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September 29, 2023

Accounting News Roundup: KPMG Scrutinized for Espirito Santo; Going Concern Disclosures; Life at Deloitte Includes Getting the Gym All to Yourself | 08.28.14

KPMG Faces Criticism for Espírito Santo Audit Work [WSJ]
Given BDO's experience, maybe the HoK should've seen this coming: "In KPMG LLP's Lisbon office, few clients provided as much audit work as the Espirito Santo Group, whose business interests ranged from banking to mining. Now the collapse of the family-owned empire is raising questions about whether KPMG should have detected problems earlier. KPMG was the auditor of Espirito Santo Financial Group SA, a publicly traded Luxembourg finance company that filed for creditor protection in July. In Lisbon, it was the auditor of Banco Espírito Santo SA, which was bailed out in August, and of dozens of related companies. And KPMG was the auditor of three offshore investment vehicles that trafficked in Espirito Santo debt and played a part in what the Portuguese central bank describes as a fraudulent scheme."

Executive Responsibility For ‘Going Concern’ Disclosures Increases [CFOJ]
Aka: "Having a clue about whether or not your company is going down for the dirt nap": "Corporate managers will have to make more uniform disclosures when there is substantial doubt about their business’ ability to survive, the Financial Accounting Standards Board said Wednesday. The FASB updated U.S. accounting rules, effective by the end of 2016, to define management’s responsibility to evaluate whether their business will be able to continue operating as a 'going concern,' and make relevant disclosures in financial statement footnotes."

Buffett’s Involvement in Burger King-Tim Hortons Deal Is a Diversion [DealBook]
He's done this before: "
Mr. Buffett is lending Burger King $3 billion in the form of preferred stock at a lucrative 9 percent interest rate for it to complete the $11.4 billion deal for Tim Hortons. He is once again backing Burger King’s majority owner, 3G Capital, the Brazilian private equity group that bought Heinz last year for $28 billion with his financing help."

Look at all the accountants committed to a healthy lifestyle!

Make a Small Air Conditioner Out of an Ice Bucket [Lifehacker]
In case you just wanted to cut the check and save yourself from catching cold.

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