Category: News

Area Accountant Breaks Up with Donut

The following post is republished from AccountingWEB, a source of accounting news, information, tips, tools, resources and insight — everything you need to help you prosper and enjoy the accounting profession.

Dear Donut,

Our relationship goes back a long way. I feel like you’ve become a big part of me. You used to be such a treat, but now, I fear you’ve become a bad habit. Three-thirty in the afternoon rolls around and suddenly you’re there, demanding my attention. It wasn’t supposed to be this way.

I don’t know how to say this without hurting your feelings, but let’s face it. You lied to me. You were supposed to be a snack, a burst of energy, a friend to carry me through until dinner. But that’s not what happened. Sure, the anticipation of meeting you was exquisite. Your softness against my lips. Your sweet taste . . .

But I digress. The sad thing was that after all that foreplay, you didn’t hold up your end of the bargain. After you were gone, I felt tired, not energized. In fact, worse than if I hadn’t had you at all. I put up with it for a while, but it has gone too far. This relationship has to end.

I’m sorry if I’ve never mentioned this before. I know you mean well. I appreciate the kind thought, but no, I really don’t think there’s anything you can do. No, another layer of frosting isn’t going to make a difference. Really. Yes, a fruit filling might make you more romantic, but that just doesn’t deal with the issue. We just weren’t made for each other.

Well, I wasn’t going to mention this to you, but yes, there is someone else. She’s from a different country. No, not Danish! She goes down smooth and gives me lasting energy. No, this isn’t about liking salty more than sweet. Besides, she’s a lot less salty now, more earthy, I’d say. She’s a vegetable juice.

No need to get personal! Vegetables may not be sexy, but they’re smart, and I have come to appreciate how much I like that. You know, I thought you would be a difficult habit to give up, but it turned out that you were easy to replace with something smart. Look, let’s not part as enemies. You’re sweet. You’re fun, particularly when you’re fresh. And we have known each other a long time. Can’t we just be friends?

Bill

If You’ve Got a Better Solution to Rhode Island’s Budget Crisis, Governor Lincoln Chafee Is All Ears

Over at Tax.com, David Brunori calls Rhode Island Governor Lincoln Chafee’s latest state sales tax proposal “awful.” You see, Governor Chafee wants to levy a tax on goods and services sold by Ocean State businesses. Examples of previous tax-exempt services include “data processing, landscaping, taxi fares, garbage collection, auto repairs and tickets to theaters and sporting events,” while it would also tax goods such as “agricultural products, boats, clothing, manufacturing machinery.”

Brunori writes that this idea is horrendous because it not only, “violates every notion of sound sales tax policy,” but because the Rhode Island rubes won’t even realize that the tax is ultimately being passed on to them:

In general, businesses should not pay sales tax on their purchases. When they do, the tax is passed on to consumers in the form of higher prices. The tax is often included in the final purchase price and taxed again. The funny thing is that citizens do not know they are being secretly taxed. Everyone knows this.

So wait…do the citizens know they are being taxed or does “everyone” simply mean tax policy wonks? Putting our confusion aside for a second, Governor Chafee has defied the haters like Brunori and Rhode Island businesses, standing by his proposal. But if you’ve got a better idea, he’s more than happy to hear your out:

Chafee said it’s up to his critics to suggest a better option. “Crisis calls for leadership,” Chafee, an independent, said at an impromptu press conference called after the rally. “If you don’t like my proposal, what’s the alternative? No politician likes to raise taxes. … We’re waiting for a better idea.”

Terrible Tax Idea of the Week [Tax.com]
Chafee firm as business groups protest tax plan [Tto10]

Underpants Gnome Accounting of the Day: NuVasive Inc.

Today in accounting-sleight-of-hand news, medical device maker NuVasive Inc. announced that its first quarter profits doubled thanks largely to an accounting policy change:

The company said its profit more than doubled to $2.4 million, or 6 cents per share, from $1.1 million, or 3 cents per share. Excluding one-time items like non-cash stock-based compensation expenses, amortization costs, and intellectual property litigation charges, NuVasive said it earned 24 cents per share. The accounting change added 2 cents per share to both measures of profit. Revenue increased 14 percent, to $124.5 million from $109.1 million.

What exactly was this accounting rule switcheroo? A change in the way it “accounts for the value of loaned instruments” that will be paying off in spades for the rest of this year and into the future!

NuVasive said it changed the way it accounts for the value of loaned instrument sets that went into service before Jan. 1. The change is expected to add 8 cents per share to its annual profit. It also said lower tax rates will add 4 cents per share to its annual profit, and greater-than-expected revenue will contribute a penny per share.

The company said it now expects an adjusted profit of $1.20 to $1.23 per share in 2011, with $530 million to $540 million in revenue. Previously NuVasive called for a profit of $1.07 to $1.10 per share and $525 million to $535 million in revenue.

Accounting change lifts NuVasive 1Q profit [AP]
Earlier:
Underpants Gnome Accounting of the Day: CapitaLand Ltd.

Dumb: Overstock.com Paid $7 Million for the Oakland Coliseum Naming Rights

While still involved in a lawsuit (the one that came about because of a Walmart sticker) with seven California counties, including Alameda where Oakland resides.


From the Chronicle’s Zennie62:

Did the Oakland Raiders say anything? What about anyone with the City of Oakland or the County of Alameda. Did they even know that the County was involved against Overstock.com in this way?

Moreover, how could the San Francisco Bay Area print media, normally derisive of bloggers like myself, miss this legal issue?

So, to close, we have two problems with the Overstock.com, Oakland-Alameda County Coliseum Stadium Naming Rights Deal: it’s way under valued at $7 million, and the firm that’s on the other side of the deal is being sued by the same County of Alameda it’s giving money to, and for allegedly fraudulent business practices.

Overstock Buys Oakland Coliseum Naming Rights While In California Lawsuit [SFC]

Would You Show Your Loyalty to KPMG with a Tramp Stamp?

Or the new PwC logo on the back of your neck? How about Deloitte green dots incorporated into some barbed wire? Sure most people are looking for new jobs but for those of you looking to show some loyalty to your firm, you should know that some company ink may go a long way:

Employees of Anytime Fitness, a workout chain based in Hastings, Minn., can get the company’s purple running man logo permanently inked on their bodies by a tattoo artist who shows up at monthly training sessions. More than 350 employees have gotten permanent tattoos including CEO Chuck Runyon.

Runyon says the tattoo represents a significant commitment to the brand. Employees receive standard benefits like retirement plans and health insurance, but they also have flexible hours and an office culture that includes contests and giveaways among staff, a combination of perks that Runyon believes encourages employee loyalty.

“We spend a third of our lives at work,” he says. “If you don’t love what you do, that’s a miserable existence.”

How Far Would You Go for Your Company? [FINS]

Moss Adams Freshens Up Their Look

It’s spring, which means change is in the air; flowers are blooming, the air is warm, animals are frisky, all that crap. And perhaps because it is such a refreshing time of year, Moss Adams has rolled out a refreshed image, updating their colors, adding a tagl website a new look and feel. The firm officially rolled out its new and improved look today and Moss Adams CEO Rick Anderson was kind enough to speak to us about it.

Going Concern: So why the face lift (or does this simply qualify as Botox injections)? Is it because the firm is getting up in there in age and it’s not feeling as desirable as it once did?

Rick Anderson: As you know, a brand is an intangible asset with economic value that requires management to help it appreciate. The last refresh we did was in 2006-2007 and much has changed since then. The current updates to our colors, our tagline, and our graphic elements represent the energy and thought leadership we put into every relationship and engagement.

GC: The changes appear to be more subtle than, say, another firm that comes to mind – was that a conscious choice? Was anyone involved in the creative process dropping ideas that revolved around Legos or October foliage?

RA: Our creative team presented several options ranging from a small tweak to a full scale rebrand. Because Moss Adams is built on such a solid foundation, we decided that our vision, mission, and values would remain intact. And so would our logo, as we wanted easy recognition of our brand and we wanted to preserve the equity already built. So we are calling our new look and feel a “refresh” instead of a rebrand because it continues to focus on many of our historical strengths.

GC: Okay, sounds like simply “ma” could have been on the table. Moving on… The new tagline is “Acumen. Agility. Answers.” Do these merits have special meaning for MA or did they happen upon someone flipping through the A section of the dictionary?

RA: We created the tagline to reinforce important aspects of our brand that our clients called out in our client satisfaction survey. “Acumen. Agility. Answers.” is a simple, benefit-driven tagline that conveys three important attributes of the service we provide our clients: Acumen – Keen insight we deliver; Agility – Our ability to respond quickly; Answers – Correct and valuable responses to questions and problems.

GC: So the clients are the wordsmiths. Got it. What’s the feedback been so far? Are you expecting excitement at first followed by some sort of Charlie Sheen-esque backlash?

RA: We have been rolling out the new sales and marketing materials for the past few months, initially internally and then externally, and the response is favorable. People like the refreshed look. The new website just launched and focuses more heavily on valuable resources for our visitors. It is a bit early to gauge our metrics on that.

GC: In other words: WINNING! That’s wonderful. What other new and exciting things can we expect to see from MA this year? Office openings? More work-life balance initiatives? A new dancing partner?

RA: We are off to a good start to 2011. Our annual firm leadership meeting is in a few weeks and our focus will continue to be on taking care of our existing clients and personnel while continuing to focus on growth to provide more opportunities for our people and more resources for our clients. We are seeing some positive signs and are looking forward to a good 2011.

FASB Closes the ‘Lehman Loophole’

FASB issued Accounting Standards Update No. 2011-03 to improve the financial reporting of repurchase agreements, also called “repos,” or other transactions that govern the transfer and repurchase of financial assets. The new guidance gives companies some new parameters to consider in determining whether a transfer is in fact a sale of an asset, and therefore qualifies for sale treatment, or whether an entity has retained some control over the asset and therefore cannot claim to have sold it. [CW]

Single Fat Accountant Also a Bit of a Hypocrite, Watches Royal Wedding

A couple of weeks ago, the Single Fat Accountant was suffering from a serious case of Kate and Willy envy. He had called for a blackout of all the Royal Wedding festivities but because he is A) fat; B) single and C) and accountant, the nuptials went on as planned.

Realizing the futility of the situation, SFA eventually succumbed to the pressure of being of loyal British subject (or maybe a party-pooper of a boss) and turned on the teevee to watch the historic event.

Realizing that he might catch some flak for this flip-flop, our hero felt the need to explain his actions:

I was feeling left out by not watching TV. I felt I was going againt the odds with the large proportion of people. It just felt wrong not to watch the wedding. Though my views in previous blog remain unchanged. I am thinking what this says about me:

• I like to belong rather than be the odd one out
• I am bit of a hypocrite!
• I am not strong enough to be an independent thinker.
• I just wanted to see how Kate looked! She looked great.

Kate did look lovely (and catching glimpses of Pippa was a nice bonus) but I can’t help but feel that SFA is buckling like a cheap belt here. On the other hand, it’s conceivable that our fat, lonely friend may have been thrown out of his country had he not complied. If anyone wants to weigh in – being supportive or sharing their own tale of Royal Wedding fever – feel free to do so now.

Wanted: Auditors for Inventory Count Who Won’t Get Queasy at the Sight of a Few Dead Chickens

Did I say a few?

The Alabama Poultry and Egg Association estimated that five million chickens probably died in the tornadoes, which slammed the northern part of the state, where the industry is centered.

Not to worry though, you’ll still be able to get your McNugget™ fix:

That alone isn’t enough to disrupt chicken supplies nationally. The state usually produces about 21.5 million chickens in a week. The U.S. produces roughly nine billion chickens annually.

Storms Destroy Hundreds of Poultry Houses [WSJ via JDA]

Accountant Demonstrates Poor Athleticism in Most Unfortunate Way Possible

Today in doing a disservice to accountants everywhere, Matthew Benjamin Mundy, a double-entry maven in Australia, was fined $500 for accidentally hitting an off-duty federal police officer with an egg.

Apparently MBM was attempting to hit his friend with the ellipsoidal embryo container, missed, and hit the officer who was sitting at a café. Accidents happen but Mundy’s employer better hope his professional misfires are far less material. [ABC]

Dilemma: Administrator Concerned About Partners Giving Significant Others No-show Jobs

Today in predicaments from across the pond, a concerned employee wonders if a couple of partners who have given their wife and girlfriend no-show jobs are up to some financial shenanigans. Of course this prospecting employee is thinking about approaching said partners about this. What could go wrong?

The partners of the LLP I work for have added their wife and girlfriend to the payroll of the company even though neither said wife or girlfriend actually work here. I believe the reason being is to reduce profit, partner remuneration etc to ultimately reduce the amount of tax paid by the partners at the end of each financial year.

The ‘salaries’ are fairly low (£16,500 [$27k USD] and £13,000 [$21.4k USD] per annum) and Tax and NI etc is processed as normal through PAYE. One of the ladies even has student loan deductions. Periodically each lady will have a large ‘bonus’ of around £15,000. I assume the payments go directly in the wife/girlfriend’s bank accounts.

I’m sure there must be some sort of law against this as it seems, to me, too obvious to be a loophole. Does anyone one know what these laws are and the repercussions should the partners get caught?

I work as an administrator for the company and rely solely on accounting and payroll software and therefore only have very limited knowledge on the subject. I am hoping to approach the partners on the matter so any help/information would be greatly appreciated 🙂

Maybe this “administrator” has too much time on their hands and is simply jumping to conclusions (which we applaud) but then again, a no-show job is a no-show job. They are violating NCAA rules or anything but for the puritanical types this could seem a little sketchy.

Berkshire Hathaway Audit Committee Has Some Thoughts on This David Sokol Matter

Namely, he violated Berkshire’s code of business conduct and ethics and violated his duty of candor to the WB, Munger and the rest of the company.

BerkshireHathawayAuditCommitteeReportAPR2711