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November 25, 2022

Generations

Accounting News Roundup: BP’s Ugly 2nd Quarter; Bernanke Backs Extending Some Tax Cuts; Back-to-school Sales Tax Holidays | 07.27.10

BP replaces CEO and posts $17 billion quarterly loss [Reuters]
“Oil giant BP Plc launched a plan to repair its battered image in the United States on Tuesday, ditching itsxecutive and promising to slim down by trebling an asset sale target to $30 billion.

However, the company, the target of public anger over its Gulf of Mexico oil spill, tempted further ire by denying it needed cultural change and offsetting the costs of the spill, including expected fines, against its taxes.

The tax move will cost the U.S. taxpayer almost $10 billion.”

Northern Rock CFO Banned And Fined GBP320,000 Over Bad Loans [Dow Jones]
“David Jones, the former chief financial officer of Northern Rock PLC, was Tuesday fined GBP320,000 and barred from working in finance after the Financial Services Authority found he misled investors about the bank’s bad loans in the lead-up to the bank’s eventual collapse.

Jones most recently was CFO at Northern Rock Asset Management PLC, the “bad bank” of the nationalized lender after a restructuring of its operations. He left the company in April because of the FSA investigation, a week after two former colleagues were fined and banned for their roles in making the bank’s 2006 bad-loan figures appear better than they were.”

Where will those next gen clients come from? [AccMan]
And what will ask of their professional service providers? Right now, Gen X and Millenials don’t compromise much of the client base but that will change quickly when Baby Boomers start retiring en masse. What these new business owners will ask of their service providers is not quite clear. Similar to the demands currently placed on employers, service providers will have to be flexible and innovative.

Bernanke Says Tax-Cut Extension Maintains Stimulus [Bloomberg]
“Federal Reserve Chairman Ben S. Bernanke said extending at least some of the tax cuts set to expire this year would help strengthen a U.S. economy still in need of stimulus and urged offsetting the move with increased revenue or lower spending.

‘In the short term I would believe that we ought to maintain a reasonable degree of fiscal support, stimulus for the economy,’ Bernanke said yesterday under questioning from the House Financial Services Committee’s senior Republican. ‘There are many ways to do that. This is one way.’ ”


Accounting firm Kaufman Rossin & Co. settles case for $9.6M [Miami Herald]
Kaufman Rossin was the auditor of the two Palm Beach funds that invested over a billion dollars with convicted Ponzi Schemer Tom Petters.

And in case you forgot, convicted forensic accountant and suit lover Lew Freeman was the Chief Restructuring Officer for the Palm Beach funds. Quite the cesspool.

How Low Self-Esteem Can Cost You The Job [Forbes]
Are you a low talker? No one is suggesting that you don’t know what you’re talking about but the perception could be that you don’t and in turn, It could be affecting your career.

Lords to probe audit market [Accountancy Age]
“A recent report from the FRC and FSA criticised the role of auditors during the crisis saying they had failed to tackle management bias.

The Lords investigation will look at basic questions such as wether Big Four dominance increases the price of audit and whether the market needs to be opened up.”

Oracle’s Ellison: Pay King [WSJ]
$1.84 billion over the last ten years is not too shabby.

Sales tax holidays 2010 [Don’t Mess with Taxes]
Kay Bell has a rundown of the sixteen states that are having sales tax holidays right before the kids go back to school.

Has Senior Leadership Resorted to Parenting in the Workplace?

By the time you read this, Monday will be one foot in the bag for most of you. So not to hurt your already-tuned-out minds with, I wanted to report on something that probably comes as no shocker to you: the difference in working attitudes between generations continues to cause grief for company leadership across the country.

The full FINS article can be found here, but here’s the bit I want to discuss:

Another issue that cropped up in the survey is the subtle generational shift evidenced by more Gen Y’ers infiltrating the accounting pool. The survey concludes that members of a younger workforce have different expectations about their careers, insofar as they’re more focused on work-life balance and not bound to a “work is all I am” mantra. When asked about reasons for voluntary turnover, 45% of respondents said a poor work/life balance, including excessive hours, was responsible.

The other 65% 55% listed “working for cranky old farts that have no concept of a balanced life” as the reason for looking for a new job. But really, there is obviously a clash in working styles and expectations between the different generations.

Older generations worked their way through school, and many were the first in their families to attend college. This work ethic carried over into the workforce, as Baby Boomers competed against one another for everything; jobs, money, social and economic status, etc. Boomers were raised on the concept of “you eat what you kill.” Simply put, they were a generation pushed and pushed and pushed to work and work and work; by parents, peers, and society alike.

Fast forward to the Generation Y and Millenials that are currently entering the workforce. The large “complaints” of senior leadership about the new waves of workers are the necessary changes that must be made – flexible work arrangements, work/life balance initiatives, community outreach programs, etc. All of these HR-friendly programs have one thing in common – they cost time and money. Upper management and partners of the accounting firms complain frequently (even here in the comments) that the Y’s and Me’s are a lazier, more high maintenance group of professionals.

Newsflash, Baby Boomers: you’re responsible for this. This was to be expected after years of an upbringing centered around access to things, supply of stuff, and promises of you can do whatever you want to do. Baby Boomers saw an advancement in education and the quality of professional training required in the workplace. Today’s generations are seeing another advancement; this one being the quality of the workplace.

But I digress. Perhaps we should all agree to disagree on the continued generational differences and focus on these lines from the FINS article:

The survey found that praise and attention from managers can have a more positive effect than cash bonuses and increase in base pay, for example. To that end, CFOs are focusing more on gold stars and less on pay stubs.

Sounds like parenting, doesn’t it?