Going Concern

Preliminary Analytics

Preliminary Analytics | 12.03.09

Caleb Newquist
December 3, 2009

• Estate Tax Debate to Begin in U.S. House Amid Clash on Limits – Can this get sorted out in four weeks? “Unless Congress acts, the estate tax would be replaced in 2010 by a capital gains tax on all but the first $1.3 million in inherited assets including homes, stock certificates, stamp collections and livestock.” [Bloomberg]
• Goldman Takes Offensive on Pay – Explaining why the Almighty’s foot soldiers are worth every penny to investors should be a snap. [WSJ]
• Tax Cut-Off for Deductible Donations – “Few things upset a year end donor more than being told his gift will not count as a current year contribution and thus not be a current year IRS tax deduction.” [Aronson Nonprofit Report]
• The NBC Universal Sale, by the Numbers – This is what it’s all about, isn’t it? [DealBook]
• Comcast Readies Itself for Long Regulatory Fight – Oh right, there is the small matter of convincing the Feds that this is good for everyone. [Media Decoder/NYT]

Fraud

Petters Guilty on All Counts

Caleb Newquist
December 3, 2009

You step away for a dentist appointment and look what happens:

A verdict has been reached in the trial of Tom Petters, the Minnesota businessman accused of running a $3 billion Ponzi scheme. Here’s a look at the jury’s decision on each of the superseding indictment’s 20 criminal counts.

You can see the verdict, count by count, here.

Review Comments

Review Comments | 12.02.09

Caleb Newquist
December 3, 2009

• Internal auditor faces charges in Satyam scandal – India’s Central Bureau of Investigation (CBI) also claims that have more evidence against PwC. [Accountancy Age]
• Does Sarbox Reduce Restatements? – One study suggests just that, “The study, from research firm Audit Analytics, suggests that companies that have not yet had their auditors review their internal-control reports are more likely to have a restatement than larger companies, even though they claimed to have effective controls.” [CFO]
• Stanford Offshore Investors Suspected of Cheating IRS – We realize this is hard to believe. [Bloomberg]
• Bank of America to Repay $45 Billion in TARP – Drinks are on Ken Lewis. [WSJ]
• SEC Obtains Asset Freeze Against Co-Founder of Canopy Financial in $75 Million Offering Fraud – Not to mention the stolen letterhead: “According to the SEC’s complaint, the fraud came to light when KPMG discovered that Canopy had been claiming that its financial statements for 2007 and 2008 were audited by KPMG. In fact, KPMG had never been retained by Canopy to audit its financial statements and had never opined on the financial condition of the company. KPMG issued a cease-and-desist letter to Canopy demanding that it stop the unauthorized use of KPMG’s name and the audit report purportedly issued by KPMG.” [SEC Press Release]

Fraud

We Continue to Wait Are No Longer Waiting for a Verdict in the Tom Petters Trial

Caleb Newquist
December 3, 2009

If you’re a swashbuckling industrialist like Tom Petters, you’re probably not at all worried that the jury has yet to come back with a verdict of not guilty. It’ll only be a matter of time.
However, if you’re like us, you are borderline having a panic attack waiting for the results of this trial. The jury began deliberations on November 30th and as of this writing there’s no indication that they are near a verdict.
Considering the mountain of evidence to be reviewed and some complex charges, we’re told this probably isn’t unusual but like we said, we’re anxious. The jury of Minnesota nice is obviously taking their civic duty seriously. We can admire that.
In related news, Palm Beach Finance Partners, L.P. declared bankruptcy yesterday, saying that they lost more than $1 billion in TP’s alleged scheme. As you may recall, Palm Beach was one of the defendants listed in the Texas lawsuit that also includes Ernst & Young, McGladrey & Pullen, and Kaufman, Rossin, & Co. that we reported on last month.
Since we’re waiting, we’ll get your thoughts on the matter. Vote on what you think the outcome of the trial will be and we’ll report the result as soon as we hear the news.
UPDATE: Obviously we had some intuition about some justice going down.

Online Surveys & Market Research

Uncategorized

Moss Adams Does Some Ribbon Cutting

Caleb Newquist
December 3, 2009

Moss Adams dusted off the freakishly giant scissors yesterday, as the firm opened a Santa Clara office, according to the San Jose Business Journal.
This is positive news seeing how office closures (and rumors of others) seem to be more prevalent than offices opening.

Rick Anderson, the Seattle-based company’s chairman anms has “long served clients in the area and it makes sense to have a physical presence in the local market. Moss Adams is a firm that is growing and expanding to meet client and market demand.”

We couldn’t tell you if Rick was actually on hand for the festivities, ~~we’ve been unable to run anyone down and so far there isn’t a press release on the firm’s website~~. So if you’re in the know, get in touch or discuss in the comments.
Moss Adams opens Santa Clara office [SJBJ]
UPDATE: We’ve just heard back from a MA spokesperson who will be forwarding us the release. We’ll give you the additional particulars when we have them.
UPDATE 2: You can see the entire press release after the jump.

FOR IMMEDIATE RELEASE

Contact:
Amy Esary
360.685.2232
amy.esary@mossadams.com

Moss Adams LLP is Expanding its Service in the Silicon Valley with the Opening of its Fifth Northern California Office

(Seattle, Washington – December 1, 2009) – Moss Adams LLP, the nation’s 11th largest accounting and consulting firm, is expanding its existing service in the Silicon Valley with the opening of its fifth northern California office in Santa Clara on December 1, 2009.
With expertise in an array of industries–including technology, life sciences, and manufacturing and distribution–Moss Adams’ teams serve companies ranging from venture-backed start-ups to fully mature public companies, delivering solutions to complex financial and business challenges. In addition to providing assurance and tax compliance services for domestic and international operations, the office will offer a full suite of consulting services, including tax, mergers and acquisitions due diligence, valuations, and internal control consulting.
Rick Anderson, Chairman and CEO, states “We have long served clients in the area and it makes sense to have a physical presence in the local market. Moss Adams is a firm that is growing and expanding to meet client and market demand.”
According to Derek Dowsett, one of the lead partners transferring to the new office and the regional leader of the Firm’s Technology and Life Sciences Practice, “I look forward to expanding our presence in the region as one of the team members based in the new office. Many of our current technology and life science clients are located in Silicon Valley and a local office will increase our availability to them and allow us to get more involved in the community.”
About Moss Adams LLP
Moss Adams LLP (www.mossadams.com) provides accounting, tax, and consulting services to public and private middle-market enterprises in many different industries. Founded in 1913 and headquartered in Seattle, Washington Moss Adams has 21 locations in Washington, Oregon, California, Arizona, and New Mexico.
Moss Adams is the 11th largest accounting and consulting firm in the United States, and the largest headquartered in the West. Its staff of over 1,800 includes more than 240 partners. Moss Adams is also a founding member of Praxity, a global alliance of accounting firms. This alliance is an association of independent firms in the major markets of North America, South America, Europe, and Asia.

Uncategorized

You’d Think that Once You’re Knighted You Wouldn’t Get Hassled by Non-Knights

Caleb Newquist
December 3, 2009

Does there happen to be a law in the EU that says that if you’re not a knight you have to keep your piehole shut when it comes to accounting rules? Because if there isn’t, there needs to be. We may give Sir David Tweedie a hard time here (mostly because we’re jealous of the prefix) but we hardly think that he needs pressure from anyone on double-entry accounting.

Despite the knighted one keeping his promises, Eddy Wymeersch, chairman of the Committee of European Securities Regulators (CESR) has made it known that the IASB isn’t floating his boat and he would like to go back to the bureaucratic drawing board.
Reuters:

Wymeersch questioned whether there was adequate accountability at the IASB, a London-based body that has already made several changes to its governance, such as setting up a new monitoring group.
“I can remind you the CESR thought it should be in the monitoring group but that did not take place. In my view, this has to be drawn up again and start from scratch,” he said.

Please, non-knight Eddy Wymeersch, remind us that you suggested that you should be allowed to stick your beak into the IASB’s business. We have trouble remembering that politicians all across the blue marble so desperately want to be involved in the oversight of accounting rules.
EU regulator calls for accounting overhaul [Reuters]

Quicklisting

Job Opportunity:

GoingConcern
December 3, 2009

CFO talent needed to run a business unit (does not have to have had a CFO title). Leadership qualities a must. Team player and leader (10-25 people). 9-12 years experience needed. Big 4/CPA a plus. Ohio based. Great company and benefits. 150-175K base. EEO. Email BRS Ltd. for more info.

Uncategorized

Will Tim Flynn and Phil Mickelson Have to Cancel Their Sweater Vest Exchange?

Caleb Newquist
December 2, 2009

Who knows if there is such a glorious event but if there is would TF put the kibosh on it to set a good example?
Since Deloitte is opening up the cafeterias and training rooms (Boston is up Friday!) and E&Y FSO is getting down at TOTG this may inspire the less fortunate of you to take matters into your own hands.

If, that is, your firm doesn’t wag their finger at you first. According to John Carney over at Clusterstock (via JDA) Team Jehovah has explicitly told (via voicemail) its angels to NOT have Christmaskuh parties in their homes:

The firm has canceled its annual holiday party, just as it did last year. It also instructed the smaller business units that they should not organize their own smaller parties, which had been a long tradition at the firm. The parties are banned even if no firm money goes to pay for them.
But Goldman employees were surprised to hear that even parties within private homes fall under the ban. The firm apparently believes that it would be inappropriate for its employees to be seen partying while the economy is still so shaky and unemployment is so high.

We realize that accounting firms aren’t quite as high on Heaven’s org chart but it’s entirely possible that your office could follow suit. Celestial hierarchy and all.
We’re inclined to believe that TF will do what’s best for the firm but canceling a time honored exchange of sweater vests — with a golfer that can keep it in his pants — would be a tough decision.

The JDA

Can the FTC Even Deliver on Newspaper Bailout Promises?

Adrienne Gonzalez
December 2, 2009

Editor’s Note: Want more JDA? You can see all of her posts for GC here, her blog here and stalk her on Twitter.
For months there has been the underlying hum of a newspaper bailout in the air – not much surprise there given dropping subscriber numbers and dwindling ad revenues. But in lieu of an actual bailout (i.e. a check from the Treasury), how about some tax breaks and anti-trust waivers?
NY Mag:

At a workshop on the the [sic] future of journalism yesterday, the head of the Federal Trade Commission said the agency is studying ways to help struggling media companies struggle a little less. What might this help look like? It could come in the form of new anti-trust laws, tax breaks, government subsides [sic] or even changes to copyright law.

Well if “journalism” involves rampant copy errors like that, we’re more screwed than it appears.
Tax breaks for mainstream media? Why? I’m a fringe journalist and I still have to pay my taxes, if I don’t bother to tailor my content to my audience to the point that it draws enough ad revenue to pay my bills, maybe I don’t deserve to eat that week.
It gets better.
Rupert Murdoch has long fought Internet news aggregation and would love to see a pay-per-view program for news that — holy shit! — might actually save news. Where do you get yours from? Would you pay for it?
In recent comments, he basically called every blogger who has ever clipped a news article a thief, including Arianna Huffington. You may have heard of her.
Fine, charge for it. I’d pay if it was worth paying for. Would you pay for the recent CNN article that said the Big 87654 ended with more employees than they started with? Me neither.
Point being, Murdoch would rather see news sites charging than peddling for a bailout. I don’t seem to recall major media outlets begging for any bailouts recently, which naturally inspires a healthy skepticism towards the FTC’s comments.
Has the FTC checked this proposed mainstream media bailout “tax break” with the Treasury? Because if I heard correctly, we have $30 billion to put towards Afghanistan now, not to mention the fact that the FDIC is broke and Citigroup is probably going to need a Dubai backstop. I’m not sure if Timmy would be okay with this, better ask him first.

Deloitte

Apparently Some Men at Deloitte Have Trouble Understanding Their Female Colleagues

Caleb Newquist
December 2, 2009

If any Deloittians were even remotely concerned that Bloomberg would squash the BusinessWeek list franchise […]

Preliminary Analytics

Preliminary Analytics | 12.02.09

Caleb Newquist
December 2, 2009

• SEC Steps Up Insider-Trading Probes – Healthcare and retail mergers from the last three years are getting the scope. [WSJ]
• Why accountants need to be bloggers – Tracy Coenen makes the convincing argument. [Blogging Suits]
• Catholic Archdiocese to Pay $14.4 million in Taxes to City of San Francisco – Too bad The money is already spent. [JDA]
• Wells Fargo to shut 122 branches in California – Mostly Wachovia branches that are too close to existing stagecoach branches. [Los Angeles Times]
• Whisky Makers Spend $800 Million to Age Scotch for China, India – Apparently, the Chinese and Indians are into the Glens. [Bloomberg]

Review Comments

Review Comments | 12.01.09

Caleb Newquist
December 2, 2009

• Several blogs mentioned here are nominated for ABA Journal’s Top 100: TaxProf Blog (Legal Theory), Tax Girl (Practice), and our sister site Above the Law (News). You can view all the nominees ABA Journal but kindly vote for these. They’re good people. [ABA Journal]
• Recommended Reading for Accountants in a Job Search – Courtesy of Lou Grabowsky, GT’s soon-to-be COO. [FINS]
• Most asked questions of 2009 reveal our financial psyche – No, “Where’s my raise?” was not among them. [CFOZone]
• Daszkal Bolton Merges in Chaves & Armstrong – Marriage was effective today. Send them a red pencil. [Web CPA]
• The Donor Bill of Rights – Looking for some last minute charitable contributions? Consider these first. [Nonprofit GPS]
• AIG Uses Accounting Gimmick To Reduce Money It Owes Taxpayers By $25 Billion – Try to act surprised. [Clusterstock]

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