May 07
Salesforce.com.com (NYSE: CRM) reported its yearly earnings in February. As a publicly traded company, Salesforce.com is required to issue annual financial reports in accordance with Generally Accepted Accounting Principles, or “GAAP”. While Salesforce.com presents GAAP-based earnings in its SEC filings, its management touts a different metric as the preferred method of measuring the company’s performance. …
Permanent link to this article: http://betweenthenumbers.net/2012/05/between-the-numbers-of-salesforce-com/
May 05
The US has charged over 100 individuals in the largest Medicare fraud crackdown to date. The falsely submitted billings total over $450 million, approximately $60 million of which had been paid out. The number of doctors, nurses, social workers and various other support personnel involved in this sweep demonstrates the pervasive nature of the fraud …
Permanent link to this article: http://betweenthenumbers.net/2012/05/recent-crackdown-demonstrates-the-magnitude-of-medicare-fraud/
Apr 26
In T.C. Memo 2012-115 (April 19, 2012), a taxpayer won a notable tax case involving the hobby loss rules. The Tax Court framed the issue as follows: We must decide whether petitioner’s documentary film production activity was a trade or business or a labor of love. Respondent asserts that Smile ‘Til It Hurts was the …
Permanent link to this article: http://betweenthenumbers.net/2012/04/filmmaker-wins-key-victory-in-deducting-losses/
Apr 24
A Manhattan Judge dismissed a lawsuit brought by Howard Stern again Sirius XM Radio Inc. The lawsuit centered around Stern’s claim that the company owed him stock awards for helping Sirius achieve specific subscriber counts. Stern claims he was owed $300 million and his agent, Don Buchwald, an additional $30 million in stock. Stern’s original …
Permanent link to this article: http://betweenthenumbers.net/2012/04/specific-language-is-important-in-agreements/
Apr 23
Rita Crundwell, longtime comptroller of Dixon, Illinois, is alleged to have defrauded the city of over $3 million in the last few months and misappropriated $30 million over the last six years. The town of Dixon is small, with a population of under 16,000. Crundwell lived a luxurious lifestyle that exceeded her $80,000 annual income. …
Permanent link to this article: http://betweenthenumbers.net/2012/04/over-30-million-allegedly-misappropriated-from-city-funds/
Apr 17
There has been a great deal of discussion regarding the approximately $800,000 spent on a lavish 2010 Las Vegas conference hosted by the General Services Administration (GSA). The GSA handles government real estate and other non-military procurement. Susan Brita, a GSA deputy administrator, was the whistleblower who first raised the issue, which has since …
Permanent link to this article: http://betweenthenumbers.net/2012/04/gsa-whistleblower-testifies-regarding-government-waste/
Mar 30
Whether we like it or not, all business have to deal with outside third-party vendors. Many business professionals understand the risks in dealing with vendors, but do not really have the processes in place to mitigate this risk. Managing vendor relationships is key to a business’ long-term success. As business is becoming more global, the …
Permanent link to this article: http://betweenthenumbers.net/2012/03/how-to-manage-vendor-risks/
Mar 20
Once a Ponzi scheme is uncovered, most investors find that they have lost their money. However, there are also usually some “winners”, ie those that benefited from the scheme by removing both their initial investment and (usually high) returns prior to the scheme’s collapse. The Court in the Madoff case previously confirmed that the determination …
Permanent link to this article: http://betweenthenumbers.net/2012/03/mets-owners-insist-on-being-treated-like-losers-as-part-of-their-madoff-settlement/
Mar 15
The “Big Four” accounting and audit firms are spending more than they have since 2002 (the year they lost one of their own in the Enron debacle) on lobbying the US government. According to a Reuters analysis of congressional disclosure reports, the four accounting powerhouses spent a combined $9.4 million last year on in-house and outside …
Permanent link to this article: http://betweenthenumbers.net/2012/03/big-four-attempt-to-increase-their-influence/
Mar 14
On February 16, 2012, in Cast Art Industries, LLC v. KPMG LLP (A-51/52-10) (066891), the New Jersey Supreme Court unanimously reversed an Appellate Court decision that had upheld liability against KPMG failing to uncover accounting fraud involving an acquisition by Cast Art Industries of KPMG client Papel. The decision upheld the privity requirements of New …
Permanent link to this article: http://betweenthenumbers.net/2012/03/nj-supreme-court-case-requires-privity-of-contract-in-accounting-malpractice-suits/
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