Please ensure Javascript is enabled for purposes of website accessibility

Footnotes: Best BYE!; Bitcoin’s Latest Market; Keep Up the Good Work Senate Finance Committee | 01.16.14

Posted on by Adrienne Gonzalez

DIE, Best Buy, die! I mean, that's not a threat, I'm just saying if you're going to die anyway… I am not bitter considering my previous terrible experiences with Best Buy or anything but LATER, SUCKAS!! [Bloomberg]

Singapore and the UK are going to hold hands and be pals. Globalization, yay! [Accounting Today]

Two accounting firms have formed to create "The Pun Group," which I think Colin would want to work for if he still wanted to work in public [My Desert]

Yo, Senate Finance Committee, keep up the good work! The AICPA likes what you're up to. [AICPA]

Felix Salmon has some ideas about why banks aren't lending to future homedebtors [Reuters]

The NSA has a lot of sexting to catch up on. Let's wave, kids! [BBC]

Porn and Bitcoin are a fantastic combo, apparently. Wait, who actually pays for porn? [The Guardian]

Bernanke Says QE Works While Posing No Immediate Bubble Risk [Bloomberg]

Oh great, now the IRS scandal is the DoJ's fault? PLEASE. JUST. STOP. [Fox]

A $5 Billion U.S. Fraud Case Against Standard & Poor's Enters Critical Phase [BB]

Related Posts

Just When You Thought You Were Out…

Return.jpgThere comes a time in every unemployed person’s stint as Costanza where you consider going back to the job you just quit. Or maybe you got canned but now they’re reaching out to you through the alumni network just to let you know how great you are nd dang, we sure miss ya.
The BBC was asking around about employment prospects in the new year and lo and behold, they interviewed Keith Dugdale, director of global recruitment at KPMG. Amongst other ramblings, Mr. Dugdale put it out there that KPMG is maybe thinking about asking you some of you to come back:

One thing KPMG is looking at is the notion of rehiring former workers to make use of their experience.
“We are putting a lot of effort into alumni activities,” Mr Dugdale says.

Oh sure, maybe the BBC is reading into it too much but it does make us wonder how many of you would consider going back to an employer that you left because of [insert reason]. Not because you’re desperate (well maybe you are) but perhaps you decided the grass wasn’t greener after all or you’ve got streak of forgiveness in you that you didn’t realize or you told them they had to beg — like get on your knees and beg and tell me you can’t live without me! And I want an iPhone. No! Two iPhones! — and…they did. Maybe we’re broaching the unthinkable but somehow we think some of you might miss the old digs and would jump at the shot to go back. Kindly satisfy our curiosity.

Overstock.com Fires Grant Thornton, Files Unreviewed 10-Q, CEO Remains Humble

patrick_byrne.jpgThere’s really nothing better than an eccentric CEO throwing caution to the wind, consequences be damned.
Insert Patrick Byrne, CEO of Overstock.com (“OSTK”). He issued a letter via press release yesterday that has many people’s attention.
Byrne opens the letter by quoting Nietzsche:
“All things are subject to interpretation; whichever interpretation prevails at a given time is a function of power and not truth.”


Tragic enough but then Byrne really amps it up, droning on for eleven points about his company’s dire situation. Here’s the gist*:
• The difficult accounting treatment of an overpayment received by OSTK from a “partner”.
• Putting the audit out to bid after “eight years of fine service” from P. Dubs, and hiring GT because “my belief that changing auditors every decade or so might be healthy.”
• SEC inquiries into the accounting treatment of the overpayment.
• GT changing their minds on the accounting treament after said inquiries.
• We’re filing an unreviewed 10-Q, P. Dubs is on board for our treatment, GT is fired, anyone (and I mean anyone) want to audit us?
Byrne spends no less than six paragraphs/points explaining GT’s wishy-washy, bending-over-for-the-SEC ways. The man is nothing if not thorough.
Spineless auditors notwithstanding, Byrne will press on, the company will overcome, and he will remain committed to you, Overstock.com shareholder:

I will hold a conference call to further explain and answer questions regarding this matter on Wednesday afternoon at 5:00 p.m. EST (details below). Until then, I remain,
Your humble servant,
Patrick M. Byrne

10-Q [SEC.gov]
8-K: Dismissal of Grant Thornton [SEC.gov]
Press Release [SEC.gov]
*If you want to debate the particulars, be my guest but this isn’t the Journal of Accountancy, feel me?

Survey: No Confidence in Mark-to-Market

thumbs down col.gifThis may come as shock to some of you but mark-to-market accounting is unpopular. And when we say unpopular, we don’t mean your nerdy brother-unpopular, we’re talking George W. Bush-unpopular. Now before you go apeshit about “reality” and “economic cycles” will share some results with you from a survey provided by Valuation Research Corporation and then you can engage in your the steel-cage death dork match.
• According to the survey, 58% of respondents believe that market turmoil negates Fair Value Accounting’s validity
• Those who believed FVA was flawed and potentially not valid during market turmoil, almost 34% suggested a temporary return to historical cost accounting as an alternative
• Regarding Level 3 Assets: A full 44% believed the bank values were within an accuracy of 10% and another 40% thought those values were as much as 30% off.
• Regarding Level 3 Assets: Thirty-six percent believed hedge fund and private equity values were only within an accuracy of 10% and a full 49% thought those values were as much as 30% off.
• Respondents were split when asked if mark-to-market should be suspended for the purposes of bank regulatory capital with 50% believing it should be and 50% believing it should not be.
So the take away seems to be that MTM doesn’t work and is pretty much not legit when the shit hits the fan, everyone trying to value Level 3 assets is using a dartboard, and nobody knows how to fix the problem.
Definitely interesting results but if anyone says, “Barney Frank knew what he was talking about”, projectile vomiting is going ensue.
Survey – No Confidence in Fair Value.pdf