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December 4, 2022

Accounting News Roundup: PwC Dealt Setback in MF Global Suit; Banco Espirito Santo Not Doing So Hot; Happy (Belated) Name Day, IRS | 07.10.14

PwC must face $1 billion lawsuit over MF Global collapse [Reuters]
U.S. District Judge Victor Marrero doesn't let in pari delicto doesn't fly this time: "Under PwC's reasoning, the in pari delicto doctrine would insulate an auditor from liability whenever a company pursues a failed investment strategy after receiving wrongful advice from an accountant," he wrote. "Such a broad reading of the doctrine would effectively put an end to all professional malpractice actions against accountants."

Portugal Hit by Worries Over Banco Espírito Santo [WSJ]
Fun times in Europe, again: "Shares in Banco Espírito Santo have been under pressure since accounting irregularities emerged in its holding companies in late May. But the declines mounted drastically Thursday after investors learned that parent company Espírito Santo International had delayed coupon payments relating to some short-term debt securities."

Greif looking for new auditing firm as E&Y resigns [CBF]
Sounds like EY was tired of giving Greif grief: "Greif said in the filing that Ernst & Young has caught mistakes made by the company’s internal staff, leading Greif to conclude there is a 'material weakness in internal controls over financial reporting related to accounting for non-routine or complex transactions.' The company said it has made internal changes to fix the issues."

Four of the 10 richest Singaporeans are expats saving millions in taxes [Quartz]
If you ever become a billionaire, you might consider it: "Moving to Singapore has allowed [Facebook co-founder Eduardo] Saverin and his peers to reduce their tax bills: Singapore has no capital gains tax and offers a much lower individual tax rate than Western countries, especially for wealthy people. Saverin also gets to avoid paying American taxes as a non-resident—the US is one of only two countries that taxes the foreign income of citizens even if they live abroad (the other is Eritrea)."

Former accountant opens cupcake bakery in Mililani [PBN]
Hopefully she's smart enough to not take her shop public.

Happy 61st 'Nameversary' Internal Revenue Service [DMWT]
It was yesterday.

Supremely Chill Dude Loses Job After Buying Spokane’s First Legal Weed [Gawker]
Mike Boyer may or may not be The Dude: "Boyer became a local celebrity in Spokane, Washington this week after local news crews captured him waiting in line outside Green Leaf, the city's first recreational dispensary, to ensure his place in line. […] The publicity cost Boyer his job after a client saw him on TV and ratted him out to his employer, Kodiak Security Services. He seems unfazed. 'Yeah, it was kind of a buzzkill,' he told Vocativ. 'But I wasn't going to let it ruin an awesome day.' "

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