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Accounting News Roundup: Dov’s New CFO; ‘The profession doesn’t feel it works for shareholders’; PwC’s New Atlanta Digs | 02.04.11

American Apparel names new CFO [Reuters]
American Apparel Inc (APP.A) said John Luttrell will take over as chief financial officer from Adrian Kowalewski, who will become executive vice president of corporate strategy. […] Luttrell, an industry veteran, joins from CFOs 2 Go Partners, a management consulting firm, where he was a partner. He has been CFO of Gap Inc’s (GPS.N) Old Navy chain, Wet Seal Inc (WTSLA.O) and Cost Plus Inc.

IRS Misfired on Plug-in Tax Credit Claims, U.S. Government Audit Discovers [Bloomberg]
About 20 percent of U.S. tax credits for plug-in electric vehicles and alternative-fuel vehicles were filed in error, according to a government audit. The credits are important to companies such as General Motors Co. and Nissan Motor Co., which have entered the plug-in market with the $41,000 Chevrolet Volt and the $32,780 Nissan Leaf, respectively. Buyers of those vehicles can claim up to $7,500 from the federal government, and the companies are relying on the credits to be competitive on price with gasoline- based models. Most of the erroneous credits, according to the audit, went to taxpayers who sought benefits for vehicles such as Hyundai Motor Co.’s Sonata and GM’s Buick Enclave that didn’t qualify for tax breaks. Prisoners and IRS employees were among those who erroneously claimed credits.

Auditors must treat shareholders as their client [Accountancy Age]
“The profession doesn’t feel it works for shareholders… because of this, the whole process isn’t working for the shareholders. It’s in your hands to change this,” Lee told the audience of audit stakeholders. “Competition is on price, not quality. We need to change the mindset that the audit is an annuity – a guaranteed cashflow. That’s a real concern.”

PwC moving to 1075 Peachtree [Atlanta Business Chronicle]
About 1,100 PricewaterhouseCoopers employees will move into five floors of the 725,000-square 1075 Peachtree building in mid-2012, the firim said Thursday. The building is part of 12th & Midtown, the mixed-use development that is a cornerstone of Atlanta’s Midtown Mile.

“We Can’t Get Carried Away by Our Success.” [CFO]
As advertising revenue grew across all its media platforms, ESPN bucked Corporate America’s current cash-hoarding ways and instead invested in projects such as last June’s launch of ESPN 3D. The network expects to offer about 100 live events in 3D in its first year. In September, ESPN also entered into a long-term, wide-ranging agreement with Time Warner to supply many new cable customers with access to ESPN stations, online content, and video on demand. The month before, as part of its push for growth via overseas markets, ESPN acquired broad rights to UK Premier League Soccer for the next three seasons.

What Did Chase Know, and When Did It Know It? [Floyd Norris/NYT]
About Madoff, that is.

Posted in ANR