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December 7, 2022

Accounting News Roundup: Another Chinese Company’s Auditor Resigns; IFRS Blamestorming; Calpers Names Acting CFO | 03.29.11

China Century’s Accounting Firm Resigns; Says Co Faces Delisting [Dow Jones]
China Century Dragon Media Inc. (CDM) said MaloneBailey LLP formally resigned as the company’s independent accounting firm, alleging it believed irregularities in the company’s bank records suggested the documents may have been falsified. The Chinese television advertising company said the firm noted in its resignation letter that it couldn’t directly verify the company’s bank records and wasn’t able to rely on management’s representations of China Century’s financial statements. The company said it intends to seek and retain a new auditor.

‘Fatally flawed’ accounting standards inflated [Telegraph]
The International Financial Reporting Standards (IFRS), which have been described as “fatally flawed”, let RBS report a core tier one ratio for 2010 more than 4pc higher than it would have been under the UK’s old accounting rules that were replaced in 2005. The analysis comes ahead of the publication of a House of Lords Economic Affairs Committee report into UK accounting practices expected to be highly critical of the IFRS system.

BP Managers Said to Face U.S. Manslaughter Charges Review [Bloomberg]
Federal prosecutors are considering whether to pursue manslaughter charges against BP Plc (BP/) managers for decisions made before the Gulf of Mexico oil well explosion last year that killed 11 workers and caused the biggest offshore spill in U.S. history, according to three people familiar with the matter.

Government Shutdown Grows Likelier [WSJ]
Talks between congressional leaders and the White House on a deal to fund the government for the rest of the year appear to have slowed, with Democrats and Republicans loudly bickering over the fate of their negotiations. Failure to reach a deal by April 8, a milestone that appears increasingly difficult to achieve, would result in a government shutdown. In the absence of any visible signs of progress on negotiations, Democrats and Republicans on Monday ratcheted up criticism of each other.

Why Doesn’t Your Firm Have a Website? [CPA Trendlines]
Chances are this isn’t your firm but one-third of CPA firms don’t have a page on the tubes.

Monday Map: State Beer Excise Tax Rates [Tax Foundation]
Alaska, Alabama, Georgia, Washington [?}, South Carolina lead the way.

Despite pressure to reduce national debt, few in Congress use payback program [WaPo]
Try to act surprised.

Calpers Names Fong To Newly Created Acting CFO Post [Dow Jones]
The country’s largest public pension fund, California Public Employees’ Retirement System, appointed Russell G. Fong to its acting chief financial officer post effective April 4, a newly created role to coordinate financial and risk-related activities. Fong will be responsible for managing the financial progress of Calpers, including budgeting, accounting, cash management and financial planning and analysis. He will also oversee the fund’s enterprise risk management projects.

China Century’s Accounting Firm Resigns; Says Co Faces Delisting [Dow Jones]
China Century Dragon Media Inc. (CDM) said MaloneBailey LLP formally resigned as the company’s independent accounting firm, alleging it believed irregularities in the company’s bank records suggested the documents may have been falsified. The Chinese television advertising company said the firm noted in its resignation letter that it couldn’t directly verify the company’s bank records and wasn’t able to rely on management’s representations of China Century’s financial statements. The company said it intends to seek and retain a new auditor.

‘Fatally flawed’ accounting standards inflated RBS’s worth [Telegraph]
The International Financial Reporting Standards (IFRS), which have been described as “fatally flawed”, let RBS report a core tier one ratio for 2010 more than 4pc higher than it would have been under the UK’s old accounting rules that were replaced in 2005. The analysis comes ahead of the publication of a House of Lords Economic Affairs Committee report into UK accounting practices expected to be highly critical of the IFRS system.

BP Managers Said to Face U.S. Manslaughter Charges Review [Bloomberg]
Federal prosecutors are considering whether to pursue manslaughter charges against BP Plc (BP/) managers for decisions made before the Gulf of Mexico oil well explosion last year that killed 11 workers and caused the biggest offshore spill in U.S. history, according to three people familiar with the matter.

Government Shutdown Grows Likelier [WSJ]
Talks between congressional leaders and the White House on a deal to fund the government for the rest of the year appear to have slowed, with Democrats and Republicans loudly bickering over the fate of their negotiations. Failure to reach a deal by April 8, a milestone that appears increasingly difficult to achieve, would result in a government shutdown. In the absence of any visible signs of progress on negotiations, Democrats and Republicans on Monday ratcheted up criticism of each other.

Why Doesn’t Your Firm Have a Website? [CPA Trendlines]
Chances are this isn’t your firm but one-third of CPA firms don’t have a page on the tubes.

Monday Map: State Beer Excise Tax Rates [Tax Foundation]
Alaska, Alabama, Georgia, Washington [?}, South Carolina lead the way.

Despite pressure to reduce national debt, few in Congress use payback program [WaPo]
Try to act surprised.

Calpers Names Fong To Newly Created Acting CFO Post [Dow Jones]
The country’s largest public pension fund, California Public Employees’ Retirement System, appointed Russell G. Fong to its acting chief financial officer post effective April 4, a newly created role to coordinate financial and risk-related activities. Fong will be responsible for managing the financial progress of Calpers, including budgeting, accounting, cash management and financial planning and analysis. He will also oversee the fund’s enterprise risk management projects.

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