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Accounting News Roundup: More on Valeant; Thinking About Money; Uber’s Tax Planning | 10.23.15

Documents Raise New Questions About Valeant’s Pharmacy Relationships in California [ProPublica]
If you're loving the Valeant soap opera, then this report from ProPublica will not disappoint:

Philidor’s license application was denied in May 2014 after the California Board of Pharmacy accused the company and its representatives of making “false statements of fact.” Specifically, the board said Philidor lied when listing the pharmacy’s owners, its accountant and its authorized signatories for financial transactions.

Several months later, a holding company whose chief executive identifies herself online as Philidor’s director of pharmacy operations purchased a 10 percent stake in West Wilshire Pharmacy in Los Angeles.

Here's an interview with Andrew Left, the short-seller who made all the Enron comparisons.

Between Citron, SIRF, Bronte Capital and now this ProPublica piece, there's more than enough smoke that a number of people are wanting answers, so Valeant is holding a conference call on Monday to clear the air. Or in their words: "lay out the facts including allegations made against our company regarding our relationship with Philidor and R&O." And: "[many reports] contain numerous errors, unsupported speculation and incorrect interpretations of facts and circumstances to the detriment of the shareholders of the company.” I'm sure plenty of people are going to take them up on that.

If You Feel Left Out at Work, Visualize Money [HBR]
Two researchers found that when people who felt ostracized at work "were reminded of money, the negative relationship between ostracism and prosocial intentions was weaker or even eliminated — even without reference to any actual financial compensation." In other words, simply thinking of money will help you get over all your jerkstore co-workers who ignore or marginalize you. The rationale makes sense:

From a survival point of view, money provides greater control over one’s physical and social circumstances. Psychological research found that situational reminders or simple thoughts of money can provide a sense of strength, making people feel able to withstand difficulties, including (the pain of) social rejection.

So rather than retreating into your shell, thinking about money will cause a person to "maintain, rather than withdraw, their prosocial tendencies at work." I doubt this fully explains the annual compensation obsession, but this could help a few of you. 

How Uber plays the tax shell game [Fortune]
Turns out, much like everyone else!

[I]n a statement, an Uber spokesperson wrote: “Our corporate tax structure is probably the least innovative thing about Uber. It’s the standard approach adopted by most multinational companies.

Double Dutch Irish. Double Dutch. Etc. You know the drill. Uber does it too.

In other news:

  • The Chairman of Twitter finds it "intimidating to use." [Digits/WSJ]
  • Should You Be Allowed to Invest in a Lawsuit? [NYT]
  • Just Who Is Your Executive MBA Participant? [CFO]
  • The guy who broke Edison's patent record. [Bloomberg]
  • Patricia is a big storm. [AP]
  • Why people under 35 are so unhappy [Quartz]