Just a friendly reminder to submit your best captions for the audit room outside the ladies’ rain closet. Jump over the to the original post to submit your caption.
![]()
We’ll take submissions through the end of tomorrow, so get your team together and come up with something that will impress us. Your productivity starts waning this week anyway.
And while you’re at it, if you’re an auditor that works in ridiculous conditions, send us your pictures of your dungeon, closet, or your client-provided school desk.
Hungarian Actresses Are Not Immune from Tax Troubles
The last thing you want if you’re a celebrity is money troubles. Whether you’re punching your shiesty accountant, simply spacing your tax liabilites, or just spending too much, it’s downright embarrassing. You’re a celebrity, for crissakes!
What’s worse if you’ve got money trubs because you lost scratch to Bernie Madoff. Sure if you’re Kevin Bacon, you can get by on the Footloose royalties but what about people who seem to be famous for no discernible reason? Unless being a “Hungarian actress” and “socialite” qualify as reasons.
Tax Girl has the details on Zsa Zsa Gabor’s trubs because of Berns:
The 92 year old actress has been liened by the Internal Revenue Service for $118,000 for the years 2001 and 2002; the lien has been filed against one of Gabor’s mansions in California. Gabor’s lawyer, Chris Fields, says that the tax bill is part of the fallout from the Madoff scheme.
Luckily for Zsa Zsa, her ninth husband, Frederic von Anhalt, whored out his own name: “Anhalt has reportedly received millions of dollars by selling the Anhalt name by adopting, along with Zsa Zsa, several men.” There’s no cause for concern, as he’ll be picking up the bill. Celebrity embarrassment has been avoided!
Why FvA gets paid to adopt his own wife and a bunch of dudes isn’t entirely clear. Annnnnd in case that’s not weird enough for you, TG points out that Fred also claimed to be the father of Anna Nicole Smith’s baby. So now an asston of pharmaceuticals are likely relevant in some way. The awesomeness has reached a new level.
It’s a Tax Lien, Dahling [Tax Girl]
FASB’s Final Word on Fair Value Disclosures?
Editor’s Note: Want more JDA? You can see all of her posts for GC here, her blog here and stalk her on Twitter.
Of the 111 comment letters FASB published on Fair Value Measurements and Disclosures: “Improving Disclosures about Fair Value Measurements”, this one was my favorite:
Please don’t require Companies not SEC registered to spend any more money on reports under this rule.
Lloyd Amundson
Amen, brother.
The usual suspects left the usual complaints; BDO said excessive disclosures would be both costly and useless, Uncle Ernie implied it was an interesting concept but an expensive flop in practical application, and PwC prefers once a year disclosures instead of quarterly.
Verizon even got in on the action, insisting, “proposed additional extended sensitivity disclosures would unnecessarily complicate financial statement disclosures without providing any meaningful benefit to financial statement users.”
I think it is entirely reasonable to point out that FASB is feeling the pressure to converge and the IASB is encouraging slightly less optimistic financial statements. The IASB openly admits that it is under outside pressure to adopt such a stance:
Responding to requests by the G20 leaders and others, in June 2009 the IASB published a Request for Information on the practicalities of moving to an expected loss model. The responses have been taken into account by the IASB in developing the exposure draft.
The IASB continues:
The IASB will also cooperate closely with the US Financial Accounting Standards Board (FASB) with a view to agreeing a common approach to the impairment of financial assets.
Since when is this for the IASB to decide?
Political influences are nothing new to accounting rulemakers but what happens when those influences come from foreign bodies far outside of our control? It is a known fact that the European Union has a large stake in IASB, so how can we be sure their intentions are pure as we move forward at their urging?
The Financial Crisis Advisory Group, an international body set up by the IASB and FASB to advise them on standard-setting issues related to the financial crisis, warned recently that that political pressure on accounting standard-setters posed a threat to “the very existence of international accounting standards.”
Integrity in financial statements? Keep looking, not going to find any of that here.
More KPMG Leadership Changes
Just a brief update on KPMG leadership moves that we’ve been following.
Late Friday we learned that the office managing partner (“OMP”) of the New York office has been promoted to serve as the Vice Chair of Market Development. Our understanding is that all the OMPs across the country will report to this position and it will focus on 21 key markets in the U.S.
The former head of the New York Financial Services will move up as the new New York OMP. No word on who will fill the leadership role in NYFS.
This appears to be the first instance where the OMP was promoted to a national position as opposed to a “client-facing role”.
Continue to keep us updated with the latest on the comings and goings of the grand poobahs and discuss your thoughts on the progress of the restructuring in the comments.
Earlier GC coverage of KPMG Leadership Changes and Restructuring:
Another KPMG Shake-Up
KPMG Shake-up Continues
Rumor Mill: KPMG Restructuring Plans
(UPDATE 2) KPMG Atlanta Shake-up Makes Us Wonder
Preliminary Analytics | 11.16.09
• Study Suggests Accounting for Contingencies Needs Help – Environmental liabilities aren’t reflecting the actual cash paid. [Compliance Week]
• Bankruptcy Rise Slows With Thaw In Lending – “Now corporate failures have slowed, as companies once on the verge of default have found a new life. These companies are now refinancing their balance sheets with new debt, pushing out maturities on existing loans or using distressed-debt exchanges to avoid a bankruptcy filing.” [WSJ]
• GM to begin repaying government loans – “[GM] reported a positive operating cash flow of $3.3bn, but cautioned that this would not be repeated in the fourth quarter and that its cash reserves would be ‘materially lower’ at the end of the year.” [FT]
• Xtremely restless: Recession intensifies Gen X’s ‘middle child’ syndrome, urge to job hop – Let’s just blame everything on the recession, shall we? [CT]
• Should paid sick days be the law? – Or maybe going to work sick should be against the law. [NYDN]
CNN Says that Big 4 Business Is Blowing Up
That’s not necessarily verbatim but they’re definitely buying what the Big 4 bigwigs are selling.
If you saw the asinine CNN piece that came out on Thursday entitled “Accounting grows in shrinking economy“, you know what we mean.
The title itself should cause you to throw up in your mouth. Certainly the author of this gem, Kevin Voigt, isn’t talking about growth in revenues but he still manages to make a case for accounting industry stre trong>just that:
[T]he firms have emerged from the worst with balance sheets that would be enviable to most companies: Ernst & Young and Deloitte finished the 2009 fiscal year with flat growth, while PWC revenues were down 7 percent.
Getting nauseous yet?
Then there’s this:
[T]he Big Four firms continued to add to headcount through the recession. For example, PWC will end the year with 163,000 employees worldwide, an increase of “3 or 4 percent” from last year, Nally said. “There is a core element of what we do that continues regardless of the economy — public companies need audits, tax services need to be provided,” he said.
First, we notice that Dennis Nally conveniently left out that the ‘core element’ of services being provided is being done so with far fewer people. He makes it sound like that if you’re working in the audit or tax practices, your job is safe. We all know that’s not true.
Further, we’ll point out that E&Y did not add to their global headcount. That’s according to E&Y’s own press release for their revenue results.
It’s also interesting to note that the words “layoff” or “reduction in force” are nowhere to be found in the article. Voight manages to sneak it in with some subtlety:
Ernst & Young has kept hiring young college graduates, in part, because it wants to ensure an unbroken pipeline of talent after the crisis, Turley said.
“In a typical year, you would see 15 to 20 percent of our workforce hired away, not by our competitors, but by companies that need financial or tax or other financial talent … that process was curtailed this year because most in the marketplace weren’t hiring,” Turley said.
As a result, Ernst & Young and other Big Four firms have had selective culling of staff in some markets for performance-related issues. “We work in a high performance environment, and for those whom that environment doesn’t fit we’ve encouraged them to leave,” said Quigley of Deloitte.
“Culling of staff”? Interesting choice of words. Then Jim Quigley lies says that Deloittians were “encouraged” to leave the firm. That’s rich. Any former Deloitte people out there that would describe their experience differently?
The article also hints that — because Jim Turley said that typically, ’15 to 20 percent of our workforce hired away’ — the Big 4 had no choice to but to engage in the “selective culling of staff…for performance-related issues.”
To top it all off, Tim Flynn wasn’t even interviewed for this piece. In fact, KPMG is only mentioned ONCE in the whole article but Voight refers to the “Big 4” throughout. From the sounds of it, TF wasn’t in Singapore for the APEC and thus, probably not available (probably caddying). Just as well, if we were T. Flynn, we wouldn’t want our name included in this travesty anyway.
So gives us your thoughts on the latest Big 4 campaigning in the MSM. They make everything sound like it’s business as usual but as the discussion in our Exodus post indicates, the people on the front lines probably have a different opinion.
Accounting grows in shrinking economy [CNN]
Also see: CNN Lies: Accounting Industry Stronger Than Ever, Explosive Even [JDA]
GC Weekend: Update on Ernst & Young Layoffs
We received more details late yesterday on the E&Y layoffs. The latest cities reporting layoffs are now Minneapolis and Milwaukee.
We also learned that there were approximately ten layoffs in the tax practice last month in the Chicago office. These were all at the associate and senior associate level.
Check back to the original thread for the latest and continue to keep us updated.
Review Comments | 11.13.09
• Fix the Tax Code Friday: Targeted Enforcement – Top three targets: 1) offshore accounts; 2) pass-through entities; 3) high wage earners [Tax Girl]
• Securities Regulators to Talk Financial Literacy With Students – And the regulators might learn something. [SEC.gov]
• 2 Programmers Are Charged With Aiding Madoff – Bor-ing. Family members next time please. [DealBook]
• BYU Sweeps 2009 Deloitte Tax Case Study Competition – See? Caffeine isn’t necessary. [TaxProf Blog]
• Hard Times and Bad Behavior – Are you shoplifiting? [Financial Armageddon]
‘Swashbuckling Industrialist’ Tom Petters Is Going to be Responsible for Putting Senior Citizens on the Street
For those of you that were maybe developing a soft spot for Tom Petters because, among other things, his own lawyer doesn’t think too much of him, the latest testimony in TP’s trial should help squash your sympathy.
Janet Leck, a 79 year old widow, was convinced by Frank Vennes, Jr. — an evangelist who “steered unwitting investors to [Petters]” — to invest her money with Tom Petters. At one point Vennes, apparently having reconnected with the Almighty, told Leck that he was ending his business relationship with TP because of ‘things he was seeing in Mr. Petters’ personal life’ and was returning her money.
Now, one could assume that Vennes was getting the creeps from Petters because either: 1) he realized that Petters was a complete man-child that couldn’t finish a copy of Go Dog Go! or 2) typical hooker/llelo chicanery.
Two years after dumping Petters for his sinful ways, Vennes decided redemption was in order (or, most likely, he just missed the hookers) because he went back to TP and got the Lecks to invest with him again:
She re-mortgaged her home and drew out $190,000 in equity to invest with Petters, she said. Leck said she relied on the $3,400 monthly payments from that loan for living expenses until September 2008, when authorities raided Petters’ home and business looking for evidence that he was running an alleged $3.5 billion Ponzi scheme.
Now, unless she can restructure her mortgage, Leck said, “I’m looking at foreclosure. …I will move from my home of 30 years.”
In other overwhelmingly convincing testimony, investment banker Michael Liss described Petters, “as a ‘swashbuckling industrialist’ who had an arsenal of ‘ridiculous’ excuses for not paying his debts on time.”
Ridiculous excuses like, “Do you treat your other swashbuckling industrialist clients this way?” or “I’m busy ripping off senior citizens. Do you mind?” OR “My ass is going to end up in dumpster any second, sorta busy.”
Petters trial: Retired widow fears losing her home [Minneapolis Star-Tribune]
Bennie Bankes Poll Results
We have a landslide on our hands. Not only are most people we talk to disturbed by the suited swine, the winning caption was a clear choice.
![]()
With over 55% of the vote. Now, just for the sake of argument, anyone could wear the costumes to the recruiting events, people, not just partners. Embrace the truthiness.
Thanks for voting!
Job of the Week: Cash Money
Someone has to manage the ins, the outs, the what have you’s related to the cash position of every company. It’s kinda an important job. Maybe your next job. Get the details for a Treasury Analyst position, after the jump.
Title: Treasury Analyst
Location: Chicago
Experience: 3 – 5 years
Responsibilities: Manage daily data collection process; Primary input of receipt and payment data in treasury system; Assist in timely payment of international and domestic wires; Report foreign currencies balances daily to help maintain proper liquidity; Support review of carry broker statements for margin excess/deficit funding needs; Maintain log of non-receipt of wires; Assist with investigation & documentation of all wire differences; Maintain overdraft listing for processing by Cash Manager; Review previous day’s balances and investigate missing items.
Skills: Treasury experience 1-5 years; Fast and accurate data entry skills; Cash management, payment systems experience; International and domestic payments procedures and requirements; Customer Accounting, Banking, Exchange, General Ledger Systems; Generally accepted accounting principles and financial reporting requirements.
Check out the entire description over at the GC Career Center and check out the main page for all your pavement pounding needs.
Ernst & Young Layoffs Update, Friday Edition
We’ve updated the E&Y layoff thread to include the latest reports. Check the latest and send details to our tips line if your office is missing or have details to add.
Good luck to everyone that got laid off this week.
