July 20, 2018

Accounting News Roundup: Senate Debates Tax Cuts and PwC Takes Some Bitcoin | 11.30.17

accounting news tax reform cuts bitcoin pwc rats

Corporate Tax Rate in Flux as Senate Votes to Open Debate [WSJ]
As the Senate bumrushes towards a vote on its bill, a lot of things remain up in the air, including the corporate tax rate which some now want to be set at above 20%. Also, “As of Wednesday evening, they didn’t yet have the final text of a bill,” which seems kinda weird for such an important piece of legislation. I guess the GOP style of governing is less “small government, small deficits” and more “shrug emoji.”

Another potential problem: The senior VP of tax at Dell said that, “The severe limitations to interest deductibility constitute a tax increase of more than $300 billion over the next 10 years, imposed on some of America’s most dynamic and innovative businesses, and reflect a fundamentally unfair and punitive reversal of roughly 100 years of established tax law.”

Trump Sells Tax Plan With False Claims [NYT]
Bellower-in-Chief Donald Trump took his deranged circus to Missouri yesterday where he managed to lie about virtually every aspect of his tax plan, including that the bill is “not good for me” or other wealthy people.

Bonus reading: These tables from the Joint Committee on Taxation show whose taxes are going up and down and when. You’ll note that the wealthiest taxpayers do pret-tay, pret-tay, pret-tay good.

Bitcoin Goes to the Big Four: PwC Accepts First Digital-Currency Payment [WSJ]
PwC Hong Kong took Bitcoin as payment for some advisory services because I guess they had to prove a point? “This decision helps illustrate how we are embracing new technology and incorporating innovative business models across our full range of services,” says the firm’s Asia-Pacific chairman. Regardless, this is far less gimmicky than Deloitte’s Bitcoin ATM and “We accept Bitcoin” cafeteria.

Elsewhere in BTC:
A grandson engages in elder abuse: “Rita Scott’s grandson convinced her in mid-November to get in on the latest investing sensation and buy bitcoin. ‘I thought it was a big coin,’ the 70-year-old said. ‘I didn’t even know what it was, a piece of coin? Why would I invest in a piece of coin?'”

Previously, on Going Concern…

Greg Kyte’s Exposure Drafts cartoon has a Christmas twist on the gift tax exclusion.

In Open Items, an introduction to our new audit category and “What about this critical audit matter stuff?

In other news:

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Image: iStock/Francisco Martins

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Firm Mascot Challenge: PwC

Thumbnail image for Thumbnail image for Ashley3.jpgWe’ll assume everybody is down with the KPMG Pomeranian and Uncle Dangle for Deloitte. If not, speak now or shut your pieholes.
There’s some resistance to the idea of famous Governor banger, Ashley Dupre, being worthy of the PwC Mascot.
Frankly, since P. Dubs has made some feel like prosties already and has also shown that, as firm, they don’t mind whoring themselves out for some scratch, the argument can easily be made that Ashley is the perfect mascot. On the other hand, the point has been made, and is duly noted, that high-priced call girls are much cooler than any accounting firm.
So you see the problem here but it’s not our decision. We’ll leave it up to you. State your submission for the PwC mascot and give a brief explanation for said suggestion in the comments.
Keep it clever people, mascots already assigned to any other team or organization will be ignored with extreme prejudice. On with it then.

Can PwC’s Week Get Worse?

Thumbnail image for Thumbnail image for Thumbnail image for Thumbnail image for pwclogo.thumbnail.jpgOh sure, anything is possible. However, on top of everyone not called Fox News calling P. Dubs the most shameless whore ever to issue a report on anything, Jonathan Weil at Bloomberg is now calling out some of P. Dubs’s (and KPMG probably for good measure) banking clients’ less-than consistent use of mark-to-whatever-the-hell-we-like.
Weil names three PwC clients (Midwest Banc Holdings, First Bancorp, BB&T Corp.) as showing loans with fair values greater than their carrying values as of June 30th. Midwest and First Bancorp’s stock prices are trading far below book value while BB&T’s stock price trades above book value.
As Weil points out, WTFK if these values are right or not? What is obvious is it seem like some banks are legitimately making a run at fair value and others are still using a dart board. Oh, and the PwC audit teams are okay with that. Nevermind comparability, Dow is above 10k bitches! Onward!
Mark-to-Make-Believe Turns Junk Loans to Gold [Bloomberg/Jonathan Weil]