Going Concern

News

Grant Thornton Saying Aloha to Honolulu Office

Caleb Newquist
May 11, 2010

Over the weekend we learned that Grant Thornton was pulling up the stakes in Hawaii. According to our sources, the partners of the Honolulu office will be purchasing the business from GT and joining Pannell Kerr Forster, and international network of independently owned firms (U.S. locations).

GT Honolulu has approximately 60 professionals and according to one source familiar with the situation, all will be retained after the transaction According to our source, Doreen Griffith, the Honolulu Office Managing Partner will be moving to the San Francisco office to lead the tax practice there while Patrick Oki, an assurance partner will head up the new PKF office.

Our source told us that the reaction of the GTers was that of surprise but not upset, “I would say that employees are very happy but shocked.”

Grant Thornton’s disposal of this office follows the closure of its Madison, Wisconsin office, announced just last month and the Greensboro office that we reported on back in February. Several sources have speculated that Grant Thornton is moving out of smaller markets to focus business opportunities in larger markets.

Despite these moves, none of them had been previously mentioned on either of the the firm-wide calls held by Grant Thornton CEO Stephen Chipman held this year.

PKF North America’s President & CEO, Terry Snyder spoke with us briefly about the transaction, confirming that the partners in Honolulu were taking over the business from Grant Thornton and that Mr Oki “was the man to speak to.” He declined to comment on GT exiting the Honolulu market.

Messages left with Patrick Oki, Doreen Griffith and Grant Thronton’s national PR team were not returned. Emails to both Mr Oki and Ms Griffith were not returned.

If you have information on this transition in Honolulu, you can drop us a line at tips@goingconcern.com.

Career Center

Job of the Day: Computer Sciences Corporation Needs a Senior Accountant

GoingConcern
May 11, 2010

Computer Sciences Corporation is looking for an experienced accountant to join their group in Sterling, VA. The position is responsible for supervising the posting and balancing of general and subsidiary ledgers, along with account analysis and journal entries.

The position requires a bachelor’s degree, a minimum of six years experience, including three year of supervisory experience and a CPA license is a plus

Company: Computer Sciences Corporation

Title: Accounting Senior Supervisor

Location: Sterling, VA

Description: Supervises the posting and balancing of general and subsidiary ledgers; ensures accuracy and timeliness. Oversees the preparation of account analysis and journal entries to ensure records

Responsibilities: Supervises the posting and balancing of general and subsidiary ledgers; ensures accuracy and timeliness; Oversees the preparation of account analysis and journal entries to ensure records are organized and standardized; Oversees the coding of invoices and vouchers with proper account distribution support to ensure accuracy and validity; Oversees and prepares, as appropriate, foreign currency exchange and remeasurement calculations and journal entries; Supervises and assists in the compilation of data for preparation of regularly scheduled and special accounting reports; verifies statements to ensure accuracy and to meet company information needs; Supervises and assists in the implementation of accounting systems and accounting control procedures to ensure adherence to company guidelines; Recommends and/or initiates the selection and hiring of employees. Trains and evaluates employees to enhance their performance, development and work product. Addresses performance issues and makes recommendations for personnel actions. Makes recommendations for salary increases, transfers and terminations to manager; Provides supervision of the accounting staff to ensure activities are completed accurately and in a timely fashion. Analyzes and resolves work problems or assists employees to resolve problems;

Qualifications/Skills: Bachelor’s degree or equivalent combination of education and experience; Bachelor’s degree in business administration, accounting or related field strongly preferred; Six or more years of accounting experience; Three or more years of leadership experience included; CPA or CPA candidate preferred; Experience working with generally accepted accounting principles; Experience with SAP, Hyperion and Lotus Notes a plus.

See the entire description over at the GC Career Center and visit the main page for all your job search needs.

Small Business Still Not Showing Signs of Life

GoingConcern
May 11, 2010

This story is republished from CFOZone, where you’ll find news, analysis and professional networking tools for finance executives.

Don’t look for small businesses to lead the economic recovery.

The monthly reading from the National Federation of Independent Business Index of Small Business Optimism clearly shows little optimism among small business.

Sure, nine of the 10 components that comprise the index rose from the prior month.

However, some of the critical factors that would indicate whether small business owners plan to invest in their firms did not show encouraging results. The NFIB’s job measures barely moved and capital expenditure plans were flat.

More specifically, according to the survey average employment per firm was negative in April. What’s more, since July 2008 employment per firm has fallen steadily each quarter, logging the largest reductions in the survey’s 35-year history.

If small business is key to job growth – as some pundits think – then this does not bode well for our economy.

And the jobs small businesses create are not exactly great ones. They are more likely to come without benefits and less time off for vacation.

Meanwhile, the Index does not suggest that small businesses will be investing heavily in non-personnel. It noted that plans to make capital expenditures over the next few months were unchanged from the prior month and its reading is only slightly above the 35-year record low.

Yikes!

The survey also noted that small business owners continued to liquidate inventories and weak sales trends gave little reason to order new stock. In fact, more owners plan to reduce stocks than plan new orders, according to the NFIB.

Meanwhile, regular borrowers continued to report difficulties in arranging credit. “Historically weak plans to make capital expenditures, to add to inventory and expand operations also make it clear that many borrowers are simply on the sidelines, waiting for a good reason to make capital outlays and order inventory that requires businesses to take out the usual loans used to support these activities,” the report notes.

Obviously, small businesses are not going to turn this economy around any time soon.

Michel Barnier: EU Is ‘Impatient’ with SEC, FASB Pussyfooting Around on Accounting Standard Convergence

Caleb Newquist
May 11, 2010

Michel Barnier is certainly doing his damnedest to make a name for himself by virtue of the accounting standards convergence and scrutinizing the role of auditors.

Accountancy Age reports his latest soundbite at a speech in Washington today, telling “leaders” that while their efforts to converge international accounting standards and U.S. GAAP are admirable, that he and the entire continent of Europe are getting sick of the stalling.

“I appreciate that the US authorities have made progress towards convergence, but in the EU, we are getting impatient.”

Apparently Mr Barnier has had enough with this little dance going on between the FASB and the SEC. The FASB has been punting to the SEC fairly regularly and we’re all aware of the SEC’s tendency for inaction, so maybe Barns figured that a Frenchman calling out Americans on their own turf would help move things along.

Barnier tells US that Europe is “getting impatient” on accounting convergence [Accountancy Age]

What the AICPA’s New Website Means for CPA Exam Candidates

Adrienne Gonzalez
May 11, 2010

The short answer: not really anything but I spent 3 years slogging through that last design and can I tell the AICPA that it was absolutely awful? I’m not bitter or anything but I can only imagine what candidates felt like trying to find even the simplest bit of information.

They tell you before you take on the CPA exam to check out cpa-exam.org and run the tutorial before you actually sit down for a section so you can familiarize yourself with the computerized format. CPA Review providers cannot duplicate exam content or the environment exactly, as it is proprietary information, so simulations are a must-do and navigating is a skill you’ll pick up along the way if you don’t already have it. So as long as you’ve already done that, your next stop is the redesigned AICPA website.

Watch a PPT on becoming a CPA, learn about joining the AICPA as a candidate member, or check out their many resources on career options in the accounting industry. You’ve seen Start Here Go Places (an AICPA project that markets the exciting career of accounting to high schoolers and beyond), I don’t need to point you to that.

The AICPA is hot on marketing and excellent at it, even if they do make a poor choice every now and then (Benjamin Bankes, I’m talking about you, dude), so it’s no surprise that they are trying to seduce undecided college students and disgruntled finance professionals looking to switch professions. Things are slightly better in accounting so it isn’t all slick marketing, but I digress.

You can check licensure requirements for your state and even find out how much “average” accountants make. I encourage all of you considering accounting as a career to doublecheck those numbers with Going Concern salary threads.

Anyway.

Overall it’s an improvement and hopefully aggregating this information on the AICPA’s website will make it easier for candidates to find what they need. What do you think?

(Remember also that the ultimate authority on your CPA exam experience is your state board, NASBA, or CPA exam administrating company (like Washington), not the AICPA. Always check with your state board et al. before filing applications or forms if you are unsure on any CPA exam information you read.)

Adrienne Gonzalez is a Going Concern contributor and former CPA wrangler. You can see more of her posts here and all posts on the CPA Exam here.

ANR
News

Accounting News Roundup: In Defense of Sherrod Brown; Former H&R Block CFO Gets the Parachute; Intuit Snatches Up Medfusion for $91 Mil | 05.11.10

Caleb Newquist
May 11, 2010

Sen. Sherrod Brown Prods SEC/FASB to Fix Accounting Standards [The Summa]
This is Professor Albrecht’s take on Senator Brown’s amendment SA 3853 to the S. 3217: Restoring American Financial Stability Act of 2010. The Professor is less concerned about this particular attempt at financial accounting legislation, reasoning that the SEC and the FASB have had plenty of opportunities to fix these issues (e.g. repurchase accounting) and have passed them up.

Given the severity of the problems, and the inability of today’s standard setters to gird their loins and solve the problems, is it appropriate for Congress to pass a law directing the SEC and its standard setter to produce a desired outcome? Absolutely. Accounting standard setting is an inherently political process, as I explained in my popular essay, “Economic Consequences and the Political Nature of Accounting Standard Setting.” Because the SEC has passed on its legislative charge to establish accounting standards that adjudicate between competing economic interests, and because the private standard setters follow their own political agendas when preparing accounting standards, it behooves Congress to step in when things get too far out of whack with national priorities. Such is the case here.

In other words, s— or get off the pot, FASB and SEC. The argument is a fine one, however, if legislation of accounting has to force the FASB’s into action, where does it end? When FAS 157 was being decried as the cause of all our problems, Barney Frank called in Bob Herz, scared the living bejeesus out of him, and got the result he wanted. Is that preferable to this situation? That depends. At the very least, the Sherrod Brown method susceptible to the influences of others while the B. Frank method skips the voting and signing stuff altogether (which has proven tricky in the past).

Former H&R Block CFO gets $620,000 cash in severance [KCBJ]
Becky Shulman (no relation to the Commish, as far as we can tell) is getting $620k for walking away from H&RB along with automatic vesting of 148,725 outstanding stock options. There’s no indication that she is eligible for lifetime complimentary tax prep service.

Intuit to buy Medfusion in $91M deal [SV/SJ Business Journal]
Intuit, owner of QuickBooks, Mint.com, Quicken, etc. has now added Medfusion to its stable, expanding its SaaS holdings. The deal is scheduled to close this July, the 4th Quarter of the company’s fiscal year. CEO Brad Smith, from the press release:

“This transaction expands our software-as-a-service offerings with a solution currently used by more than 30,000 healthcare providers, the vast majority of whom are essentially small businesses. The combination of Medfusion’s industry-leading patient-provider communication solutions and Intuit’s expertise in creating innovative solutions that improve the financial lives of small businesses and consumers, will help us create new solutions that make the clinical, administrative and financial side of healthcare easier for everyone.”

Amateur Accountants Need Not Apply

Caleb Newquist
May 11, 2010

“It is the last part of the business I would hand over to someone who is less than qualified.”

~ Barbara Taylor, co-founder of Synergy Business Services, on the accounting function.

News

AICPA, Others Ask U.S. Senate to Kindly Keep Their Filthy Mitts Off Accounting Standards

Caleb Newquist
May 11, 2010

After the wisdom displayed by Senators in the Goldman Sachs hearing a couple weeks ago, it must have become evident to a group of concerned organizations took it upon themselves to voice concern with regard to any elected official that might give consideration to tipping his or her toe into the accounting standard waters.

Enter Son of Ohio, Sherrod Brown (D) who has proposed amendment SA 3853 to the financial regulation reform bill. The amendment would legislate financial reporting standards by forcing companies to “submit reports to the commission under this section record all assets and liabilities of the issuer on the balance sheet of the issuer.”

But don’t worry if you can’t figure out what the value of a liability is because you can just leave it off altogether granted that you don’t mind explaining:

“(i) the nature of the liability and purpose for incurring the liability; (ii) the most likely loss and the maximum loss the issuer may incur from the liability; (iii) whether any other person has recourse against the issuer with respect to the liability and, if so, the conditions under which such recourse may occur; and (iv) whether the issuer has any continuing involvement with an asset financed by the liability or any beneficial interest in the liability.”

While this seems all very well thought out, the CAQ, CFA Institute, AICPA, FEI and a gaggle of others smelled amateur hour and wrote a letter to the old boys in the Senate letting them know, in no uncertain terms, that this pretty much the worst idea they’ve ever heard:

[W]e are concerned with any amendment that would legislate accounting standards, including Brown amendment SA 3853 regarding “Financial Reporting.”
…
The accounting standards underlying such financial statements derive their legitimacy from the confidence that they are established, interpreted and, when necessary, modified based on independent, objective considerations that focus on the needs and demands of investors – the primary users of financial statements.
…
We believe political influences that dictate one particular outcome for an accounting standard without the benefit of a public due process that considers the views of investors and other stakeholders would have adverse impacts on investor confidence and the quality of financial reporting, which are of critical importance to the successful operation of the U.S. capital markets.

So in other words, Sherrod Brown, you can suck it. The FASB might not be hottest piece of ass around but by GOD, it’s what we’ve got. And we’ll be damned if you’re going to propose your hocus pocus American people Main St. financial statement Act.

Accounting Groups Object to Brown Amendment [Web CPA]
Standard_setter_independence_letter_to_Senate

News
Tax

For Everyone in North Jersey, Mass and Rhode Island That Squandered the Last Four Weeks Away, Your Tax Deadline Is Tomorrow

Caleb Newquist
May 10, 2010

If you were (un)lucky enough to live in one of the flood ravaged counties in North Jersey, Mass, or the entire Ocean State, hopefully you remembered that your extended period of procrastination ends tomorrow.

Yes, unfortunately the last four weeks have flown by and we’re sure that some of you have managed to piss away this time not preparing your tax return. Do yourself a favor and file the extension. You’re hopeless.

Relax, here’s the form.

News

Today in Accountants Making Bad Decisions: Tweeting That You’re Going to Blow Up an Airport

Caleb Newquist
May 10, 2010

When an airport is closed due to inclement weather, most people just shrug and realize that there’s nothing they can do about it. Oh sure, there might be a few lunatics who will yell at the ticket agent because they’ve somehow concluded that they have the ability to ring up the Almighty and put in a rush order of clearing skies but most people have the self control to internalize this.

In the case of Paul Chambers, an accountant in the UK, it wasn’t so much a ticket agent but his Twitter followers who heard his frustration. Chamber was understandably concerned that he wasn’t going to get laid due to Robin Hood Airport being closed this past January after a snowstorm. Chambers claimed that he Tweeted the following…

“C—! Robin Hood Airport is closed. You’ve got a week and a bit to get your sh– together, otherwise I’m blowing the airport sky high!”

…out of frustration because he was scheduled to fly to Belfast to meet Crazy Colours, whom he had met on Twitter. Prior to the C U Next Tuesday message, he had Tweeted to Crazy Colours, “I was thinking that if it does I’ve decided that I’m going to resort to terrorism,” presumably referring to another snowstorm that could potentially delay is upcoming travels.

Anyhoo, the Tweet was discovered by a Robin Hood Airport employee who was compelled to report the threat to authorities. Naturally this led to seven hours of questioning, the loss of his job, and a ban from the airport for life (later rescinded).

The judge ruled that the Tweet was ”of a menacing nature in the context of the times in which we live.” Chambers was fined approximately $1,500 and naturally, took to the Twittersphere with his thoughts on the matter:

Accountant used Twitter to threaten to blow up airport [Telegraph]
Briton Convicted for ‘Menacing’ Tweet Against Robin Hood Airport [The Lede/NYT]

Career Center

Job of the Day: Moody’s Needs a Senior Revenue Analyst

GoingConcern
May 10, 2010

Moody’s is looking for someone to join their accounting team in San Francisco as a Senior Revenue Analyst.

The position requires a bachelor’s degree, between two and five years experience in a Big 4 firm, and a CPA license.

Company: Moody’s Corporation

Title: Senior Revenue Analyst

Location: San Francisco, CA

Description: Operate with considerable latitude in performing highly complex duties related to preparing and analyzing financial information to record transactions, prepare financial reports, and review and verify accuracy. Provide value-added expertise to consultants, auditors, and others in development of new concepts, techniques, and standards. Utilize wide-ranging experience to conduct research and problem-solving. May operate in a lead role within the team.

Responsibilities: Ensure that all invoices and key contracts are reviewed for revenue recognition compliance in accordance with US GAAP (SOP 97-2, SOP 81-1, SAB 101); Prepare Deferred Cost analysis for Costs related to SOP 81-1 revenue recognition; Maintain Project spreadsheet with up to date information on on-going and new SW arrangements; Maintain Revenue Analytics spreadsheet on a monthly basis reconciled against all recognized revenue related to on-going or completed services; Reconcile general deferred revenue account on a monthly basis and keep track of all additions and subtractions to account; Work with the Professional Services team to maintain and improve the process to monitor the progress towards completion for fixed-price arrangements; Answer questions from Legal and Sales related to draft orders with the potential revenue recognition implications; Ensure that all revenue deferrals are communicated and recorded properly, and that the recognition of revenue occurs in the proper periods; Prepare and record monthly J/E’s to recognize revenue; Prepare revenue accounting memos and/or checklists to document accounting positions for unusual and/or significant deals; Participate in revenue recognition meetings with internal and external auditors; Ensure compliance of the Revenue Recognition process with Sarbanes Oxley.

Qualifications/Skills: CPA or equivalent qualification; 2-5 years working with within a Finance / Accounting environment; Previous experience with multi-national software revenue recognition or Big 4 accounting firm experience a distinct advantage; Ability to understand legal contracts and determine the proper revenue recognition; Experience with accounting practices and knowledge of accounting rules and regulations faced by public software companies, including revenue recognition; Experience with ERP systems including Peoplesoft and Softrax as well as hands on experience with Great Plains a plus; Bachelor’s degree required. Additional education or degrees in finance or accounting are highly preferred.

See the entire description over at the GC Career Center and visit the main page for all your job search needs.

Grant Thornton Survey Shows That CFOs Might Be Ignoring the SEC’s XBRL Deadline

Caleb Newquist
May 10, 2010

It has been well established in these pages and elsewhere that the SEC has had its share of problems. Take your pick: 1) missing the biggest financial fraud in the history of the world 2) hiring an army of porn-addicted accountants and lawyers to protect our markets 3) waffling on IFRS 4) did we mention missing huge frauds?

To be fair, the Commission has been working hard to redeem itself by cracking down on dubious activity (from Goldman to Overstock), hiring more fraud experts and giving those tranny porn-obsessed employees a second chance.

Regardless of the turnaround-in-progress, CFOs in this country seem to have ceased taking the SEC seriously. Sure the 10-Ks and Qs still get filed but those were in place long before the wheels fell off.

In a recent survey, Grant Thornton found that, despite a SEC deadline for public companies to utilize eXtensible Business Reporting Language (XBRL), a fair amount of CFOs don’t seem all that worried about reporting their financial statements using the technology:

64 percent of public companies do not currently report financial results using eXtensible Business Reporting Language (XBRL); and of those, half have no plans to in the future even though the SEC mandated that public companies have to report their financials using Interactive Data by 2011.

“It’s concerning that almost a third of public companies still have no plan on using XBRL to report their financials despite the requirement that all public companies comply with XBRL filing requirements by mid-year 2011,” said Sean Denham, a partner in Grant Thornton’s Professional Standards Group and a member of the AICPA’s XBRL Task Force. “I foresee a lot of companies playing catch up as the 2011 SEC deadline approaches.”

Whether this lack of action can be attributed to defiance, fear of technology, or pure laziness is not explained but we wouldn’t rule out the possibility that the SEC has an outright mutiny on its hands.

A third of public companies have no plans to use XBRL – despite SEC mandate requiring XBRL use by 2011 [GT Press Release]
Also see: XBR-Lax [CFO Blog]

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