In Northern Ireland, anyway. Yes, if you’re moseying around Belfast and catch your spouse in an intimate embrace with someone who isn’t you, your heart may be broken but that doesn’t mean you’re going to divorce their cheating ass. Why, you ask? Well, you see, celebrities, being the model global citizens that they are, seem understand that marriage doesn’t really mean that you can’t have sex with other people, even if you haven’t expressed a desire to do so and regular Joes and Janes are starting to think that should be their attitude as well.
The UK Press Association reports, “one of the reasons for the shift may be the growing number of high profile celebrities that have publicly accepted their partner being unfaithful, according to consultancy and accountancy firm Grant Thornton, which carried out the matrimonial survey.” Yes Grant Thornton, fresh off their new ad campaign, is finding time to weigh in on marriage trends, although they readily admit they’re really just taking a stab at this:
Sally Longworth, partner at Grant Thornton’s Forensic and Investigations services practice, said: “The shift in the reasons for divorce is difficult to explain, although one potential influence could be the rise in the number of celebrities that are very publicly accepting their spouse’s infidelities.
Seems that GT is hard up for work in N.I.
You may have heard that California is having some budget issues. Sure there’s this Wisconsin business and all that but seriously folks, Californ-I-A is really in the fiscal shithouse. There are a number of reasons for this, most of which we won’t get into here but it should be noted that ill-behaved celebrities haven’t been receiving their fair share of blame in the press.
Luckily we have the real America’s news network going to great lengths to inform us about Lindsay Lohan’s role in fiscal catastrophe:
Factoring in all the court dates, court postponements (like when she was partying in Cannes and couldn’t get back to the U.S for a hearing), arraignments, judge and prosecutor fees, jail visits (she has had three stints in the slammer – 84 minutes, two weeks and one evening before posting bail, mug shots (four and counting), probation officers, random drug testing resources, SCRAM bracelets (these generally cost over $100 to install and have a daily fee of about $18) and LAPD security to and from court, how much is Lohan costing the taxpayer?
“It has been four years, and we’re talking about quite a few county law enforcement professionals, so it is probably safe to say several million dollars,” California-based civil law trial attorney David Wohl told FOX411’s Pop Tarts.
And given that Lohan has thus far refused to enter into a plea deal regarding the theft incident, her current theft case could potentially go to trial, costing Californians much more.
MILLIONS! It’s been a while since your humble editor had to make any materiality calculations but taking a quick look around, California’s budget deficit is currently in the nabe of $25 billion. So apparently if LiLo was shipped off to the Dakotas, Wyoming, or some other state that was in a less dire financial situation, things in Cali would be plumb-dandy? Strange thing however, there doesn’t appear to be an “elimination of celebrities that are a burden on society” on the L.A. Times’s budget balancer.
Perhaps Fox is onto something here? Jerry Brown would probably appreciate the other help. Pro bono of course.
Not that it’s impossible for an accountant to score a trophy wife – a former Scores Dancer, no less – but observers of accountant/business manager-cum-Ponzi Schemer du jour (allegedly!), Kenneth I. Starr are pretty confident that it was a decent sign of things going in the wrong direction.
Vanity Fair’s article on “not that Ken Starr” gets a lot of perspective from people that knew Starr, including Blackstone co-founder, Pete Peterson, ” Did something in the way of a profound midlife crisis trigger this behavior?”
But of course, there are people that are more forthright:
Like a Greek chorus, his shocked clients pointed as one to the lavishly endowed Diane, for whom, the indictment notes, Starr purchased more than $400,000 of jewelry from bling jeweler to the rap world Jacob Arabo. “When your business manager marries a stripper,” says one rueful client, “that’s a tell.”
All The Best Victims [Vanity Fair]
What the hell is gonna to take for a celebrity to get an honest money manager around these parts?
The SEC has frozen his assets alleging that Starr “made unauthorized transfers of money in client accounts that ultimately wound up in Starr’s personal accounts.” But it was for a good reason – the man needs roof over his head, according to the complaint “Starr and his companies transferred $7 million from the accounts of three clients between April 13 and April 16, 2010, without any authorization. The transferred funds were ultimately used to purchase a $7.6 million apartment on the Upper East Side in Manhattan on April 16.”
Former New York City Council President Andrew Stein was also named in the complaint, and “is charged with lying to the IRS and federal agents about his involvement with Wind River.” Wind River being a company that Starr allegedly syphoned money to, that Stein used for personal expenses. However we’re mostly shocked to learn that Stein briefly dated Ann Coulter – shudder.
Financial whiz busted for duping celebs clients Wesley Snipes, Martin Scorsese in $30M Ponzi scheme [NYDN]
Celebrity Investment Adviser Charged With Ponzi Scheme [Gawker]
SEC Files Emergency Charges Against New York-Based Financial Advisor for Defrauding Clients [SEC Press Release]
• Japan embraces new fair value rule [Financial Times via Accountancy Age]
Here’s a novel idea: making a decision on IFRS! Japan’s Financial Services Agency will be allowing companies to adopt the international version of the new fair value rule developed by the IASB, starting Wednesday. Since the world’s second largest economy is opting to pull the trigger on IFRS it may throw the G20’s request/demand for the world to get all kumbaya when it comes to accounting rules.
“Fair value accounting…as unleashed one of the most divisive debates to have emerged from the credit crisis, threatening to disrupt a pledge by the G20 group of leading economies to create a single, global accounting system by mid next year,” reports the FT and judging by the SEC’s indecisiveness, they may be right. With this latest development, now leaders will be able to blame each other’s securities agencies for their particular actions that will likely lead to divergence.
The allowance of Japanese companies to adopt IFRS 9 could also give Knight of the Accounting Roundtable, Sir David Tweedie, even more leverage when dealing with countries around the world to adopt the IFRS.
Right or wrong, the Japanese are sending a signal that they are prepared to move forward while the SEC prepares to have more meetings.
• GAO Criticizes PCAOB Approach to Audit Risk [Web CPA]
The General Accountability Office, never shy to point out the faults of others (that’s kind of what they do, after all), isn’t so keen on the PCAOB’s latest “risk assessment” audit standards. This after the PCAOB originally proposed standards in 2008 and then revised and re-released them late last year.
The GAO feels that the ‘duplication and inconsistencies’ created by the PCAOB’s new standards would likely lead to…more billable hours! So, as you might imagine, some firms are on board:
PricewaterhouseCoopers told the PCAOB, “We fully support the board’s objective to update interim standards regarding risk assessment,”
And some, not so much:
McGladrey & Pullen…warned that “unnecessary differences between the board’s standards and those of other standard-setters increase the costs of performing all audits because firms must develop and maintain two, and even three, audit methodologies and training programs, with no corresponding benefit to audit quality.”
Personally, we’re skeptical of anything that has the unmitigated support of the biggest players in the industry but from a more practical standpoint, do auditors really need more rules to follow? And now this could add to the workload? Is that really necessary?
• Oscar Swag Bags to Result in $91k Income to Celebrity Presenters [TaxProf Blog]
Celebrities have enough tax trouble the way it is, how is giving them gifts going to make their tax returns easier? We’re guessing most of them have smart CPAs working for them that will suggest that they give it all to charity but we may be underestimating the temptation of free luxury swag.