Category: ANR

Tax Deal Within Reach [WSJ]
White House officials and congressional Republicans are closing in on a deal that would extend current income-tax rates for all Americans as well as a benefits program for the long-term unemployed, staving off tax increases for middle-class and wealthy taxpayers alike that are set to take effect after this year.

Leaders of both parties appeared optimistic over the weekend about reaching an agreement on a broad tax package by midweek, following the failure of two Democratic-sponsored tax measures in a rare Saturday session of the Senate. Those measures would have extended current tax rates for ars. Failure of the proposals paved the way for the two parties to continue negotiating toward a package that could gain enough votes to pass.

SEC Considers Former Insiders to Head Audit-Industry Watchdog [Bloomberg]
James R. Doty, who served as SEC general counsel from 1990 to 1992, and John J. Huber, who headed the agency’s corporation finance division in the 1980s, are the leading candidates to head the Public Companies Accounting Oversight Board, said three people familiar with the matter who declined to be identified because the process isn’t public.

Madoff trustee sues HSBC for $9bn [BBC]
Iriving Picard, who is seeking to recover funds for Madoff’s Ponzi scheme victims, is alleging 24 counts of fraud and misconduct against HSBC. He alleges that HSBC aided Madoff’s scheme through the creation of a network of international feeder funds.

A Loan Accounting Problem to Make “Amortized Cost” Proponents Squirm [The Accounting Onion]
Loaning money to plaintiffs to fund their lawsuits is a tricky enough proposition without getting into the accounting.

How College Students Should Use Linkedin [The Summa]
Dave Albrecht explains that this should not be Facebook redux.

“Cloud is bullsh*t” – HCL’s CEO, Vineet Nayar, explains why he said just that [Horses for Sources]
Maybe it’s a just attempt to be contrarian.

McGladrey Expands Washington National Tax Office [McGladrey]
“We are thrilled to add Bob’s knowledge and expertise to our firm at such an exciting time. Over the next few years, we plan to more than double the size of our D.C.-based teams with additional strategic hires to better serve our clients,” said C.E. Andrews, president of RSM McGladrey. “Our new office in the heart of our nation’s capital and Bob’s relationships within the IRS will, no doubt, prove invaluable for our clients as we create a ‘gateway of connectivity’ for them with policymakers influencing the tax world.”

Wesley Snipes Asks To Delay Jail For Holidays With Kids [Janet Novack/Forbes]
This guy really doesn’t want to go to jail, ‘In an “Emergency Motion To Stay Self Surrender’ filed Friday, Snipes argues that as the father of four children, aged 4 to 9, he shouldn’t be forced to turn himself in ‘in the middle of the holiday season.’ ”

Rangel Censured for Ethics Violations [WSJ]
“I truly feel good,” said Mr. Rangel, 80 years old, who has represented Harlem for 40 years. “A lot of it has to do with the fact that I know in my heart that I am not going to be judged by this Congress, but I am going to be judged by my life.”

Baucus introduces tax, unemployment bill as accord appears possible [On the Money/The Hill]
There he goes again, attempting to don the bipartisan armor, “Senate Finance Chairman Max Baucus (D-Mont.) introduced legislation Thursday to permanently extend tax cuts for the middle class, patch the alternative minimum tax for two years and reinstate the estate tax.

Besides the tax provisions, the legislation calls for a yearlong extension of federal unemployment insurance through 2011. Baucus introduced a $56.4 billion bill earlier this week to federal extend benefits, which began lapsing on Wednesday.”

BofA Drags Balance Sheet Confidence Backward [Jonathan Weil/Bloomberg]
PwC may be in a bit of a pickle over Bank of America’s mortgage mess.

Is the IRS Racist? [Time]
Total headline bait trash from Time. Obviously the IRS isn’t racist. Their methods need some serious tweaking and they need help setting their priorities but they aren’t bloody racist.

What’s keeping CPAs up at night? [CPA Success]
Tom Hood tells us.

Tax Breaks for Bailout Recipients Stir Up Debate [WSJ]
A series of tax relief measures is saving companies bailed out by the government billions of dollars at a time when concern over tax revenues has risen.

Although the Treasury Department first provided the tax guidance in the fall of 2008, the magnitude of the tax savings has become clearer in the past year. The tax relief drew new scrutiny last month after Wall Street bankers touted it to investors in the initial public offering of General Motors Corp.

KPMG Announces 2010 Americas Partner Class [PR Newswire]
We tried telling them months ago.

The Fed’s Full Disclosure: Don’t Forget About Government GAAP [Forbes]
Francine may have lost it, “What do Ben Bernanke and Julian Assange have in common besides that sexy ‘come hither’ look?” Shudder.

The Big Risks of Little GAAP [CFO]
Careful what you wish for?

Clifton Gunderson relocating headquarters within Tosa’s Research Park [MJS]
CG is expanding into new digs of 28,000 square feet.

U.S. Bill to Extend Middle-Class Tax Cuts Likely to Stall After House Vote [Bloomberg]
At least six House Democrats said yesterday that they would vote against the measure or were considering doing so because they either agreed with Republicans or were concerned about the $3 trillion measure’s effect on the growing federal budget deficit. The House has 255 Democrats and 179 Republicans.

Even if the measure passes the House, Senate Minority Leader Mitch McConnell of Kentucky said Republicans would block its passage in his chamber because it would amount to a tax increase for high earners.

World Cup Bids Go Down to the Wire [WSJ]
As you may recall, PwC had a big hand in England’s push to land the 2018 Cup. The announcement comes today circa 9 am, although the Journal states, “keeping with the opaque nature of international football politics, no one knows exactly when or how the result will be announced.”

Morrison & Company merges with WithumSmith+Brown [AW]
Forensic accounting firm Morrison & Company, P.A., has merged with New Jersey-based CPA firm WithumSmith+Brown, P.C. (WS+B). Effective this week, the union adds 14 professionals to the WS+B roster.

The Morrison & Company staff currently based in the Paramus office will remain at that location, under the WS+B name.

Green Mountain Coffee Roasters, Time to Spill the Beans? [White Collar Fraud]
Sam Antar wants some hippies in Vermont to share all the details about their accounting errors.

Senate votes to exempt CPAs from ‘red flags rule’ [CPA Success]
The AICPA reports that the Senate has passed the “Red Flag Program Clarification Act of 2010,” a measure that narrows the definition of “creditor” in the Fair Credit Reporting Act and thus likely excludes CPAs and CPA firms from having to comply with the Federal Trade Commission’s “red flags rule,” which requires certain business entities to “develop and implement written identity theft prevention programs” that could detect the red flags that signal identity theft.

IRS Provides Additional Relief Under Section 409A Document Failure Correction Program [JofA]
Aka: “Relief for the Worst Tax Enactment of the Last Decade.”

The Obama Deficit Panel’s Tax Reform Version 2.0 [TaxVox]
The wonks at the Tax Policy Center feel that 2.0 is “specific and more realistic than their initial plan.”

~ Happy Hanukkah to everyone celebrating!

Mortgage Tax Break in Crosshairs [WSJ]
The co-chairmen of the White House’s bipartisan deficit-reduction commission said Tuesday they would propose a significant paring of popular middle-class tax breaks, including the mortgage-interest deduction, and push for an increase in the Social Security retirement age.

The recommendations will be included in a final debt-cutting proposal from Democrat Erskine Bowles and Republican Alan Simpson to be unveiled Wednesday. The ideas are part of a broad and controversial proposal to tackle the U.S. government’s debt through a combinat and an overhaul of the tax code. The proposal would hold down the growth of the federal debt by at least $3.8 trillion by 2020, and perhaps more, the two said at a news conference. Messrs. Bowles and Simpson said their plan was preferable to a debt crisis like Europe’s that could ensue without changes to fiscal policy.

AccountingWEB announces 2011 accounting student scholarship program [AW]
Three scholarships will be awarded to students who are declared accounting majors based on the submission of an essay and the subsequent judging thereof. Funding is provided by AccountingWEB with the goal of encouraging accounting as a major and a career choice.

FCC chair announces net neutrality push without re-asserting role over broadband Internet [WaPo]
The chairman of the Federal Communications Commission plans to announce Wednesday a controversial proposal that would prohibit Internet providers from favoring or discriminating against any traffic that goes over their networks.

FCC Chairman Julius Genachowski would do so, however, without resorting to a more drastic step of changing the way the FCC regulates broadband providers that would have more clearly asserted the government’s authority over Internet access.

KPMG hires directors for new oversight body [FT]
Sir Steve Robson, Tom de Swaan and Alfred Tacke will serve as non-executive directors on an oversight body for the firm’s UK operations.

FASB, IASB Update Convergence Priority List [A&A Update/CW]
The Financial Accounting Standards Board and the International Accounting Standards Board said they are still on target to finish writing new accounting standards for financial instruments, revenue recognition, leases, comprehensive income, and fair value measurement by June 2011 or earlier. The IASB is also on target to align its disclosure requirements for derecognized assets and other off-balance-sheet risks with U.S. rules and to finish its updates for consolidations and insurance contracts by the same date.

The Perpetual Debt Machine As Explained By The TV Series “Good Times” [JDA]
Nothing like a 70s sitcom to explain the banking system.

House may vote on tax cuts Thursday [Reuters]
Key word is “may.”

Spreading the Corporate Holiday Cheer [WSJ]
Cupcakes go a long way.

Disintegration of the Big Four Audit Firms? As They Tell the House of Lords, “We Don’t See That on the Horizon” [Re:Balance]
Round 2 (previous comments here) from Jim Peterson, “The epitaph for the private delivery of audit services to the world’s large global companies was written in London on November 23.”

Democrats to Test Republican Mettle With Tax-Cut Vote [Bloomberg BusinessWeek]
Dems are feeling out the GOP this week with some “showdown votes” that may set the stage for many late nights in December. Ah, politics.

An Interview With WikiLeaks’ Julian Assange [Forbes]
A “major American bank” is next on the leaking block. Not sure if Vegas has handicapped this but Team Jehovah seems like an early favorite.

Google Is Said to Be Poised to Buy Groupon [DealBook]
All your cheap sushi and massages could belong to GOOG.

Former Quest Energy Exec Sentenced To 16 Years For Fraud [Dow Jones]
Former CFO David Grose received his sentence for three counts of wire fraud. Ouch.

MarcumStonefield Enhances Tax, Assurance Services and Quality Control with Key Appointments [PR Newswire]
MS appoints three to in-charge positions, “Nanette Miller has been named Partner-in-Charge of Assurance Services, Alan Griffith has been named Partner-in-Charge of Tax Services, and Michael Feinstein has been appointed head of Quality Control for all of MarcumStonefield’s offices in California and Hong Kong.”

Smart Year-End Tax Moves for Investors [WSJ]
FYI – just in case you don’t have the utmost confidence in the lame-o Congress.

Accountants are more adaptable than you think [AWEB UK]
Point.

Accountants are less adaptable than you think [AccMan]
Counterpoint.

Top 20 Inconvenient Career Truths [Forbes]
A favorite: “If you hate your job, it probably won’t get better with time. Sticking around because you’re afraid will only dig you deeper into the rut.” Also, “If you find yourself job-hopping and nothing ever satisfies you for any period of time, it’s time to look at yourself. Most likely, you’re part of the problem.”

Democrats Gird for Tax-Relief Battle [WSJ]
Only 32 days remain! “Congressional Democrats, under pressure from their liberal wing, are preparing to put up a fight over tax relief for wealthier Americans before they agree to any compromise with Republicans that could extend the Bush-era breaks.

With the lame-duck Congress reconvening Monday, House Speaker Nancy Pelosi (D., Calif.) may hold a vote mid-week on legislation that would extend the 2001 and 2003 tax cuts only for families with income less than $250,000, while allowing the upper brackets to expire.”

Deloitte hopes to resurrect Roland Berger deal [ft.com/cms/s/0/2e44af2a-f8bb-11df-b550-00144feab49a.html#axzz16gAzoSvU”>FT]
Deloitte does not take “no” for an answer.

PCAOB Signals More Enforcement, Fee Increase in 2011 [Accounting & Auditing Update/CW]
The Public Company Accounting Oversight Board has signaled through its 2011 budget that it is beefing up its enforcement staff to handle an increasing caseload. The board also signaled that public companies can expect a 5.4-percent increase in the support fee they will pay in 2011 to help fund the operations of the PCAOB.

Another Guilty Plea in Iowa Film Fiasco [Tax Update Blog]
Despite this round of justice, Joe Kristan reminds everyone, “Whatever the merits of the case against Ms. Runge, if any, it’s hard to believe that she is the only person out there who should be worried. The State Auditor reported that fully 80% of the tax credits issued under the program were issued improperly, with millions of dollars milked from the state for imaginary or grossly-inflated expenses and through the use of strawmen LLCs to funnel cash improperly out-of-state.”

Turkey, Gravy, Networking: How Savvy Job-Hunters Spend the Holiday [FINS]
Though hiring probably won’t pick up until the new year, savvy candidates are cramming their calendars with informational interviews, meetings with recruiters and as many holiday happy hours as they can handle.

“The general rule is that it’s a really good time to network, because people are in a mindset of charity, goodwill and warmth,” said J. Patrick Gorman, principal at iFind Group, a New York based recruiter of accountants.

The Answer Is No [JDA]
But what’s the question you ask? Go find out.

Big 4 Bombshell: “We Didn’t Fail Banks Because They Were Getting A Bailout” [RTA]
Prior notice is always helpful, “The leadership of the Big 4 audit firms in the UK has admitted that they did not issue ‘going concern’ opinions because they were told by government officials, confidentially, that the banks would be bailed out.”

The House of Lords Looks at the Role of Auditors: And Then Everyone Went for Tea [Re:Balance]
Jim Peterson was pleasantly surprised by the testimony of the Big 4 in the UK, although he had low expectations.

Tax Consequences of Oprah’s Latest Car Giveaway [TaxProf Blog]
From the Prof, “Oprah was back at it last week, giving away to her studio audience a 2012 VW Beetle, a $1,000 Nordstrom gift card, an iPad, and a limited edition Oprah 25th anniversary watch from Phillip Stein encrusted with 58 hand-set diamonds, among other things.”

We should also mention that the audience’s screaming is unbearable.

Destiny’s Child star Kelly Rowland ducks ‘Bills, Bills, Bills’ [Detroit News/Tax Watchdog]
We’re not sure where she left it with Beyoncé but maybe she’ll call Jay-Z to help out?

Twenty Lies You’ll Hear on a Job Interview [Bloomberg BuisnessWeek]
Including a couple of our favorites: “We’re all about work-life balance” and “We don’t have office politics here.”

Jury Rules SAP Owes Oracle $1.3 Billion [WSJ]
SAP AG must pay $1.3 billion to rival Oracle Corp. for copyright infringement, a federal jury ruled Tuesday, following a high-profile court battle between the business-software makers.

The eight-person jury reached the verdict a day after it adjourned to deliberate. The companies presented closing arguments Monday in U.S. District Court in Oakland, Calif.

Oracle Co-President Safra Catz said “this is the largest amount ever awarded for software piracy.”

Why Do Bank Results Slump in the Fourth Quarter? [Floyd Norris/NYT]
Is it because auditors are giving them the stink-eye?

9th Cir.: Minor Child (Secondary Beneficiary of Father’s Retirement Account) Liable for Tax on Distribution After Mother (Primary Beneficiary) Kills Father [TaxProf Blog]
This is probably the least of the child’s problems.

Panel Poised to Recommend Separate Board, U.S. GAAP Exceptions for Private Companies [JofA]
The blue-ribbon panel on private company financial reporting is poised to recommend that the Financial Accounting Foundation (FAF), FASB’s parent organization, move to U.S. GAAP with exceptions for private companies and that those standards should be set not by FASB but by a separate board under FAF’s oversight.

Big Business Has Its Greatest Quarter EVER?! [JDA]
From our esteemed colleague, “Filed under: totally unbelievable headlines that are even less believable once you actually dig into the truth behind the big fancy headline.”

Happy 25th Birthday to Microsoft Windows [CPA Trendlines]
Clippy would enjoy this.

South Carolina’s gun sales tax holiday kicks off on Black Friday, Nov. 26 [DMWT]
Presumably sales will be weaker this year now that every single gun in the country is safe, thanks to the GOP overtaking the House.

BAE Admits Guilt in Accounting Case, Faces December Sentencing [Bloomberg]
BAE Systems Plc, Europe’s biggest defense company, said it failed to keep proper accounting records of payments in a case that tests U.K. fraud prosecutors’ ability to negotiate plea deals.

BAE lawyer David Perry said today at a hearing at a Magistrates Court in London that the company will enter a guilty plea at a higher court next month. The company has entered into a plea deal, Louis Mably, a lawyer for the Serious Fraud Office, which is prosecuting the case, told the judge.

Cowen Tries to Placate Opposition, Rebels [WSJ]
Irish Prime Minister Brian Cowen pressed opposition parties and independents to back a financial aid package for the country and hold off from seeking an immediate election, even as he found himself on the defensive against rebels within his Fianna Fail ruling party on Tuesday.

The opposition parties and independents are struggling to decide if they should support Mr. Cowen’s government in the upcoming budget, which is crucial to securing a bailout worth tens of billions from the European Union and the International Monetary Fund. Their other option is to push for an immediate election that could delay a rescue package.

Forget About Touching Junk, You’re Going To Piss Yourself When You Hear This [JDA]
The terrorists have won.

SEC Staff Report on IFRS Roadmap: The Public Deserves to Know More [Accounting Onion]
Tom Selling isn’t impressed so far, “It’s appalling how little the SEC staff has accomplished over the ensuing eight months. If I were the SEC’s ‘thesis adviser’, I would be torn between two painful conclusions: this progress report was a rush job from a student with an attitude problem; and/or, she is just not capable of getting the job done.”

Welcome to the Tax Blogosphere: Tax Tips for Poker Players [TaxProf Blog]
For those considering it.

Bush tax cuts: What happens if Congress punts [CNN]
Punch and pie for everyone!

Questions You Should – and Shouldn’t – Ask in an Interview [FINS]
A perfect opportunity to showcase your knowledge about quantitative easing.

Watchdog abandons Hogan chase [Sydney Morning Herald]
Victory for Mick Dundee.

Cuba Gooding Jr’s Dad sued, allegedly didnt pay his accountant [NYP]
Celebrity parents should really know better.

Ireland Is Second Euro Nation to Seek Aid as Banks Wobble [Bloomberg]
Ireland became the second euro country to seek a rescue as the cost of saving its banks threatened a rerun of the Greek debt crisis that destabilized the currency.

The euro erased gains and Irish bonds pared an early advance after Moody’s Investors Service said a “ multi-notch” downgrade in Ireland’s Aa2 credit rating was “most likely.” The prospect of January elections loomed as the Green Party said it would pull out of Prime Minister Brian Cowen’s coalition.

Deloitte, Delphi, and GM: Duped or Duplicitous? [<auditors.com/2010/11/21/deloitte-delphi-and-gm-duped-or-duplicitous/?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed:+ReTheAuditors+(re:+The+Auditors)">RTA]
Francine McKenna takes a peak at underbelly of one part of the GM situation.

Authorities may be close to filing insider trader cases [Reuters]
Federal authorities may file a series of insider trading cases against hedge fund traders, consultants and Wall Street bankers within weeks, several lawyers familiar with the situation said.

Prosecutors and securities regulators are likely to file a number of cases targeting the $1.7 trillion hedge fund industry rather than a single spectacular case, said the lawyers, who have knowledge of the investigations but did not want to be identified since details have not been made public.

SaaS players still outperforming on-premise vendors [AccMan]
Dennis Howlett: “In the past it was possible to ignore or critique this kind of assessment on the grounds the SaaS vendors operate on a fraction of the revenue the on-premise vendors enjoy and are in growth mode. Therefore you would expect to see high growth percentage based on the total size of the market. That’s changing.”

Cultures Clash in Combination of Bank Regulators [FINS]
The bigger concern is bridging the gap in culture. Consumer protection advocates have criticized both agencies for failing to police financial institutions adequately during the crisis.

“[The merger] could exacerbate problems at the two agencies, but it won’t make them better,” said Travis Plunkett, legislative director at the Consumer Federation of America. “A severe house-cleaning from the top down, focused on changing the culture and improving regulatory oversight, is necessary.”

BAE to Face Accounting Charge as Prosecutors Test Plea Powers [Bloomberg]
BAE Systems Plc, Europe’s biggest defense company, will be charged with failing to keep proper records of payments at a London court tomorrow, testing U.K. fraud prosecutors’ ability to negotiate plea deals.

BAE will plead guilty to accounting irregularities regarding its business dealings in Tanzania and may pay 30 million pounds ($48 million) under a proposed settlement with the U.K. Serious Fraud Office, said Sam Jaffa, a spokesman for the SFO. BAE was under investigation in the U.K. since November 2004 for allegedly paying bribes to win deals in six countries including Tanzania and the Czech Republic.

In Pictures: 10 Highest State Income Tax Rates For 2011 [Forbes via TaxProf]
Damn you Hawaii, with your bait and switch tactics.

Google CFO Pichette Says Social Networking a Part of Strategy [Bloomberg]
The quest for world domination will be disguised as fun!

FASB, GASB Standards to Undergo New Review Process [JofA]
The Board of Trustees of the Financial Accounting Foundation (FAF), the oversight body for the two standard setters, announced a review process it described as independent of the standard-setting process of FASB and GASB. FAF Chairman John J. Brennan called it a “mechanism for obtaining ‘real world’ feedback and analysis” of standards.

Bernanke Takes Aim at China [WSJ]
Federal Reserve Chairman Ben Bernanke fired back amid criticism at home and abroad of the Fed’s easy-money policies, arguing that China and others are causing global problems by preventing their currencies from strengthening as their economies boom.

Rino Int’l admits to accounting fraud – auditors [Reuters]
Chinese clean-technology firm Rino International Corp (RINO.O) admitted to accounting malpractice, according to a letter from its auditors filed with U.S. securities regulators, a week after research firm Muddy Waters first made the allegations.

According to the letter, Rino’s Chief Executive Zou Dejunas said the company did not enter two of the six Rino customer contracts discussed in the Muddy Waters report, while a third was “explainable.”

When asked about the company’s other contracts, CEO Zou said “there might be problems with 20-40 percent of them,” according to the letter from auditors Frazer Frost LLP that was filed with the U.S. Securities and Exchange Commission.

KeyCorp Says Mooney to Be First Woman Chief Exeutive at a Top 20 U.S. Bank [Bloomberg]
KeyCorp, Ohio’s second-largest bank, said Beth Mooney will take over as chairman and chief executive officer when Henry L. Meyer retires in May, making her the first woman to lead one of the 20 biggest U.S. banks.

Mooney, 55, vice chairman of the bank and head of community banking, was named president and chief operating officer effective immediately, the Cleveland-based lender said yesterday in a statement. She was named a member of the board and takes over as CEO on May 1.

COSO Launches Project To Modernize 1992 Internal Control Framework [FEI Blog]
From Edith Orenstein, “the Committee of Sponsoring Organizations of the Treadway Commission (COSO) announced it has launched a project to moderize its landmark Internal Control-Integrated Framework.

The framework, first published in 1992, has been supplemented by various publications since that time, including publications geared toward small public companies, and on monitoring of internal controls.”

Reid, Senate Dems go hardball on taxes [OTM/The Hill]
After the election of course, “Reid will force a vote on extending tax cuts for families earning below $250,000 and individuals below $200,000 that would allow tax rates on the wealthy to expire. But it’s not clear whether that vote will be on a permanent or temporary extension because of a split in the Democratic caucus, a notable change since the election.”

Genuine remorse from Sachdeva? Laughable. [Fraud Files]
Tracy Coenen is not impressed with the judge’s reasoning behind Sue’s 11 year sentence, “How remorseful can she be when almost her entire 25 page sentencing memo is full of excuses for why she shouldn’t be held (as) responsible?”

GAO: Compliance Costs of ObamaCare’s 1099 Reporting Requirement Are Low [TaxProf Blog]
So any talk of the financial burden on small businesses is just political rhetoric? Get out!

GM Is Low-Key About Return to Stock Market [WSJ]
General Motors Co., though eager to shed the “government motors” stigma, will take a low-key approach to touting its return to the public markets.

GM’s $18.1 billion IPO is its biggest step yet away from being owned by the U.S. government, which rescued the auto maker and became its largest shareholder with last year’s government bailout. The offering will reduce U.S. Treasury’s stake from 61% to around 26%.

The Bipartisan Policy Center’s Bold, Controversial Stab at the Deficit and Tax Reform [Re:Balance]
Jim Peterson writes, “Having taken M Barnier to task, I was rightly challenged by readers to stop complaining and be constructive.” Accordingly, he has presented the message.

Leftish Think Tank: Film Credits Stink [Tax Update Blog]
Bipartisan opposition! Who knew it was possible?

FinReg May Hamper Job Growth [FINS]
New York’s Comptroller took a swing at D.C.’s financial reform measures in a report on the securities industry released this morning.

The office noted that measures to hamstring Wall Street compensation, prop trading and derivatives trading would crimp growth in the state’s overall workforce. Each securities job in New York creates two other jobs in the city and one position outside of the city, according to the comptroller.

Mark-to-Make-Believe Perfumes Rotten Loans [Jonathan Weil/Bloomberg]
Banks exploiting loopholes in fair value reporting rules? Get out!

2 Former Madoff Aides Are Arrested [DealBook]
Annette Bongiorno was arrested at her home in Boca Raton, Fla., and Joann Crupi was arrested at her residence in Westfield, N.J., the spokesman said. Both women worked for Mr. Madoff for more than 25 years. Ms. Bongiorno served as Mr. Madoff’s longtime personal secretary; Ms. Crupi, among other responsibilities, handled Madoff’s daily cash balances.

Qantas A380 suffered “cascade of failures”: report [Reuters]
The last thing you’re looking for when a plane is in the air is a ‘cascade’ of things going wrong.

FAF, FASB’s Parent Organization, Names Its First CEO [JofA]
Teresa S. (Terri) Polley gets the honor as well as keeping her old job as president.

Another Deficit Plan Targets Taxes [WSJ]
A panel of Democrats, Republicans, economists and other experts is set to say Wedne overhaul of the U.S. tax code is the best way to address the nation’s fiscal problems—a new and likely controversial idea aimed at tackling the growing deficit.

The report, co-authored by Democratic budget veteran Alice Rivlin and former Sen. Pete Domenici (R., N.M.), follows a separate proposal last week by the two chairmen of President Barack Obama’s deficit commission. The many similarities between the two offer a window into the types of proposals that might win backing as Washington launches into what is likely to be a protracted debate on deficit cutting.

Pretty Good for Government Work [NYT]
A “Grateful Nephew” sends a thank you note to his uncle, “Uncle Sam, you delivered. People will second-guess your specific decisions; you can always count on that. But just as there is a fog of war, there is a fog of panic — and, overall, your actions were remarkably effective.”

Facebook’s messaging: would you like a rectal probe with that? [AccMan]
Dennis Howlett reacts to the reactionary.

Eloquence in an Interview Is Better Than Accuracy, Says Study [FINS]
If you’re stumped by a question in an interview, fake it. That’s the advice coming out of a new study from Harvard.

You’ll have a better chance of making a good impression if you respond eloquently and slightly irrelevantly than if you answer truthfully but with a dozen “uhs” and “ums” thrown in, according to the study.

Politicking Hinders U.S. Recovery [CFO Blog]
Sayeth Zanny Minton-Beddoes, an economics editor at the…Economist.

AICPA Urges Repeal of Expanded 1099 Reporting Requirements [JofA]
The House and the Senate each got their own letter.

City Could Extend No. 7 to New Jersey [WSJ]
Hizzoner is exploring the idea.

Shorter Agenda for Convergence [CFO]
Chief financial officers and controllers can breathe a little easier now that accounting rule makers have decided to scale back their aggressive schedule and focus on completing five priority projects by next year. The announcement was made on Monday by Leslie Seidman, acting chairman of the Financial Accounting Standards Board, at a financial-reporting conference sponsored by Financial Executives International. She was reiterating decisions made by the board earlier this month.

Do all your audit activities add value? [Marks on Governance/IIA]
Well?