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Accounting News Roundup: Empty Tax Plans; Don’t Cut the Snacks; Really Big Companies | 11.10.15

Posted on by Caleb Newquist

Republican Candidates Push Bold Tax Plans [WSJ]
I've mentioned it before, but I think it's silly  to take POTUS candidates' tax plans seriously during the primary campaign. Between now and next November the eventual nominee will change his or her plan to suit their political needs. You don't even think you have to be a cynical, liberal weenie like me to believe that!

“It doesn’t seem like there’s anything constraining these guys,” said Alex Brill, a former GOP congressional tax staffer now at the American Enterprise Institute, a conservative think tank. “The next guy that’s announcing his plan, he’s going to announce a plan that’s bigger and bolder and better than the last guy. And then he can win that debate.” 

I guess? Carly Fiorina supposedly won a debate or two and it's not going to catapult her into the White House. Meanwhile, I'm sure CPAs all across the country are fielding questions from clients about what they think will happen. The correct answer: probably nothing.

BDO Canada Acquires H&A Forensic Accounting [AT]
Much like the US firm, BDOC has been on a buying spree with seven "strategic mergers" in the last twelve months.

Why Getting Rid of Free Office Snacks Doesn't Come Cheap [Bloomberg]
I have no idea how many accounting firms provide free snacks, but those of them that do should heed this warning:

But the economic case for offering free snacks outweighs the relatively puny savings—and once a workplace gets hooked on snacks, it can't really go back.

It makes sense. If a company starts pulling the snacks, not only does that look cheap, employees then have to fend for themselves, which means they will probably leave the office to do so. Staples conducted a study that found that snack runs result in 2.4 billion hours of lost productivity. Plus, yanking snacks "can have a psychological effect that far outstrips the dollar amount." Matt Levine laments about the time Goldman Sachs got rid of free soda, so the pain is real. The accounting firms I worked for, including KPMG, only had free coffee, so I can't imagine the anguish associated with such a move.   

Eight Companies Are Now in the $300 Billion Club [WSJ]
Alphabet (aka Google), Amazon, Apple, Berkshire Hathaway, ExxonMobil, Facebook, General Electric and Microsoft are taking immateriality to new heights.

In other news:

  • SEC whistleblowers still doing okay for themselves.
  • Another Valeant conference call. [WSJ]
  • Ex-TierOne Bank CEO Guilty of Hiding Losses [CFO]
  • Failed border fence. [NYM]
  • A movie about offshore tax havens. [TaxProf]

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H&R Block selling RSM for $610 million [MW]
H&R Block Inc. said on Tuesday that it is selling its RSM McGladrey unit to McGladrey & Pullen, LLP for $610 million. The firm said the deal will result in a $53 million, or 17 cents a share, after tax charge to s expected to close by the end of the year.

Tax Break for Clergy Questioned [WSJ]
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Obama Talks to Buffett About Economy [Bloomberg]
“The president and Mr. Buffett discussed the overall outlook on the economy and the reaction to the headwinds we’ve experienced over the last couple of months,” said Josh Earnest, an administration spokesman. “They talked a little bit about some possible measures that would spur investment and increase economic growth and they also talked about some measures that could address the long-term fiscal situation in this country.”

Mandatory Auditor Rotation: If PCAOB Sanctions Were “Case-By-Case” [Re:Balance]
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Hate Your Job? It May Run In the Family [WSJ]
Sayeth a new study.

Sharma to step down as S&P president [FT]
Deven Sharma is stepping down as president of Standard & Poor’s only weeks after the rating agency issued an unprecedented downgrade of the credit of the US, the company said. Mr Sharma will remain as an adviser to S&P’s owner, McGraw-Hill, for four months and leave the company at the end of the year. He will be replaced as S&P president by Douglas Peterson, chief operating officer of Citibank, the banking unit of Citigroup.

Satyam Gets $463.3 Million Tax Notice [WSJ]
India’s Satyam Computer Services Ltd. Monday said it has received a preliminary draft notice from local authorities for a tax claim of 21.13 billion rupees ($463.3 million) disallowing the exemptions claimed by the company and dealing a setback to its attempt to recover from a fraud in 2009.

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