A little follow-up from our request for the latest on highly anticipated post-September 15th layoffs. Here’s what we’re hearing:
Sources and some comments have indicated that the dates to be wary of are today the 16th, tomorrow the 17th, next Monday the 21st, and next Tuesday the 22nd. The word is that these will be tax and advisory practice cuts only.
KPMG did not immediately respond to our request for comment on these dates. If you have specific information on your anything going down at your office send us the scoop at tips@goingconcern.com.
Is NASBA Torturing You?
We got a request to start a thread on the CPA exam results being totally MIA. The last thread seemed to indicate that results were slow to come out but here we are a month later and some of you took your exam(s) back in July.
So what the hell, NASBA? People can’t sleep at night. Get with the program!
Discuss your anxiety in the comments or if you’ve got your scores, just tell us you got between 75 and 79. Anything higher and you might has well be one of those Elijah Watts rocket-scientists.
Preliminary Analytics | 09.16.09
• Bankers Should Repent, Archbishop of Canturbury Says – And since the bankers and others are blaming the accountants, you all should get with the penance as well [AP via NYT]
• Buffett Says the U.S. Economy Has ‘Hit a Plateau at Bottom’ – This bodes well the Beard’s calling of the match yesterday. [Bloomberg]
• Pimco’s Gross Boosts Government Debt to 5-Year High – Take note, USD haters. [Bloomberg]
• James S. McDonald, C.E.O. of Rockefeller & Co., Dies at 56 – Illuminati theories can commence now. [NYT]
• Facebook Says Its Finances Are Looking Up – 300 million members and free cash flow positive, so you must be on there providing witless comments about how you hate our jobs. Join the GC group. [Bits]
Review Comments | 09.15.09
• Will Allen Stanford Wind Up Calling Allen Stanford To The Stand? – We’re totally pulling for Stan to defend himself. That would up the circus rating on this thing to just below O.J. status. [DB]
• Bernanke Says U.S. Recession ‘Very Likely’ Has Ended – Except it won’t feel that way, sayeth Obi-wan Benobi. [Bloomberg]
• The Devil’s Dictionary — Financial Edition – Mark-to-market didn’t make this list so we’re not sure how credible this dictionary is. If you’ve got additions of your own, leave them in the comments. [WSJ]
• CFOs Put on a Happy Face – If you’re not a CFO, maybe not so happy. [CFO]
• Where People Die – Our initial response is: Everywhere. But for FN’s post, West Virginia has the most, which isn’t so surprising and Utah leads in births, which is even less surprising. [Floyd Norris/NYT]
Recruiting, Week 2 Thread
We hear that both KPMG and Deloitte are on campus this week so we’ll start […]
The good news is…
…we’ve heard back from sources at all the firms and so far everything is quiet out there regarding the September edition of accounting firm layoffs, however, we’re still checking around.
The bad news of course, is that we’ve got fifteen days left in this month. There are some preliminary rumors out of KPMG in Chicago from last Friday but nothing has been confirmed.
If you have additional information on the Chicago rumors or if you’ve got any information on anything related to what sounds to be the inevitable for several firms, send them to tips@goingconcern.com.
Not to Worry, the IRS Is On Top of Protecting Your Personal Information
Paul Caron over at TaxProf Blog informs of a report that the IRS put out to let us all know how the Service has developed new and improved procedures for protecting your personal information after 500 laptops went missing.
The Service spent 25 pages boosting our confidence over this latest rebellion by, we can only wildly assume, another congenial IRS employee.
Can We Stop Pretending That Fair Value Convergence Is Possible?
Anyone okay if we just called this whole convergence thing off? Seriously. We understand that many accountants are perfectionists but healthcare reform seems to have a better chance than this whole shitshow.
Yesterday’s Wall St. Journal claims that the FASB’s biggest wig, Bob Herz is stating, albeit implicitly, that the FASB’s fair value rule will be more strict than the IASB’s. Herz-dog, being a little more political put it this way:
Pleasant disagreement, after the jump
“I hope we can come up with something that both achieves convergence and improves the current state” of accounting rules, Herz said at a roundtable discussion on the fair-value issue at FASB headquarters. “We’re obviously keenly aware of the difficulties of achieving both goals together.”
Herz later said in an interview that while FASB would do its best to harmonize its approach and the IASB’s, “we also want to make sure we come up with a good answer” to improve financial statements that U.S. investors look to.
That’s about as combative as The Herz gets, although, we, like the Journal, will take any chance we can get to embellish otherwise, yawn-worthy comments made by wonky accounting bureaucrats.
More:
John Smith, an IASB member who also participated in the roundtable, said both boards will try to agree on a fair-value rule, but each has its own process to follow, and “at the end of the day, we won’t know until we finish the process.”
The difficulty in harmonizing the two approaches stems from the sharp disagreements over expanding the use of fair-value accounting. Smith called it “a religious war.”
Okay, so we’re not really convinced these guys give a damn either way if accounting rule convergence occurs, especially fair value. So would everyone just knock it off and quit pretending like it’s so bloody important?
Besides, this is a “religious war”. And everyone knows that wars in the name of the Almighty (in this case, GAAP) NEVER end, so let’s just count on this being unresolved through the next millennia.
IRS: Hookers, Even if They Dress Up as Doctors, Do Not Qualify as Medical Expenses
We’re not ones to judge people who prescribe to home remedy treatments of any kind. However, if you choose to run through questionable means of treatment, like say BJ’s, HJ’s, etc., as deductible medical expenses, you’re on your own.
Gothamist:
A state judge has ruled that a 77-year-old Bay Ridge tax lawyer must pay back taxes after wrongfully deducting more than $300,000 for prostitutes, porn, sex toys and erotic massages…he dutifully documented each liaison in a notebook titled “Tax Journal,” in case he ever got audited
It sounds like the old guy was trying to be on the up and up about the whole dildo/Hustler/hooker-therapy methods but since paying for sex isn’t legal, the IRS and the New York state auditor (and are probably prudes) weren’t really down with the whole idea. He probably should have known better as Eliot Spitzer would have likely taken advantage of these deductions long ago had it been kosh.
Court Denies Tax Lawyer’s $100,000 Medical Expense Deduction for Prostitutes and Porn [TaxProf Blog]
Would Skipping Viagra Have Avoided These Expenses? [Tax Update Blog]
KPMG Director Who Must Have Really Loved His Wife Gets Four Years in Prison
The KPMG Director who rammed about £500,000 expenses back to the firm was sentenced to four years in jail in London today.
Andrew Wetherall, claimed that “when his wife’s previous partner tried to reduce maintenance payments, he was worried her lifestyle would suffer. Her spending sprees came to about £15,000 a month, the court was told. The court heard he was desperate to avoid marital tension or a divorce so made bogus expense claims.”
Four years in jail over marital tension or divorce? This was the dude’s second marriage. That’s about average these days so we’re not sure about his decision making ability.
Is this true love, stupidity, or enjoying a loose expense reimbursement policy at play here? Discuss.
Finance director jailed for fraud [BBC]
What if Everyone Sued Their Employer for Being Made to Feel Like a Prostitute?
In, if first you don’t succeed suing your former employer news, a London Employement Tribunal opened yesterday for a former PwC forensic accountant who is suing P. Dubs for £40 million after the firm was exonerated in a similar suit she brought in 2007.
More, after the jump
Mihaela Popa claims that while she worked at PwC in London, the following allegedly happened:
• She was made to feel like a prostitute
• She was told ‘Eastern European women are whores’
• She was known as ‘Mihaela and porn’
• During the initial swine flu hoopla, she was told ‘this Romanian bird will have a slow death’
• She also claims that some co-workers thought she was a Communist spy
For all this alleged name calling and accused espionage, Ms. Popa is suing PwC for “£40 million in compensation for loss of earnings and hurt feelings”. That tidy sum wasn’t just pulled out of the air, mind you. This is because she “previously claimed that she was given promises she could become a £750,000-a-year partner.”
Since being made to feel like a whore is common at accounting firms many of you have referred to yourselves as such, we’re not sure that “being made to feel like a prostitute” really flies with us.
As for the Communist spy charge, we can’t barely recall a time when this actually mattered, since the Cold War effectively ended 20 years ago.
P. Dubs “strenuously denies the allegations” but we could probably all agree that there are a few bigots working at PwC in London. On the other hand, this could said about any firm, in any city in the world.
Discuss your thoughts on the case, and if you feel more like a whore at your job then Ms. Popa, in the comments.
Accountant claims £40m from PricewaterhouseCoopers [Telegraph via Accountancy Age]
Last Call for Procrastination Station | 09.15.09
Here we are at last call for corporate and partnership tax returns. You’ve got until midnight eastern time tonight to get the stragglers filed (or maybe you just spend the entire day postmarking things in advance).
This is usually about the time in the morning where a manager or partner shows up in your office with shoebox filled with receipts and a hand-written set of financial statements for a very important client.
While this scenario seems like the type of nightmare that would send most people running into oncoming traffic, we assure you that it does happen.
So if you’re a fighting fires on filing day, or you’re a veteran of the procrastination station and have tales that are worthy of campfire ghost stories, discuss your experiences in the comments.
As for the rest of you who finished your clients up yesterday, you’re probably not even at work, so sober up and get into the office, tomorrow is the holiday.
