Going Concern

Uncategorized

Are Your Holidays Going to be Ruined Because of Inventory Counts?

Caleb Newquist
November 17, 2009

Personally, it would make for a better yarn if we were hearing about Jameson-fueled discussions about healthcare reform that eventually lead to grabbing all the gifts (and the remaining Jameson) and storming out of in-law’s house. Sadly, we’ll have to wait until after the holidays for those.
What we have heard is that PTO still isn’t being granted in the name of inventory counts. One reader notified us that her office still hasn’t released the inventory schedule so A1s and A2s are still going to have to wait to see how much PTO they’ll be able to take for the holidays:

[I] emailed you about a month ago that we (first and second year associates) couldn’t schedule any PTO for Christmas yet- and STILL we can’t schedule PTO. I think it’s ridiculous that it’s almost a month away and we can’t get any time. I talked to a partner…and he said that we’ll get the inventory schedule the first week of December, and then we’ll know when we can schedule vacation. [He said] ‘well you’ll have two days to spend w/ your family, right’

For some people two days with your family is about all you can handle but we understand that may just be people we know.
And regardless of whether you celebrate the birth of JC, lots of people travel in the twelfth month and it’s definitely frustrating if you’re still getting stonewalled on the PTO. We’re not sure if this is an isolated incident so discuss your office’s ability work with you on the inventory schedule or if they’re putting coal in your stocking.
Earlier: Are Inventory Counts the Bane of Your Existence?

Uncategorized

Problem of the Day: Do You Quit Your High-Paying Job with the Idiot Boss?

Caleb Newquist
November 17, 2009

The BBC reported last week that 49% of workers in the UK would leave their jobs if it meant working for someone that didn’t make bad decisions.
As we’ve noted, the Brits seem to be less hung up on money than us but that still doesn’t mean you wouldn’t leave for less money if you could get away from that boss who can fuck up a cup of coffee not to mention every decision that affects your work directly.
So we have a simple question for you. Under normal circumstances, would you leave your high paying job if it meant you didn’t have to work for an idiot boss?

Online Surveys & Market Research

Ernst & Young Severance Negotiable?

Caleb Newquist
November 17, 2009

Everything is negotiable, amiright? We heard that staff in one North Central office were given one month of severance but at least one person made a big enough stink that they ended up with three months. Personally, we thought the Big 4 was pretty inflexible on this point but hey, if it’s true, nice work.
Jump over to the main thread to check the latest discussion and if there are still details to be reported, get in touch.

Preliminary Analytics

Preliminary Analytics | 11.17.09

Caleb Newquist
November 17, 2009

• Bernanke Signals ‘Extended’ Low-Rate Period May Become Longer – In other words, we’re going to start blowing bubbles. Don’t worry, it’s fun! [Bloomberg]
• America’s Newest Land Baron: FDIC – Anyone looking for “a failed condo development on a noisy freeway ramp next to a Motel 6, a Waffle House and a Do-It-Yourself Pest Control.” Sheila Bair is selling. [WSJ]
• Volcker Criticizes Accounting Proposal – Criticism like the idea for the Treasury Department, FDIC, and the Fed to oversee accounting rules is ‘terrible’. [NYT]
• Playboy CFO Resigining – Linda Havard is ‘looking forward to new challenges’ after a dozen years on the job. Tracking Viagra expenses for the founder just doesn’t float her boat anymore. [CT]

Review Comments

Review Comments | 11.16.09

Caleb Newquist
November 17, 2009

• 15M+ taxpayers could unexpectedly owe taxes – That’s never good. [NYDN]
• GMAC Chief Resigns – The Board was sick of “just one more round of TARP and that’s it” routine. More fun facts here. [WSJ]
• The Return of Bell Bottoms – Homebuyer credits, bell bottoms, and drugs. [Tax Update Blog]
• Battle Lines Drawn Over Who Governs Accounting Rules – FASB…it’s…all…slipping…away… [Compliance Week]

Charlie Rangel’s Name to Appear on Tax Scofflaw Website?

Caleb Newquist
November 17, 2009

Maybe! The State of New York remains in a fiscal crisis and is so desperate for money that apparently all ideas are being considered. According to the Daily News, the latest bright idea from Albany is to publish the top 200 businesses and the top 200 individual delinquents on the Internet apparently to shame those delinquents into paying their share.
Everybody seems to think it’s a good idea but can’t agree on who should be handling it. The State Tax Department would prefer that they put the list up themselves but legislators in Albany smell populism:

Tax officials say they oppose the law, preferring to enact the measure administratively.
Given the fiscal crunch, the state tax department has already increased its efforts to go after tax scofflaws.
The department can’t commit to creating a list until it explores the “resources we need,” particularly in a time of fiscal crisis, Burns said.
[Assemblyman William Colton (D-Brooklyn)] said he wants it done soon. “When the state desperately needs dollars to provide services to schools, hospitals and nursing homes, we don’t have time to wait,” he said. “We need to get this program implemented.”

Well played, Assemblyman. But obviously the important question is: will Rangs have to give up his rent controlled apartments? It’s important.
Expose tax cheats’ Web of deceit – pols [NYDN via TaxProf Blog]

Deloitte

Deloitte Names New Partner in Charge of Southeast Region

Caleb Newquist
November 17, 2009

Some leadership changes for Deloitte are being reported in the DC area, as Gary Tabach will be the new partner in the charge of the Southeast region:

Gary Tabach, Deloitte LLP’s Greater Washington managing partner, has been promoted to vice chairman and regional managing partner for the accounting and consulting firm’s Southeast region.
He is replacing Maritza Montiel, who has been named managing partner of leadership development and succession.
Tabach now oversees some 10,200 staffers in 20 offices from Baltimore to San Juan, Puerto Rico.

Mr. Tabach still has to do most of the heavy lifting for his old job as he will remain the DC managing partner.
Ms. Montiel’s new position, managing partner of leadership development and succession, strikes as mysterious. That particular title gives the impression that she is “partner in charge of telling other partners that they need to lock it up or they’re fired”. If we’re in the ballpark let us know and keep us informed about any leadership changes for your office or region.
Deloitte’s Gary Tabach lands bigger regional role [Washington Business Journal (subscription required)]
Earlier:
New Deloitte Consulting CEO Plugs Magazine Lists, Shuns Facebook Fans

The SEC Is Still Putting the Dream Team Together

Caleb Newquist
November 17, 2009

When tasked with protecting investors by going after the likes of Mark Cuban, the key players must be selected very carefully. Accordingly, the SEC continues to make key appointments in due course. The newest guardian of the investing public is Paul Beswick. He will serve as the head of the Accounting Group in the Office of the Chief Accountant (“OCA”).
For those of you not intimately familiar with the SEC’s enigmatic web, the Accounting Group is the portion of the OCA that likes to stick its beak into the biznass that matters most to accountants and auditors:

The Accounting group works closely with private-sector accounting bodies such as the Financial Accounting Standards Board. Registrants, auditors, and other divisions and offices within the SEC regularly consult with the group regarding the application of accounting standards and financial disclosure requirements.
Mr. Beswick will continue to support the Office of the Chief Accountant’s work related to oversight of the Public Company Accounting Oversight Board (PCAOB) until a replacement is named for his prior position.

Administrative matters simply do not appear to be at the top of the Commission’s to-do list. Understandably, there have been far more pressing matters, such as training employees, developing SIMS for personal finance education (with Bust Out while you wait) and appointing 20-something Chief Operating Officers. Your continued patience is appreciated.
Paul Beswick Named SEC Deputy Chief Accountant in Charge of Accounting Group [SEC.gov]

Uncategorized

Caption Contest Reminder: Auditing Is Craptacular

Caleb Newquist
November 16, 2009

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

Caleb Newquist
November 16, 2009

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]

The JDA

FASB’s Final Word on Fair Value Disclosures?

Adrienne Gonzalez
November 16, 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.
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.

KPMG

More KPMG Leadership Changes

Caleb Newquist
November 16, 2009

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

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