Articles Posted in accounting

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Financial whistleblower:

Daniel Schlicksup, an accountant who had been with Caterpillar Inc. for 16 years, tried to tell his bosses that it had illegally avoided more than $1 billion in taxes. No one seemed to listen.

Now, aided by documents provided by Schlicksup, the IRS, has determined that concluded in 2013 that Caterpillar had employed an “abusive” tax strategy; the agency later demanded $2 billion in back taxes and penalties. In 2014 a U.S. Senate investigative committee, with input from Schlicksup, questioned executives and determined that the company had avoided taxes on more than $8 billion in revenue.

Bloomberg news reports that  the US Securities and Exchange Commission is investigating Boeing’s programme accounting methods on the 787 and 747-8.

Boeing uses a standard programme accounting method to book revenues and costs on major commercial aircraft development programmes. The 787 programme has an accounting block spread over a production run of 1,300 aircraft. Boeing estimates costs and revenues over the entire block, and assigns an average operating margin for each aircraft that rolls out the factory.

Apparently, however,the 787 programme has not followed the usual pattern of Boeing’s historic development programmes.