Author: Caleb Newquist

Founding editor, Going Concern.

Are the Big 4 Laying Low at the World Economic Forum?

The World Economic Forum kicks off tomorrow and as expected, the Big 4 bigwigs will be there in full force.

Having been through their share of busy seasons, the fearless four of Jim squared, Dennis, and Tim are no doubt glad to be on this getaway.

Their hearts and minds never stray too far from all of you serving the capital markets back at home but it is a great opportunity for them to explore the land of secretive banking, blondes and Toblerones. Plus, there are some meetings and whatnot where they spread their wisdom amongst the other grand poobahs of the world.


Despite the presence of the Fab Four, Big Four Blog points out that the firms’ websites don’t hardly make a mention of their participation at the rager in Davos:

[We] could find hardly a mention of this on the firm’s websites, contrary to prior years when a press release would proudly proclaim their participation. Are the Big Four firms keeping a low profile this year? We wonder why?

Why would they possibly want to keep their profiles on the DL? Are they taking their cues from the Times? Are they still amped/disappointed by the Fortune results?

Are they nervous about their next sit down with CNN, who may not leave it there this time? Ideas? Hopefully they’ll loosen up and enjoy themselves.

PwC Motivates the Troops with Just Two Words

More examples of motivation are rolling in as we pick up speed during this most wonderful time of the year.

The latest token of gratitude comes courtesy of P. Dubs. While some people need gift cards to remind them that the next ten weeks will be worth the pain but one PwC office knows that such superficial bait won’t motivate everyone. It requires something more, something meaningful:

Picture 3.png

This goes above and beyond getting off your chair, walking all the way over to someone’s cube-pod, looking them straight in the eye and saying, “You’re awesome!”

This involves handing a piece of paper (below) to this awesome person and then telling them how kick ass they are. Then high-five, chest-bump, fist-jab ass-slap, whatever the hell it is you’re doing these days to top it off. It’s the little things that make it special. Now get to it.

You’re Awesome! Award-1.pptx

Job of the Day: Director, Ethical and Professional Standards Needed at CFA Institute

Thumbnail image for Need_a_job.jpgSince humans are such corruptable creatures it takes a person with near-divine qualities to teach people about ethics. Luckily, we know that we have some of the pious readers out there, thus we’re confident that one of you will snatch this gig with little difficulty.

Check out the details for the position in Charlottesville, VA after the jump.


Company: CFA Institute
Title: Director, Ethical and Professional Standards
Location: Charlottesville, VA
Description: The Director, Ethics and Professional Standards is responsible for creating, sourcing, and developing educational content for CFA Institute members and serious investment professionals in the area of ethics and professional standards.
Responsibilities: Develop ethics-related educational content (e.g., case studies, online learning courses) targeted toward members, employers, societies, and university partners working collaboratively with stakeholders within and outside CFA Institute; Support the Lifelong Learning Strategy in developing educational content in the area of ethics and professional standards; Interface with executive education clients seeking customized training material; Develop and train a network of investment professionals to provide on-site ethics training; Collaborate with colleagues and members in supporting public awareness initiatives to include increasing brand awareness and establishing CFA Institute as the “go to” resource in the area of ethics and professional standards.
Requirements: CFA charterholder strongly preferred; Master’s degree or comparable degree/designation in a related field; Proven investment industry experience; Demonstrated expertise in ethics and professional standards, such as service in a highly valued compliance role; Superior communication skills (written, verbal, and presentation); Team oriented with the ability to collaborate with others in a matrix organization; Ability to manage multiple projects successfully within various time frames; Sensitivity to and appreciation for cultural differences; Teaching or training experience strongly preferred; Up to 25% travel
See the entire description over at the GC Career Center and visit the main page for all your job search needs.

Putting Accounting Firms’ Quest to Dominate Magazine Lists into Perspective

We’ve hypothesized about accounting firms’ quest to dominate every magazine list on Earth. Admirable goal, no question but the motivation has escaped us.
Until now. We’ve been enlightened:

Going back to the dominating magazine lists – its a lot like the bald middle aged guy (Big 4 accounting firms) that buys a Corvette (magazine awards) to compensate for a lack of equipment size (crappy work environment) to attract the ladies (slaves).

That pretty much clears it up.

Will Apple’s Accounting Encourage Others to Drop Non-GAAP Measures?

A tipster pointed us to Apple’s transcript from last night’s earnings call, noting that the company has indicated that they will no longer be providing non-GAAP measures. This is a result of the solid that the FASB did for Apple back in September:

We are very pleased by the FASB’s ratification of the new accounting principles as we believe they will better enable us to reflect the underlying economics and performance of our business and therefore we will no longer be providing non-GAAP financial measures.


Our tipster noted that since using non-GAAP measures are a commonly used by companies and analysts, Apple’s declaration that they would not be “providing non-GAAP financial measures,” could potentially change things. It’s one thing if say, Koss were to say they’re not going to provide non-GAAP numbers, but this is Apple.
The company enjoys a top of the mind position, so other companies may embrace this method of engaging with analysts and other users. And since Apple isn’t shy about controlling the information they provide (e.g. Steve Jobs’ pancreas) this seems to be another way for them to dictate the information they are providing.
It’s not a stretch to say that many companies try to emulate Apple; whether or not they will emulate Apple’s financial reporting methods remains to be seen. Strange, because we figured they were just innovative on the gadget front.

Deloitte Has Stepped Up the Motivational Techniques to Include PowerPoint, Gift Cards

Yesterday we shared with you some motivational words of wisdom from Deloitte. Today the firm is stepping it up a notch, not just offering words, but a PowerPoint presentation informing the troops about Winter 2010 C.P.R. (Cash, Prizes, & Rewards). The long/short is that Green-Dotters will be eligible to win gift cards starting tomorrow, once in February, once in March, and a grand prize on March 31st.
While we’re impressed with this particular method of distraction/motivation, the best part is that there is a key slide that includes an admission that they know, that you know, that your life is temporarily over:
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Whether your slim chances of winning one of these gift cards is worth A) your skin not seeing a ray of sun for three months B) not having any semblance of a social life or C) your significant other screaming “That’s it! It’s so over! You can sleep at the f—ing office if you like being there so much!” has to be determined by you and you alone.
CPR 2010.ppsx

Accounting News Roundup: IKEA Shelters Profits Through Charity Holding Company; Obama to Call for Spending Freeze; Quitting Your Job on Good Terms | 01.26.10

• Flat-pack accounting [The Economist via TaxProf Blog]
Oh the Swedes. They’re pretty clever with the flat-packed furniture but the entity structure is a whole other matter. The Economist reports that IKEA’s profits are largely sheltered from taxes by virtue of its holding company, which just happens to be organized as a foundation. The foundation’s stated purpose is to more or less educate you on matching the drapes with the paint you chose for the living room:

If Stichting Ingka Foundation has net worth of at least $36 billion it would be th charity. Its value easily exceeds the $26.9 billion shown in the latest published accounts of the Bill & Melinda Gates Foundation, which is commonly awarded that accolade.
Measured by good works, however, the Gates Foundation wins hands down. It devotes most of its resources to curing the diseases of the world’s poor. By contrast the Kamprad billions are dedicated to “innovation in the field of architectural and interior design”. The articles of association of Stichting Ingka Foundation, a public record in the Netherlands, state that this object cannot be amended. Even a Dutch court can make only minor changes to the stichting’s aims.
The Kamprad foundations compare poorly with the Gates Foundation in other ways, too. The American charity operates transparently, publishing, for instance, details of every grant it makes. But Dutch foundations are very loosely regulated and are subject to little or no third-party oversight. They are not, for instance, legally obliged to publish their accounts.

This allows IKEA to pay as little as 3.5% tax on its profits. Ragnar Danneskjöld would be proud.
• Obama to Call for Three-Year Freeze on Some Federal Spending [Bloomberg]
In case you’re unaware, the POTUS is giving a big speech tomorrow evening where he’ll talk about, amongst other things, a three-year spending freeze for domestic programs to get the deficit under control.

The Environmental Protection Agency and the Commerce, Interior and Justice Departments are among the executive branch agencies subject to the freeze, officials said, while the Defense Department, Department of Homeland Security, Veterans Affairs and unspecified international affairs programs would be exempt.

With the DoD and DHS exempt from the freeze, one would think that GOP types would be pleased with this idea. Not so.

A spokesman for House Republican leader John Boehner of Ohio was critical of Obama’s plan. “Given Washington Democrats’ unprecedented spending binge, this is like announcing you’re going on a diet after winning a pie-eating contest,” the spokesman, Michael Steel, said yesterday.

Wait a minute. Wouldn’t going on a diet right after the pie-eating contest be the perfect time?
• How Many Ways Can You Say Goodbye to a Job? [WSJ]
The temptation to go out in a blaze of glory by virtue of a BodySuit man type stunt is only for the boldest of souls. The Journal has plenty of advice on how to bow out gracefully, despite the temptation to use all your vacation, return to work and then give notice.

Some 60% of workers say they intend to leave their jobs when the economy improves, according to a survey by Right Management, a talent and career-management consulting firm in Philadelphia. It might be tempting to give the boss an earful if you land a new job in the coming months. But the way you quit can have a long term impact on your career.

Taking your fancy Swingline isn’t such a good idea either.

Quote of the Day | 01.25.10

“An auditor’s report tells less about a public company’s health than a doctor’s report tells about an individual – in scope, detail and precision. And if investors and other financial information users are not happy, they are doing nothing to make their dissatisfactions effectively known.”
~ Jim Peterson, from his post “Medical Check-Ups and Annual Audits: What if Your Doctor Reported Like Your Accountant?” at Re:Balance.

IRS Says That the Earthquake in Haiti Is Officially a Disaster

Late on Friday, the IRS declared the earthquake in Haiti to be qualified disaster for federal tax purposes. Call us impatient but did it really need to take that long? It doesn’t seem like it was that tough of a call:

Qualified disasters include presidentially declared disasters and any other event that the Treasury Secretary determines to be catastrophic. The IRS has determined that the earthquake in Haiti that occurred this month is an event of catastrophic nature for purposes of the federal tax law.

We appreciate the complexities of the tax law and we’re certainly aware that tax season is under way but couldn’t someone at the IRS put out a one sentence statement saying, “Yeah, definitely a disaster,” say, the following day? That Friday even? Were there other, more pressing matters on the to-do list? The disaster qualifications must be more subjective than we imagine.

The Latest Challenge for KPMG Employees

Team, KPMG has submitted a challenge to its employees in the Florida/Carolinas/Puerto Rico neck of the woods, and we felt compelled to include the rest of you, just for the sake of expanding the brain pool:

Name the Business Unit Contest
January 22, 2010
How do you describe the most scenic business unit in the nation? From the mountains and outer banks of Carolina to the Everglades and beaches of Florida and the rain forests and blue waters of Puerto Rico, we have it all!
As the former FBU and CBU business units come together, we thought it would be fun to invite each of you to participate in a contest to name the new BU. In addition to bragging rights, a prize will be awarded to the person who submits the winning name.
Remember…be creative and have fun!
Send your ideas to US-FBU CSS COMM Leadership Mailbox by Friday, January 29, 2010. A prestigious selection committee will make the final selection and the winner will be announced by Friday, February 5, 2010.

Lost of questions here: 1) It’s busy season; between reading this fine publicaion, trying to get laid, and wallowing in disappointment, who has time to come up with name for the FlorinasRico business unit? 2) Who’s on the prestigious selection committee and how did they get this cushy gig? 3) Does Phil Mickelson figure into this prize in any way, shape or form? 4) If yes, will Tim Flynn be caddying for you, Phil or both?
You’ve only got until Friday to submit ideas, so we suggest you get on this ASAP.

What Are the Diversity Goals of the Accounting Firms?

GOALS.jpgLast week when Deloitte announced the appointment of a new Chief Diversity Officer, we surmised that the reason for such a position is so firms can promote their diversity 24/7. Finally realizing that this wasn’t physically possible, we started wondering what kind of objectives a Chief Diversity Officer would set for their firm.
Deloitte’s press release from last week states that the new CDO, “will be responsible for Deloitte’s diversity strategy and will lead its continuing efforts to attract, retain and develop the best talent in the marketplace.” Isn’t attracting the best talent something the firms are constantly doing? The statement seems to indicate that “responsible for diversity strategy” is mutually exclusive from “attracting the best talent in the marketplace.” So are goals for the diversity strategy different? If so, are they SMART, like our little chalkboard friend suggests?
If the goals are based on percentages (i.e. measurable), then we’re in luck because the Fortune one-hundo included diversity information that stated what the percentage of minorities and women were at each firm on the list (sorry omitted firms).


• Ernst & Young – 29% minorities; 50% women
• Plante & Moran – 6% minorities; 54% women
• Deloitte – 32% minorities; 44% women
• PwC – 27% minorities; 49% women
• KPMG – 27% minorities; 48% women
We emailed and left a voicemail for John Zamora, the new CDO at Deloitte, to get some perspective on these numbers (for Deloitte) but have yet to hear back. We mostly want to know if these numbers are acceptable or if not, and if they aren’t, what percentages the firm is attempting to achieve (if those are part of the goals).
In the meantime we do know that all of the Big 4 have Chief Diversity Officers (technically E&Y’s is an inclusiveness officer) and P&M has a Diversity Council so there seems to be people assigned to this issue at every firm, large and small.
Furthermore, all of the Big 4 appear on the Diversity Inc’s list of Top 50 Companies for Diversity for muptiple years, so we know that they have been recognized for their diversity efforts.
So that’s why we’re confused; what exactly are the goals of these firms with respect to diversity? Are they looking to dominate the Diversity list, like they do the best places to intern list? Is this all about dominating magazine lists?