Big China Short Shows Downside of Kleptocracy [Bloomberg]
Jon Weil shares the story of Hong Kong-listed Zoomlion Heavy Industry Science & Technology Co., China's second-largest make of construction equipment, showing that not all Chinese accounting scandals are in the west.
Daqing Dairy chairman and finance chief resign over Deloitte's misgivings [SCMP]
Daqing Dairy's chairman Zhao Yu and chief financial officer Fong Pin Jan resigned yesterday, according to the company. Their resignations follow that of several directors from the mainland dairy company and its former auditor, Deloitte Touche Tohmatsu, which expressed misgivings about Daqing's financial statements. Fong put in his papers because he was unable to help Deloitte resolve its misgivings due to "extensive damage to the computer and accounting records of the company in an accident disclosed in the announcement of the company dated January 9", said Daqing.
Just Because Your Income Is Stolen Doesn't Mean It's Not Taxable [Forbes]
Just a friendly reminder.
D.C. watches more pornography than any state [WaPo]
State blames Reading School District's $15 million accounting error on district [YDR, Earlier]
The state has washed its hands of any responsibility for letting a $15.6 million accounting error in the Reading School District slip through the cracks. The district recently uncovered the error, which was caused by accidentally applying the money it received from the state for the 2010-11 school year to the 2010-11 and 2011-12 fiscal year budgets. Initially missed by the district's auditors, the mistake came to light only last month and has left district officials searching for ways to fill the hole it created. At a special meeting Monday, school board members questioned why the mistake wasn't caught earlier, including the state Department of Education in a list of entities they believed should have spotted the mistake. But in a statement provided by Tim Eller, the department's press secretary, the department says it does not deserve blame. "The focus should be on the district for keeping inaccurate records and the auditor for failing to catch this error," the statement said. "The department is not responsible for errors in a school district's audited and certified financial records."
What Does the Fiscal Cliff Deal Mean for Nonprofits? [TPC]
Sayteh the wonks: "The major individual income tax provisions are estimated to increase giving by $3.3 billion or 1.3 percent, relative to 2012 law, mainly because of the increase in the top marginal tax rate."
Tax Reform Muddle [Martin Sullivan]
MS: "The public hears "tax reform" and it thinks "simplification." Especially as April 15 approaches, Democrats do not want to be the party that opposes tax reform. And as much as there may be a need for additional revenue, there is no need to throw tax reform off the train to get there. "
Justin Bieber, financial adviser? [MW]