KPMG at risk of losing vital HSBC audit [FT]
KPMG could lose the biggest audit contract in corporate Britain after HSBC decided to consider bringing in a fresh pair of eyes to vet its accounts. The bank said it would put its audit contract out to tender for the first time in more than two decades in the most striking sign yet that regulatory pressure is starting to break down the ties that bind many big companies to their auditor. HSBC paid KPMG $81m in 2012. The majority of this was for audit and audit-related services, the rest being tax and other consultancy work. It has held the audit contract since 1991.
Banks Should Reveal Credit Losses Earlier, Accounting Board Says [BBW]
“We believe the model leads to a more timely recognition of credit losses,” Hans Hoogervorst, chairman of the London- based IASB, said in the statement. “At the same time, it avoids excessive front-loading of losses, which we think would not properly reflect economic reality.”
Apples and oranges
Irritatingly, the new standards are not consistent. Under FASB’s approach, firms would have to lop an amount off an asset’s carrying value on the day it is booked, to discount for the fact that some loans always go bad over their lifetime. IASB would require a smaller set-aside, discounted by the likelihood that the loans in question will go bad only in the next twelve months. If conditions suggest that the credit quality of the loans has actually deteriorated, only then would IASB require that the entire expected loss be booked. (At this point, the accounting would be like FASB’s.) This represents a failure in the two boards’ biggest ambition: to converge their standards to create a single set for most of the world. The boards have been working on this project for some years. They have achieved quite a lot of progress; global financial statements are becoming more comparable in many ways. But in perhaps the most prominent issue facing them, they now agree to disagree.
Single, childless and want work-life balance? How taboo [WaPo]
Talk about nerve.
The Ten Worst States for Taxes (Nine Are Blue States) [TaxProf]
North Carolina surprises with a very respectable 7th place.
Texas Is the New California [Forbes]
Does this mean Phil Mickelson is going to hold another press conference?
Ex-Kirkland Partner Freedman Pleads Guilty to Tax Fraud [BloombergLaw]
Former Kirkland & Ellis LP senior partner Theodore Freedman pleaded guilty to fraud in connection with the filing of false tax forms. Freedman changed his plea yesterday from not guilty to guilty of four counts of tax fraud. U.S. District Judge Deborah Batts in Manhattan accepted the plea and set sentencing for Sept. 17. Freedman’s lawyers reached a plea agreement with U.S. attorneys. Indicted in July 2011, Freedman misrepresented his income as a partner at the law firm by about $2 million, the U.S. said. He also claimed more than $500,000 in expenses for a sole proprietorship that didn’t exist, the government said.
The Carried Interest Debate: Funding Government for 3.1 Hours [TF]
Hey, that's something!
Forget the Old College Try, Ring the Concierge
This is so stupid: "Twenty-year-old twins Leon and Raquel Papu, sophomores at Babson and Tufts University, respectively, have called upon their BCCG concierge to intervene in a landlord dispute, wait for a plumber and line up Boston Celtics tickets. Mr. Papu, who was born in Colombia but grew up in Miami, also contacted the company when he was pulled over for speeding on the way home from a Vermont ski trip last winter. The concierge reached out to a local lawyer, who went to the ticket clinic and paid the fee."
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