Tech co's stocks tumble amid accounting woes
Plus: Latino Firm celebrates 55 years | Major PCAOB fines
Skimping on accounting or getting involved in shady practices? That’s never a good idea. Super Micro is finding that out the hard way —again. This time a reported DOJ investigation is underway for the Silicon Valley company.
On a more positive note, it's refreshing to see some students still hyped about entering the accounting world! Shoutout to those two Mizzou undergrads who had a blast during their internships. Love to see it.
Meanwhile, Hurricane Helene just wrecked the East Coast, leaving a trail of destruction in its wake. If your business took a hit, the U.S. Small Business Administration disaster loans might be your ticket to recovery. Stay strong.
In Today's Newsletter:
⚫ Largest Latino owned firm celebrates 55 years
⚫ FASB proposes updates to hedging
⚫ PCAOB fines firms
Super Micro shares fall amid reported DOJ probe
Super Micro Computer's stock took a sharp 12% dive after news surfaced that the U.S. Department of Justice has launched an early-stage investigation into the company’s accounting practices. This follows an August report from Hindenburg Research, which revealed a short position and alleged accounting manipulation. Supermicro, which has seen significant growth due to the AI boom, is now under scrutiny for its financial reporting practices. This comes after a 2020 SEC investigation that found Super Micro Computer had improperly recognized revenue and misstated financial results over multiple years.
Why this is important: This case underscores the importance of robust internal controls and transparency in financial reporting — especially for companies experiencing rapid growth. With major clients like Nvidia, AMD, and Intel, the investigation could have wide-reaching implications across the tech sector. (CNBC)
🎙 A Deep Dive into Generative AI, ML, and RPA in Treasury
Craig Jeffery and Royston Da Costa explore how generative AI, machine learning and robotic process automation are revolutionizing treasury functions. They share real-world examples of current implementations, highlight trends anticipated over the next two to three years, and delve into emerging technologies such as ChatGPT, Microsoft Copilot, and augmented reality. (Strategic Treasurer)
$201 billion
Mark Zuckerberg reaches the $200 billion milestone, edging closer to becoming the world’s third-richest person. (CNN)
- FASB proposes updates to hedge accounting guidelines
- PCAOB sanctions five audit firms for violations
- EY Survey Finds Financial Controller Role on the Verge of ‘Significant Change’
- Startup uses AI to automate accounting, aiming to keep accountant jobs
- Latino Legacy: Vasquez & Co. celebrates 55 years of accounting
ACCA calls on finance teams to adopt 5 year strategic vision
The corporate finance function has evolved continuously for decades, but the pace of change is now accelerating rapidly. Factors such as the unpredictable economy, the growing influence of AI and machine learning, demographic shifts, the climate crisis, and new geopolitical and operational realities are creating a wave of challenges for finance leaders. According to a new report by the Association of Chartered Certified Accountants (ACCA), "Finance Evolution: Thriving in the Next Decade," failure to adapt could sideline finance functions within five years. (CFO.com)
The Net Gains is your one-stop shop for fresh, FREE accounting insights. You can reach the newsletter team at thenetgains@mynewsletter.co. We enjoy hearing from you.
Interested in advertising? Email us at newslettersales@mvfglobal.com
If you've been enjoying the newsletter, don't keep it a secret. Share it with an industry colleague. (Copy the link here.)
The Net Gains is curated and written by Paul McCormack and edited by Bianca Prieto.