year, according to state officials and tax experts. Trump and Ryan have proposed scaling back or eliminating the deduction for state and local income and property taxes as part of one of the most sweeping changes to federal tax code in more than 100 years.

Other Accounting and Financial News

PCAOB censures Deloitte's Netherlands firm
Accounting Today
The Public Company Accounting Oversight Board is disciplining Deloitte Accountants NV, imposing a civil monetary penalty of $300,000 on the Netherlands member of the Deloitte Touche Tohmatsu Limited network. The PCAOB said it was imposing the sanctions on the basis of findings that the Rotterdam-based firm violated rules and standards related to its system of quality control and independence. The independence violations occurred during audits of the 2011 and 2012 financial statements of the financial services company RBS Holdings and publisher Reed Elsevier because of financial interests that the spouse of the firm’s then CEO and managing partner, Piet Hein Meeter, held through a Dutch family foundation trust. Meeter is now Deloitte’s global leader of legal services.

Treasury Yields Rise After Fed Decision
Wall Street Journal
U.S. government bonds pulled back sharply Wednesday, pushing the yield on the two-year note to a seven-year high, after the Federal Reserve decided to raise interest rates for the first time in a year and pointed to a slightly faster pace of rate increases next year. The Fed, as widely expected by investors, said it was lifting the benchmark federal-fund rate by a quarter-percentage point. Fed officials also signaled that they expect to raise short-term rates three times next year as the U.S. economy shows signs of improvement, up from their previous estimate of two increases.

BDO grows global revenue to $7.6 billion
Accounting Today
BDO increased its worldwide revenue to $7.6 billion for the fiscal year ending Sept. 30, 2016 across its network of member firms, including members of BDO firm alliances, an 8 percent increase over the previous year at constant exchange rates. Last year, the network reported that worldwide revenue for all of the BDO network’s member firms (including members of BDO firm alliances) totaled $7.3 billion for the fiscal year ended Sept. 30, 2015, a 12.95 percent increase year over year, at constant exchange rates.

NYSE Deal for National Stock Exchange May Fuel New Trading Approaches
Wall Street Journal
The New York Stock Exchange’s acquisition of the dying 131-year-old National Securities Exchange gives it a platform to experiment with new approaches to stock trading, potentially borrowing some tricks from its upstart competitor IEX Group Inc. The Jersey City, N.J.-based NSX has only a sliver of U.S. equities volume and was set to shut down Dec. 16 before the deal was announced Wednesday. NSX does have a valid exchange license, which NYSE can use to build a brand-new marketplace alongside the three exchanges it operates.

Fed Lifts Rates, Signals More Increases Next Year – Update
Morningstar
The Federal Reserve said Wednesday it would raise its benchmark short-term interest rate, and expects to lift it more quickly than previously projected in 2017 amid signs of low unemployment, firming inflation and a pickup in economic growth. "Our decision to raise rates should certainly be understood as a reflection of the confidence we have in the progress the economy has made" and that it is expected to make, Fed Chairwoman Janet Yellen said at a press conference in Washington.

Yellen Says Time for Job-Boosting Budget Stimulus Has Passed
Bloomberg Markets
Federal Reserve Chair Janet Yellen said the central bank is operating amid a “cloud of uncertainty” about budget policy under Donald Trump but one thing is clear: The labor market doesn’t need a shot of fiscal stimulus any more. While saying that she wasn’t providing the president-elect with advice on his tax and spending plans, Yellen repeatedly stressed the importance of focusing any budget actions on boosting productivity and thus the long-term performance of the economy.

Will the Trump Era Bring Higher Interest Rates? Don’t Count On It
New York Times
Higher interest rates are on the way. That, anyway, is the prediction increasingly baked into financial markets. Donald J. Trump’s policy agenda — big tax cuts and new infrastructure spending — seems to point in that direction. And the Fed raised its benchmark interest rate by a quarter of a percentage point on Wednesday, with plans for more increases next year. But what if that’s wrong? There’s no doubt that the stated goals of President-elect Trump imply that rates will be higher in a couple of years than they are today.