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Footnotes: Diversity or Bust; Chicago Bears Tax Bust; An IRS Win | 08.07.14

Posted on by Adrienne Gonzalez

If the profession will not diversify itself, perhaps this diversity task force will [Journal of Accountancy]

The Fed says one fourth of families are barely scraping by. So we should probably keep lending more dollars to banks at 0% to help them, amiright? [CBS]

Jobless Claims in U.S. Have Dropped About as Much as They Can Fuck this headline [Bloomberg]

Today, in accounting firms you never heard of merging news [Grand Rapids Business Journal]

Bears owe Cook County millions in taxes That's because the Bears suck. GO PACK! [ESPN]

First CVS stops selling cigarettes, now it's thinking there might be something to this inversion thing [WPRI]

Speaking of inversion, why doesn't the IRS just stop it? [Reuters]

Former Real Housewife Dana Wilkey indicted on federal fraud charges Oh snap, another one! [Starcasm]

IRS notches legal win over lost tea party emails The IRS won what might be Round One in a series of contests pitting tea party groups against the agency, with a federal judge rejecting a conservative group’s bid for a court-appointed forensics expert to hunt for ex-official Lois Lerner’s lost emails. Judge Reggie Walton of the U.S. District Court of the District of Columbia said True the Vote’s lawsuit against the IRS failed to show “irreparable harm” in its injunction relief request and that “the public interest weighs strongly against the type of injunctive relief the plaintiff seeks.” [POLITICO]

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Non-Knights Don’t Think Rule Convergence Is All That Important

Thumbnail image for tweedie_knight_jpeg.jpgNot everyone is as hung up on converging U.S. GAAP and IFRS as Sir David Tweedie.
As you may recall, Tweeds delayed his retirement in order to see the rules copulate and bring forth debit and credit harmony.
As admirable as his commitment to the project is, not too many people share his enthusiasm:

A survey by CFA Institute , an international association of more than 16,000 investment professionals, showed that three quarters of respondents believe that improving standards so they are more useful for making investment decisions is “at least as important if not more important” than reducing complexity or convergence.
While respondents generally support convergence, only 6 per cent of those surveyed, including research analysts, portfolio managers, corporate financial analysts and accountants, believe converging the International Accounting Standards Board and its US rival should be the primary objective.

It’s bad enough that Tweeds gets hassled by non-knighted clowns that don’t know a debit from their ass but now there’s a survey out there that says his pet project isn’t that important.
Plus, the SEC doesn’t seem too hung up on it and the FASB has its own problems. Has double-entry chivalry lost all its meaning?
Investors cool on audit convergence [FT]

PwC’s Re-thinking of the Bell Curve Ranking

pwclogo.thumbnail.jpgA tip we received yesterday mentioned that PwC has been progressively narrowing their performance rating scale. P. Dubs originally had the 1 to 5 scale, then moved down to 1 to 4, and now uses 1 to 3.
Obviously, this leaves less room for interpretation of one’s ranking as it compares to the other firms. As far as we know, E&Y and Deloitte both use 1 to 5, and KPMG has the indecipherable 9 box which is somehow combined with a 1 to 5 scale (we think?).
More, after the jump


So let’s talk about this whole mess. You don’t have to be a Elijah Watts recipient to figure out that, at the very least, PwC is making their rankings clear: 1 – you’re well connected; 2 – you’re lucky; 3 – you’re gone. On the one hand, there’s less confusion. On the other, it’s the firm’s way of squeezing people out based on “performance” rather than admitting that they are impervious to the struggling economy.
The rest of the firms are doing the same thing but due to the unwillingness or inability to make their ranking system less mystifying or subject to manipulation, forced ranking will continue. PwC seems to be the first firm to integrate a system that “legitimizes” it.
Discuss in the comments P. Dubya’s move here and why it works/doesn’t work and what the firms should be doing to improve their ranking systems because as it stands right now, it’s total bunk.

Why Haven’t We Heard About Accounting Firms Helping Out Haiti?

Relief efforts.jpgBecause we’ve been looking for some PR and haven’t seen much.
We’ve got no doubt that accounting firms large and small are doing their part to help out the relief efforts there but we’re surprised about the lack of PR. Other than a brief memo (PDF below) from the AICPA that we saw on Twitter this morning, we haven’t seen much of anything.
Our sister site Above the Law has covered the many law firms that have donated to the efforts in Haiti but we haven’t seen anything on accounting firm donations efforts. Even, everyone’s favorite ward of the state, Citi, is helping out in the big way.
Maybe it’s being kept internal but it seems like an opportunity to demonstrate what firms are doing to help.
If your firm has made efforts, or if you’re a PR professional for your firm and you have a press release describing your firm’s efforts let us know and we’ll spread the good word.
AICPA.pdf