June 19, 2018

Accounting News Roundup: Rick Perry Wants Fewer Words; Back to the Future of CPAs; Justifying Class Warfare | 10.20.11

Perry Takes Up Flat-Tax Banner [WSJ]
The Texas governor said in a speech Wednesday to the Western Republican Leadership Conference in Las Vegas that he would lay out details of a flat-tax plan that “starts with scrapping the three million words of the current tax code, and starting over with something much simpler: a flat tax.”

Protests Show Capitalism ‘Nearly Broken’ [Bloomberg]
The protesters camping in London in support of the Occupy Wall Street dright and capitalism risks losing its “license to operate,” Generation Investment Management LLP’s David Blood said. Blood, who worked at Goldman Sachs Group Inc. (GS) for 18 years before starting fund manager Generation with former U.S. Vice President Al Gore in 2004, said the protesters’ message is that the financial system is “broken” and “unfair.”

Groupon Discounts IPO [WSJ]
The Chicago company and its bankers will begin meeting with investors in the next few days to sell them on a deal that values the daily deals pioneer at less than $12 billion, according to people familiar with the matter. While that would still mark one of the biggest Internet IPOs since Google Inc. in 2004, it is well below the valuations that were bandied about when the company filed to go public in June.

JetBlue Falls After Finance Chief Quits Week Before Earnings [BBW]
JetBlue Airways Corp. fell the most in two weeks after Chief Financial Officer Ed Barnes resigned ahead of the carrier’s earnings report. Barnes’s departure, effective immediately, was announced after the stock market closed yesterday. The resignation was a “personal decision” that had been planned for some time, said Mateo Lleras, a spokesman for New York-based JetBlue.

Certified Management Accountant Exam Offered in Chinese [AT]
“For nearly 40 years, the CMA certification program has been the globally-recognized credential for accountants and financial professionals in business, through an exam assessment, continuing education, and compliance with the highest ethical standards,” said Dennis Whitney, ICMA senior vice president, in a statement. “Following the success of the revised two-part CMA exam curriculum in English, we are pleased to offer the exam in Simplified Chinese.”

Citigroup to Pay $285 Million to Settle Fraud Charges [WSJ]
Wall Street’s total price tag on settlements with U.S. securities regulators for allegedly misleading investors about mortgage bonds churned out ahead of the financial crisis surged past $1 billion with a deal by Citigroup Inc. to pay $285 million. he New York company agreed to the payment to end civil-fraud charges by the Securities and Exchange Commission related to a 2007 deal called Class V Funding III. The SEC claimed Citigroup sold slices of the $1 billion mortgage-bond deal without disclosing to investors that the bank was shorting $500 million of the deal, or betting its assets would lose value.

CPA Horizons 2025: A Road Map for the Future [JofA]
Good news: you won’t be extinct.


Is Class Warfare Justified? [Tax.com/Martin Sullivan]
Maybe!

Grover Norquist defends no-tax pledge [Politico]
Aka: “Dog Bites Man.”

Perry Takes Up Flat-Tax Banner [WSJ]
The Texas governor said in a speech Wednesday to the Western Republican Leadership Conference in Las Vegas that he would lay out details of a flat-tax plan that “starts with scrapping the three million words of the current tax code, and starting over with something much simpler: a flat tax.”

Protests Show Capitalism ‘Nearly Broken’ [Bloomberg]
The protesters camping in London in support of the Occupy Wall Street demonstrators may be right and capitalism risks losing its “license to operate,” Generation Investment Management LLP’s David Blood said. Blood, who worked at Goldman Sachs Group Inc. (GS) for 18 years before starting fund manager Generation with former U.S. Vice President Al Gore in 2004, said the protesters’ message is that the financial system is “broken” and “unfair.”

Groupon Discounts IPO [WSJ]
The Chicago company and its bankers will begin meeting with investors in the next few days to sell them on a deal that values the daily deals pioneer at less than $12 billion, according to people familiar with the matter. While that would still mark one of the biggest Internet IPOs since Google Inc. in 2004, it is well below the valuations that were bandied about when the company filed to go public in June.

JetBlue Falls After Finance Chief Quits Week Before Earnings [BBW]
JetBlue Airways Corp. fell the most in two weeks after Chief Financial Officer Ed Barnes resigned ahead of the carrier’s earnings report. Barnes’s departure, effective immediately, was announced after the stock market closed yesterday. The resignation was a “personal decision” that had been planned for some time, said Mateo Lleras, a spokesman for New York-based JetBlue.

Certified Management Accountant Exam Offered in Chinese [AT]
“For nearly 40 years, the CMA certification program has been the globally-recognized credential for accountants and financial professionals in business, through an exam assessment, continuing education, and compliance with the highest ethical standards,” said Dennis Whitney, ICMA senior vice president, in a statement. “Following the success of the revised two-part CMA exam curriculum in English, we are pleased to offer the exam in Simplified Chinese.”

Citigroup to Pay $285 Million to Settle Fraud Charges [WSJ]
Wall Street’s total price tag on settlements with U.S. securities regulators for allegedly misleading investors about mortgage bonds churned out ahead of the financial crisis surged past $1 billion with a deal by Citigroup Inc. to pay $285 million. he New York company agreed to the payment to end civil-fraud charges by the Securities and Exchange Commission related to a 2007 deal called Class V Funding III. The SEC claimed Citigroup sold slices of the $1 billion mortgage-bond deal without disclosing to investors that the bank was shorting $500 million of the deal, or betting its assets would lose value.

CPA Horizons 2025: A Road Map for the Future [JofA]
Good news: you won’t be extinct.


Is Class Warfare Justified? [Tax.com/Martin Sullivan]
Maybe!

Grover Norquist defends no-tax pledge [Politico]
Aka: “Dog Bites Man.”

Related articles

Accounting News Roundup | 01.21.10

How to find the “best and brightest” [CPA Success]
This may be a better topic for the friendly HR professional but figuring out who these future accounting rock stars are before they show up on their first day is “more art than science”, as Tom Hood notes.
Popular to some old-school thought, GPA does not always indicate who’s going to dominate in the real world and “soft skills” — besides being a terrible term — are in more demand than ever.
Help The The American Red Cross of Greater Chicago Help Haiti [Re: The Auditors]
The American Red Cross of Greater Chicago is having a drive today and since Francine’s friend is the CFO, we’ll be glad pass around the news:

One of my oldest and dearest friends, Guillermo Becerra, is the CFO of the American Red Cross of Greater Chicago. I asked him how I could help him, and the Red Cross, during what must be an incredibly busy time post-Haiti earthquake.


“The Chicagoland community will come together on Thursday, January 21 to give to the American Red Cross as we help the people of Haiti recover from the catastrophic earthquake that devastated their country last week.
The Chicago Helps Haiti media relief drive begins at 5 a.m. and lasts until 11 p.m. Nearly every TV and radio station in our area will be promoting this fundraising effort throughout the day. You can help too, by giving via phone or online, and sharing your thoughts here, on Facebook or Twitter, and by asking others to give.
To give from 5 a.m. to 11 p.m. CALL 1 (877) 565-5000 or visit www.chicagoredcross.org/haiti

Plus, we’re guessing that if you give, your 2009 tax return isn’t much of a concern.
If Your Password Is 123456, Just Make It HackMe [NYT]
The Times is concerned that you have a shitty password which puts you at a huge risk of being hacked by someone sitting in their parents’ basement.

Imperva found that nearly 1 percent of the 32 million people it studied had used “123456” as a password. The second-most-popular password was “12345.” Others in the top 20 included “qwerty,” “abc123” and “princess.”

You know who you are, ye with stupid passwords. Also, don’t even think of changing it to “654321” because that drops in at #19.

Accounting News Roundup: Haiti Relief Passes Senate; Accounting Job Surge? CPAs Basically Control People’s Lives | 01.22.10

Senate votes for faster tax breaks for Haiti gifts [WaPo]
As expected, the U.S. Senate unanimously passed legislation yesterday that allows taxpayers to deduct donations made for Haiti relief efforts. You have until the end of February to donate so that it may be included on your 2009 return.

Maybe it’s bad legislation but we’ve been over that.

CPA Jobs Set for Surge. But When? [CPA Trendlines]
That’s the question, isn’t it? Rick Telberg, who has done a great job of tracking the Bureau of Labor Statistics on accountants, points out that while the latest BLS forecasts a 22% increase (279,400 jobs) by 2018, there’s no indication that it’s happening now:

[M]any tax, accounting and finance professionals are still slogging through the Great Recession. The Association for Financial Professionals, for instance, reported that about one in four respondents say their organizations will contract in 2010. At the same time, a PricewaterhouseCoopers survey of private companies found 43 percent of CEOs and CFOs still budgeting no expansion over the next 12 months to 18 months. The data just seem to reinforce economic uncertainties and a weak outlook.


The BLS is looking past the past the recession for the jump in opportunities but just when the hell will that be? Just because the economy isn’t contracting currently, doesn’t mean it won’t in the future and this “recovery” has been tepid at best.

Theismann to CPAs: You Are the Conscience of America [Web CPA]
Joe Theismann gets it. He knows that without all of you out there in CPA land, your clients don’t stand a chance. They’d be finished. Finished!

“You’re the conscience of America,” Theismann told conference-goers. “You are the survivors in tough times. With accountants, I’m not looking for someone to file taxes and do my financials. I can do that myself online. In your position you can basically control people’s lives.”

So get out there and control somebody’s life. Joe Theismann is expecting it.