Accounting News Roundup: Inversion Showdown; CEO Luck; CPA Narcissism | 11.20.15

~ Morning, gang. We’ll be doing a half day today, so we suggest you do the same. Have a great three-day weekend and we’ll see you back here on Tuesday.

U.S. Is Set to Sue a Dozen Big Banks Over Mortgages [NYT]
The federal agency that oversees the mortgage giants Fannie Mae and Freddie Mac is set to file suits against more than a dozen big banks, accusing them of misrepresenting the quality of mortgage securities they assembled and sold at the height of the housing bubble, and seeking billions of dollars in compensation.

SABMiller Queries Foster’s Financial Statement [Bloomberg]
SABMiller Plc (SAB), which has made a hostile $10 billion bid for Foster’s Group Ltd. (FGL), questioned the Australian brewer’s statements on its financial performance and net debt in a submission to the country’s Takeover Panel. The Australian government agency received the application from SABMiller, according to a statement on the panel’s website. A panel hasn’t been appointed and no decision has been made to conduct proceedings, the government agency said. SABMiller argues there is “no reasonable basis for several forward-looking statements” in Foster’s fiscal 2011 results presentation, according to the statement. The world’s second- largest brewer by volume sought an order that Foster’s clarify “misleading and deceptive” remarks.

Investors to SEC: Please Don’t Switch to IFRS [CFOJ]
When SEC Chairman Mary Schapiro said in June that investors aren’t clamoring for International Financial Reporting Standards, she may have been understating things… a bit. Now, some of the biggest U.S. investor groups are letting the SEC know in no uncertain terms that it should postpone its decision on IFRS and even stop the convergence process between U.S. GAAP and IFRS.

Boeing’s Tax Assets Could Trump Liabilities for Years [CFOJ]
In total, the company has tax liabilities of roughly $10.7 billion. That’s compared to $14.4 billion in deferred tax benefits, which means it ultimately won’t pay anything to the IRS unless the value of those assets erode.

U.S. Showed No Job Growth in August; Rate Stays at 9.1% [NYT]
The net addition of no jobs in the month was down sharply from a revised 85,000 gain of jobs in July, the Labor Department said Friday, and was far below a consensus forecast by economists of 60,000. The unemployment rate stayed constant at 9.1 percent in August.

Undocumented workers got billions from IRS in tax credits, audit finds [WaPo]
The Internal Revenue Service allowed undocumented workers to collect $4.2 billion in refundable tax credits last year, a new audit says, almost quadruple the sum five years ago. Although undocumented workers are not eligible for federal benefits, the report released Thursday by the Treasury Inspector General for Tax Administration concludes that federal law is ambiguous on whether these workers qualify for a tax break based on earned income called the additional child tax credit.

D.C. Circuit: ‘The IRS is Not Special’ [TaxProf]
I won’t have it!

Salesforce Chief Calls Accounting Criticisms “Ludicrious” [SFC]
In fact, [Mark Benioff] says, Salesforce set the standard for other software-as-a-service companies that came after it.

KPMG Announces Nationwide Community Service Campaign at More Than 200 Non-Profits to Mark 9/11 Anniversary [KPMG]
As part of the “Service in Remembrance” campaign, taking place from September 6-11, thousands of KPMG partners and employees will volunteer at more than 200 non-profits across the country. “We look forward to being a part of something extraordinary, as the KPMG family proudly joins millions of Americans in support of the National Day of Service,” said KPMG LLP Chairman and CEO John Veihmeyer.

Poll on tax deal hints Obama still hasn’t sold public [WaPo]
“President Obama has aggressively sold the tax agreement he negotiated with congressional Republicans, arguing that it not only averts tax increases but will spur economic growth. So far, he hasn’t persuaded either congressional Democrats or the American people. The public, according to a Washington Post-ABC News poll, broadly supports the agreement. But when asked whether it will actually help the economy, 17 percent of people said it would hurt, while 43 percent said it would make no difference.”

Plus, there are too many football metaphors going around.

Despite Bipartisan Criticism, Tax-Reporting Mandate Lives On [Dow Jones]
A paperwork mandate on businesses that drew sharp criticism from lawmakers in both parties will remain on the books, at least until Congress takes another crack at repealing it next year. Part of the recently passed health-overhaul legislation, the provision requires businesses to report to the Internal Revenue Service payments to any vendor totaling more than $600 in a given year. It isn’t scheduled to take effect until 2012, so Congress still has time to modify or repeal it.

Soaring Hong Kong Rents Prompt Allianz, Accounting Firms to Shift Towers [Bloomberg]
PwC seems to be staying put while E&Y is pulling up the stakes.

Commuter tax benefit moving along as part of tax cuts extension bill [DMWT]
Under the Senate’s version of the tax cut bill, the pretax cap on employer-provided commuting benefits remains at $230, which is good since a Metrocard will likely cost that much in the next two years or so.

Christmas Gifts for that Special Tax Person [TaxProf Blog]
Especially any Schmidts.

AICPA: Revenue Recognition Proposal Impractical [JofA]
The AICPA’s Financial Reporting Executive Committee (FinREC) this week voiced extensive concerns with a joint FASB-IASB proposed standard on revenue recognition that is intended to apply across all industry sectors.

“We agree with the theoretical merit of many of the concepts included in the proposed standard,” FinREC said in its comment letter. “We also believe, however, that certain principles…may be neither practical nor operational for preparers and auditors to apply without undue cost.”

8,000 storm PwC for graduate appointments [Accountancy Age]
So much for overrated, “PwC has received up to 8,000 applications for graduate jobs and internships in 2011. A report on consultant-news.com reveals the firm has received an avalanche of applications from hopeful candidates who believe the job market is improving. PwC is recruiting for 1,600 roles, a record level for the firm.”

In Nevada prison O.J Simpson keeps tax break on South Florida home [Orlando Sentinel via TaxProf]
The Juice isn’t loose but he’s enjoying some good tax planning.

New Slant on Corporate Taxes [CFOJ]Pamela Olson's quote is the best: "There is wide recognition […]