Lehman unsecured creditors seek probe Ernst & Young [Reuters]
The unsecured creditors of Lehman are justifiably nervous about getting anything bank in the wake of the Lehman Brothers bankruptcy. The next best plan of attack, as you might of expect is poke around E&Y to see what they’ve got laying around. Of course Ernst & Young won’t just turn over “certain documents” and make “its employees and partners submit to an oral examination” so the creditors are asking the bankruptcy court to order them to do so.
Tax Court Rejects “Geithner Defense,” Says Reliance on TurboTax Does Not Excuse Taxpayer From Penalty for Errors on Tax Return [TaxProf]
Please note for any of you that will try to pull that excuse:
“Although the Court concludes the errors in petitioners’ tax preparation were made in good faith, petitioners have not established that they behaved in a manner consistent with that of a prudent person. Before the trial petitioners stipulated that they did not consult a tax professional or visit the IRS’ Web site for instructions on filing the Schedule C.
We do not accept petitioners’ misuse of TurboTax, even if unintentional or accidental, as a defense to the penalties on the basis of the facts presented.”
Contenders shape up to replace John Connolly – Deloitte’s big hitter [Times Online]
The head spot for Deloitte in the UK will be up for grabs next year as John Connolly will step down after ten years at the helm. The Times Online reports that even though two candidates have been identified by sources, no campaigning will be allowed, “Mr Connolly conceded that the issue of succession was “in the air” but said that the firm wanted to avoid open competition between potential successors. “We don’t allow people to go around the country calling meetings and giving presentations about why they will be a great leader,” he said.”
Continuing with Wednesday’s attempt to provide insight on some KPMG H.R. banter, I will try to do the same with a recent Deloitte press release.
What seems to be their attempt to provide the private sector advice on how to prevent an exodus of talent actually sounds like a fluffy internal HR memo. Perhaps the Big 4 should review Deloitte’s top ten list of ways to not get slaughtered by the ever-improving job market:
1. Take advantage of the continuing globalization of talent and leadership markets.
DWB – Raid your competitors of their best talent, downplayed earlier this week.
2. Know your critical leaders and most critical talent. Keep your talent pipeline robust enough to deliver those critical skills.
DWB – Pay your top performers in order to keep them happy. If they receive an offer elsewhere, counter-offer their asses. Because the only inevitable outcome is the loss of some talent, see #1.
3. Prepare for a workforce that is more mobile and quicker to pursue new career opportunities.
DWB – Keep tabs on your people. Job loyalty has gone the way of the
dinosaurs Baby Boomers. The “what’s in it for me” mentality is keeping job markets saturated with talented individuals looking for a better deal.
4. Tailor your strategies to address the generational and geographic diversity of your workforce.
DWB – Old people and young people don’t get along. They’ve never gotten along. They never will get along. Accept it and move on.
5. Show your employees both the money and the love. Communicate your employer brand as clearly to employees as you communicate your product brand to customers.
DWB – One part water plus two parts HR spin, stirred. Pour over ice. Serve.
6. Know what it takes to stay ahead of your competitors in retaining critical talent, developing new leaders, implementing workforce planning and driving innovation.
DWB – I don’t have a clue what you’re supposed to learn from this. Money is the main driving force. Money makes people dance for joy or jump ship. If your retained talent is net positive, suhhhweeet.
7. Create clear career paths for employees at all levels.
DWB – I like this one if implemented correctly. The traditional career trajectories are well known; communicate practice-to-practice and geographic rotations. Change – even short term – can refresh one’s career and create a greater sense of loyalty to the firm.
8. Align your leadership development programs with your long-term business goals.
DWB – Every firm has ‘the chosen ones” and invests in additional training, retreats, and leader cultivation courses. This should come as no surprise.
9. Know the real impact of talent retention and voluntary turnover on your bottom line.
DWB – Newsflash: it is not cheap to replace talent. Considering most hires begin their careers as interns, we’re talking years of financial investment in every staff member. From pen giveaways to amusement park tickets, there’s a steep price for every staff member lost!
10. Be a beneficiary — not a victim — of the resume tsunami.
DWB – Perhaps you should revisit point #1.
Deloitte’s Paul Pacter Appointed to IASB [Web CPA]
Paul “Financial Reporting Encyclopedia” Pacter will resign his part-time position at Deloitte to take a seat on the IASB. Since 2000, he has been on Deloitte’s IFRS leadership team and has worked as the Director for small and medium sized entities for the IASB.
Sir David Tweedie said in a statement that “Paul is a walking encyclopedia on global financial reporting. He served as the determined leader of the development of the IFRS for SMEs, is an expert in both IFRS and U.S. GAAP, and in his spare time has run one of the most popular financial reporting Web sites on the Internet. He will bring a global perspective and immense energy to the board.”
Nearly $60 million accounting error means state budget cut [Charleston Business Journal]
Relative to other states that shall remain nameless, South Carolina’s problems aren’t really a BFD but somehow $60 million being “erroneously…counted as part of the state’s general fund,” as opposed to being earmarked for specific appropriations is still not good.
As a result of this little booboo, $60 million in budget cuts must be found with less than three months until the end of the state’s fiscal year. Such a short time frame could presumably lead to some desperate slash and burn methods. And here we thought the subversive organization legislation would have been a huge revenue stream for the Palmetto State.
Is There a Pulse in the CFO Market? [CFO]
Apparently the CFO job market is no longer ‘totally dead’ as it was from December 2008 to October 2009 and since some are feeling ‘overworked and under appreciated’ (just like you!) there promises to be a bit of a CFO exodus.
Lehman Channeled Risks Through ‘Alter Ego’ Firm [NYT]
That alter-ego firm is Hudson Capital and the Times reports that while HC “appeared to be an independent business, it was deeply entwined with Lehman,” citing a Board of Directors controlled by the bank, Lehman’s 25% ownership, and many former LEH employees working at HC. Hudson reportedly provided LEH with financing “while preventing ‘headline risk’,” but the relationship was designed specifically to maximize the utility of Hudson “without jeopardizing the off-balance sheet accounting treatment,” according to memo cited by the Times.
Deloitte To Spend More Money In China For Business Expansion [Dow Jones]
Deloitte is investing $100 million in China over the next three to five years, hiring 1,000 to 2,000 new employees per year, per Global CEO Jim Quigley and Deloitte China CEO Christopher Lu. This follows a five-year, $150 million investment by the firm announced in 2004.
Quigely told Dow Jones, “When I have made my investment decisions as the CEO of Deloitte, the market where we are investing the most is in China. We’ve now expanded. So another $100 million is coming this direction as we continue to want to grow our business here, and take advantage of the opportunities available to serve China companies and to serve companies outside of China who want to invest here.”
66% Say America Is Overtaxed [Rasmussen via TaxProf]
If you needed a poll that shows that Americans hate taxes in order to convince you, Rasumussen is all over it. 66% of people surveyed believe Amecians are overtaxed, as opposed to 25% who disagree. The issue is severely divided politically with 81% of Republicans believing they are overtaxed as opposed to Democrats who were split on the issue. 73% of those surveyed that did not affiliate with either party believe they are overtaxed while 96% of the Tea Party movement believe they are overtaxed.
You don’t need to tell Jim Quigley that it’s only a matter of time before Deloitte is the largest accounting firm ON EARTH.
In a Q&A with India’s Business Standard, Quigs was asked about the shrinking gap and you better believe the man is all over it like a hard-hitting interview at Davos: