Accounting News Roundup: Twitter, Twitter, Twitter; PCAOB’s New Brain Trust; IRS Agent Gets Taste of Own Medicine | 11.07.13

Twitter CFO Was Key to IPO [CFOJ]
The deal is set to raise as much as $2.1 billion for the still-unprofitable company. That’s largely thanks to the efforts of Mike Gupta, Twitter’s CFO and architect of the offering. As the Journal’s Yoree Koh and Telis Demos note, Mr. Gupta helped keep confidential for two months the company’s IPO filing, kept the company out of the SEC’s cross hairs, and helped secure a $1 billion low-interest loan. Twitter’s board made the final call on the IPO price, but Mr. Gupta advised it on Twitter’s cash needs to compete with deep-pocketed rivals. He’s also been the point person in the company’s negotiations with the banks.

On Eve Of Twitter IPO, Misguided Senators (Again) Attack Tax Deduction For Stock Option Compensation [Forbes]
Tony Nitti: "[T]he reason the tax law currently approaches 70,000 pages despite cries from both parties for simplification– aside from the unspoken obligation of every Senator and House member to cater to the special interest groups that launch them into office – is because of the reactionary nature of our tax policy." 

Why Twitter May Have to Pay Income Taxes One Day [DealBook]
Twitter’s biggest potential tax shelter is its history of losing money. Like most growth companies, Twitter has accumulated a lot of operating losses. These losses, in theory, can be carried forward as net operating losses to offset future taxable income. But investors should not count on it.

SEC Wants ‘Likes’ Linked to Bottom Line [CFOJ]
A company with double-digit growth in the number of users may not see similar growth in revenues and profits, Ms. White said. Such nonfinancial metrics have been an area of focus for the SEC’s disclosure review experts in the past few years, as big technology companies including Facebook Inc., Twitter Inc., and Zynga Inc. have gone public. In some cases, it has asked companies to remove details or go back and add more balanced information.

PCAOB establishing Center for Economic Analysis [JofA]
University of Chicago economist Luigi Zingales will be the founding director of the center, which will promote and encourage economic research related to the role of the audit in capital formation and investor protection.

Thank God Twitter is raising over a billion dollars so you can keep getting insight like this. 

IRS officer faces countersuit from government [LVRJ]

The government has counter-sued a Las Vegas Internal Revenue Service officer who claims he was targeted in a criminal investigation because he raised discrimination allegations against the federal agency. U.S. Treasury Secretary Jacob Lew and the Nevada U.S. attorney’s office alleged in the suit, filed last week, that the IRS lost $100,000 after Revenue Officer Anthony M. Zecchino closed taxpayer collection cases without authorization in 2010 and 2011.

Employee of slain Sturgis accountant testifies Andy Brown was in business dispute with David Locey [MLive]
Tammy Brunner, who worked as a secretary at Locey's CPA office, testified that she discovered Locey shot to death inside his office, at 67036 M-66, at about 7:50 a.m. Oct. 2. "I saw Dave on the floor," Brunner said, adding that she initially thought he was playing a joke on her. "Then he didn't respond," Brunner said. "I saw lots of blood pooled around Dave and on the wall." She said she then called 911. Brunner testified that Brown, 36, and Locey, 70, were in a dispute over possible double billing of Locey's clients. Brown was also an accountant in Sturgis. Brunner said clients had been calling the office reporting that they had received a second bill from Locey's office after having already paid the balance in full through checks to Brown. 

Ernst & Young LLP Names Lou Mosher Managing Partner for Rochester and Syracuse [EY]
Replacing Todd Trehan.

Biden Congratulates Wrong Guy in Boston Mayor Race [AP]
"Marty, you did it, you son of a gun."

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