Ex-Olympus Chairman Gets Suspended Sentence for Fraud [Bloomberg]
Former Olympus Corp. (7733) Chairman Tsuyoshi Kikukawa received a suspended sentence for his role in a $1.7 billion accounting fraud that caused the Japanese camera maker’s market value to plunge 80 percent. Olympus itself, also the world’s largest maker of endoscopes, was ordered to pay 700 million yen ($7 million) in fines by Tokyo District Judge Hiroaki Saito today. Former Olympus Executive Vice President Hisashi Mori and Hideo Yamada, a former auditing officer, also got suspended sentences.
SEC Denies Ex-Dell CFO’s Request to Be ‘Non-Accountant’ Auditor [BBW]
James M. Schneider, the former Dell Inc. (DELL) chief financial officer who was sanctioned by U.S. regulators in 2010 for his alleged role in reporting false earnings at the company, was denied a bid to work on audit committees while serving a five-year suspension from accounting. Schneider, who paid $3 million to resolve the Securities and Exchange Commission claims, asked the agency to clarify that his penalty would not preclude him from serving on the audit committee of a registered company or working as a “non-accountant CFO,” the SEC said today in an order denying his request.
Beijing's Financial 'Reform' that Wasn't [WSJ]
For all the help they have given China—and despite their state-mandated conversion in 2017 to majority local ownership—the Big Four partnerships nevertheless appear to be on the outs with Beijing's financial stewards. That's bad news for those who believe that independent, responsible auditing based on global standards of banks' books is a first step to better Chinese corporate governance.
Audit rotation in China [China Accounting Blog]
Paul Gillis sets the record straight on the WSJ article above.
Whole Foods’ John Mackey backs corporate tax avoidance tactics [FT]
“I would say you have an ethical obligation to pay the taxes that you owe but you don’t have an ethical obligation to pay taxes that you don’t owe. In fact you should be seeking ways to legally minimise your taxes,” he said.
IRS claims former Tyco subsidiaries racked up $1.03 billion in unpaid taxes and penalties [AP]
The IRS has informed Tyco International Ltd. that it has disallowed roughly $2.86 billion in interest and deductions recognized by the company in its U.S. tax returns for the 1997-2000 tax years, according to a filing Monday with the Securities and Exchange Commission. The move stems from a finding by the IRS that several of the Swiss fire protection and security company’s former subsidiaries owe $883.3 million in taxes and $154 million in penalties.
Officers Find Panting Dog, Sweatpants-Wearing Pig In Hot, Poop-Filled Car [SPD Blotter via DB]
Around 9 PM on June 29th, a witness called 911 after spotting the animals inside the car, parked near W. Bertona St and Gilman Ave W. Officers arrived at the scene, where they spoke to the 911 caller, who had opened the unlocked car’s door to help cool off the animals. Even late in the evening, it was still about 86 degrees outside and presumably even hotter inside the car. Inside the vehicle, officers found a small, panting dog and a lethargic pot bellied pig—dressed in a pair of sweatpants for some reason—along with empty food and water bowls, and quite a bit of feces.