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December 6, 2022

Accounting News Roundup: How to Fix the Carried Interest Loophole; Who Wants a Pony?; Advice for Groupon’s New Chief Accounting Officer | 09.11.12

Mitt Romney, Carried Interest and Capital Gains [Economix/NYT]
[I]t is a pipe dream to believe that eliminating the capital gains preference is the key to fixing the carried interest loophole. It can and should be addressed by treating carried interest as ordinary income, without requiring that all capital gains be taxed as ordinary income.

Kodak CFO Leaves; More Jobs Cut [WSJ]
Cash held by Kodak's U.S. operations fell by $72 million in July, the most recent figure available, compared with cash burn of $64 million in June and $43 million in May. Creditors responded by putting more pressure on the company to cut costs, according to creditors familiar with the matter. Many called for management changes, specifically for Chief Executive Antonio Perez and Chief Financial Officer Antoinette P. McCorvey to resign, the creditors said.

Fraud Case Spurs Show-Horse Sale [WSJ]
Authorities say [Rita] Crundwell no longer can afford the $200,000 a month required to care for all the horses. Ms. Crundwell agreed to the sale, authorities say, which was ordered through a court process. Federal authorities believe that horses were purchased and possibly maintained with funds from the alleged fraud. Money from the auction eventually could go to Dixon as partial restitution, but proceeds will be held in escrow until the case concludes. Auctioneers said the size of the horse sale by a single owner is rare. A spokesman for the American Quarter Horse Association said the high caliber of the horses also makes it extraordinary. "In all my years in the business, we've never done anything quite like this," said Mike Jennings, a four-decade veteran of the horse-auction business who the government hired to oversee the Crundwell sale, scheduled to take place on Sept. 23 and 24, and online starting last Friday, though no sales will take place until this week.

Company Says CFO Swiped Money for a Hit Man to Kill His Wife [CNS]
Apparently Franklin Howard, 52, threw people off this trail by saying the money was for office supplies.

Can a New Accounting Chief Save Groupon's Accounting? [GOA
A couple of old grumps give Brian Stevens a little sage advice.

CFTC Faults Peregrine Trustee’s Distribution Plan [Bloomberg]
“Yes, ladies and gentlemen, there is a large shortfall here,” [bankruptcy trustee Ira] Bodenstein said of Peregrine’s client funds. That shortfall, he said, is about $190 million. The CFTC, in its lawsuit filed against the firm and founder Russell Wasendorf on July 10, accused them of misappropriating about $200 million, claimed to have been on deposit with U.S. Bank, a unit of Minneapolis-based U.S. Bancorp. “There will not be a 100 percent return of anybody’s investment in Peregrine,” Bodenstein said. “That is a certainty.”

Top Cities for Best Salary Raises [AWEB]
Alaska. Alaska. I think I'll try Alaska.

Police: Michael Smeriglio accidentally shoots off his penis and testicle; friend arrested on drug charge [CBS]
Police say 18-year-old Michael Smeriglio first lied to police saying someone shot him while he was walking down the street. After being questioned by police he admitted to accidentally doing it himself. Doctors say the bullet went through his penis, his left testicle and then lodged itself in his thigh. Smeriglio told police he bought the gun last month at a party.

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