Author: Caleb Newquist

Founding editor, Going Concern.

If You Ever Attend a Meeting Run by Grover Norquist, Know That Your Coffee and Bagel Consumption Will Be Tracked

Bloomberg has a profile of Americans Tax Refund Founder and spending hatchet-man Grover Norquist out today and if you’re not familiar with the man or his mission, you’d think he was the scariest Swede since snark and sass into otherwise dry debates but others don’t see it that way.

Exhibit 1: Former Senator Alan Simpson, is quoted as saying, “If you are in thrall to Grover Norquist,” the Wyoming Republican who co-led the debt panel said he told the group in February, “this country hasn’t got a prayer.”

Exhibit 2: Rep. Chris Van Hollen’s (D-MD) assessment:

“Until Republicans are more afraid of the deficit than they are of Grover Norquist, we’re going to have a problem,” said Representative Christopher Van Hollen of Maryland, the top Democrat on the Budget Committee.

And I suppose, if you are a Democrat, a relatively pragmatic Republican or a cancer survivor (or a nonprofit that fights cancer) Grover could be pretty scary. He doesn’t take too kindly to those in the GOP who want to raise taxes or eliminate reductions or credits that aren’t matched with further reductions in taxes. You can just ask Tom Coburn:

Norquist has attacked Senator Tom Coburn, a onetime member of the Gang of Six, because the Oklahoma Republican raised the possibility of eliminating tax breaks. Norquist said if Coburn agreed to a tax increase “he was elected on a lie.”

Now, based on that, you may get the impression that Norquist is simply a bearded Sarah Palin but you’d be wrong. Bloomberg reports that he while he does sit on the board of the NRA, he also is an adviser to GOProud and that his wife is a Kuwaiti-born Muslim.

But what may make Grover so scary-good at holding people’s feet to the fire is his attention to detail. To be a tax and fiscal wonk, you kinda need to be obe made that way but Bloomberg gives us the impression that his wonkiness transcends simple Federal government matters:

Norquist, who peppers his conversation with comic voices, Chekhov quotes and references to the movie “Grease,” is big on numbers. He knows what year his meeting reached an average of 80 people and when it grew to 100. He keeps charts on how much coffee and how many bagels are consumed, and his staff counts the attendees every 15 minutes so he can graph the flow.

So for any aspiring Grovers or Grovettes out there, this is what you’re emulating. Best start with the simple stuff.

No-Tax ‘Zealot’ Norquist Emerges as Barrier to U.S. Debt Deal [Bloomberg]

IASB Would Prefer If India Were to Play Ball, Adopt IFRS

The International Accounting Standards Board is none-too-pleased that India has retreated from plans to fully adopt International Financial Reporting Standards this year and is a making a public push to get the country back on track. A failure to persuade India on the issue would raise serious questions about how successful IASB can be in convincing other major economies, including the U.S., China and Japan, to make a full switch. “To put it in one sentence, we strongly encourage adoption as against convergence,” IASB member Prabhakar Kalavacherla said at a conference in Mumbai last week, according to a copy of his speech, where he urged India to take a bigger role in international standard setting to address its concerns. [CFO Journal]

Should Accountants Still Provide Excellent Client Service When a Client Shows Up in Their Pajamas?

As we do from time to time around here, we pick up some chatter from our British sister site to see what’s going on in the Old Empire. Today we learn that some Brits have really taken to slobbing around in their pajamas in places not thought appropriate.

Let’s see what’s troubling our accounting brethren across the pond:

Where I live (and as I understand it, nationwide) there is currently a growing backlash against people wearing pajamas in unsuitable circumstances (mostly while picking their kids up from school or while doing their weekly shop), specifically people refusing to serve them or asking them to leave the premises.

Obviously(?) none of us would meet with clients in our pjs as even the most relaxed accountant would at least wear smart casual for a client meeting I’m sure, but what if a new client came to you for their initial meeting in their pjs, would you refuse to act for them?

For the sake of discussion, assume they are fully clothed in bottoms and tops, not in negligie or short nightdresses.

Here in the States, most of us ditch the sweats in public after getting out of college but their are obvious exceptions (like our friend to the right). But it’s not that unusual for your more affluent clients to get more comfortable being comfortable wherever they go. This means ignoring societal norms. Like pants. Or only being sober for a couple hours a day. But forget all that for now; we’re focusing on sleepwear. So, then – if a successful entrepreneur walks into a meeting rocking Winnie the Pooh jammies with the footsies, are you offended? Do you throw him/her out and demand they come back “and act like a professional!” or “after you pull yourself together!” or “when you rejoin society!”?

Or do you keep a seersucker robe or kimono handy in a desk compartment specifically for these scenarios? Discuss.

Man Sues IRS for Giving Him a Headache

Before you start ringing up the lawyers, you should know what this guy’s head pain was caused by something that Doug Shulman has very little control over.

A New Orleans resident has filed a lawsuit against the Internal Revenue Service after a portable office wall fell and struck him in the head. Willie B. Jolliff, Jr. filed suit against Internal Revenue Services, East Skelly and Jones, Lang, LaSalle Americas Inc. on May 16 in federal court in New Orleans.

According to the lawsuit, Jolliff was hurt by the wall on May 15, 2010, resulting in headaches and a neck injury.

The IRS is accused of negligence by failing to maintain a safe environment for office visitors, failing to properly maintain and secure the portable office wall and failing to warn of a potentially dangerous condition.

IRS customer claims headaches in personal injury suit [Louisiana Record]

Accounting News Roundup: Accountants Prefer Handshakes to Retweets; New PCAOB Member Needed; State Corporate Tax Rates | 05.24.11

Evidence Said to Tie Ex-I.M.F. Chief to Housekeeper [NYT]
Evidence from the work clothes of a hotel housekeeper matched DNA samples taken from Dominique Strauss-Kahn, the former managing director of the International Monetary Fund who has been charged with sexually assaulting her, a person briefed on the matter said Monday. The test results were consistent with what law enforcement officials have said about the account provided by the woman, the person briefed in the matter said.

FAF Unveils New Accounting Review Process [CFO Journal]
The Financial Accounting Foundation unveiled a new process for reviewing financial accounting rules on Friday, but some observers wonder if the process will undermine the independence of the Financial Accounting Standards Board, and give greater weight to the needs of filers and their consultants, rather than the investing public the rules were meant to serve.

Accountants shun social media when attracting clients [Accountancy Age]
Less than one in ten accountants use social media as a main means of attracting clients, according to a survey by the CCH IT company and YouGov. At its annual conference, CCH said that, even with the vast technological advances, “traditional” and “conventional” methods such as face to face meetings continued to dominate the way accountants draw in new clients.

Democrats request $15 million for taxpayer aid program [The Hill]
House Democrats are urging appropriators to include $15 million in a bill to expand and strengthen services provided to low- and moderate-income taxpayers through matching grants to Volunteer Income Tax Assistance (VITA) centers.

Are the Feds Going Insane? [WCF]
When people start snooping around your illegal activities, just conduct an internal investigation to get them to back off.

Wanted: a New PCAOB Member [The Summa]
Dan Goelzer’s term wraps in October. Feel free to throw your hat in the ring.

State Corporate Income Tax Rates [Tax Foundation]
Iowa?

Why Obama’s Corporate Tax Reform Will Fail [Tax.com]
A large reduction in the U.S. corporate tax rate is inevitable. It can’t miss when proponents have an easy-to-understand talking point: The United States will soon have the highest corporate tax rate in the world. If it weren’t for the Japanese earthquake, we would already have the number one spot.

Some KPMG Employees Are Asking ‘Where’s the Beef?’

It was brought to my attention earlier today that at this time last year, KPMG had announced their Summer Blast which included everyone’s favorite Klynveld tradition: a package of Omaha Steaks. But in 2011, we’re only a few short days away from the Memorial Day weekend and so far, no such communication has occurred.


If the House of Klynveld has, in fact, down away with spreading the flesh around, there could be a number of reasons for it. One possibility is that Phil Mickelson still isn’t touching the stuff and won’t have any company endorsing him encourage the consumption of meat. The other reason could be that the firm has to save the extra cash for Tim Flynn’s retirement party. Of course it could also be that information coming out of partner exit interviews indicated that they were getting tired of hosting BBQs for employees. Of course, this is all speculation on our part but all seem plausible.

If you have your own theories, are otherwise privy to the meat info, getting antsy for your package or have other ideas for Summer Blast 2011, tell us below.

How Should an Associate Handle the ‘Sink or Swim’ Nature of His Small Firm?

Welcome to the can-we-trade-twisters-for-raptures? edition of Accounting Career Emergencies. In today’s edition, a small firm associate works in a sink or swim environment and he feels like sandbags are tied to his feet. Is there anything he can do to sink less?

Have a career question? Need some help outfoxing your competition? Is a client giving you trouble? Email us at advice@goingconcern.com and we’ll breakator skills.

Back to accountant who needs a life preserver:

Howdy!

How do I deal with not having much support at my office? I just started around 4 months ago as a staff accountant and anytime I have a question, my boss tells me to figure it out, to bring him the financials so he “can do (my) job for (me)” or to just move on to the next audit.

There are seven full time employees here and my boss and I are the only ones working through audits. I really want to learn the entire process of performing audits, but I can’t get anyone to help me. I’ve asked around, Googled and even asked him to guide me through the process. There has not been any training as to their methodology for auditing. Is this typical for very small local firms? I’ve heard the first year is the hardest and you dont really know anything. I feel like I’m trying to drink out of a firehose! Help!

– Doing My Best

Dear Doing My Best,

To quote a Scotsman from some terrible over-budgeted spoon-fed cinema: losers whine about their best and winners go home and fuck the prom queen. Since you work at an accounting firm (where no one really wins) and haven’t been in sniffing distance of a prom dress in ages, that advice doesn’t really do you much good. Lucky for you, I’m familiar with your plight.

Small firms are enormously diverse and you’re at an extremely small firm. I started my career in a similar situation, at firm with less than 20 people. In that scenario, it was difficult to get anyone to explain anything to me, “methodology” wasn’t really thrown around much (literally or figuratively) and training was virtually non-existent. So to answer your question: your experience is common at a small firm and the first year is extremely tough.

Now, as for what you can do about it – my advice would be to really think about your questions before you ask them. If you’re running to your “boss” every five minutes with a question, it’s not surprising that they might lose patience with you. Really try to work through problems until you’re absolutely stuck on something. Small firms are fond of “look at last year’s file” as standard operating procedure and you should do just that. Most of these clients won’t have much for changes and their business shouldn’t be complicated, so using last year’s files as reference will be helpful.

If you find yourself having done as much work as possible and are at a dead end, then go to your boss and explain exactly what you’ve tried to do and why you’re stuck in neutral. If you explain to them all the roads you’ve tried to take, then they might be more willing to point you in the right direction. If he/she is still unwilling to help, then you might consider calling them out for it or request to work on something other than audits. If you don’t feel like you’re learning anything because no one has taken the time to teach you anything, that reflects poorly on them not you. If they act like they’re above giving you any guidance, then it’s pretty clear that they suck at their job.

If you manage to make some headway, you’ll start to notice that things eventually begin to make sense and year two (granted you survive) will be much easier than the first. Good luck.

‘Chartered Global Management Accountant’ Is the New Credential from the AICPA, CIMA

Back in March, we reported that the AICPA and CIMA were kicking around the idea of working together on a new global management accountant credential. Today, the two organizations have officially rolled out their plans.

[T]he two accounting bodies will create the new CGMA designation to give management accountancy a higher profile in the United States and promote the professional development of management accountants across the globe. Backing the new CGMA designation will be an AICPA-CIMA joint venture with international resources and experience in management accounting and business.

This will compete with the IMA’s CMA designation which has proven to be a valuable credential, although not a very sought-after one. The CGMA won’t be available until 2012 but the press release doesn’t give a lot of details about how the designation will be earned:

It is proposed that the new CGMA designation will be issued to members early in 2012. AICPA voting members with at least three years working in management accounting or a financial management role would qualify for an accelerated route to obtaining the new designation. CIMA members, all of whom hold either an ACMA or FCMA, will be entitled to use the letters ACMA CGMA or FMCA CGMA if they wish to.

Those holding the new designation will commit to a program of developing and maintaining competency in management accounting as well as leadership and strategy. This knowledge base will be derived from an expert-panel assessment of skills and competencies needed to succeed in various career paths in management accounting.

The new CGMA will be issued by the AICPA and CIMA through a license with the joint venture, with membership remaining with the existing organizations.

So, anyone interested?

[via AICPA, CIMA]

Accountant Who Stole From Employer to Fund Lifestyle, Wife’s Boob Job, Should Have Thought Twice Before Bragging About Vacations on Facebook

Stephen Siddell’s dishonesty led to 16 people losing their jobs while he and his wife, Louise Siddell, took luxury foreign holidays. They even posted photographs of their stay in a six bedroom villa in Cyprus on Facebook boasting, “because we’re worth it”. Liverpool Crown Court heard the couple had lock-up garage in Bromborough, which was an “Aladdin’s cave” full of their expensive furniture and designer goods. 24-year-old Louise Siddell had also used their ill-gotten gains to pay for jewellery and breast enhancement. [Wirral Globe]

PwC’s New Compensation Structure Gets the Spreadsheet It Deserves

As you know, PwC marched out a new compensation structure earlier this month and it’s been the subject of much interpretation, gnashing of teeth and even a fair amount of rejoicing. Of course, a complete analysis of this new structure would not be complete without the magic of Excel and lucky for you, a reader has taken the time to put some spreadsheet wizardy on it.

Here’s our tipster:

[Here] is an analysis of the new PwC compensation structure. It shows that the firm expects an approximate average raise of 8% per year and 16% per promotion year. The analysis also includes an approximate total compensation for each year of career progression.

I had to break up the image into two pieces so they could be readable. They appear on the next two pages.

Don’t forget that in Year 7, the bonus for promotion to manager is being phased in over three years, so that younger managers do not jump their more experienced colleagues in overall comp.

Obviously results will vary but this gives a pretty good picture of what your compensation will look like over the years at P. Dubs. If you’re busting, still not satisfied or have your own variables to add to the analysis provided, do share.

Auditor Resignation Du Jour: Deloitte Didn’t Appreciate Their Audit Files Being Held Hostage

And yes the perpetrator, Longtop Financial Technologies, is a Chinese company.

As we mentioned, Deloitte had some decent reasons for kicking LFT to curb, among them:

(1) the recently identified falsity of the Company’s financial records in relation to cash at bank and loan balances (and possibly in sales revenue); (2) the deliberate interference by certain members of Longtop management in DTT’s audit process; and (3) the unlawful detention of DTT’s audit files. DTT further stated that DTT was no longer able to rely on management’s representations in relation to prior period financial reports, that continued reliance should no longer be placed on DTT’s audit reports on the previous financial statements, and DTT declined to be associated with any of the Company’s financial communications in 2010 and 2011.

And because it seems to be the standard narrative in stories such as these, Longtop’s CFO has resigned and “The Audit Committee has also initiated a search for a new auditor.” Although were not sure if there’s a firm out there that will pick up a client who has engaged in hostage taking.

[via Longtop Financial Technologies]