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Accounting News Roundup: Tax Reform Reality Isn’t Pretty; Deloitte Finds a Bargain; Work Hard, Rest Hard | 11.08.12

Obama can’t expect a “fiscal honeymoon” in second term, Fitch says [JofA]
“The economic policy challenge facing the president is to put in place a credible deficit-reduction plan necessary to underpin economic recovery and confidence in the full faith and credit of the US,” Fitch said in a news release outlining steps the U.S. government must take to shore up the nation’s AAA standing with the credit rating agency. “… Failure to avoid the fiscal cliff and raise the debt ceiling in a timely manner, as well as securing agreement on credible deficit reduction, would likely result in a rating downgrade in 2013.”

Wanna-Be Tax Reformers Need a Dose of Reality [Martin Sullivan]
Marty paints a grim picture: "[P]oliticians of all stripes will find it difficult to support tax reforms that are not distributionally neutral. If capital gains and other saving incentives are off the table, and if there are no significant cutbacks in tax benefits for charitable giving by the wealthy, it is difficult to see how the top rate on the wealthy could ever be reduced from 35 percent to less than 32 percent in a revenue-neutral reform.'

Monitor Company files for Chapter 11; Deloitte to buy assets [Reuters]
U.S. consulting and advisory firm Monitor Company Group and its affiliates filed for Chapter 11 bankruptcy protection, court documents showed, and said it has agreed to sell its assets to global consultancy firm Deloitte. As per the asset purchase agreement, Deloitte Consulting LLP will acquire Monitor's U.S. practice, and practices outside the United States will be acquired by certain other member firms of Deloitte Touche Tohmatsu Limited.

SocGen CEO Blames ‘Stupid’ Accounting for Profit Drop [CNBC]
“Exceptional items are related in particular to this stupid accounting thing which means that when you have a credit that is improving, your CDS is going down and you have to recognise negative revenues,” Frederic Oudea told CNBC in Paris.

Red Flags: How to Know When Your CPA Isn't Really Working For You [Forbes]
Alternate title for CPAs: "How to Recognize That You Don't Give a Damn About a Client." 

When Working Hard, Make Time for Rest [HBR]
News you can use: "When you’re on a deadline or have a particularly thorny project in front of you, it can be tempting to try to power through for long periods of time. But your brain’s ability to focus only lasts about 90 minutes before you need to take a break." 

Dead candidates win elections in Florida, Alabama [Reuters]
Florida Democrat Earl K. Wood and Alabama Republican Charles Beasley won their respective elections but they will not take office. Both men died weeks before the November 6 election yet managed to beat their very much alive opponents by comfortable margins. Wood died on October 15 from natural causes at age 96, during his campaign for a 12th term as Orange County Tax Collector in Orlando, Florida. […] Beasley, 77, died on October 12, possibly due to an aneurysm, while trying to reclaim his old seat on the Bibb County Commission in central Alabama.

Posted in ANR