FEI Weekly

February 19, 2019

FASB addresses deferred revenue in business combinations, and Vodafone drops PwC for EY.

Celebrate Women CFO Appointments, But the Work Isn't Done

Fast Company

Since 2000, the number of female CFOs has more than doubled, but the last five to six years have seen only a few new appointments. Anna Beninger, senior director of research at Catalyst, says we should celebrate high-profile appointments and continue to ask, "What are you doing in your pipeline to ensure you have many more women coming up behind that person?”

Vodafone Drops PwC for EY

Accountancy Daily

In its 2018 annual report, Vodafone shared that, during the 2017 financial year, they were notified by the lead audit partner that a company, for which a number of PwC partners were acting as administrators, was considering litigation against the group. In response, PwC implemented a number of safeguards but, in a December update, Vodafone said that, while PwC were "assessed as independent and will continue as the group's statutory auditors for the year ending 31 March 2019, it is uncertain how this matter may evolve and whether future developments may give rise to risks to audit independence." The company has now said its choice of auditor is EY.

FASB Issues ASU on Deferred Revenue in Business Combinations

Journal of Accountancy

The recognition and measurement of deferred revenue in business combinations would change under a new proposal issued last week by FASB. The board is addressing diversity in practice arising from confusion on whether and how to record deferred revenue in a business combination.

CFO's Arrest 'Politically Motivated,' Says Huawei Founder

Reuters

Huawei founder Ren Zhengfei said on Monday that the arrest of his daughter, Huawei CFO Meng Wanzhou, was politically motivated. Huawei, the world’s biggest producer of telecoms equipment, faces intense scrutiny in the West over its relationship with the Chinese government and allegations of enabling state espionage, with the US calling for its allies not to use its technology.

A Four-Day Workweek Isn't Just About Wellbeing

Quartz

The head of a New Zealand company which trialed and then adopted a four-day week offered to all its staff—with no wage cuts or additional hours on work days—says he knows how to make it work for any company. It needn’t lead to a drop in revenue, he says, and there’s no excuse not to try it. Just one thing: Don’t talk about it in terms of employee wellbeing. Instead, he emphasizes productivity. In putting the onus on his teams to agree on their metrics and work out a strategy for achieving goals, he’s putting the power to make the policy work in their hands.