IASB and FASB Agree on Lease Accounting Approach [IASB/FASB]
The Boards previously agreed that leases should be recorded on the balance sheet, but have continued to discuss the classification and pattern of expenses in the income statement. In the decision reached today, the Boards decided upon an approach in which some lease contracts would be accounted for using an approach similar to that proposed in the 2010 leases Exposure Draft and some leases would be accounted for using an approach that results in a straight-line lease expense.
BDO to pay $50 million in tax shelter case [Reuters]
Accounting firm BDO USA has agreed to pay $50 million to settle charges of selling tax shelters that generated $6.5 billion in phony tax losses for wealthy clients, U.S. prosecutors said on Wednesday. The penalty is part of a wide-ranging, nearly decade-old government case against illegal tax shelters. Big Four accounting firm KPMG narrowly avoided an indictment in 2005 over its sale of tax shelters and was fined $456 million. BDO, formerly known as BDO Seidman, admitted to criminal wrongdoing and reached an agreement to have criminal prosecution deferred if certain conditions are met, the U.S. Attorney's Office in Manhattan said in a statement.
Being behind on $4.8 million in taxes will generally piss off the IRS.
Should You Wear a Bikini to the Firm Pool Party? [ATL]
A seasonal debate.
Male representatives on the Sormland County Council in Sweden should sit rather than stand while urinating in office restrooms, according to a motion advanced by the local Left Party. Known as a socialist and feminist organization, the party claims that seated urination is more hygienic for men — the practice decreases the likelihood of puddles and other unwanted residue forming in the stall — in addition to being better for a man's health by more effectively emptying one's bladder, The Local reported. But not everyone agrees. "Men scatter urine not so much during the actual urination as during the 'shaking off' that follows," John Gamel, a professor at the University of Louisville, wrote while addressing the issue in 2009. "As a result, forcing men to sit while emptying their bladders will serve little purpose, since no man wants to shake himself off while remaining seated on the toilet."