My brief blogging break is over

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sunset over San Diego, 10/9/15, photo by James Ulvog.
Sunset over San Diego, 10/9/15, photo by James Ulvog.

I have not been posting much lately, as you likely noticed.

Took a week of vacation for our fourth visit to North Dakota. Worked a week in the office on several deadlines. Then took another week of vacation in San Diego. Considering the time it takes to get ready for vacation, I have not had much time for blogging for about four weeks now.

San Diego skyline from Coronado landing, 10-4-15, out-of-focus photo by James Ulvog.
San Diego skyline from Coronado landing, 10/4/15, out-of-focus photo by James Ulvog.

In addition, I’ve been on a fairly stringent news diet for three weeks. Not a fast, just a diet. That has also been quite refreshing. I am still quite aware the world is falling apart even through I don’t know much of the current details.

I’m back in the office now so can get back into my routine. Plan to resume blogging at my regular pace.

So, stay tuned!

My brief blogging break is over Read More »

The Feds will go after those horrible terrible bankers on Wall Street now that the statute of limitations has expired.

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Image courtesy of DollarPhotoClub.com
Image courtesy of DollarPhotoClub.com

A bit of news about companies in the financial world that have long been called too-big-to-fail, or too-big-to-jail.

The New York Times reports a new position paper from the Department of Justice encourages federal prosecutors to go after individual employees as well as companies when there is criminal wrongdoing.

Reporting is at Justice Department Sets Sites on Wall Street Executives. The technical shift is to focus on individuals who engage in the suspected behavior as well as the company under investigation instead of focusing first on the company, settling with the corporate entity, and then considering whether any individuals were involved.

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The Feds will go after those horrible terrible bankers on Wall Street now that the statute of limitations has expired.Read More »

The Feds will go after those horrible terrible bankers on Wall Street now that the statute of limitations has expired. Read More »

Another massive bank fiasco involving the full cast of TBTF banks, this time for Credit Default Swaps. Where is the boundary of fiascos?

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Image courtesy of DollarPhotoClub.com
Image courtesy of DollarPhotoClub.com

I’m a bit slow on the uptake sometime. There is an entirely new, huge banking mess that I hadn’t heard about before the billion dollar settlement was announced. Another small fiasco is rumored.

Another day, another couple billion out of the stockholders’ pocket.

First the nearly $2B private settlement.

Twelve banks agreed to settle a private antitrust lawsuit. The now-admitted scheme was to manipulate credit default swap rates. Those are deals to cover the loss if a bond defaults.

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Another massive bank fiasco involving the full cast of TBTF banks, this time for Credit Default Swaps. Where is the boundary of fiascos?Read More »

Another massive bank fiasco involving the full cast of TBTF banks, this time for Credit Default Swaps. Where is the boundary of fiascos? Read More »

A few more labor law issues to keep your eyes on

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Image courtesy of DollarPhotoClub.com
Image courtesy of DollarPhotoClub.com

Here are a few changes in labor law likely in the near future and a couple more on the distant horizon.

Nearest are proposals to make more people subject to overtime pay and classify more people as employees instead of independent contractor.

You can find more info from Accounting Today:  Labor Department Driving Changes Accountants Need to Know About. (Cross-posted from my other blog Nonprofit Update.)

Overtime

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A few more labor law issues to keep your eyes onRead More »

A few more labor law issues to keep your eyes on Read More »

Uncle Arthur’s name rises from the dust. Again.

Leave a Comment / Accounting, Audits /
Burning phoenix image courtesy of DollarPhotoClub.com
Burning phoenix image courtesy of DollarPhotoClub.com

A group of CPAs in France believe there is so much value in the Andersen brand that they have formed a new consulting firm which claims worldwide rights to the name.

The firm will launch in 2016. They will do consulting but no audit or tax work.

Here are their two registered names, according to their website, www.arthurandersen.international: …

Uncle Arthur’s name rises from the dust. Again.Read More »

Uncle Arthur’s name rises from the dust. Again. Read More »

Current estimate of Toshiba book-cooking is at $1.9B, surpassing Olympus

1 Comment / Fraud /
Cleaning up the numbers. Image courtesy of DollarPhotoClub.com
Cleaning up the numbers. Image courtesy of DollarPhotoClub.com

After delaying their earnings announcement a while, Toshiba announced a ¥224.8B pretax write-down for accounting irregularities which hits net income for ¥155.2B.

That would be US$1.87B pretax and US$1.29B after-tax. Even if those amounts don’t increase that means Toshiba has out Olympused Olympus at $1.7B.

The now-admitted fraud ran for seven years, not the six previously mentioned.

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Current estimate of Toshiba book-cooking is at $1.9B, surpassing OlympusRead More »

Current estimate of Toshiba book-cooking is at $1.9B, surpassing Olympus Read More »

The view inside a Deferred Prosecution Agreement is not pretty. Selling airplane parts to Iran edition.

Leave a Comment / Audits, Fraud, Other stuff /
Fokker Dr.1 Dreidecker. produced by Fokker Services BV parent early in 1900s. Image courtesy of DollarPhotoClub.com
Fokker Dr.1 Dreidecker. Produced in early 1900s by Fokker Services BV’s parent. Image courtesy of DollarPhotoClub.com

I’ve taken a look inside one of the hundreds of Deferred Prosecution Agreements that the current Department of Justice has negotiated with corporate felons. It is not a pretty sight.

The value for me in looking at this particular DPA is the admitted criminal behavior is on a small enough scale that I can actually wrap my little brain around the situation.

This particular DPA has been denied by a federal judge instead of getting his automatic rubber stamp approval. The DoJ and now-confessed felon both appealed. The case will soon be heard on appeal. There are ripple effects if the judge’s denial is ratified at appeal.

There is an old saying you should never look at how sausage or legislation is made. Reason is the details can turn your stomach.

Here is what I’ve learned of this particular sausage making effort:

8/8, print edition – Wall Street Journal – Corporate Prosecution Deals Headed for a Legal Test / Justice Department worries judges may gain sway over agency’s pacts with firms under criminal investigation

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The view inside a Deferred Prosecution Agreement is not pretty. Selling airplane parts to Iran edition.Read More »

The view inside a Deferred Prosecution Agreement is not pretty. Selling airplane parts to Iran edition. Read More »

The downside of government services. Postal delivery slowing. Hyperinflation.

Leave a Comment / Economics, Other stuff /
image courtesy of DollarPhotoClub.com
Image courtesy of DollarPhotoClub.com

Mail delivery slowing down in the U.S.

Inflation accelerating in Venezuela.

Slowing mail delivery is not just in your imagination….

8/26 – Washington Post – Post Office can’t even meet its own lower standards as late mail soars – The Post Office reduced its goals for delivery time on first class mail. Now an internal report shows a 50% jump in late delivery during 2015 even with the more lax standard. …

The downside of government services. Postal delivery slowing. Hyperinflation.Read More »

The downside of government services. Postal delivery slowing. Hyperinflation. Read More »

Updates on banking fiascos – 8/31

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Image courtesy of DollarPhotoClub.com
Image courtesy of DollarPhotoClub.com

Here are a few updates I’ve noticed about the banking fiascos:

8/17 – CFO Journal at Wall Street Journal – Biggest Banks’ Crisis-Era Settlements Petering Out: Report – Study by SNL Financial says payouts related to the financial crisis by the six largest US bank accumulate to $132B. More settlements are expected, but the number and dollar amount of settlements is slowing down.

Reserves for additional settlements are $5.9B at Goldman Sachs and $1.4B at Wells. The other four didn’t respond to the reporter about the dollars they have in reserves.

 

8/30 – Wall Street Journal – Meet the Private Watchdogs Who Police Financial Institutions – Article gives background on private sector monitors put in place to check on changes made to comply with deferred prosecution agreements.

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Updates on banking fiascos – 8/31Read More »

Updates on banking fiascos – 8/31 Read More »

Unintended consequences of anti-money laundering enforcement

1 Comment / Pondering /
Image courtesy of DollarPhotoClub.com.
Image courtesy of DollarPhotoClub.com.

One of the general rules of life seems to be that when one person does something really bad, the larger group pays the penalty.

You remember the drill – one person in the school classroom misbehaves on the playground and the whole class looses recess.

Or one of your coworkers breaks etiquette of the office and there is a new restrictive rule that inconveniences everyone. One person pushes the boundary on expense reimbursement and everyone gets new reporting requirements.

Well, same thing is emerging with the tremendous effort against money laundering.

Check out Account Closed: How Bank ‘De-Risking’ Hurts Legitimate Customers / In their hunt for money launderers, regulators are forcing banks to shut down branches and reject business At the Wall Street Journal on August 13.

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Unintended consequences of anti-money laundering enforcementRead More »

Unintended consequences of anti-money laundering enforcement Read More »

AICPA Webcast on SSARS 21 implementation

Leave a Comment / Compilations & reviews /

An upcoming webcast will address SSARS No. 21 Implementation Strategies.

The two-hour class will be offered by the AICPA multiple times this fall. Check your schedule for

  • September 15
  • October 20

As mentioned in the AICPA’s promo piece linked above, here are just a few of the topics that will be discussed: …

AICPA Webcast on SSARS 21 implementationRead More »

AICPA Webcast on SSARS 21 implementation Read More »

Scott London is officially out of custody

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tragedy-cover

On July 23, 2015, Scott London was officially released from federal custody after serving his prison term for insider trading.

Does it seem like a long time since you read of him being sentenced? Well, that’s what 14 month in prison looks like. How much of your life have you enjoyed since he went away?

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Scott London is officially out of custodyRead More »

Scott London is officially out of custody Read More »

Time to start paying attention to the Toshiba accounting scandal

1 Comment / Fraud /
Picture courtesy of DollarPhotoClub.com
Picture courtesy of DollarPhotoClub.com

Yeah, yeah, I’m late to the party.  Since this has been in the news for a few months, I am a bit tardy talking about the issue. On the other hand, yet another round of billion-dollar book-cooking in Japan doesn’t have a lot of impact on accounting firms that only work in the US.

So what’s going on?

Apparently Toshiba has around a dozen different schemes to inflate profits. Make that two dozen. Make that two dozen and counting. Amounts involved are reported to be half a billion dollars, one billion, or three billion. Take your pick.

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Time to start paying attention to the Toshiba accounting scandalRead More »

Time to start paying attention to the Toshiba accounting scandal Read More »

Frequently asked questions about SSARS 21

Leave a Comment / Compilations & reviews /

For a limited time, the AICPA’s Center for Plain English Accounting is making three of their reports available for free. You can find them here.

Of particular note is SSARS No. 21: Frequently Asked Questions and Answers. There are 22 Q&A that can help you get oriented on a new way to do reviews, comps, and preparation engagements. Also provides good implementation ideas.

Might want to check it out quickly and archive a copy since there is no comment on how long these items will be made available on a complimentary basis.

Looks like the CPEA has some good resources. Seems like a good idea to have their voice inside the AICPA world. However, at an annual membership cost of $795 for a firm with five or less professionals, I won’t be joining anytime soon.

Frequently asked questions about SSARS 21 Read More »