Accounting News Roundup | 02.06.12

~ It's the Monday after the Super Bowl and many of you stumbled into work in a haze of light beer and hot wing Joker faces. If you stumbled into work at all. As for me, I'm being held against my will in all day meetings in an undisclosed location, so publishing will be on the light side. If all goes well, things will be back to normal tomorrow when your digestive has finally quit freaking out. Please keep us updated with any news, gossip or story ideas by emailing us at [email protected].

SEC settles with former Qwest CFO Woodruff, dismisses claims against ex-Qwest accountant Noyes [AP]
The Securities and Exchange Commission has reached a settlement with former Qwest Communications International Inc. Chief Financial Officer Robert Woodruff over its civil fraud lawsuit. Woodruff agreed to settle without admitting or denying allegations that he and others gave investors a skewed impression of the company’s performance between 1999 and 2002, according to court documents. He would be ordered to pay a disgorgement of $1.7 million, interest of about $640,000, and a $300,000 fine under terms of a proposed final judgment.

New at the top: Mark Weinberger, chief executive-elect of Ernst & Young [WaPo]
M. Dubs in his own words.
 
At 102%, His Tax Rate Takes the Cake [NYT]
James Ross, 58, is a founder and managing member of Rossrock, a Manhattan-based private investment firm that focuses on commercial real estate and distressed commercial mortgages. “I realize I am very fortunate, and in fact I am a member of the 1 percent,” Mr. Ross wrote in an e-mail. His résumé is studded with elite institutions: Yale, Columbia Law School and stints at the law firms Cravath, Swaine & Moore in New York and Holland & Hart in Denver. Since his company fits the category of private equity, he even has carried interest, the kind of incentive compensation that enabled Mitt Romney to pay such a low tax rate. Yet Mr. Ross told me that he paid 102 percent of his taxable income in federal, state and local taxes for 2010. “My entire taxable income, plus some, went to the payment of taxes,” Mr. Ross said. “This does not include real estate taxes, sales taxes and other taxes I paid for 2010.” When he told friends and family, they were “astounded,” he said.
 
Its Chief’s Big Tax Bill May Benefit Facebook [NYT]
The taxes Mr. Zuckerberg and other Facebook shareholders pay on exercised stock options will translate into a big tax benefit for the company. The I.R.S. allows companies to take a mirror deduction for the employees’ option compensation. Facebook anticipates that the deduction will eliminate the tax bill on its $1 billion in 2011 profits, according to its regulatory filings. The company also expects the break to generate as much as $500 million in additional deductions, which can be used for refunds for 2009 and 2010 and for reductions in future years.

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