When accounting goes unaccounted for
London’s ExCeL Centre was packed to the rafters today with almost 4,000 would-be accountants sitting their ACCA (the Association of Chartered Certified Accountants) exams in Corporate Reporting, Financial Reporting and Preparing Taxation Computations. The exams are part of ACCA’s global exam series, with an estimated 73,806 students taking these exams around the world today.
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Why are the proctors dressed like riot police?
Yesterday, we talked about a recent PwC report on the future of work, which may […]
There’s really nothing better than an eccentric CEO throwing caution to the wind, consequences be damned.
Insert Patrick Byrne, CEO of Overstock.com (“OSTK”). He issued a letter via press release yesterday that has many people’s attention.
Byrne opens the letter by quoting Nietzsche:
“All things are subject to interpretation; whichever interpretation prevails at a given time is a function of power and not truth.”
Tragic enough but then Byrne really amps it up, droning on for eleven points about his company’s dire situation. Here’s the gist*:
• The difficult accounting treatment of an overpayment received by OSTK from a “partner”.
• Putting the audit out to bid after “eight years of fine service” from P. Dubs, and hiring GT because “my belief that changing auditors every decade or so might be healthy.”
• SEC inquiries into the accounting treatment of the overpayment.
• GT changing their minds on the accounting treament after said inquiries.
• We’re filing an unreviewed 10-Q, P. Dubs is on board for our treatment, GT is fired, anyone (and I mean anyone) want to audit us?
Byrne spends no less than six paragraphs/points explaining GT’s wishy-washy, bending-over-for-the-SEC ways. The man is nothing if not thorough.
Spineless auditors notwithstanding, Byrne will press on, the company will overcome, and he will remain committed to you, Overstock.com shareholder:
I will hold a conference call to further explain and answer questions regarding this matter on Wednesday afternoon at 5:00 p.m. EST (details below). Until then, I remain,
Your humble servant,
Patrick M. Byrne
10-Q [SEC.gov]
8-K: Dismissal of Grant Thornton [SEC.gov]
Press Release [SEC.gov]
*If you want to debate the particulars, be my guest but this isn’t the Journal of Accountancy, feel me?
You may have noticed that the posting schedule here at GC has ran a bit longer the past few days. This is no accident. We were given a friendly reminder on Monday:
Caleb, this is busy season, I expect review comments an hour later for the next few months. That is all.
Well! Since we’re always with you in spirit, we’ll be happy to oblige this request.
We failed to mention it in our outlook on Tuesday since we figured it was understood that the new year marks the beginning of the end of your lives for the next 3ish months.
Then we remembered that it has been prophesied by many of you that this particular busy season will be the worst in recent memory due to layoffs and the ongoing (?) exodus.
So we present you with our busy season open thread. Discuss whatever you like. Will it indeed be the worst ever or will you dominate as usual? For some of you, it’s your first busy season. Are you soiling yourself from all the horror stories or have you found the right drug cocktail to keep you both focused on your work and oblivious to time passing? Go.