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Accounting News Roundup: Gwen Jorgensen Doing Okay in Her Post-EY Career; 2nd Circuit Rules for KPMG in Overtime Suit; Big 4 Partner Pay in the UK | 07.23.14

Changing Old Antitrust Thinking for a New Gilded Age [DealBook]
Banking, cable television, tobacco, are finally starting to fit in with the accounting profession: "These companies are not monopolies in the trustbusting sense, but many big industries in the United States are becoming dominated by just a select few. Because these combinations may not reduce competition in the near term, they are likely to pass muster under antitrust laws originally passed to address the Gilded Age trusts. Under those rules, refined and amended over the past century, companies may merge so long as the combination would not substantially lessen competition."

IRS agrees to monitor churches for electioneering [WaPo]
It remains to be seen how the IRS will manage to screw this up: "The Internal Revenue Service said it will monitor churches and other houses of worship for electioneering in a settlement reached with an atheist group. The settlement was reached Friday (July 18) in federal court in Madison, Wis., where the initial lawsuit was filed in 2012 by the Freedom from Religion Foundation, a Wisconsin-based atheist advocacy group that claims 20,000 members nationwide. "

Gwen Jorgensen: From Accountant to No. 1 Triathlete [WSJ]
If you like following the comings and goings of Gwen Jorgensen, the EY accountant-turned-athlete, she just might be the best athlete in the country: "
Today, no athlete in America is hotter than Jorgensen. She has won four consecutive World Triathlon Series races this season—something no other female has ever done—making her the top-ranked woman triathlete on the planet. Instead of Ernst & Young, her income now derives from race purses as well as sponsors such as Specialized, Asics and Red Bull."

FASB Mulling a Revamped Income Statement [CFO]
Don't worry, the hamsters have just jumped on their wheels: "
FASB staff members are currently researching the question of what changes would be useful for investors and how preparers would go about gathering and organizing the new information. Further, they will look into what such changes could cost companies. Once that research is done, the board will evaluate whether to propose revisions to the income statement."

KPMG Beats Auditors' OT Claims In 2nd Circ. [Law360]
A big ruling in Pippins v. KPMG: "
The Second Circuit ruled Tuesday that despite their entry-level positions, KPMG LLP audit associates have a level of specialized knowledge and professional discretion that makes them exempt from federal overtime requirements. Denying a bid from former KPMG audit associates to revive a putative wage class action, a three-judge panel at the Second Circuit said the workers fell within the scope of an exemption for 'learned professionals' under the Fair Labor Standards Act."

270 Big Four partners earn more than 1m [Economia] 
Meanwhile, across the pond: "
A new report, published today by the think tank High Pay Centre, estimates around 270 partners across the Big Four are earning over £1m per year, while average earnings for all partners exceeds £700,000. The UK senior partners at PwC, Deloitte and KPMG were paid £3.6m, £2.7m and £2.4m respectively last year. EY has not disclosed its partners pay details. Average profit share per partner in 2013 was well over £700,000, twice as much as the firms’ nearest rivals, the report said. Profit distribution in the Big Four has not, unlike in the magic circle law firms, breached £1m."

Chamber spending tops $40M as election nears [The Hill]
Much more effective than some of the statements they put out.

SEC Charges Investor Relations Executive With Insider Trading While Preparing Clients’ Press Releases [SEC]
Not smart, guy: "
The SEC alleges that Kevin McGrath sold his shares in Misonix Inc. upon learning that the company was set to announce disappointing financial results.  The SEC further alleges that McGrath bought stock in Clean Diesel Technologies Inc. when he learned about the company’s impending announcement of positive news, and he profited when its stock price nearly doubled.  McGrath’s illicit profits and avoided losses from insider trading in both companies totaled $11,776."

 

Posted in ANR