AI-curated news for your industry

The COVID-19 pandemic has brought balance sheet contraction, supply chain challenges, and human capital pressures to businesses. Kevin Dancey, CEO of the International Federation of Accountants, believes that CFOs should demonstrate leadership during the crisis and drive long-term value creation through three strategies: putting people first, delivering credible information, and balancing short-term survival with long-term planning.

The COVID-19 pandemic raises questions about whether companies can invoke Material Adverse Change clauses to terminate contracts. Based on analysis by FTI Consulting experts, this article outlines key factors courts consider in MAC determinations, including materiality of impact, unforeseeability, duration, and industry comparisons, and provides practical recommendations.

Facing increasingly stringent market scrutiny, CFOs of revenue-free biopharmaceutical companies are adopting multiple strategies to protect capital: utilizing overseas cash refunds, AI-accelerated R&D, and simplified capital structures. Through case studies of INmune Bio, AVROBIO, and BioXcel Therapeutics, this article reveals how CFOs become efficient stewards of capital.

Extensible Business Reporting Language (XBRL), adopted by the U.S. Securities and Exchange Commission (SEC) in 2008, has become the standardized format for financial report submissions by public companies, mutual funds, and credit rating agencies. As the technology matures in application, regulators and investors have increasingly focused on data accuracy. Experts warn that tagging errors may damage corporate credibility and recommend that companies strengthen internal controls and review processes.

Amid the wave of mergers and acquisitions in the food industry, how can small companies position themselves to attract giants? This article, drawing on cases such as Hershey's acquisition of Amplify and Kellogg's acquisition of RXBar, along with practical experience from multiple financial executives, provides CFOs with a strategic preparation guide before being acquired.

The latest revision to the goodwill impairment accounting standard (ASU 2017-04) has taken effect in phases, eliminating the second step of the previous two-step method and instead directly recognizing impairment based on the difference between a reporting unit's carrying amount and fair value. The new rule simplifies the process but imposes new requirements on strategic planning, disclosures, and audit communication. Drawing on expert perspectives, this article recommends that CFOs initiate testing early, review historical data, reference early adopters' disclosures, and maintain close collaboration with auditors and the audit committee.

The new credit loss accounting standard (CECL) requires banks to estimate and reserve for losses based on the entire life cycle of loans, changing the previous practice of only addressing loans with identified issues, typically over a 12-month period. Morgan Stanley analysts believe this change will increase volatility in bank reserve provisions, raise costs for new loans, and particularly impact retailers that rely on in-store credit cards, such as Macy's, Kohl's, and Nordstrom. Large banks have implemented the standard since 2020, while community banks and credit unions have deferred it to 2023. Banking groups attempted to delay or modify the standard but only obtained a partial extension.

Retail CFOs often make three major mistakes when forecasting demand: using static forecasts, having incentive structures that conflict with forecasting goals, and lacking real-time data sharing. These errors lead to inventory imbalances and lost sales. Experts recommend shifting to rolling forecasts, adjusting incentive structures, and adopting cloud-based data platforms.

A spirits company frequently underestimated demand due to strong product sales, leading to stockout losses. Consultant Brian Kalish recommended adopting rolling 12-month forecasts with quarterly updates to better capture market dynamics. This article details the transformation process, challenges, and key talent management points.

The number of bankruptcy filings in the biopharmaceutical industry rose in 2019, and experts warn that financial, legal, and political pressures may cause more companies to collapse.