The trend among tech companies to include a modified figure that excludes stock-based compensation expenses alongside standard earnings casts doubt on their true profitability and understates their risk to investors, critics say. Tech companies maintain that stock options are non-cash items and should not be treated as expenses.
The Financial Accounting Standards Board will decide Monday whether it will endorse rules proposed by the Private Company Council on goodwill testing. The proposal would let private firms amortize goodwill from previous acquisitions on balance sheets. It also would limit the testing that initiates write-downs.
A report issued by the Treasury Inspector General for Tax Administration on Thursday says the Internal Revenue Service does not have proper internal controls in place to ensure that security weaknesses are properly corrected. As a result, known security problems remain unaddressed and taxpayer data are not adequately protected. TIGTA made several recommendations for correcting the problem.
Initial claims for U.S. unemployment benefits fell by a sharp 21,000 last week, while the less volatile four-week moving average declined by 6,750. This report on claims should be seen as a neutral to slightly positive reading on payroll growth, one economist says.