Footnotes

Footnotes: PwC to Face Colonial Bank Music; Seniors and Student Loans; Life After KPMG | 09.10.14

PwC to face U.S. lawsuit over Colonial Bank collapse – court ruling [Reuters] Some preliminary thoughts on the Enhancing Audit Quality initiative and some Peer Review implications [Attestation Update] Senior citizens owe $18 billion in student loans Between 2005 and 2013, student loan debt among seniors 65 and older rose by more than 600% from […]

Footnotes: A Lesson in Grant Thornton History; Are You ExIm Or ExOut?; What the Kids Are Doing | 09.09.14

Lawmakers Press Regulators to Lessen Risks Banks Pose to Financial System [WSJ] Overall auto loans are up, as are delinquency rates on those loans [AP] House Republicans near accord on short-term extension of Ex-Im Bank House Speaker John Boehner said after a meeting with Republican lawmakers that he was working with Representative Jeb Hensarling, a […]

Footnotes: It Pays to Be Stupid; The IRS’ Latest Pain in the PTIN; The NASBA Sitch Escalates | 09.08.14

Investors expect lower rates for longer than Fed itself: Fed study [Reuters] The CEO of Hertz has stepped down, citing personal reasons It definitely didn't have anything to do with major accounting errors [Reuters] You Missed $1 Trillion Return Agreeing With Fed Naysayers Shill harder, why dontcha? "If you agreed with all the academics, billionaires […]

Footnotes: Who Saved the Economy; The IRS Needs a Good Geek; You Are Not Evil | 09.05.14

Portland's top accountant, Jane Kingston, says city retaliated against her, takes severance instead of suing [The Oregonian] He's been waiting for 20 years, FYI [Twitter] @NASBA I want the scores NOW! Not tomorrow. Not Monday. NOW!!! #releasethescoresalready — Big4Veteran (@Big4Veteran) September 5, 2014 A South Jersey accountant went a little too far to provide exceptional […]

Footnotes: Howe You Like that Corporate Tax Debate; Audit Sans Report; Snitches | 09.04.14

Students Who Exercise Regularly Have Higher GPAs Get off your ass [TaxProf] What's an accounting puzzle like Alibaba (really) worth? Where's a good accountant when you need one… [Fortune] Thank you for the clarification [Twitter] That's taxpayer snitches, not IRS ones RT @IRSnews: #IRS Commissioner Koskinen committed to the whistleblower program http://t.co/IAnKBYs04q — Joe Kristan […]

Footnotes: No Extra Bonus For You; Rates on the Rise; You and Your Do-Gooder Taxes | 09.03.14

Headline of the day goes to: IRS Shows Serious Meatspace Prejudice [Forbes] H&R Block Announces Fiscal 2015 First Quarter Results [MW] That seems an unfortunate photo choice [Facebook]   Post by California Board of Accountancy.   Ex-Goldman Trader Loses in Bid for $5 Million More in Bonus [Bloomberg] Fed's Fisher says gradual rate rises won't […]

Footnotes: Cantor Goes Investment Banker; Lease Accounting is a Ticking Time Bomb; Adding Up the Numbers | 09.02.14

What Can a House Majority Leader Do for a Bank? What exactly is that smarmy fox Eric Cantor up to, anyway? [Bloomberg View] Top 10 U.S. colleges for an accounting degree This is shilling, obvs [USA Today] A touching tribute to legend Debra Hopkins, CPA, CIA who tragically died in a car accident yesterday [Illinois […]

Footnotes: Accountant Murderer Gets Sentenced; Tax Avoidance; Let’s Not Labor | 08.29.14

Ed. note: we're cutting out early for the long weekend in case you didn't notice. As usual, we're lurking around, so give us a holla if you need anything. Otherwise, we'll meet you back here on Tuesday. Have a wonderful Labor Day, you laborious little capital market servants. ~AG Man sentenced for murder of West […]

Footnotes: Accounting for Intangibles; You Remind Me of Crazy Eddie; Deloitte Digital’s New Offering | 08.28.14

Accounting for brands: Untouchable intangibles Accountants seem content to live with such quantum weirdness. Brand values can “swing wildly”, says Alan Teixeira of the International Accounting Standards Board. Standard-setters worry that auditors would be quick to recognise rises but slow to acknowledge declines. Brands are unique, so it is hard to figure out what their […]

Footnotes: Deloitte Gets Permission From Deloitte; Dirty Accounting; Where Half of Experienced Hires Come From | 08.27.14

Deloitte can never be too careful [Twitter] @lifeatdeloitte we love this! @ reply with #IApprove if we can use it – you can read our terms at http://t.co/jgaCWo08If — Life at Deloitte (@lifeatdeloitte) August 27, 2014 SEC Adopts Asset-Backed Securities Reform Rules This matters to the people betting you'll default on your car loan [SEC] […]

Footnotes: Leopard Pants at the Office; Accounting Barbie; Bad Insider Trading | 08.26.14

Some advice on avoiding fashion faux pas [AICPA] SEC Charges Investor Relations Firm Executive With Insider Trading Ahead of News Announcements By Clients Fail: "An SEC investigation and ongoing forensic analysis of Lucarelli’s work computers uncovered that he repeatedly accessed clients’ draft press releases stored on his firm’s computer network prior to public announcements. The […]

Footnotes: HP to Sue Deloitte; Future King of Accounting Makes Plans; Very Bad Accountants | 08.25.14

This Irish lad has high hopes of striking it rich in accounting He might consider slumming it for PwC if he must: "My preferences are KPMG, Deloitte and Accenture," said Peter, who would also consider working for Ernst and Young and PricewaterhouseCoopers. [Irish Independent] HP is going to sue Deloitte over Autonomy Hewlett-Packard plans to […]

Footnotes: Kount the KPMG Hats!; GOP War Over Taxes; A Sandwich Held Hostage | 08.22.14

Kaption this. Great showing by #TeamPhil and @KPMG_US at @TheBarclaysGolf today. #LetsGoLefty! pic.twitter.com/njdLyP4uT1 — KPMG Mickelson (@MickelsonHat) August 22, 2014  You can't stop Roddy Boyd, you can only hope to contain him.  Just got a FOIA request denied by the SEC from ~2 months back citing 25 yr rule for investigations. Thats a new way […]

Footnotes: Deloitte’s Foot Fetish; The PCAOB’s Struggle; Getting Productive | 08.21.14

Regulators Struggle With Conflicts in Credit Ratings and Audits Floyd Norris uses air quotes: "Few businesses have more obvious conflicts of interest than those that involve the issuing of 'objective' and 'independent' reports and opinions about companies that pay for those reports and opinions." [NYT] Did you people not learn your lesson the first time? […]

Footnotes: H&R Block’s New Biz; PwC Likes Its Bad Clients; SEC Teed Off | 08.18.14

H&R Block launches small business accounting services [Kansas City Business Journal] McDonnell defense emphasizes his openness to accountant Former Virginia Gov. Bob McDonnell's lawyers called their first witness this morning as they opened their case. First up for the defense: Brenda Chamberlain, a Suffolk-based accountant who kept the books for the Sandbridge real estate company […]

Footnotes: PwC Gets Into the Law Business; The Bongs’ Great Idea; Post This | 08.14.14

Diversity of services key in changing accounting industry This will definitely end well [WCBJ] Atlanta accountant and three others charged with insider trading Four men were charged with insider trading, including an Atlanta accountant who allegedly learned of a pending takeover while giving tax advice to a member of the O’Charley’s restaurant chain’s board of […]

Footnotes: Portland’s Top Accountant Is MIA; Deloitte Feeling Ideal; PCAOB Ready to Name and Shame | 08.13.14

City of Portland's top accountant placed on administrative leave Why? Who knows. [Oregonian] Sam Antar isn't the only one who likes to mess with IRS scammers [Fox 4 DFW] Craft beer: Tastes great, fewer taxes Targeted tax breaks are a favorite tool for states looking to capitalize on a growing industry, and states from California […]

Footnotes: Surprise Accounting; Liar Liar; Booz Is Just Bitter at Deloitte | 08.12.14

White House loosens restrictions on lobbyists Wait, they had restrictions before? [Reuters] U.S. Government Bonds Pull Back on Looming Supply [WSJ] Proposed Accounting Change Could Catch Lenders Unprepared A proposed accounting change expected to force banks to boost the amount of reserves they hold against soured loans could catch many small and midsize lenders unprepared, […]

Footnotes: Dewey Get to See the Books?; EY Snags an Ex-Booz Hire; Benihana in This What? | 08.11.14

SEC Charges Kansas for Understating Municipal Bond Exposure to Unfunded Pension Liability [SEC] U.S. Postal Service posts $1.96 billion loss No thanks to Grant Thornton's attempt to help 'em out with some business [MW] How the hell does a single accountant owe over $400 million in taxes? The installment plan is $1000 a week [The […]

Footnotes: More Mergers You Don’t Care About; The Accountant Never Knows; Mad Pot Money | 08.08.14

SEC Charges Bahamas-Based Brokerage Firm and President With Facilitating Fraudulent Scheme by Hedge Fund Manager [SEC] Accounting firms merge to form Coosa Valley Financial Group More firms you have never heard of merging news [Rome News Tribune] Fannie Mae And Freddie Mac Pay $5.6B Dividends [Banker & Tradesman] Accountant denies knowing of alleged TelexFree fraud […]

Footnotes: Diversity or Bust; Chicago Bears Tax Bust; An IRS Win | 08.07.14

If the profession will not diversify itself, perhaps this diversity task force will [Journal of Accountancy] The Fed says one fourth of families are barely scraping by. So we should probably keep lending more dollars to banks at 0% to help them, amiright? [CBS] Jobless Claims in U.S. Have Dropped About as Much as They […]

Footnotes: A Robot Will Be Bitter Like You; Albany the Place to Be; Who Wants to Buy a Consulting Firm? | 08.06.14

Are our jobs doomed? Report shows the potentially devastating effects of robots on the job market One day, robots will make all your bitchy GC comments [Salon] Abolish the IRS! And then what? [Forbes] Accountant sentenced to 57 months in prison for mortgage fraud scheme A California accountant was sentenced Tuesday to 57 months in […]

Footnotes: Walgreens Doesn’t Want to Not Be Taxed; CVS and Smokes; H&R Block on Attracting | 08.05.14

Ed. note: Here's a short FN because we have been working all afternoon on sourcing details on the EY/Ventas thing for you guys. You're welcome. Reports: Walgreens won't tap lucrative tax loophole [USA Today] CVS Suffers After Quitting Cigarettes, But Pharamacy Saves The Day cough cough [Forbes] H&R Block Reaches out to Attract Accounting Firms […]

Footnotes: KPMG Gets Blowed; We Love Confetti Drops; The Future of Audit | 08.04.14

LinkedIn Pays $6M in Unpaid Wages, Damages Guess that isn't going on the ole profile, eh? [AP] Court Deals Blow to KPMG, Others Marketing Bond-Linked Tax Shelters Bond Linked Issue Premium Structure (BLIPS) investment products marketed by KPMG LLP and multiple other investment funds lacked economic substance, a federal court ruled, granting the IRS summary […]

Footnotes: Accountant Nearly Dies Due to Love Triangle; Deloitte’s Cyber Warfare; KPMG Shuns Windows 8 | 08.01.14

Argentine Bonds Decline as Default Triggers $1 Billion of Swaps [Bloomberg] 'Put one in his scotch egg': Cockney accused of conspiring to murder accountant uses rhyming slang to admit he suggested shooting victim in the leg Actually, he only meant to break the guy's legs [Daily Mail] Philly Fedhead Chuck Plosser thinks there's no reason […]

Footnotes: Robbing Pearl to Pay Yourself; School Rankings Are a Crock; Life After Accounting | 07.31.14

SEC Charges Virginia-Based Broker With Stealing Funds From Elderly Customers [SEC] It was an employee who blew the whistle on L-3 Communications' accounting misconduct [Reuters] What official rankings don’t tell you about where to go to university Prominent schools like Tulane’s Freeman School of Business in New Orleans and Emory University in Atlanta have been […]

Footnotes: Lerner’s Thoughts on Crazies; Mad Scientists or Auditors?; Bank of America Hustled Itself | 07.30.14

Fed offers a dual message on health of US economy They are harder to understand than your wife when she's upset [WaPo] Argentina is in "selective default," here's what that means [BBW] Emails show ex-IRS official Lerner using derogatory terms for Republicans Terms like "assholes" and "crazies" [Fox] Can you believe Greg gives away this […]

Footnotes: Interested in Interest Rates; Save the Ex-Im Bank; Deloite’s Trippy New Digs | 07.29.14

Don’t Kill the Export-Import Bank Note: this is an opinion piece [NYT] A Michigan CPA who stole from clients is off to prison for a few months [The Blade] Interest rate rise could cut global growth, says IMF "Markets may reassess growth prospects in emerging markets if there are renewed bouts of financial turbulence as […]

Footnotes: Confidence Not So Confident; The XBRL Robocop; CPA Grandpa Blocks Tax Refund | 07.28.14

Report: Finance and accounting employee confidence drops [Charlotte Business Journal] Here's what happens when your grandpa is a tax accountant and the state erroneously sends you a tax refund [Contra Costa Times] The SEC’s Accounting Quality Model and Your XBRL Filing "Robocop" LOL [FEI] After IRS scandal, GOP rejects tax crackdown [POLITICO] Question of the […]

Footnotes: Hashtag Fraud Hashtag Scam; Gene Simmons Is No Tax Expert; Congressional Wikipedia Trolling | 07.25.14

Ed. note: I dunno about you guys but I couldn't be happier this week is over. Thanks for helping out with some good tips this week, meet you right back here first thing Monday morning! Holla if you need us… Investor Alert: Social Media and Investing — Stock Rumors While social media can provide many […]

Footnotes: Xero’s Future Plans; Bosses From Hell; EY Looks to Grow | 07.24.14

SEC Announces Additional Charges in Football-Related Boiler Room Scheme [SEC] Xero is eyeing a U.S. IPO [AT] Inside The Complicated Mess Of Discrimination And Diversity In Hiring A spate of recent studies delivered some troubling findings related to how race, religion, sexual orientation, and even your name can determine whether you get that call for […]

Footnotes: CEOs Get Optimistic; Rich People Love New York; Life at Deloitte Is One Long Meeting | 07.23.14

CEOs are mostly optimistic about the future, says KPMG study [KPMG] Tale of the Tapes: IRS head confirms investigators have found backup tapes in Lerner probe IRS Commissioner John Koskinen, testifying before a House oversight subcommittee, stressed that he does not know "how they found them" or "whether there's anything on them or not." But […]

Footnotes: Herbalife Takes a Blow; NY Fed Deutsche Bags; Mishandled Meat | 07.22.14

Ackman fails to land Herbalife 'death blow' punch, shares surge Better luck next time, bro. [USA Today] The NY Fed has some concerns about Deutsche Bank [WSJ] Banks trade barbs with U.S. Senate panel in tax avoidance probe Deutsche Bank and Barclays on Tuesday locked horns with a U.S. Senate committee that has accused them […]

Footnotes: Not a Big Variance; Deloitte’s New iLab; An Intern’s Lament | 07.21.14

$340,000 accounting error is small 'variance,' Civil District Court clerk says Immaterial. [The Times-Picayune] Someone actually considered whether or not zombies have to pay taxes [ATL Redline] Deloitte looks to Atlanta to headquarter its new "iLab" [WABE] Former Sino-Forest CFO settles fraud case The former chief financial officer of Sino-Forest Corp. has agreed to pay […]

Footnotes: No Choice For Rules; More Tax Avoidance; A Sexless Spreadsheet Jockey | 07.17.14

Lawmakers urge SEC chair not to allow choice of accounting rules A bipartisan group of U.S. lawmakers is urging Securities and Exchange Commission Chair Mary Jo White not to allow companies to choose between U.S. and global accounting standards, a move they said could confuse investors and lead to legal challenges. [Reuters] The internet tax […]

Footnotes: EY Chairman Thinks of the Kids; Legislating Bitcoin; Your Mom’s Basement | 07.17.14

Big jump in number of millennials living with parents reported More Americans than ever live in multigenerational households, and the number of millennials who live with their parents is rising sharply, according to a study released Thursday. A record 57 million Americans, or 18.1% of the population, lived in multigenerational arrangements in 2012, according to […]

Footnotes: The Best Professor; Grant Thornton Gets Personal; When Price Waterhouse People Kill | 07.16.14

Have another glass of that delicious 'Aid [Twitter] “Everything about GT creates a personal, friendly environment.” http://t.co/xEZWmayIwY + 6 reasons our #intern Grace Harvey chose us — GrantThorntonCareers (@GTCareersUS) July 16, 2014 McDonnells hope accountant can testify there was no financial hardship Don't look at me, I didn't vote for him [WTVR] Sometimes lawyers forget […]

Footnotes: Deloitte’s Costly Negligence; CIA Tax Trouble; PwC Conflict-Free | 07.15.14

National debt will exceed entire annual US output by 2039, CBO projects [CSM] Singer Brian McKnight has settled with his former accountants [tJB] Madoff Sons Deleted E-Mails, Hindered Probe, Trustee Says In an amended complaint filed today in U.S. Bankruptcy Court in Manhattan, the trustee said he uncovered evidence that Andrew Madoff and Mark Madoff […]

Footnotes: Bogus Depreciation; IRS Has Just Given Up; When Crime Pays | 07.14.14

House Poised to Throw $276 Billion "Bonus" at Businesses Not everyone is happy with this bonus depreciation stuff [Center for Tax Justice] Hiring Forecast Has Good News for Accountants [AWeb] Americans for Tax Reform wants you to tell Congress not to tax Internet access [ATR] IRS Surrenders, Won't Check Whether Political Nonprofits Are Breaking The […]

Footnotes: Sun Valley Fun; PwC and Annie’s; Judge Wants Answers About Lois Lerner’s Hard Drive; | 07.11.14

UIC warns of possible data breach; business, accounting students at risk Some former University of Illinois Chicago students were warned last week of a breach that left personal information, including Social Security numbers, publicly accessible. A website security breach made two College of Business Administration documents from the 2002 spring semester accessible — a roster from a […]

Footnotes: SEC Bugs CFOs; Inclusion Solutions; The Cost of Compliance | 07.10.14

SEC’s ‘Dear CFO’ Letter on XBRL Calculation Requirements The U.S. Securities and Exchange Commission’s latest “Letter to Industry” – aka "Dear CFO Letter" – provides a not-so-gentle reminder that issuers must include required “calculation relationships” pertaining to eXtensible Business Reporting Language (XBRL) provided in their Form 10-Q quarterly reports. [FEI] So, this exists [Twitter] #AICPA […]

Footnotes: Independence or Lack Thereof; KPMG to Defend Again; WTF Is FICA IDK | 07.09.14

Danville accountant drowns on vacation in South Carolina [GDR] Parsippany memory-stick maker PNY accuses California accountant of fraud A suit filed by PNY in U.S. District Court in Newark claims that accounting firm Miller, Kaplan, Arase & Co. LLP falsely claimed that it could act as an "independent third party auditor" that was able to […]

Footnotes: The Last Crumb; Focus Turns to Madoff Son; GT’s Dynamic Growth | 07.08.14

You can buy "the last Crumbs cupcake" for $1000 [USA Today] Accountant's plea signals more possible scrutiny of Madoff son U.S. prosecutors may still be building a case against imprisoned swindler Bernard Madoff's only surviving son, who according to sources was one of the "co-conspirators" mentioned in a plea deal by a Madoff associate last […]

Footnotes: Another One Bites the Dust; Seinfeld and the IRS; KPMG Can’t Bank on It | 07.07.14

Lawrence Summers goes to bat for endangered Export-Import Bank [LA Times] The case of a really bad South Jersey accountant [AP] What Seinfeld taught us about the IRS [Forbes] Public Wi-Fi provider Gowex implodes as CEO takes responsibility for false accounting The Spanish Wi-Fi provider Gowex has filed for bankruptcy protection after admitting that it […]

Footnotes: Deloitte NOT In Sex Trafficking Business; An Insane 4th of July; Cheaters! | 07.03.14

Ed. note: we are cutting out early for the holiday because God forbid I sprain a pinky overexerting myself with a three day weekend ahead. We may poke our heads in tomorrow to see what's up but probably not. Any lonely souls in RVA are welcome to hit me up to check out fireworks from […]

Footnotes: Making Money Off Funny; Downward Facing Tax Trouble; Women Say Goldman Sucks | 07.02.14

How To Profit From Accounting Shenanigans — Legally Do you mean to say it's all a game, bro? "When it comes to quarterly results, too many companies try to game the system. They tell analysts what they expect to earn in the quarter, and then magically meet or exceed earnings per share ( EPS ) […]

Footnotes: Don’t Tax My Weed; Twitter’s New CFO; A Heinous Tax Fraud | 07.01.14

SEC Bars Firm From Auditing U.S.-Traded Companies Based in China The SEC said in an administrative proceeding that EFP Rotenberg LLP didn't adequately plan its audit of China's Universal Travel Group and didn't obtain enough evidence or show enough professional skepticism when it gave the company's financial statements a clean bill of health. [WSJ] Prosecutors […]

Footnotes: Putting the Report in Audit Reports; No Go, Ex-CEO; A Harvey Breakup | 06.30.14

American Apparel denies Charney's request for stockholder meeting The Los Angeles retailer said Monday that a shareholder meeting demanded last week by Charney to change the company's bylaws and expand the number of board members is intended to push his "own self-interest," according to a filing with the Securities and Exchange Commission. Over the weekend, […]

Footnotes: Americans Hate Overdraft; DOMA Need an Accountant?; FASB Gonna Werk | 06.26.14

Americans launch backlash over overdraft fees [MW] Ikea Raises Its Minimum Wage to $10.76* an Hour Assembly of dollar bills and quarters required [BBW] Same-Sex Couples Need a Good Accountant More Than Ever [Money] Munger’s Daily Journal Dismisses Accountant After Clash [Bloomberg] FASB Fills Hole in Stock Compensation Accounting Rules [AWeb] Where Did the Elites […]

Footnotes: EY Missed Some Bank Fraud; Greed Isn’t Good; KPMG Says ‘Take the Stairs’ | 06.25.14

SEC Announces Fraud Charges Against Three Former Regions Bank Executives in Accounting Scheme EY kinda missed that, oops. [SEC] Mary Jo White Says SEC Statement on IFRS Coming Soon Despite uncertainty regarding the agency’s next steps, U.S. Securities and Exchange Commission’s (“SEC”) Mary Jo White reaffirmed that International Financial Reporting Standards (IFRS) continue to be […]

Footnotes: Booz Allen Sues Deloitte; Your Taxes Must Rise; Defining Fraud | 06.24.14

Booz Allen sues Deloitte for stealing proprietary info to 'lift out' an entire team Two federal contracting heavyweights are embroiled in a lawsuit, with Booz Allen Hamilton Inc. accusing Deloitte Consulting LLP of using stolen proprietary information to recruit an entire team of employees and then target Booz Allen’s contracts and clients. [FedBiz via Washington […]

Footnotes: The Best Time for Ethics; Canada Goes CPA; Grover Norquist Thinks We’re Stupid | 06.23.14

New Evidence Shows Insider Trading Is ‘Pervasive’ and Rarely Punished Some people are not happy about this. [Fiscal Times] Morning people are less ethical at night And night people are less ethical in the morning, which means you shouldn't trust me until at least 1pm or so [HBR] The Worst Part Of The BNP Paribas […]

Footnotes: Deloitte Senior Manager Had a Sex Trafficking Business on the Side | 06.20.14

Successful Deloitte accountant led a double life as a sex trafficker tricking women into coming to Britain and working as prostitutes An accountant at one of Britain’s top firms led a double life as a sex trafficker. Privately educated Kunal Chaudhary, 32, was a senior manager at Deloitte in Manchester. Outwardly respectable, he was secretly […]

Footnotes: First Let Me Take Another #SelfEY; Bitcoin Bowl; When Auditors Don’t Audit | 06.19.14

Suit Is Dismissed Against Auditor of Chinese Coal Company In 2010, Puda Coal, a Chinese company traded on the New York Stock Exchange, raised $116 million from American investors in two public offerings. It presented audited financial statements showing that at the end of 2009 it had assets of $111 million and a net worth […]

Footnotes: Buy EY Digs for Just $1.5 Bil; Audit’s Job; That’s Not My Dong | 06.18.14

Scottsdale accountant seeks world’s worst businesses Perhaps for a reality TV show [Phoenix Business Journal] Two senators suggest we up the gas tax by 12 cents [AP] EY's home turf at 5 Times Square has a new owner [The Real Deal] Mystery solved: Deloitte chooses C. Fla. for IT operations hub [Orlando Business Journal] KPMG […]

Footnotes: The SEC’s Next Frontier; Madoff Accountant to Plead Guilty; Saving a Few Million | 06.16.14

Focus Financial is backing the new family office started by ex-Rothstein Kass long-timers after the KPMG acquisition [Financial Planning] SunTrust to pay nearly $1 billion for mortgage origination practices Actually, they set aside $1 billion for the settlement. The actual number was $968 million. [Reuters] The president of Argentina just called the United States extortionists […]

Footnotes: Auditing in Brazil; Save Cafe Garzone; Defending Inversion | 06.16.14

Due to circumstances (mostly) beyond our control, we're signing off early. Go watch some World Cup. God willing, we'll be back to full-speed tomorrow.    Someone has World Cup Fever so bad, he's wondering what life is like as an auditor in Brazil. [Open Items] Accounting Changes Proposed for State, City Retiree-Benefit Plans [WSJ] Hotel taxes aren’t […]

Footnotes: Slaves, Luck and Senators OH MY | 06.13.14

Unlucky Friday The 13th? U.S. Stocks End Up For The Day But Down For The Week [Forbes] Some senators are butthurt about the way the Pentagon does its accounting [Reuters] P.F. Chang's Confirms It's Another In Litany Of Credit Card Breaches [CRN] Twitter COO resignation a symptom of challenges The move fits into a pattern […]

Footnotes: Tighter Repos; New Deloitte Digs; Get Your Bitcoin | 06.12.14

Rule Makers Tighten Accounting for 'Repos' [WSJ] Deloitte is moving its Los Angeles office [LAT] The Salz making an impact [Twitter] Big thanks to #BarrySalzberg CEO of @Deloitte. For inspiring our after school students #IMPACTDay http://t.co/o3iD8NgXHx — ESS (@ESSofNYC) June 12, 2014 Size of pay raises often depends on industry [AP] Neighbors of the CPA […]

Footnotes: Pleading an 8th; The FBI Didn’t Even Look; Hacking Your Toilet | 06.11.14

Ex-Goldman director Gupta loses bid to stay out of prison [Reuters] Pot activists in Colorado don't think they should self-incriminate themselves by paying pot taxes [TIME] The managing partner at KPMG's Albuquerque office is stepping down [Albuquerque Journal] Confidence Games – How The Most Prestigious Accounting Firms Raided The Treasury Did you miss that period […]

Footnotes: Don’t Hate Your Job; Do You Look Diverse Enough?; To the Moon! | 06.10.14

Did you know you don't have to hate your job? [DealBook] Does Race or Gender Matter More to Your Paycheck? [HBR] A Connecticut accountant is accused of stealing more than $170,000 from the library she worked at [NBC Connecticut] Accounting firm prohibited from using late founders name The Arkansas State Board rejected the firm's request […]

Footnotes: Pleasing the PCAOB; Deloitte UK Adds a Couple Partners; Freaking Narcissists | 06.09.14

A British accountant who took a trip to Sri Lanka to climb Mount Everest is now stuck there [Telegraph] Congratulations to the 65 new partners out of Deloitte UK [economia] Yes, you can manipulate the narcissist in your life to be less of a self-centered jerk [The Atlantic] The Enron-Style Accounting That Deprives Americans Of […]

Footnotes: CFOs Get Shown the Money; CFA Exam Freak-outs; Overstock.com Creeping | 06.06.14

Companies Pay More to Keep Finance Executives [CFOJ] This Map Shows You The Fastest Way to Get Anywhere In Your City [Gizmodo] D-Day: Hove veteran disappears for Normandy trip Hundreds of veterans marked the 70th anniversary of the D-Day landings in France, with events on the beaches of Normandy. The landings were the first stage of the […]

Footnotes: Outlook Good; KPMG Broker Gets Raided; Dancing Hamster Fraud | 06.05.14

This Biglaw Summer Associate just told his firm to take this job and shove(l) it Cry baby says: "Sure it’s selfish and naïve to think I should not be judged, but I simply cannot be perfect for everyone for two minutes — let alone two months. I would rather be farming — so farewell." [ATL] […]

Footnotes: Pass the Fried Chicken; NQ Mobile Has a Good Day; PCAOB Mulling Over New Audit Standard | 06.04.14

Billy Walters: No wrongdoing with Phil Mickelson, Icahn "I can tell you one thing, there ain't going to be anything to come out of this other than someone spending a lot of time and a lot of money," Walters told USA TODAY Sports. "Because I certainly haven't violated any insider trading laws. [USA Today] U.S. […]

Footnotes: SEC Busts Bitcoin Guy; Missing Taxes; Tough Life for Ponzi Wife | 06.03.14

SEC Charges Bitcoin Entrepreneur With Offering Unregistered Securities An SEC investigation found that Erik T. Voorhees published prospectuses on the Internet and actively solicited investors to buy shares in SatoshiDICE and FeedZeBirds. But he failed to register the offerings with the SEC as required under the federal securities laws. Investors paid for their shares using […]

Five Things You Need to Know About New Revenue Recognition Rules

Knowing us, you can guess where we're going with this. We're not writing a how-to guide on the new revenue recognition rules, which brings us straight to our first thing you need to know: there are folks in the know available to walk you through it. #1: A transition resource group is here to help […]

Footnotes: Sending Accountants to Space; Brian Shaw Sentenced; A. Stalker, CPA | 06.02.14

This EYer is hoping to get sent to space In her video application, Johnson joked, “The reason I want to go on the mission to Mars is I find myself waking up every morning thinking there must be more to life and the reason for that is probably because I am an accountant. [economia] ESPN […]

Footnotes: Clippers Cap Gains; No Accounting for Student Loan Debt; Googling It | 05.30.14

A UC Berkeley administrator who previously stole from her employer stole from her employer [SF Gate] Fed's Policy Hawks Express Mix of Views on Timing of Rate Hikes To quote my 2nd favorite Fedhead: "There is a range of plausible lift-off dates, depending on how economic developments unfold" [WSJ] The Sterlings will owe about $662 […]

Footnotes: Speeches, Awards, and Beards OH MY | 05.29.14

Speech by Hans Hoogervorst: 'Charting progress towards global accounting standards' A highlight: "The new Revenue Standard replaces American standards that contain thousands of pages of application guidance and IFRS Standards that provide too little guidance. The fact that we managed to stay converged with our colleagues of the FASB is very important and we intend […]

Footnotes: Snapc$^t; The Crown Jewel of Global Standards; Jailhouse Accountants | 05.28.14

Snapchat CEO reveals in the douchiest way possible why you shouldn't use Snapchat [Valleywag] Did IRS illegally specially scrutinize “Israel-related organizations”? [Volokh Conspiracy via WaPo] Cynical people are more likely to experience dementia in their old age. So, basically, it's been nice knowing you. Who am I, again? [Philly.com] S.E.C. Vows More Use of a […]

Footnotes: Gimme a Raise; Tim Geithner Can’t Account; TMI SEC | 05.27.14

The country's top-paid CEOs will get a 400% pay raise this year, while you and the rest of the unwashed masses will be lucky to get 2.9% [MW] Geithner's Dubious Accounting Timothy Geithner claims in his new book, "Stress Test," a memoir of his years as U.S. Treasury Secretary during the financial crisis, that the […]

Memorial Day Weekend Footnotes: White Privilege; Defining Normal; Chickens and Vodka | 05.23.14

Ed. note: as you may or may not be aware, Monday is a holiday for most people, hopefully you as well. We'll be lurking around but don't expect to see us again until bright and early Tuesday. Open Items is open for business 24 hours a day, 7 days a week as usual should you […]

Footnotes: Learn Forever, Says Guy; Pentagon Counting; Hold Up, Non-Profits | 05.22.14

CPAs Must Embrace Lifelong Learning, says the CEO of the Illinois Society in this video [YouTube] Michigan is sending a couple million to Detroit [USA Today] Mikulski Uses Accounting Tricks to Close $4B Gap The maneuver by Barbara Mikulski, D-Md., allowed for additional funding for transportation and housing programs, increases in the IRS budget, and […]

Footnotes: Learning Ethics From Unethical Folks; Ads Ads Everywhere | 05.21.14

Fed Sees No Inflation Risk in Stimulus to Spur Job Market [Bloomberg] Google would serve ads in your toilet if it could [WSJ] If you use eBay, change your password [NYT] Guess who's gonna have an ethics webcast? [Compliance Week] Credit Suisse Investors Shrug Off Tax Plea [NYT] Researchers find the smell of rancid butter […]

Footnotes: Credit Suisse Credit Whatever; Issa Is Still a Pissa; Beware Math’s Agenda | 05.20.14

Credit Suisse CEO Thrilled To Hear Client Response To “We’ve Pleaded Guilty To Extensive Tax Fraud” Is “Yeah, And?” [Dealbreaker] Colin told LinkedIn the story about how he wanted to grow up to be an Andersen partner when he was 22 [LinkedIn] Internet companies monkey with accounting Internet companies are potentially misleading investors by tampering […]

Footnotes: The Credit Suisse Conspiracy; White Guys on Diversity; A History of Scandals | 05.19.14

Credit Suisse accused of criminal conspiracy U.S. authorities charged Credit Suisse with criminal conspiracy Monday, alleging the Swiss banking giant helped wealthy American clients evade U.S. taxes. A Virginia federal court filing in Alexandria accuses Credit Suisse of conspiring to in part "advise the preparation and presentation of false income tax returns and other documents […]

Footnotes: Unregistered Selling; Death Tax?; Being a Tool | 05.15.14

SEC Charges Unregistered Securities Salesman for Selling Millions of Dollars in Oil-and-Gas Investments [SEC] I'm honored Grover Norquist put me on his ATR mailing list for some reason. Today, he sent me this on the appropriately named Death Tax [ATR] Meanwhile, on Twitter [Twitter] A large number of Google shareholders seem to have a problem […]

Footnotes: Your Degree, Your Debt; Give Us a Break on Tax Breaks; Define “Anything” | 05.14.14

College grads in deeper debt than nongrads Breaking: student loans will bring you down [CNNMoney] Officials in Spain are raiding tax delinquents' safe deposit boxes and finding some odd things [AT] The Problem of Corporate Inversions: The Right and Wrong Approaches for Congress Citizens for Tax Justice totes has this one, guys [CTJ] Tim Geithner's […]

Footnotes: Pentagon Balks at an Audit; Re-policing Fannie and Freddie; Dodging the Tax Man | 05.13.14

Housing regulator signals shift in policy on Fannie, Freddie [WaPo] What's up with net neutrality? Glad you asked! [Reuters] Pentagon Backtracks on Goals for First Audit, GAO Says The Pentagon has backtracked from a pledge to have all budgetary accounts ready by Sept. 30 for the initial step toward its first-ever full financial audit. Then-Defense […]

Footnotes: The New Accounting; Deloitte Tops Diversity; Insider Trading For All | 05.12.14

Some hack at EY shares the secret for attracting and retaining top Millennial talent (spoiler alert: you've heard it all before) [Forbes] What can you learn from Tim Geithner's new book? [NYT] Neil Barofsky has some things to say about Geithner's book [LinkedIn] Re-imagining accounting and no, it’s not boring – part 1 What most […]

Footnotes: Politician to Take Bitcoin; New Use for Bad Vodka; Take a Trip With the Blue Hat | 05.09.14

Law firms to abolish accountant’s reports As part of its “wide-ranging programme of work to improve the regulation of solicitors and firms” and to cut costs, the SRA wants to end the requirements for accountants' reports on client accounts. The move could save smaller firms £800 annually, with the savings rising substantially for larger firms, […]

Footnotes: JEOPARDY!; When Take Me Doesn’t Mean Take Me; Goldman Sachs’ Clever New Bonds | 05.08.14

As One-Time Gains Fade, Fannie and Freddie Face a Less-Profitable Future "Bottom line, Fannie and Freddie are not inherently profitable operations in any conventional sense beyond the next couple of years," said Jim Vogel, a debt-market analyst at FTN Financial. [WSJ] Jeopardy-Style Game Show Helps Accounting Students [AWeb] The Fed thinks either banks are in […]

Footnotes: Dirty Monks; What’s Up With Alibaba?; Print Your Own Money | 05.07.14

Theft and sex alleged at Kentucky monastery The abbey has accused one of its lay employees, an accountant, of embezzling what could total tens of thousands of dollars or more from its mail-order business. He says he is being falsely accused after blowing the whistle on monks he said engaged in sexual affairs behind the […]

Footnotes: Morgan Stanley’s FINRA Fine; Tax the Rich, Say the Rich | 05.06.14

Prestigious schools get you paid but don’t make you happier Researchers found that attending a public or private school, whether it was elite or less selective, had little bearing on one’s feeling of well being or how engaged graduates were with their post-college work. Gallup defined well being based on measures of social, financial, and […]

Footnotes: Eff Securities Laws; Lawyer of the Year; Money v. Happiness | 05.05.14

Do the Securities Laws Matter? Since the Great Depression, U.S. securities regulation has been centered on mandatory disclosure: the various rules requiring issuers of securities to make publicly available certain information that regulators deem material to investors. But do the mandatory disclosure rules actually work? The stakes raised by this question are enormous, yet there […]

Footnotes: Audit Committees v Auditors; More EBITDA Magic; Stupid Startups | 05.02.14

Let's find out what Jim Doty has to say about Developments in the Relationships Between Audit Committees and Auditors [PCAOB] The House set to vote on Lois Lerner's contempt charge next week [AWeb] Nowadays, you can go public even if your numbers are shit. Just wave the magic EBITDA wand! I can somewhat understand the […]

Footnotes: LinkedIn Is Down; SEC Seeks Accounting Questions | 05.01.14

LinkedIn Swings to Loss on Expenses LinkedIn Corp. swung to a first-quarter loss on higher expenses but posted stronger-than-expected revenue and raised its top-line guidance for the year. The Mountain View, Calif., professional social network said revenue rose 46% to $473.2 million as sales increased to job recruiters and through premium subscriptions to individuals. Its […]

Footnotes: A Tale of Two TARPS; The Real Problem with Bank of America’s Accounting Problem | 04.30.14

Ed. note: forgive the brief FN, our highly-trained team of monkeys is working on a big story for you guys — stay tuned! U.S. Lost $11.2 Billion in GM Bailout, TARP Report Says [Bloomberg] Here is an interesting article about why Facebook blows [Deadspin] Treasury's Repo Men Take Back Tractors, Piles of Cash, and Other […]

Footnotes: Ctrl+P; KPMG Thinking About Pirates; LinkedIn Dating | 04.29.14

Deloitte wasted time and effort to find out lost/stolen mobile phones are packed with precious private data [siliconrepublic] KPMG says hackers are the new pirates [Port Technology] Office for iPad now allows you to print [InformationWeek] Push For Progressive Income Taxes Picks Up In The Blue States [Forbes] ERMAGERD CONFERENCE ROOM SELFIES Y'ALL! [Twitter] Hi […]

Footnotes: The New Normal; DeVry’s Future Plans; BofA Bounces Its Own Fed Check | 04.28.14

Here are 10 things that used to be normal before we all had smartphones that don't happen now [App360] DeVry has plans for a new income stream: ex NFL players [BBW] Bank of America's big math error The Federal Reserve required BofA (BAC, Fortune 500)on Monday to ditch its plans to return cash to shareholders […]

Footnotes: Scott London’s Lighter Pockets; Ex-Bank of America CFO Settles; A Zombie Social Network | 04.24.14

Jim Ulvog's latest on l'affaire London An extremely vague, hard to understand comment in the CNBC report yesterday, yes, the one wherein the camera operator ran the camera lens into the side of Mr. London’s face, indicated KPMG had taken some financial action against Mr. London. The article cited Mr. London’s attorney as saying that […]

Footnotes: Never Settle Unless You Should; Trends are Trendy; The Scott London Roundup | 04.24.14

Exclusive: Apple, Google agree to pay over $300 million to settle conspiracy lawsuit Four major tech companies including Apple and Google have agreed to pay a total of $324 million to settle a lawsuit accusing them of conspiring to hold down salaries in Silicon Valley, sources familiar with the deal said, just weeks before a […]

Footnotes: Facebook CFO Out; A Troll Looking to Expand Trolling to Hedge Fund | 04.23.14

Facebook Beats Earnings Estimates; CFO Steps Down [FOXBusiness] Colorado is still trying to figure out how to spend those pot taxes [CBS] Amazon.com is learning the hard way that people care more about price than brand loyalty In states where Amazon, the largest online retailer, has been forced to begin charging sales tax, households decreased […]

Footnotes: PwC Hugs Trees; Florida Man Hits New Low; Student Debt and You | 04.22.14

US student debt isn’t as scary as everyone says Exclude lawyers, they're screwed. [Quartz] Remember that time PwC redid all their marketing materials and likely tossed all the old stuff away? Me neither. [Twitter] Have you hugged a tree today? We've committed 2,748 volunteer hours to plant 2,316 trees. #Trees4Threes #EarthDay pic.twitter.com/ZfgsrIOvuA — PwC LLP […]

Footnotes: Another Thieving Accountant; Weed Money!; Fraud in 140 Characters or Less | 04.21.14

Ford seeks CEO [Bloomberg] Accountant resigns amid ExpoPark investigation A Montana ExpoPark accountant who was put on paid administrative leave around the time Cascade County began a "complex financial investigation" into the facility has resigned. The investigation into the county owned sports and entertainment facility has been underway since March, but Friday was the first […]

Footnotes: I Love This Tax Warrant; No IPO; Your New Favorite Notebook | 04.17.14

Convicted insider trader Danny Kuo really wants to make his MBA graduation, which happens to be the same day as his sentencing for insider trading (oops) [Businessweek] Virtu Financial is shelving its IPO plans for now. Because HFT drama, not because they are bad at accounting [DealBook] Are typos racist? [ATLRedline] Toby Keith's I Love […]

Footnotes: Guy With IRS Agent Fantasy Returns; Airbnb Now, Tax Later; Dick Speaks | 04.16.14

NY AG subpoenas high-frequency traders: Source [CNBC] JDA's favorite Fedhead says Texas is in need of skilled workers “We are seeing shortages of labor” for jobs in technology, engineering, auditing and among truck drivers, Fisher said in a speech in Austin. “We are seeing a skills mismatch around the country,” he said. Both U.S. schools […]

Footnotes: Did You Hear Today is Tax Day? | 04.15.14

(Satire warning): PETA Blames Accounting Industry for Cruel Treatment of Baby Cows “Something needed to be done to unveil the truly horrific practices that go unnoticed to people who are bad with numbers and avoid the accounting world altogether”, says Paul Greensworth. Paul pioneered the accounting industry segment of PETA after witnessing a calf stewing […]

Footnotes: TurboTax Loves You; Audit Group Requests “Name and Shame”; Rich People Feeling Stunned | 04.14.14

TurboTax Conspiring To Keep You Hooked On TurboTax Tomorrow is the last day you can pay $30 to have a stock image of a guy in a blazer tell you how much money you owe the federal and state governments. If you haven't already used TurboTax, you might want to reconsider, given that their parent […]