Please ensure Javascript is enabled for purposes of website accessibility
December 7, 2022

Accounting News Roundup: Treasure Hunt at MF Global; IRS Employees Going Rogue; Soda Tax By State| 11.01.11

MF Global Collapses as Books Questioned [WSJ]
MF Global Holdings Ltd. collapsed into bankruptcy Monday when a potential buyer bolted over a discrepancy of hundreds of millions of dollars in the beleaguered securities firm’s books, people familiar with the matter said. U.S. regulators are investigating the discrepancy, which relates to money from customers that couldn’t be accounted for as MF Global raced to sell itself, according to people with knowledge of the probe. The probe is at an early stage, and it isn’t clear if the money is missing or if the inconsistencies relate to sloppy bookkeeping. The last-minute dealbreaker came just hours after negotiations led by MF Global Chief Executive Jon S. Corzine had concluded with a tentative agreement on a rescue.

Overstock.com (O.co): Insolvency Looming? [WCF]
This isn’t looking good: “At the end of its third quarter, the Overstock.com had $18.4 million of net working capital (current assets minus current liabilities). However, the company would have reported a mere $1.4 million of net working capital had it not played a shell game and window dressed its balance sheet during the third quarter. Apparently, the company wanted to avoid reporting dangerously low net working capital going into the fourth quarter, while at the same time it is trying to renegotiate terms of its Master Lease Agreement (sale leaseback) with U.S. Bank.”

Tax Breaks for Students [WSJ]
News you can use.

Perry Flat Tax Is Fool’s Gold for Conservatives [Bloomberg]
Perry’s plan is, in short, a flat tax in name only. And notwithstanding his campaign’s absurdly optimistic projections, it seems likely that it would result in much lower revenues than the current system.

A Close Look at the Perry Tax Plan [Economix/NYT]
And for another perspective: “Mr. Perry’s plan cannot be taken seriously. I don’t think it’s meant to be, at least by those of us who don’t plan on voting in Republican primaries. It’s just a signaling device, telling the Republican faithful that they can trust Mr. Perry on the tax issue. Whether the plan makes any sense as a matter of policy is irrelevant to its purpose, which is to win him the Republican nomination.”

IRS Roguery is Not a New Development [Tax Lawyer’s Blog]
You. Tax preparer. Enemy.

Monday Map: Soda Taxes by State [Tax Foundation]
Places where buying the world a Coke™ will cost you a little extra.

PwC Names Dietmar Ostermann as Global Automotive Advisory Leader [PwC]
Dietmar comes by way of…A.T. Kearney.

MF Global Collapses as Books Questioned [WSJ]
MF Global Holdings Ltd. collapsed into bankruptcy Monday when a potential buyer bolted over a discrepancy of hundreds of millions of dollars in the beleaguered securities firm’s books, people familiar with the matter said. U.S. regulators are investigating the discrepancy, which relates to money from customers that couldn’t be accounted for as MF Global raced to sell itself, according to people with knowledge of the probe. The probe is at an early stage, and it isn’t clear if the money is missing or if the inconsistencies relate to sloppy bookkeeping. The last-minute dealbreaker came just hours after negotiations led by MF Global Chief Executive Jon S. Corzine had concluded with a tentative agreement on a rescue.

Overstock.com (O.co): Insolvency Looming? [WCF]
This isn’t looking good: “At the end of its third quarter, the Overstock.com had $18.4 million of net working capital (current assets minus current liabilities). However, the company would have reported a mere $1.4 million of net working capital had it not played a shell game and window dressed its balance sheet during the third quarter. Apparently, the company wanted to avoid reporting dangerously low net working capital going into the fourth quarter, while at the same time it is trying to renegotiate terms of its Master Lease Agreement (sale leaseback) with U.S. Bank.”

Tax Breaks for Students [WSJ]
News you can use.

Perry Flat Tax Is Fool’s Gold for Conservatives [Bloomberg]
Perry’s plan is, in short, a flat tax in name only. And notwithstanding his campaign’s absurdly optimistic projections, it seems likely that it would result in much lower revenues than the current system.

A Close Look at the Perry Tax Plan [Economix/NYT]
And for another perspective: “Mr. Perry’s plan cannot be taken seriously. I don’t think it’s meant to be, at least by those of us who don’t plan on voting in Republican primaries. It’s just a signaling device, telling the Republican faithful that they can trust Mr. Perry on the tax issue. Whether the plan makes any sense as a matter of policy is irrelevant to its purpose, which is to win him the Republican nomination.”

IRS Roguery is Not a New Development [Tax Lawyer’s Blog]
You. Tax preparer. Enemy.

Monday Map: Soda Taxes by State [Tax Foundation]
Places where buying the world a Coke™ will cost you a little extra.

PwC Names Dietmar Ostermann as Global Automotive Advisory Leader [PwC]
Dietmar comes by way of…A.T. Kearney.

Latest Accounting Jobs--Apply Now:

Have something to add to this story? Give us a shout by email, Twitter, or text/call the tipline at 202-505-8885. As always, all tips are anonymous.

Related articles

a dog wearing VR

Monday Morning Accounting News Brief: Deloitte on Microtransactions; More EY Split Roadblocks; Have You Become Irritable? | 11.28.22

Happy Monday! Here’s some stuff that’s going on. Several US audit firms told the Financial Times that they had elevated some or all of their crypto-related clients to the status of “high risk”, triggering a more thorough audit that will take longer and lead to higher bills; some clients could ultimately be dropped altogether. KPMG […]

woman working on a laptop with a dog beside her

Monday Morning Accounting News Brief: The Leadership Void; KPMG Gets Fined (Again); PwC Ups Leave | 10.3.22

Deloitte launches Global Sustainability & Climate learning program that aims to enhance skills and capabilities of Deloitte people to help address a global societal challenge. Dubai’s financial regulator has provisionally fined KPMG and one of its former partners $2 million over the firm’s auditing of Abraaj, the emerging markets private equity group that collapsed in […]