Accounting News Roundup: EY Settles With Partner Over Sexual Harassment | 05.03.18

ernst & young report ashley madison

Ernst & Young settles sex-harassment suit from partner [NYP]
Jessica Casucci has agreed to leave the firm as part of a settlement over the allegations in a complaint filed with the Equal Employment Opportunity Council last month. The Post reports that John Martinkat, the partner at the center of the allegations, has been fired from the firm.

Elon Musk’s Most Dumbfounding Moments on Tesla’s Earnings Call [Bloomberg]
Last fall, we mentioned on a couple of occasions that Tony Stark impersonator and Tesla CEO Elon Musk doesn’t seem too hung up on production estimates, sales projections, among other things that Wall Street analysts tend to care a lot about. In Tesla’s earnings call on Tuesday, Iron Man finally reached his wit’s end with the number crunchers:

Musk aimed his sharpest words at Toni Sacconaghi of Sanford C. Bernstein, who rates Tesla the equivalent of a hold. After the analyst asked a question about whether the company could reach its 25 percent gross margin target on the Model 3, Chief Financial Officer Deepak Ahuja said recently imposed tariffs, more expensive commodities and higher labor costs factored into the company’s guidance.

“Yeah, but we’re talking about a 3 percent to 5 percent difference, and that’s something that we’ll solve like within three months to six months later,” Musk said. “So don’t make a federal case out of it.”

Musk wrapped that exchange with: “Boring, bonehead questions are not cool. Next?” and at one point admitted, “Sorry, these questions are so dry. They’re killing me.”

Has The TCJA Supercharged The Economy? The Data Don’t Show It. [TPC]
Howard Gleckman of the Tax Policy Center cites trends in GDP, the S&P 500, the 10-year Treasury rate, and unemployment as evidence that Tax Cuts and Jobs Act hasn’t turned out to be the “rocket fuel” to the economy at President Trump promised, at least not after the first quarter.

Private equity firm KKR to convert to a corporation after U.S. tax reform [Reuters]
KKR follows Ares Management as the second private equity shop to convert to a C corp as a result of the new tax law. The change is effective July 1st and “is designed to broaden our investor base, simplify our structure and make it easier to invest in our shares,” according to the company’s co-CEOs, George Roberts and Henry Kravis.

Previously, on Going Concern…

Greg Kyte’s Exposure Drafts cartoon touched on ghosting post-busy season.

From the archives: Auditing in China Sounds Like Pure Hell. See also: How to Cope With Post-Busy Season Depression

In other news:

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