When accounting goes unaccounted for
President Obama and his liberal allies are calling for a ‘balanced approach’ and a revenue piece to deficit reduction. We hear this from the press all the time: ‘New revenues need to be a part of any deal to reduce the deficit.’ These are simply code words for a tax hike.
It is clear that the professional left is insisting that President Obama include tax increases in any negotiated agreement to raise the debt ceiling. [ATR]
Now that we’re officially in the dead of summer, there is ample opportunity for your team or firm to have barbecues, happy hours on the patio and if you’re really lucky, a pool party. Barbecues and happy hours are fairly simple events to master. Don’t eat too much; don’t drink too much. Overindulging in either will no doubt lead to some sort of embarrassing scenario that brands you a pig or a souse. particularly flattering.
The pool party on the other hand, presents a different dilemma entirely. Of course that will still be refreshments served and you should do your best to not wolf down hot dogs like Joey Chestnut or shotgunning beers. This will only lead to cramps in the deep end of the pool and perhaps an accidental drowning. Again, these are mortifying situations that should be avoided.
One problem that you may run into is that your gracious host may have children that are of an age where clothes are considered optional. A recent investigation has found this is acceptable depending on the child’s age, so try not to pull a Larry David later back at the office after you get an eyeful.
The second issue of importance is that of the swimming suit. On the one hand, it’s silly to pass up an opportunity to enjoy a swimming pool on a hot summer afternoon, so you best bring it if the opportunity presents itself. For those of you tempted to pull the “I can’t swim” card, I have a suggestion: LEARN. FAST. Nobody likes a party pooper and your story of nearly drowning in four inches of water in the backyard pool as a child isn’t fooling anyone.
As for the suit itself, herein lies the biggest challenge. For gents, it’s simple – stick with board shorts. You may have legs like a god but if you strut around this fiesta by a pool in Speedo you will be mocked (most likely behind your back) and rightfully so. Similarly, if you’ve reached the age where you’re comfortable with your body despite how the rest of the universe feels, this is downright offensive. People are eating for crying out loud.
The situation for the ladies, as is typical, it’s more complicated. On the one hand, bikinis haven’t considered been risqué since that crusty old partner was in short pants. However there still is contingent of society that frowns on the two-piece. From The Careerist:
One woman partner at an Am Law 100 firm in New York thinks it’s a no-win situation for most women: “I don’t think anything good comes from parading in a bathing suit in front of one’s colleagues, and certainly would question the wisdom of wearing a bikini in a business social context–no matter how young or fit one may be.” But if you must wear a swimsuit, she says, she’d opt for “a modest racing suit and a cover-up right to the water’s edge.”
Lawyers, like accountants, are a conservative lot so you could easily replace “Am Law 100” with “Big 4” and you’d have the perspective of a stuffy New York CPA. Thankfully, our friends in the west are not so prudish:
An entertainment lawyer in L.A. thinks it’s silly to be so self-conscious: “If I was 29 and had a rocking bod, I wouldn’t hesitate [about wearing a revealing suit]!” She doubts that looking “too good” is ever a career killer. “I think it depends on how you look in a bathing suit,” she says. “If you look good, go for it; if not, cover up.”
So how’s that for some honesty? It’s already been established that men in the accounting profession are pigs so there’s very little to lose if ladies decide to rock the bikini. The guys are judging you regardless. Why? Because they’re assholes. Accordingly, I stand firmly with our entertainment lawyer. Know your body and suit up accordingly.
You may have differing opinions on the matter which you’re invited to discuss them below and do share any pool party anecdotes that strike you as appropriate.
Last month we told you about Patrice Lataillade, the former Marc Jacobs CFO who was fired, he claims, because he complained about all the porn floating around the office, mandatory pole dances forced upon employees and various other things. Lataillade has sued the company saying that after he complained about the rampant lewdness, he was later told that his services were no longer needed.
The company disputes this, saying that Lataillade was actually doing a little double-entry magic for about $20 million or so in order to earn himself a nicer bonus. Lataillade has now pulled a Chinese stunt of sorts, claiming that Deloitte said everything was hunky dory and that should convince anyone that doubts his CFO prowess:
Lataillade and his lawyers said that the company, which fired Lataillade last September, never had any trouble with his monitoring of its finances in his long tenure at Marc Jacobs International. His work was checked and rechecked not only by accountants for LVMH, the French luxury conglomerate that owns Marc Jacobs International, but also by the company’s accounting firm Deloitte and Touch [sic]. Lataillade claims he never heard a complaint about his performance, and that he was really fired for speaking out against sexual discrimination at work.
Fired Marc Jacobs Exec Says Company Is Ignoring The Facts [Styleite]
Since this feels like one of those days where everyone is at a ball game or is so hung over that they can’t operate their email, I’ll share the latest news from the mail-cum-money bag:
@EY – Just got an email saying we need to meet with our counselors before 7/31 to discuss annual review. I doubt any comp info though.
Even if these chats don’t involve any numbers, they may be useful in one of two ways: 1) It gives cranky employees the opportunity to fly off the handle because this last busy season was a special kind of personal hell and that no amount of money can possibly make up for that. or 2) It may be the perfect time to inform counselors about what kind of numbers are being thrown around at another firm who the Black Yellow had no problem keeping pace with last year.
Smiling and nodding works too, if that’s more your speed.
Key Senate lawmakers have reached a deal to end two ethanol subsidies by the end of the month, sooner than expected and a sign of how tax policy can change as attention focuses on the deficit.
Sen. Dianne Feinstein (D, Calif.) said in a statement that she had reached an agreement with Sens. Amy Klobuchar (D, Minn.) and John Thune (R, S.D.) under which a 45-cent-a-gallon tax credit for blending ethanol into gasoline would expire on July 31. A 54-cent-a-gallon tax on imported ethanol would also expire at the end of the month. [WSJ]
U.S.-China audit talks seen making only modest progress [Reuters]
U.S. and Chinese securities regulators may soon strike a deal that would allow the Americans some access to Chinese auditors, but it is likely to be more superficial than Washington wants. A string of accounting scandals at U.S.-listed Chinese companies has increased pressure on regulators in both nations to toughen oversight of Chinese auditors. But a full-fledged agreement that allows the U.S. auditor watchdog, the Public Company Accounting Oversight Board (PCAOB), to review the work and papers of China-based auditors through formal inspections would be difficult to achie strong>Obama to Push for Wider Deal With G.O.P. on Deficit Cuts [NYT]
Heading into a crucial negotiating session on a budget deal on Thursday, President Obama has raised his sights and wants to strike a far-reaching agreement on cutting the federal deficit as Speaker John A. Boehner has signaled new willingness to bargain on revenues.
New Accounting Rule Would Favor Hedgers [CFOJ]
The proposed rule, International Financial Reporting Standard 9, greatly expands the kinds of transactions that qualify for hedge accounting under the current rule, International Accounting Standard 39, and the SEC is debating when, and under what conditions, U.S. companies would have to report their results in IFRS instead of U.S. GAAP. Hedge accounting is one area where the two regimes currently stand far apart.
Glass Lewis Faults RIM Governance Stance [Bloomberg]
Research In Motion Ltd. (RIMM)’s decision to study the overhaul of its management structure to avoid a shareholder vote next week indicates it’s avoiding a commitment to appoint an independent chair, Glass Lewis & Co. said. “The appointment of independent board leadership does not require further study, but rather concrete action,” Dimitri Zagoroff and Marian Macindoe, analysts with the San Francisco- based proxy adviser firm, wrote in a report. Glass Lewis advises investors that manage more than $15 trillion on proxy voting.
In Minnesota shutdown, workers who calculate the cost are laid off [WaPo]
Now more than six days old, the shutdown has continued to shutter parks and toll booths and to leave thousands of government workers at home. The state’s Democratic governor and Republican lawmakers continued to wrangle, without resolution, over a $5 billion budget gap Wednesday. The talks were continuing without clarity on the shutdown’s cost. The staff members who would calculate those figures are “currently laid off,” said John Pollard, a spokesman for Minnesota Management and Budget.
Another Reason to Insist on the Ring [Tax Update]
Cohabitation has its tax consequences.
House, Senate Tax Panels to Hear Ideas for Tax Overhaul at Joint Session [WSJ]
House and Senate tax-writing committees will hold a rare joint hearing to examine potential ideas for a tax overhaul. It’s reportedly the first joint hearing by the two panels on a tax issue since 1940, according to a press release issued late Wednesday. The hearing next Wednesday in the Capitol Visitor Center could signal a greater degree of cooperation over tax changes in the future, as the panels gear up for what could be an intensive effort to overhaul the federal tax code.
IASB’s New Pension Accounting Will Mean Big Changes [Institutional Investor]
A bunch of foreign corporations likely are starting to reevaluate their pension plans’ asset allocations, thanks to the International Accounting Standards Board. In June the IASB, whose accounting rules are used by about 120 countries that include all European Union members, published its amendments to IAS 19 Employee Benefits, which cover how defined benefit plan sponsors handle pensions in their financial statements.
Madam admits tax fraud in Denver brothel case [9News]
The madam of a high-end prostitution business that allegedly catered to some of Denver’s most famous and successful residents admits she’s guilty of owing the IRS tens of thousands of dollars in unpaid taxes and of tax evasion. Brenda Stewart, owner of Denver Sugar/Players changed her plea in federal court Wednesday afternoon from not guilty to guilty to one count of tax evasion. The government moved to dismiss the other 69 counts against her.
P. Dubs’ “More London” or “MoLo” location is reportedly quite the swinging joint but will only house half of the City’s 11,000 employees. Those left back at the frumpy office aren’t really pleased with this development and the FT reports has caused some to catch a case of “office envy”:
The aesthetic appeal [of the MoLo location] is burnished by eco-friendly credentials. PwC is also backing a nearby bistro and wine bar that will emulate Jamie Oliver by training the homeless. The firm’s staff will also be encouraged to use it. The zeitgeistiness of it all is too much for some of those stuck at PwC’s dowdier offices in Embankment Place, near Charing Cross. But relief could be at hand. [Chairman Ian] Powell revealed that the firm is in talks to redevelop the old site to give it a bit more pizzazz.
Any accounting students that happen to have an above-average aptitude for accounting or auditing will be happy to know that the PCAOB has been given the go-ahead to award fifty-two $10,000 scholarships for the 2011-2012 academic year. There are some conditions, however, including:
• Be enrolled in a bachelor’s or master’s degree program in accounting
• Demonstrate interest and aptitude in accounting and auditing
• Demonstrate high ethical standards
• Not be a PCAOB employee or a child or spouse of a PCAOB employee
In addition, we think it makes sense that anyone with “Ernst” or “Young” in their name will be forced to undergo a more rigorous examination of their qualifications. Also anyone named “Arthur Andersen” should be immediately ineligible. If you have other conditions you’d like to see attached to these scholarships, leave them below.
And here’s the list of schools:
Brigham Young University
Central Washington University
CUNY Bernard M Baruch College
DePaul University
Eastern Michigan University
Eastern University
Fairfield University
Florida State University
George Washington University
Georgia Southern University
Golden Gate University
Hope College
Indiana University-Purdue University-Indianapolis
Indiana Wesleyan University
Kean University
Lewis University
Louisiana State University and A & M College
Michigan State University
Middle Tennessee State University
Missouri State University
North Carolina State University
Northern Illinois University
Nova Southeastern University
Rhode Island College
Tulane University
University of Alabama
University of Colorado-Denver
University of Connecticut
University of Florida
University of Georgia
University of Hartford
University of Illinois at Chicago
University of Illinois-Urbana-Champaign
University of Louisiana at Lafayette
University of Maryland-University College
University of Michigan-Ann Arbor
University of Minnesota-Twin Cities
University of Missouri-Columbia
University of North Carolina-Charlotte
University of North Carolina-Greensboro
University of North Texas
University of Notre Dame
University of Oregon
University of Pittsburgh
University of Southern California
University of Southern Mississippi
University of Texas at Austin
University of Texas at Dallas
University of Virginia
University of Wisconsin-Eau Claire
Walsh College of Accountancy & Business
Weber State University
Perhaps you’ve heard that some U.S.-listed Chinese companies have had some trouble with their financial reporting. Often times this leads to CFOs quitting, auditors resigning or workpapers being held hostage. None of which are good. Occurrences such as these have been going on for a little while and more recently the SEC admitted that they had, in fact, heard something about it. Perhaps even more surprisingly, a Chinese official also confessed that some of these companies weren’t exactly on top of their shit and in some may not have the faintest idea of what they’re doing.
All this excitement has finally gotten the teams at the SEC and PCAOB worked up enough that it has been decided that they’re popping over to Beijing to meet with the country’s Ministry of Finance and the China Securities Regulatory Commission next Monday and Tuesday to see what’s what.
“This meeting is the commencement of our accelerated efforts with the People’s Republic of China to forge a cooperative resolution to cross-border auditing oversight. I believe we share a common objective with Chinese regulators to protect investors and safeguard audit quality through our mutual cooperation,” said James R. Doty, PCAOB Chairman.
The delegation will be led by Board Member Lewis H. Ferguson and include staff from the PCAOB’s Office of International Affairs and Division of Registration and Inspections, and the SEC Office of International Affairs and Office of the Chief Accountant. The delegation will meet with senior leadership of the Ministry of Finance and the CSRC.
“The purpose of this meeting is to provide an opportunity to exchange information about how each country conducts inspections of auditing firms and to move toward a bilateral agreement providing for joint inspections of China-based auditing firms registered with the PCAOB,” said PCAOB Board Member Ferguson.
Reuters reports that Ferguson considers the trip a “confidence-building exercise,” just in case you were still a little queasy on Sino-Forest, et al.
Statement on Delegation to China [PCAOB]
U.S. audit watchdog, SEC plan Beijing visit [Reuters]
This just in:
I’m hearing rumblings that Deloitte might be the next in line to adopt a PwC-esque transparent raise structure. I don’t have the exact information, but I’ve heard something about making 1.5x your current salary in 3 years.
As you may remember, PwC announced “exciting changes” to their compensation structure back in May that involved three major parts: 1) Transparency 2) Earning Potential and 3) Milestone Awards. The multiple of 1.5x increase in three years is included in the roughly what PwC laid out in their “Total Rewards” document.
This seems to be a pretty typical move from Deloitte, who is notoriously conservative relative to its autumnally-hued rival. I’m sure if this plan is carried out, they’ll attempt to add in their own quirks to differentiate themselves but I’d be surprised if amounted to anything significant. If you hear any more rumors, contrary or supporting of this latest news, get in touch.
New accounting rule would ease Greek pain: IASB [Reuters]
European Union banks would have more breathing space from losses on Greek bonds if the bloc adopted a new international accounting rule, a top standard setter said on Tuesday. The International Accounting Standards Board (IASB) agreed under intense pressure during the financial crisis to soften a rule that requires banks to price traded assets at fair value or the going market rate.
Obama Summons G.O.P. and Democratic Leaders for Deficit Reduction Talks [NYT]
Mr. Obama, who met secretly with Sp r at the White House on Sunday to try to advance the talks, called House and Senate leaders from both parties to the White House for further negotiations on Thursday. And he rejected talk of an interim deal that would get the government past a looming deadline on raising the federal debt limit without settling some of the longer-term issues contributing to the government’s fiscal imbalances.
U.S. Will Probably Adopt IFRS Standards, IASB Chairman Says [Bloomberg]
The U.S. will probably adopt International Financial Reporting Standards, said Hans Hoogervorst, the new chairman of the London-based accounting organization IASB. The U.S. Financial Accounting Standards Board, which wanted to expand the use of fair-value accounting to all financial assets, has dropped that model and “that has made talking to each other a lot easier,” Hoogervorst told delegates at an IFRS conference in Zurich today.
Antitax Extremism in Minnesota [NYT]
More than 40 state agencies have closed, including the state parks over the July Fourth holiday. Courts and public safety agencies are operating, but essential services for the poor, like food pantries and child care subsidies, have evaporated. Many parents say they may have to quit their jobs if state-subsidized child care does not resume quickly. The shutdown will cost the state money, since many of the 22,000 laid-off workers will receive unemployment benefits and health insurance, while the treasury is unable to collect on tax audits, lottery tickets and park fees.
IFRS Is for Criminals [Grumpy Old Accountants]
Possible prerequisite for using principles-based accounting: walking on water.
Obama’s Twitter Town Hall: He’ll Take Questions in 140 Characters or Less [Bloomberg]
President Barack Obama will take questions today in what White House officials are calling his first Twitter town hall, complete with a “Tweetup.” Users of the social networking service can post questions for Obama before and during the event, which starts at 2 p.m. Washington time. Questions should fit Twitter’s 140-character limit and include the hashtag #askObama.
Casey Anthony, acquitted of murder in toddler’s death, faces IRS tax lien [DMWT]
I still don’t know who this woman is but she sure is popular on Twitter.
What does my boss want from me? [Accountant by Day]
Short answer: your soul. ABD has a slightly longer answer.
SEC Gauging U.S. Global Accounting Readiness [CFOJ]
The long road to determining whether U.S. companies will ever adopt international accounting rules will take another turn this week as U.S. securities regulators hold three roundtables to try to assess how ready the world’s largest economy would be if it goes forward with a plan to adopt IFRS. While the U.S. Securities and Exchange has spent most of the past two years slowing down an earlier plan that would have had U.S. companies using IFRS as soon as 2014, it aims to decide in the next year whether even a slower incorporation of IFRS is a feasible option.
Americans Rank Airlines Lower Than the IRS [ABC]
Overall, the U.S. airline industry scored a 65. That’s lower than the satisfaction score for Domino’s Pizza. Lower than the Post Office. Lower than the IRS. Well, lower for electronic tax filers, anyway, according to the most recent government rankings.
Easton, Massachusetts resident Michael Freese recently discovered that the town’s meal tax cost him an extra 4¢ on his $5.75 hamburger, reports the Enterprise News. Freese was under the impression that only “New York and Seattle and California had that.”
While Freese is probably aware that this extra 4¢ would get him 80% closer to a Hershey Bar when he was growing up, he can also take comfort that in this day and age it will get IRS Agents off your back. [Enterprise News]