Careers

View All

Big 4

View All
KPMG building but upside down because Australia

Scandal-Embattled KPMG Australia Hits Up the Global Body to Borrow a Few Bucks

This information comes from Australian Financial Review so it's legit: KPMG Australia is seeking up to $100 million in emergency loans from the firm’s global network as well as a…

Read More
Deloitte sign

Deloitte Saw Another Year of Single-Digit Growth, a Respectable $74.5 Billion in Revenue

It's revenue season! Traditionally Deloitte is first to report and report they have: $74.5 billion in global revenue (unaudited). Last year, the firm was the first Big 4 to cross…

Read More
EY building with Philippines flag

EY GDS Philippines Turns 11, Celebrates By Planning to Hire An Additional 2,000 People

EY's global delivery machine in The Philippines is marking 11 years this month and as a treat, they're apparently adding 2,000 more people to its roster of more than 6,000…

Read More
PwC exterior sign

Revenue Is Down For the First Time in 17 Years But at Least Partners Got a Raise at PwC UK

Looks like offshoring and layoffs couldn't save the King's PwC from a revenue slump this year. The firm has just reported revenue of £6.2 billion (approximately $8.28 billion USD), a…

Read More
EY building exterior

EY Got the Big Pentagon Audit Job

This according to what the Department of War put up yesterday: Ernst & Young LLP, New York, New York, is being awarded a labor-hour contract with a maximum value of…

Read More

News

View All
KPMG building but upside down because Australia

Scandal-Embattled KPMG Australia Hits Up the Global Body to Borrow a Few Bucks

This information comes from Australian Financial Review so it's legit: KPMG Australia is seeking up to $100 million in emergency loans from the firm’s global network as well as a…

Read More
cat in a windowsill with coffee, fall leaves

Monday Morning Accounting News Brief: KPMG Learns It’s Good to Have Friends in High Places; One Step Closer to Robots Taking Over | 10.5.26

Good morning, capital markets servants. Hope you got some rest and are ready to tackle another exciting week of keeping the global financial system chugging along. In this news briefUh…

Read More
tabby and white cat with pumpkins

Friday Footnotes: Deloitte Predicts AI Will Prop Up a Blah Economy; Wait, Hostages Were Racking Up Tax Penalties All This Time? | 10.2.26

Footnotes is a collection of stories from around the accounting profession curated by actual humans and published every Friday at 5pm Eastern. While you're here, subscribe to our newsletter to…

Read More
RSM overlay on stock screen

RSM Is Allegedly Thinking About an IPO

And according to the source or sources blabbing this to Financial Times, it's because their rivals are all getting bought up by private equity. By rivals we of course mean…

Read More
Deloitte sign

Deloitte Saw Another Year of Single-Digit Growth, a Respectable $74.5 Billion in Revenue

It's revenue season! Traditionally Deloitte is first to report and report they have: $74.5 billion in global revenue (unaudited). Last year, the firm was the first Big 4 to cross…

Read More

Technology

View All
woman being annoyed by clients

Bill Gates Predicts AI Will Be Taking Clients’ Most Tedious Questions 24/7 Within a Few Years

Did you catch Bill Gates' recent chat with Ezra Klein? I didn't, thankfully my washed colleague regularly reads NYT and sent it to me via Slack. Many people are stuck…

Read More
Business guys with AI robots

The AICPA Wants Tax Pros to Take a Hit From Its New AI Risk CART

Rather than dropping a strongly worded letter on the topic of the IRS's position on AI in tax practice and dropping the topic there to focus on other pressing matters,…

Read More
AI apps on a phone screen

Deloitte Survey: A Lot of People Are Using Clandestine AI at Work

As corporations everywhere shove AI down our throats and businesses wrestle with the conflict between rushing to integrate AI to not be left behind and having to pay for it…

Read More
robot holding money

Bill Gates Proposes a Tokens and Robots Tax

Bill Gates has written a loooong essay on AI covering all sorts of things from potential benefits to immediate concerns. Feel free to read the whole thing if you'd like,…

Read More
colorful comment blocks

Firms (and Some Guy Obsessed With China) Have Weighed in on the PCAOB Turning an Eye to AI

The comment period for PCAOB Release No. 2026-005 Request for Public Comment on PCAOB Standard Setting has closed and when all was said and done, it racked up an unremarkable…

Read More

Practice Management

View All
Man struggling with paper expense receipts

Expense Management: Because Apparently Clients Will Pay You to Make Expense Reports Suck Less

Spend and expense management is one of the most in-demand CAS services—and one of the most underutilized. There’s still plenty of room to get into the game. Clients are drowning…

Read More
three piggy banks in front of chalk board

For Firms, Growth is Down But Profitability Is Up

That's the headline from INSIDE Public Accounting based on the results of their 2026 Practice Management Report: The report draws on survey responses from 605 North American accounting firms, spanning…

Read More
1040 tax return with money

AICPA Pushes Back on IRS Suggesting CPAs Should Charge Less If They’re Using AI

Back in June the IRS Office of Professional Responsibility (OPR) issued its first solid AI guidance in the form of a bulletin titled Introductory Guidelines for Responsible AI Use in…

Read More

Top Remote Tax and Accounting Candidates of the Week | October 16, 2025

Struggling to Find Remote Accounting or Tax Talent? We’ve Got You Covered.If your firm or internal team is having a tough time sourcing qualified remote tax and accounting professionals, you're…

Read More
remote accountants to hire

Top Remote Tax and Accounting Candidates of the Week | October 2, 2025

Struggling to Find Remote Accounting or Tax Talent? We’ve Got You Covered.If your firm or internal team is having a tough time sourcing qualified remote tax and accounting professionals, you're…

Read More

Get the Accounting News Roundup

* indicates required
We need this to send you the newsletter.

Quick Reads

View All
person counting money at her desk, piles of papers and calculator

Here Are Tax and Audit Salaries at Top 25, Top 300, and Regional Firms

Recruiting firm Brewer Morris has released its 2025 US CPA salary guide and should you want to read the whole thing you can request it from them here. Perhaps you,…

Read More
Guy with a migraine surrounded by work

Friendly Reminder Not to Work Yourself to Death For This Profession

Saw this on the bird app yesterday and thought its message would be worth passing along what with 20 days remaining until April 15 and nerves as strained as ever…

Read More
sorry we're closed sign in business window

Accounting Firm Abruptly Nopes Out of Tax Season Early (UPDATE)

Ed. note: An earlier version of this article's headline stated the sheriff is investigating. The Alexander County Sheriff's Office informed us they are not investigating, only fielding calls from the…

Read More
an office trash can with paper

This Deloitte Office Has Eliminated Trash Cans at Desks to Make Staff Get Up Off Their Asses

Boston Business Journal wrote an article about Deloitte's new office in Boston and for some reason they chose to lead with this: You won’t find trash cans at the desks…

Read More
screenshot of an IRS system outage warning

The IRS Decided to Troll Tax Pros For 10/15

We realize the decision to run maintenance on IRS systems likely isn't made by anyone who understands deadlines but surely someone who does could inform the IT department of these…

Read More

Sponsored Content

View All
Man struggling with paper expense receipts

Expense Management: Because Apparently Clients Will Pay You to Make Expense Reports Suck Less

Spend and expense management is one of the most in-demand CAS services—and one of the most underutilized. There’s still plenty of room to get into the game. Clients are drowning…

Read More

Top Remote Accounting Freelancers: February 3, 2024

Looking to staff up for a season or hire a freelancer for a project? Accountingfly is ready to partner with you! Gain full access to a pool of highly skilled…

Read More
men juggling on a plain, black and grey

10 Essential Project Management Principles for Accounting Firms

Every accounting firm struggles with project management, with smaller practices that are rapidly expanding taking the brunt of the damage. As your firm adds new clients, takes on more work,…

Read More
Upset stressed woman holding cellphone disgusted shocked with message she received isolated grey background. Funny looking human face expression emotion feeling reaction life perception body language

6 Ways Email is Secretly Destroying Your Accounting Firm

Email: The word itself sounds innocent, doesn't it? Kind of like "snail mail," but faster, sleeker, and without the slimy trail. But don't be fooled—email is secretly a sinister beast,…

Read More

Get the Accounting News Roundup

* indicates required
We need this to send you the newsletter.

Georgia Voters Will Decide on the Use of Accrual Accounting by the Department of Transportation

Interestingly enough, Caleb just covered accrual vs cash here on Going Concern the other day. Not interestingly enough, as a subsection of the Georgia state government, the Georgia DOT’s only option is government accounting and that sure as hell ain’t accrual. Apparently Georgia governor Sonny Perdue is hip to this accounting trick that just can’t be tapped and is questioning whether or not the DOT has the legal authority to use accrual for multi-year state funding commitments.

The short answer, without being an authority on matters of accounting legality, is HELL no. They better stick to fund accounting like every other government agency but that comes with its own set of flaws. See also: 49 of 50 states facing massive budget deficits.


If you aren’t familiar with government accounting, let me make it very simple: in regular accounting, balance sheets balance. Companies shoot for assets to outweigh liabilities and if they don’t for an extended period of time, shareholders bail and the company goes under.

In government accounting, there is no real concept of “balance” and it’s all about expenditures and estimates of spending that have little connection with actual money coming in. Most government agencies would be crippled if they were forced to institute GAAP, even with the magic of government accounting we have already witnessed from the smallest municipality to entire sovereign nations.

Anyway, in 2008, an audit of DOT practices concluded that accrual accounting was a violation of Georgia’s constitution (and the sanctity of government accounting fortheloveofsweetbabyJesus) but DOT officials claim that sweating their questionable accounting methods prevents the state from funding important road projects.

Again, magic on paper, garbage in practical application. Accounting methods are not meant to turn insolvency into funding, they are merely options and their use should not be abused for users. Seriously.

Georgia voters will be trusted with resolving the issue. Better start reading some Advanced Accounting textbooks, Georgia voters, you’ll need them to pick the right door on this little game show.

Voters to weigh on DOT accounting system [Atlanta Business Chronicle]

Believe It or Not, There’s a Millionaire Accountant Love Triangle

I know, I had to read it twice. First of all, millionaire accountant?! Second of all, the guy was ancient and probably hasn’t calculated depreciation since 1971. Whatever, he was depreciating some hot assets and I guess that’s all that matters.


Here’s the sitch:

Millionaire UK accountant Peter Rust is being sued by both the wife and the mistress as they apparently both share a piece of his £3.2million [$4.86 million US] property portfolio. What kind of firm did this guy work for amassing a portfolio like that?! Patricia Rust (the 58 year old wife who has stood by his side for 40 years, even through jailtime Peter served for money laundering) and Virginia Madden (the 38 year old mistress who claims dibs on some of his property) are both claiming that part of Rust’s assets are theirs and theirs alone.

The problem is that he didn’t exactly tell his estranged wife that he was going to get some property with the new chick. Oops. The Daily Mail has the scoop:

In a statement provided to the court, Mr Rust said that in 2000 he and his wife agreed to start investing in property – using joint funds – even though they had separated.

“Although we were living apart at this time, Pat agreed I could do this providing she had an equal share in the properties,” he said.

But he added: “But I did not tell Pat that I intended to buy these properties in the joint names of myself and Ginny Madden.”

Listen, dude, you need to read a book on keeping mistresses. Property?! Come on, everyone knows you are supposed to rent them a pad or maybe get taxpayers to pay for it or claim nonprofit status to house the hoes at your “church”, whatever, you don’t actually buy property with her.

Anyway, as if it couldn’t get worse, Madden was paid over the years as “stable girl” with investment income from the properties (and, presumably, action from Mr Rust but there is not IASB guidance on how to classify affairs in the books and records) and claims a 50% share on five homes. Mrs. Rust claims 50% rights to her house and 6 others.

The millionaire, his stable girl mistress and her £3m property battle with the betrayed wife [Daily Mail]

Accounting News Roundup: Would IFRS Prevented Repo 105?; The Crazy Eddie Movie Hits a Snag; JP Morgan May Bolt Tax-Refund Loan Business | 04.29.10

Lehman case “backs” accounting convergence [Reuters]
Philippe Danjou, a board member at the IASB has been quoted as saying that Repo 105 would not have been allowed under IFRS, “From an IFRS perspective I would suspect that most transactions would have stayed on the balance sheet. It makes a case for convergence, it makes a case that we should not have different outcomes under different accounting standards when you have such big amounts.”

The G-20 asked the sages at both the FASB and the IASB to converge their rules by June-ish 2011 but some people don’t sec, as there are too many disparities on treatment of key issues between the two boards.


The Real Reason Behind Danny DeVito’s Crazy Eddie Movie Project Meltdown [White Collar Fraud]
Danny DeVito wants to make a movie based on the Crazy Eddie Fraud, which was perpetrated by, among others, Eddie and Sam Antar. The project has run aground primarily because of Eddie Antar’s life rights and the potential profit he would reap from the making of the movie. Danny D is disappointed by the developments and has sympathy for Eddie, discussing it in s recent Deadline New York article:

“He’s gone through tough times, and he’s not the aggressive tough guy they paint him to be,” De Vito said. “He’s in his 70s and the past has come back to bite us all in the ass. Peter [Steinfeld] and I told him we think there is a terrific story there, but we can’t do it with you involved, in any way. We’ve taken a breather, but we’re figuring out how to jump back in.

Sam Antar is not amused by this and chimed in with his side of the story:

Eddie Antar is plainly still in denial about his cowardice towards his own family and investors. There actually is a “family dynamic” that “explains Antar’s fall” as DeVito claims. However, Eddie Antar and other members of his immediate family are simply unwilling to give a truthful account of what really happened at Crazy Eddie, while Danny Devito is willing to accept Eddie Antar’s bullshit excuses for his vile behavior.

As Chipotle Sizzles, CFO Sells Stock [Barron’s]
Ten thousand shares at $144 and change will buy a bunch of burritos.

Medifast Lawsuit: Anti-SLAPP motions filed [Fraud Files Blog]
Back when we discussed forensic accounting, the aforementioned Sam Antar said that forensic accountants can look forward to “making many enemies in the course of their work and must be unhinged by the retaliation that normally follows uncovering fraud and other misconduct.”

Tracy Coenen, no stranger to this retaliation, is now fighting back against Medifast who has sued her and others for saying not so flattering things about the company:

Anti-SLAPP motions have been filed in the Medifast lawsuit by me and by my co-defendant, Robert FitzPatrick. My motion can be read in its entirety here, and Fitzpatrick’s can be read here.

SLAPP stands for Strategic Lawsuit Against Public Participation. It’s basically when a big company tries to shut up a little guy with expensive litigation. In my opinion, Medifast sued me and others in an attempt to get us to stop publicly analyzing or criticizing the company and it’s multi-level marketing business model.

In filing an anti-SLAPP motion, we are essentially asking the court to rule in our favor and in favor of free speech. Consumers should have the right to discuss, analyze, and criticize companies without the fear of expensive lawsuits.

JPMorgan May Quit Tax-Refund Loans, Helping H&R Block [Bloomberg BusinessWeek]
Bloomberg reports that JP Morgan may discontinue its financing of 13,000 independent tax preparers, a move that will benefit H&R Block, according to a competitor:

“Block is the biggest winner in this,” said John Hewitt, chief executive officer of Liberty Tax Service, a privately held company in Virginia Beach, Virginia, that also may benefit…

The reason HSBC is exiting this industry, even though they’re making $100 million a year in profit from it, is because of reputation risk,” Hewitt said in an interview. “Bankers don’t like the consumer advocacy groups picketing outside their offices.”

Refund anticipation loans (RALs) are attractive to clients that need cash immediately, based on their anticipated refund. The business is controversial because the high interest rates can drive people further into debt and consumer groups oppose them vehemently.

Funding for smaller shops that offer these loans will likely lose the business altogether as large banks like JP Morgan discontinue the financing, thus driving the business to franchise tax prep shops like H&R Block, Jackson Hewitt, and Liberty.

SEC’s No Rush Stance on IFRS Means a Nice Stroll Towards Convergence, You Know, Whenever

All the SEC foot-dragging on IFRS may end up benefiting adopters, if only by buying them a little extra time to get things in order and figure out how on Earth to converge the encyclopedias worth of GAAP rules with IFRS’ pamphlet of principles. At a discussion on global standards hosted by the Pace University School of Business. WebCPA’s Debits and Credits shares some excellent talking points, like this winner from IBM director of IFRS policy and implementation Aaron Anderson:

“We know we have time between now and when the SEC mandates it. We can do a brisk walk instead of a sprint.”

Speaking of the SEC, Chief Accountant James Kroeker is offended by the insinuation that IFRS is more principled-based than our precious GAAP, noting in his speech that “U.S. GAAP is founded upon principles, that’s what the P is supposed to stand for.” GAAR just doesn’t have the same ring to it and it’s a tad too late to be debating semantics if you ask me.

The SEC is understandably cautious, especially having to contend with criticisms in the media over regulatory mishaps that allowed for the unchecked misdeeds of Bernie Madoff, Allen Stanford, and of course Goldman Sachs (oops). Still, full-on adoption of IFRS implies a complete departure from GAAP and it doesn’t look like Kroeker is comfortable with that idea, even if companies looking to divert the estimated $32 million cost to convert to IFRS totally are.

IFRS Delay Helps Some Companies [WebCPA]

Compensation Watch ’10: Ernst & Young Re-reassures Merit Increases

About a month ago, we heard about an E&Y town hall in Chicago that was meant to rally the troops after the last two weeks of March saw ubiquitous Lehman Brothers/Repo 105/bankruptcy examiner’s report coverage.

Plus, it was the end of busy season so people were likely at their wits end. At said town hall, the raises promised by Americas Managing Partner Steve Howe back in January were reassured.


Despite this message, Steve Howe sent out a triple-reassuring message yesterday to everyone that wasn’t listening and/or didn’t get the communiqué:

Stevie Howe just sent out another long VM confirming raises this year. On a related note, FSO sent out a note about accelerating the annual review process to account for the expedited compensation review process.

Another source told us that more details are to come on an upcoming webcast, and because of the “expedited comp review” process, it has been suggested that the merit adjustments may occur earlier than usual. Right now, our source speculates that it will go down in August but no hard date has been thrown out there. Keep us updated.

All About the BEC Section of the CPA Exam

Editor’s note: This is the third in our five-part series this week on the CPA exam. We’ve already done Audit and Regulation and will finish with FAR tomorrow and an ethics discussion Friday. As always, if you have CPA exam questions for us, get in touch and we’d love to help.

Let’s get into BEC, shall we?

Good news: It’s the smallest section, has no simulations, and requires the least amount of study time. All of these seem like bonuses and many candidates take BEC first because of it but remember that your 18 month window starts from when you sit for and pass the first part so you might want to start with the most difficult, not the easiest.

Bad news: Just because it’s short doesn’t mean it is easy. BEC is the junk drawer of the CPA exam meaning a lot of information that wouldn’t fit elsewhere is stuffed into this section. The other downside to BEC is that many candidates do not take it seriously enough because it is so small; that means it is imperative to give the section the same focus and dedication that you would any other section.


BEC is a 2.5 hour exam (likely 3 hours after the CBT-e changes planned for 2011) and consists of 3 MCQ testlets of 30 questions each. You should allow yourself 1.5 minutes per question (45 minutes per testlet).

The AICPA BoE has set the following target weights for skills testing:

Communication (0% – 13%)
Research (0% – 13%)
Analysis (8% – 18%)
Judgment (6% – 16%)
Understanding (55% – 65%)

Based on the Content Specification Outlines, Business Environment & Concepts covers the following areas:

Business structures (17% – 23%) This means partnerships and expect to see quite a bit on this.

Economic concepts (8% – 12%) Business cycles, economics (inflation, deflation, interest rate changes), market influences, supply chain, foreign currencies and hedging.

Financial management (17% – 23%) Financial modeling, short and long term financing, loans, cash management.

Information technology (22% – 28%) Role of business IT systems, responsibilities within the IT function, IT fundamentals (hardware/software, networks, systems operation, etc).

Planning and measurement (22% – 28%) Planning and budgeting, organizational performance measures, cost measurement (don’t forget: cost accounting is AWFUL but pretty heavily tested so get on it!)

It’s Time to Bury the Business Technology Medicine Show

Business technology is a continually changing landscape, but one underlying theme seems to remain constant – the general presumption on the part of sellers AND buyers (especially buyers!) is that their new technology will magically cure a business of all its ills. Since ly buyers of this stuff, take note.

I think this fallacy of thinking transcends the saccharine marketing tactics and arm-waving that normally accompanies these offerings. Sure, a slick sales and marketing troupe can juice the numbers, but there’s more to it.

The deeper message is that we, all of us, are predisposed to WANT to believe in a cure-all.


It’s as true for business & technology as it is for weight-loss, depression, ADHD, and erectile dysfunction. We have been falling for the same old Medicine Show forever, only have our own naive human nature to blame.

During the late 1880s and all the way up to WWII, Medicine Shows peddled their dubious Snake Oil offerings all over the USA. Trumpeting cures for everything from arthritis to cancer, these guys were enthusiastically welcomed into communities despite the dim prospects for validating their claims.

That was a long time ago but how less true is it today? How often are we still willing to download the responsibility for our own well-being onto a pill? How often would we rather buy our way out of organizational inefficiencies with the purchase of a new software application than undertake the grind of fixing a broken or outdated business process?

We have made massive technological advances in both medicine and software and continue to create innovations that move us forward, enhancing user experience as we learn from our mistakes. The outcomes resulting from today’s medicinal fixes may be more tangible today due to the advent of regulation and certain minimum standards (when operating under the auspices of the FDA… not always the case!). The outcomes from new software are improving, but the human element is still critical for driving user adoption.

But there are side-effects. Beyond the cash out of pocket, what price will be paid? A well known anti-depressant lists the following as possible side-effects:

I’ll allow for the fact there are tens of thousands of legal hours that go into these disclosure documents to protect against litigation, but holy smokes man! There’s a couple real dealbreakers there in my view.

So how about new business technology? What sort of side-effects may result?

• The need for extensive training
• Upgrades to hardware
• Incompatibility with other business software
• Inability to capture the business processes properly
• Retaining business processes unsuited to the new environment
• Time to implementation
• Cost of consultants and additional IT guys
• Continued risk of obsolescence
• Internal resistance to change

Examining the possible side-effects and unintended consequences is a critical element of ANY software selection process. Software salesmen won’t be able to distill this inevitable contingency. They didn’t concoct this brew, they just sell it. I’ve known software salesmen that can barely crack open an Excel doc without crashing their computer. Only through a reflective process within your own company can you hypothesize on how the introduction of new technology will affect operations.

Further, it is absolutely critical to examine your existing business processes in the context of a new software. The tendency is to try and maintain existing processes even though they may be as obsolete as the outgoing software. For example, a local company was implementing a new system. The works! ERP, Accounting, and CRM. These systems would aaaallll work together.

Oh, but they weren’t going to purchase the Financial Statement Consolidation Module. They would develop a work-around in Excel instead. It was not surprising to me that they had already failed once on an implementation (to the tune of $2 million bucks).

At the opposite end of the spectrum, I saw a company bring in a powerful reporting technology and allowed a whole bunch of poorly trained users to run hog wild in there significantly reducing the value of the system. The reports being produced could not be trusted. The fix was to lock everything down and bottleneck the reporting process which just led to more work-arounds as users were unwilling to wait it out.

The software being produced today tends to follow a Best Practice approach. If you choose to proceed outside of that framework, it might be an indication that your company is operating outside of Best Practice.

The truth about business software is that it’s work. Productivity gains resulting from new systems are typically back-end loaded. On the front-end, there’s cost, there’s risk, there’s effort, there’s training, there’s the harsh reality that can only come from looking in the mirror and facing the truth about how work ACTUALLY gets done.

Understanding this means burying the Medicine Show paradigm.

Geoff Devereux as been active in Vancouver’s technology start-up community for the past 5 years. He regularly attends and contributes to the growing entrepreneurial ecosystem in the city through the Vancouver Enterprise Forum, guest blogging on Techvibes.com, and as a mentor with ISS of BC. Prior to getting lured into tech start-ups, Geoff worked in various fields including a 5 year stint in a tax accounting firm. He is currently working in a marketing/social media role with Indicee, a Saas Business Intelligence company, bringing B.I. to mere mortals.

New Jersey May Limit Pay For Nonprofit CEOs

Nonprofits doing business with government agencies take note, the days of bloated compensation structures may be over.

Starting July 1st, 1200 nonprofit social service agencies contracted by the state of New Jersey’s Department of Human Services with budgets above $20 million will be subject to a salary cap of $141,000 for its top executives. Executives of NFP agencies with budgets from $10 to $20 million will be limited to salaries and compensation of $126,900; those with budgets of $5 – $10 million will be capped at $119,850 and agencies coming in under $5 million will be limited to $105,750.


The limit would affect at least 30 executives who received compensation packages in excess of what is allowed by the new rules.

The state would save about $5 million by paying less money in CEO salaries, as well as cutting back on travel, education, severance, and vehicle expenses for all nonprofit employees, said Nicole Brossoie, a rep from the state’s Human Services office.

“In light of the state’s fiscal challenges, the department has been exploring cost efficiencies in every part of our budget,” Brossoie said. “The department’s continued goal is to ensure that state dollars are being spent in the most efficient ways.”

While that’s an admirable goal, the proposed changes would also impact organizations that do not feature over-paid executives or frivolous waste of precious funding. One CEO of an NJ nonprofit is worried that her organization may be barred from rewarding staff with cheap gifts (think $5 Starbucks cards) under the new rules – though she is not compensated enough to be impacted by any new restrictions on executive salaries.

State may limit pay for top leaders of New Jersey non-profit social service agencies [Press of Atlantic City]

The ECB Doesn’t Like FASB Fair Value Nor Prospects for a Single Global Standard Come 2011

European Central Bank Executive Board member Gertrude Tumpel-Gugerel insists that fair value is useless in illiquid (read: dysfunctional or non-existent) markets, putting forth the all-important query “what is the use of marking-to-market when there is no market?” in a Paris speech yesterday.

Tumpel-Gugerel is also a tad concerned that the push for convergence around the globe by 2011 could mean compromised accounting standards. “The ECB strongly opposes a full fair value approach,” she said. “In this context, convergence should not come at the expense of high-quality accounting standards.”


The ECB has taken the financial crisis as a lesson in valuation, guidance, and a deft accounting system that leaves plenty of slack available for adjustments should the need arise in, say, a crisis situation. That’s all well and good but guidance only gets you so far and without a firm commitment to when and how to use fair value around the globe, we can pretty much keep debating this point indefinitely.

Her views on FASB’s fair value approach are not at all subtle. In short, it appears as though the ECB supports convergence but only if the idiotic American ways are better aligned with the IASB’s. “With regard to recent assertions made by the IASB and FASB that convergence is on track, I would like to highlight that we are not so optimistic,” she said. “In this regard, putting in place a reconciliation mechanism that simply discloses figures at amortised cost and fair value for each item on the balance sheet would certainly not achieve the aim of convergence.”

Well snap, guess she told us.

Elements for intervention on accounting issues [ECB]

Accounting News Roundup: Goldman CFO’s ‘Unfortunate’ Response; EU Prepares to Scrutinize Auditors; SEC Chief Accountant: June 2011 Deadline for Convergence Is ‘Arbitrary’ | 04.28.10

Carl Levin To Goldman CFO: When You See ‘Sh–ty Deal’ E-mail, ‘Do You Feel Anything?’ [TPM]
Late in the proceedings of yesterday’s epic Senate subcommittee hearing (involving some of the Almighty’s finest), Goldman CFO David Viniar may have had a bit of a Freudian slip when he responded to potty-mouth Senator Carl Levin’s badgering.

Levin asked Viniar how he reacts to hearing about the email. “Do you feel anything?” Levin asked. Viniar replied: “I think that’s very unfortunate thich got a smattering of laughter from around the room. Levin asked Viniar how he reacts to hearing about the email. “Do you feel anything?” Levin asked. Viniar replied: “I think that’s very unfortunate to have on e-mail,” which got a smattering of laughter from around the room. “On an e-mail?” Levin shot back angrily. “How about feeling that way?” Viniar started to backtrack: “I think that’s a very unfortunate thing for anyone to have said in any form.” “How about to believe that and sell that?” Levin asked. “I think that’s unfortunate as well,” Viniar responded.

That unfortunateness is in no particular order.

Brussels to scrutinise role of auditors [FT]
The EU has had it with auditors in their current form and is turning their stink eye towards the profession with a whole lot of skepticism, especially since Ernst & Young got in trouble over you-know-what.

Michel Barnier, the new EU internal market commissioner, joined the debate on Tuesday saying that the role of auditors needed closer scrutiny now that the financial turmoil of the past two years was subsiding.

“I’m convinced that it is the right time to launch a real debate at European level on the subject of audit. This conviction is reinforced by the questions recently raised in the context of the audit of the accounts of US bank Lehman Brothers,” Mr Barnier said.

The FT reports that the EU is kicking off this increased level of scrutiny by publishing a green paper this fall on the subject that will examine the way “audit firms are owned and governed…the concentration in the audit market and its implications on financial stability, the emergence of small and medium-sized practitioners, the audit of smaller companies and international standards on auditing,” and also the supervision of global audit firms.

PwC pays £427,000 damages over valuation work [Accountancy Age]
The original suit was for £35 million; that would a W for P. Dubs.

Miami accountant’s workers accused of aiding fraud [Miami Herald]
Two employees of “Miami’s go-to forensic accountant if you want to get ripped off” Lewis Freeman have been charged with conspiring with him in the embezzlement scheme that he pleaded guilty to last month.

SEC Chief Accountant Says Convergence Need Not Be Completed by June 2011 [Journal of Accountancy]
No rush on that, sayeth James Kroeker, on convergence by June 2011:

SEC Chief Accountant James Kroeker told the JofA Tuesday that he would support the boards’ cutting the number of projects due in June 2011, provided there was good rationale for a delay.

“June 30, 2011, is an arbitrary deadline and it’s not one that’s been put in place by the SEC or by our road map,” said Kroeker.