…we’ve heard back from sources at all the firms and so far everything is quiet out there regarding the September edition of accounting firm layoffs, however, we’re still checking around.
The bad news of course, is that we’ve got fifteen days left in this month. There are some preliminary rumors out of KPMG in Chicago from last Friday but nothing has been confirmed.
If you have additional information on the Chicago rumors or if you’ve got any information on anything related to what sounds to be the inevitable for several firms, send them to tips@goingconcern.com.
Category: Uncategorized
Can We Stop Pretending That Fair Value Convergence Is Possible?
Anyone okay if we just called this whole convergence thing off? Seriously. We understand that many accountants are perfectionists but healthcare reform seems to have a better chance than this whole shitshow.
Yesterday’s Wall St. Journal claims that the FASB’s biggest wig, Bob Herz is stating, albeit implicitly, that the FASB’s fair value rule will be more strict than the IASB’s. Herz-dog, being a little more political put it this way:
Pleasant disagreement, after the jump
“I hope we can come up with something that both achieves convergence and improves the current state” of accounting rules, Herz said at a roundtable discussion on the fair-value issue at FASB headquarters. “We’re obviously keenly aware of the difficulties of achieving both goals together.”
Herz later said in an interview that while FASB would do its best to harmonize its approach and the IASB’s, “we also want to make sure we come up with a good answer” to improve financial statements that U.S. investors look to.
That’s about as combative as The Herz gets, although, we, like the Journal, will take any chance we can get to embellish otherwise, yawn-worthy comments made by wonky accounting bureaucrats.
More:
John Smith, an IASB member who also participated in the roundtable, said both boards will try to agree on a fair-value rule, but each has its own process to follow, and “at the end of the day, we won’t know until we finish the process.”
The difficulty in harmonizing the two approaches stems from the sharp disagreements over expanding the use of fair-value accounting. Smith called it “a religious war.”
Okay, so we’re not really convinced these guys give a damn either way if accounting rule convergence occurs, especially fair value. So would everyone just knock it off and quit pretending like it’s so bloody important?
Besides, this is a “religious war”. And everyone knows that wars in the name of the Almighty (in this case, GAAP) NEVER end, so let’s just count on this being unresolved through the next millennia.
Is the Party Over?
In these frugal times, you may have noticed the lessening frequency of booze fueled get-togethers at your firm. Now that may new associates are/will be joining the number crunching fray soon we’re wondering if we’ll see a possible uptick in social events.
Knocking back some cocktails doesn’t always have the wide appeal in today’s diverse workforce (regardless of what the stats say) but often these fall events are well attended by boozehounds and non-boozehounds alike.
Discuss in the comments the current trend of socializing at your office. Is the culture at your firm or office drying out? Will it get amped up for the incoming staff? One would think that could be impossible judging by activity during this time of year in the past but since layoffs appear to be a bodily function for the firms these days, your celebrations may be occurring with less enthusiasm.
Does Grant Thornton’s Business Optimism Index Mean Anything?
Grant Thornton, a global six accounting organization, puts out a quarterly optimism index that is “a quarterly confidence measure of U.S. business leaders”.
That sounds very nice and the index is now up to 2007 levels, according to a firm press release. The press release also states that “58 percent of respondents believe that the economy will come out of recession by the first half of 2010, but only 26 percent plan to increase hiring.”
Call us cynics but this definitely has the whole underpants theory written all over it. Poll some executives with some vaguely worded questions and we are to believe that recovery will occur by virtue of a secret plan that has yet to be developed? Leave the wild speculation to us GT.
Talking Pigs Are Obviously More Effective Than Humans in Communicating the Importance of Saving Money
The AICPA has been running the “Feed the Pig” campaign for some time and, until now, we’ve neglected to tell you how freaked out we are by a talking pig in a suit.
It what appears to be some kind of capitalist version of one of the pigs from Animal Farm, the AICPA has decided that getting through to the American People will take a very serious and well thought strategy. So obviously the strategy ended up being a well dressed and articulate pig.
More advertising genius, after the jump
When you think about it, this is most certainly the best approach, regardless of the biological manufacturing debate. A message from a human in a suit will obviously not appeal to anyone and a non-talking piggy bank will not get the point across clearly enough. Talking horses are nothing new and the thought of talking chickens was just too ridiculous.
So talking pigs it is. However, If we were the AICPA, we’d be a little concerned about spread of the H1N1 which could inadvertently confuse some into thinking that if you save money you will end up with swine flu.
If you’ve got your own ideas about how best to communicate to the masses in this campaign, submit them in the comments.
Morale Boost – What’s it Going to Take?
As we reach another major deadline tomorrow, the rumors about layoffs have begun again. After years of bragging about how the awesome job security we all enjoy, accountants now find themselves as expendable as any other profession.
While that might be a stretch, it certainly feels that way. Morale at most firms continues to be in free fall but the communication from your firms seems to indicate that leadership has their heads in the sand when it comes to how you’re all doing. Instead, the message seems to be “we need you to do more, with less” but we really, really appreciate it.
Try to feel better, after the jump
Since one firm has already decided a certain, end of the year party isn’t going to happen, anything short of setting up kissing booths filled with Kardashians or Clooney/Pitt types, isn’t going to get the remaining troops to rally for the upcoming busy season.
And judging by your discussions, the upcoming busy season might seem like something between the fourth and fifth circles of the Inferno. So in order to get some ideas thrown out there, discuss in the comments your suggestions so your firm can get your love again.
We’ve already suggested McGladrey & Pullen make better use of their relationship with Natalie Gulbis but we’re not holding our breath on that front.
Why Are Accounting Firms Crappy at Diversifying Their Workforce?
Since accounting firms like to boast about their diverse workforce but always seem to maintain that it isn’t diverse enough, we would kindly ask, “which the hell is it?” The whole argument of “we can always do better” is fine but at least one academic is saying that the accounting profession has pretty much failed in its attempts to develop a more diverse workforce.
Continued, after the jump
Frank K. Ross, director of the Howard University Center for Accounting Education, called for increased efforts at recruitment, retention and leadership development…Ross noted that despite four decades of effort and significant progress, accounting still trails other professions, and many large businesses, in minority representation. According to the AICPA’s most recent study, minorities currently hold only 5 percent of partnership positions at the largest firms, and only one percent of partners are African-American.
So if accounting firms of all sizes having been trying for forty years to diversify their workforce and still trail other professions and minorities only compromise 5% of the partner positions at the largest firms, does that mean these firms really suck at recruiting and retaining a diverse workforce?
If the AICPA is calling out its own members for sucking at diversity, we might have more of a corporate culture issue as the source of the problem. Professor Ross notes “significant progress” but that doesn’t really seem to be illustrated here.
Fortunately, like all good academics, Prof. Ross manages to have suggestions for improvement:
• Making diversity an integral part of the corporate culture – building it into the DNA of the organization;
• Developing special training for employees at all levels to help them become more sensitive to cultural differences and more aware of diverse styles of working;
• Identifying the best and brightest from their minority workforce and singling them out for focused support at all times, including downturns; and,
• Establishing diversity in cultural background and experience as key criteria in hiring and for work assignments.
Honestly we’re not crazy about these suggestions since we don’t understand how some of these would be implemented. All the firms require diversity training already so is the suggestion to require super-diversity training? And “identify the best and brightest”. Don’t the firms already claim to do this?
Since you all are on the front lines discuss – in the comments – your firm’s diversity initiatives and whether you think they are actually productive or its simply more of your firm’s sorry attempt to disinform about their lack of diversity. Is it the culture among the firms or are there other factors keeping these firms from improving on diversity?
A Muslim Working in Arkansas. You Know Where This Is Going
A former Deloitte Consulting employee has filed suit against the firm and Wal Mart claiming that, “his civil rights were violated when he was fired for exercising his religious right to pray and clean himself beforehand in a ritual known as [Wudu]”
After the jump, Hairballs (yes) has the story.
According to the lawsuit, Deloitte assigned Memon to a consulting project at Wal-Mart’s corporate office in Bentonville, Arkansas in November 2007. Memon claims he would wash up in the restroom before going to pray in an area designated by Wal-Mart, such as the parking lot or in a hallway. The whole process took about five minutes or so.
…the lawsuit states, Wal-Mart employees began to get upset with Memon for using the bathroom to sprinkle water on himself and Memon was told not to perform the “Wazu.”…Memon’s boss at Deloitte suggested that Memon pray at the hotel. However, this was not practical because it meant driving more than half an hour for each prayer instead of just taking a short five-minute break.
It didn’t take long until Memon was then taken off the Wal-Mart project. He claims that a Deloitte project manager told him that other colleagues would also be removed from the job, but in the end he was the only one.
According to the lawsuit, the project manager told Memon that, “Americans do not deal with Islamic practices and clients particularly in the South do not understand these religious practices.” The manager also allegedly said that Memon “is putting himself at risk” by practicing his religion. Deloitte then fired Memon, citing “poor performance,” the lawsuit states.
Having never been to Arkansas, we can’t really give any first hand account on the populace’s tolerance for, well, anything but we do know a few people that went to school in Arkansas and they are very nice, tolerant people.
Since Hairballs wasn’t interested in Deloitte’s statement, we went ahead and got it:
“The allegations in this case are false and we intend to defend ourselves vigorously. Deloitte is deeply committed to all aspects of workplace diversity and inclusion, including expression of religious beliefs, and is proud to be regularly recognized as a leader in this area.”
Based on the Green Dot’s statement, we’re assuming Mr. Memon was let go for performance reasons, which as you all know, are subject to change at any time.
Wal-Mart And An Accounting Firm Fire A Muslim For Praying, Suit Says [Hairballs]
Your Firm Has Questions. Answer Them Here
E&Y’s global survey has rolled out and we’ve obtained a list of questions that Ersnters are being asked.
After the jump, we’ve presented a partial list for feedback on your respective firm.
Since the standard “Strongly Agree, Agree, Neutral, Disagree, or Strongly Disagree” format doesn’t tell the whole story (and are pretty boring), we’re asking you to pick your favorite(s) and give your full answer in the comments.
• I have the time I need to deliver quality work.
• People at the Firm are held accountable for their performance.
• If I had a question or concern about the way we conduct business, I would not hesitate seeking advice or reporting my concerns.
• People I work with inspire others to do great things at the Firm.
• I understand the measures used to evaluate my performance.
• I am rewarded appropriately for the work I do.
• I believe my pay and performance are linked.
• I trust the information I receive from leadership.
• Leadership does a good job of explaining the reasons behind major decisions.
• I rarely think about looking for a new job with another company.
Be honest. Please. If you don’t see your favorite, submit it in the comments along your response.
Our Advice: Always Remember Pants
We’re presenting a typical dress code that one firm put up for its recruitment season. It’s not really important whose it is because you could slap any firm name on it and it would be believable.
Women
• When wearing a skirt, hosiery is a good idea.
• Shoes should be clean and not too high. Strappy sandals are not very professional.
• Spaghetti straps and strapless tops are not okay in the office or a networking event.
• Make sure skirts and tops are not too tight or too short. Your midriff should never be exposed.
• Hair should be kept neat and simple. Jewelry should be conservative and tasteful – never make noise or too distracting.
Men
• Keep any facial hair neatly trimmed.
• Pants should be clean and pressed. They should be tailored, sit at the waist and rest on the top of the shoes.
• Shirts should be clean, pressed, and collared.
• Be sure to wear socks that match–not athletic socks.
General
• Aim for a neat, clean look.
• Remove visible body piercings and cover tattoos.
• Pay attention to the fit of your clothes–make sure they aren’t too tight.
• Keep perfume/cologne to a minimum.
• Always think about what message you want to send. If you have to stop and wonder, “Can I get away with this?” it’s probably not a good idea.
Our first reaction to this list is that while women seem to have the most rules, lots of men we’ve observed need serious fashion help. Lots of men wear khakis that look like Hammer-pants. And “matching socks”? Is this the best they got for gents?
So, discuss fashion faux-pas. State your most hated abuse of fashion in the comments. Personally, pleated pants are pretty much the worst. Btw, “don’t dress like a ho” doesn’t suffice as a faux-pas you dolts.
Our Token Swine Flu Post
We’re upping our pandemic coverage today because 1) it’s god-awful slow out there and B) refer back to #1. Apparently most businesses out there don’t really have a plan in case this whole H1N1 thing gets medieval on our asses.
Continued, after the jump
AP:
The survey found that two-thirds of the more than 1,000 businesses questioned nationwide said they could not maintain normal operations if half their workers were out for two weeks. Four out of every five businesses expect severe problems if half their workers are out for a month. “What we found is that a minority of businesses have started some sort of emergency planning,” said Robert Blendon, a professor of health policy and leader of the project sponsored by the U.S. Centers for Disease Control and Prevention. “Most, I don’t think, have thought through the implications of something so widespread.”
Surely you’d think that the accounting firms would not fall into this particular category. We glanced over the BW list again (because we’ve got nothing better to do) and surprisingly, only PwC and McGladrey & Pullen have sick days listed. P. Dubs is “Unlimited” and M&P provides five days. The other firms have nothing listed.
So are we to assume that the other usual suspects don’t provide any sick days? Most of you are aware of the really obnoxious habit that some people have of coming to work when they should probably be in the hospital. They pop some Airborne or overdose on Vitamin C and they think they’re cured.
Then, of course, there are types that assume that anyone who calls in sick is faking because, well, their jobs sucks. So the “sick” play at accounting firms is always a lose-lose-lose.
So the question should be asked: What the hell happens when half your team can’t crawl out of bed? Are the firms going to start giving you GASP sick days? Are the firms going to provide everyone with biohazard suits so everyone can still come to work? Maybe just the new associates and partners (probably the most likely scenario)? Discuss.
McGladrey & Pullen Needs to Quit Being Nice to Us
On the one hand we feel bad about missing McGladrey & Pullen being on BW’s list of Best Places to Launch a Career. They land at #66 but the picture at right wasn’t used and frankly, our attention span is short.
We’re also a little disappointed that the M&Pers out there didn’t jump our shit about missing it altogether. Perfect opportunity for you call us out for being a Big 4 whore or something to that effect. Probably due to the Minnesota Nice or maybe you’re all clinically depressed because your firms are getting divorced. WTFK.
Regardless, your opportunity is gone because this is the GC “our bad” statement for leaving you out of the previous posts.
However, when we probed M&P’s profile we discovered that the five year retention rate was 18%. And M&P sponsors Natalie Gulbis for crissakes. We shouldn’t have to explain how valuable she would be in the recruiting and retention processes. We just convinced ourselves that we don’t feel bad at all.
Get it together M&P.