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December 3, 2022

Accounting News Roundup: China’s Frauds; Goldman’s Audit Committee; O’Keefe’s Nonprofit | 05.27.11

The Audacity of Chinese Frauds [NYT]
In mid-March, just after the fraud at China MediaExpress was exposed, Longtop announced plans to put some of the cash to use by spending up to $50 million to repurchase its own shares. On April 28, the company tried to assure analysts that the fraud claims were bogus. Derek Palaschuk, a Canadian accountant who served as the company’s chief financial officer, wrapped himself in Deloitte’s prestige, saying that those who questioned Longtop were “criticizing the integrity of one of the top accounting firms in the world.”

Funding Concerns Still Surround IASB [CFO Journal]
The International Accounting Standards Board has faced questions for years about whether its funding sources are stable enough for it to truly be the world’s top accounting standard setter. So it was likely an uncomfortable day last month when it disclosed an operating deficit of £1.3 million ($2.1 million) for 2010. But perhaps even more awkward for the IASB is the fact that the Financial Accounting Foundation, which funds and oversees the U.S. Financial Accounting Standards Board, recently stepped forward to help it with its finances.

Goldman Sachs Needs a New Audit Committee [Bloomberg]
Jonathan Weil takes a look at the members of Goldman’s audit committee – the chair of which is James Schiro, PwC’s former CEO – and doesn’t like what he sees.

Goldman CFO says clients “past” Levin — analyst [Reuters]
Goldman Sachs believes its clients are “largely past” the regulatory investigations and accusations that have surrounded the bank, according to an analyst who met its Chief Financial Officer. Goldman Chief Financial Officer David Viniar said the bank does not expect the U.S. Securities and Exchange Commission to bring any more claims against it after a $550 million settlement last year, according to a report from Susquehanna Financial Group analyst David Hilder.

SJSU announces scholarships in memory of 2 slain honor students [SJMN]
Days before Marcory “Cindy” Tarlit Caliguiran and Thomas Kyle Williams would have graduated with honors from San Jose State’s business school, SJSU announced scholarship funds have been created in their memories.

Small Businesses Fight IRS Over Data [WSJ]
The Internal Revenue Service, moving aggressively to collect more taxes from small businesses, is telling companies being audited to turn over exact copies of the electronic records kept in their business-software programs, according to a letter from an agency official to the American Institute of CPAs. The accounting group fears this will force small businesses to turn over customer lists, personnel data, confidential client information and other unrelated information often contained in the off-the-shelf software programs many businesses use to manage all aspects of their finances.

Conservative Group Wins Nonprofit Status From I.R.S. [NYT]
The Internal Revenue Service has granted nonprofit status to the group that brought down two senior executives at NPR and dealt a death blow to the community organizing group Acorn with videos of its employees giving tax advice to people claiming to be a pimp and prostitute.

SEC Staff Presents “Condorsement” as Possible Method for Move to IFRS [JofA]
A staff paper published Thursday by the SEC’s Office of the Chief Accountant (OCA) presents in detail and solicits comments on the so called “condorsement” approach to incorporating IFRS into the U.S. financial reporting system. “The Staff’s discussion in this Staff Paper is not intended to suggest that the Commission has determined to incorporate IFRS,” the paper says, “or that the discussed framework is the preferred approach or would be the only possible approach.”

The Audacity of Chinese Frauds [NYT]
In mid-March, just after the fraud at China MediaExpress was exposed, Longtop announced plans to put some of the cash to use by spending up to $50 million to repurchase its own shares. On April 28, the company tried to assure analysts that the fraud claims were bogus. Derek Palaschuk, a Canadian accountant who served as the company’s chief financial officer, wrapped himself in Deloitte’s prestige, saying that those who questioned Longtop were “criticizing the integrity of one of the top accounting firms in the world.”

Funding Concerns Still Surround IASB [CFO Journal]
The International Accounting Standards Board has faced questions for years about whether its funding sources are stable enough for it to truly be the world’s top accounting standard setter. So it was likely an uncomfortable day last month when it disclosed an operating deficit of £1.3 million ($2.1 million) for 2010. But perhaps even more awkward for the IASB is the fact that the Financial Accounting Foundation, which funds and oversees the U.S. Financial Accounting Standards Board, recently stepped forward to help it with its finances.

Goldman Sachs Needs a New Audit Committee [Bloomberg]
Jonathan Weil takes a look at the members of Goldman’s audit committee – the chair of which is James Schiro, PwC’s former CEO – and doesn’t like what he sees.

Goldman CFO says clients “past” Levin — analyst [Reuters]
Goldman Sachs believes its clients are “largely past” the regulatory investigations and accusations that have surrounded the bank, according to an analyst who met its Chief Financial Officer. Goldman Chief Financial Officer David Viniar said the bank does not expect the U.S. Securities and Exchange Commission to bring any more claims against it after a $550 million settlement last year, according to a report from Susquehanna Financial Group analyst David Hilder.

SJSU announces scholarships in memory of 2 slain honor students [SJMN]
Days before Marcory “Cindy” Tarlit Caliguiran and Thomas Kyle Williams would have graduated with honors from San Jose State’s business school, SJSU announced scholarship funds have been created in their memories.

Small Businesses Fight IRS Over Data [WSJ]
The Internal Revenue Service, moving aggressively to collect more taxes from small businesses, is telling companies being audited to turn over exact copies of the electronic records kept in their business-software programs, according to a letter from an agency official to the American Institute of CPAs. The accounting group fears this will force small businesses to turn over customer lists, personnel data, confidential client information and other unrelated information often contained in the off-the-shelf software programs many businesses use to manage all aspects of their finances.

Conservative Group Wins Nonprofit Status From I.R.S. [NYT]
The Internal Revenue Service has granted nonprofit status to the group that brought down two senior executives at NPR and dealt a death blow to the community organizing group Acorn with videos of its employees giving tax advice to people claiming to be a pimp and prostitute.

SEC Staff Presents “Condorsement” as Possible Method for Move to IFRS [JofA]
A staff paper published Thursday by the SEC’s Office of the Chief Accountant (OCA) presents in detail and solicits comments on the so called “condorsement” approach to incorporating IFRS into the U.S. financial reporting system. “The Staff’s discussion in this Staff Paper is not intended to suggest that the Commission has determined to incorporate IFRS,” the paper says, “or that the discussed framework is the preferred approach or would be the only possible approach.”

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