Comments on: New Century faces criminal probe http://polizeros.com/2007/05/04/new-century-faces-criminal-probe/ Musings on politics: anti-war, global warming, peak oil and otherwise Thu, 08 Jan 2009 13:59:04 +0000 http://wordpress.org/?v=2.7 hourly 1 By: John Wright http://polizeros.com/2007/05/04/new-century-faces-criminal-probe/comment-page-1/#comment-137333 John Wright Tue, 15 May 2007 01:04:36 +0000 http://polizeros.com/2007/05/04/new-century-faces-criminal-probe/#comment-137333 The comment by Gus as it relates to KPMG may be on target. Enron's public accountants didn't escape thw wrath of SEC etc although a later analysis attempted to clear them of error, omission or downright skullduggery. I for one do not see how an error or omission of the magnitude currently being discussed went unnoticed by anyone. The comment by Gus as it relates to KPMG may be on target. Enron’s public accountants didn’t escape thw wrath of SEC etc although a later analysis attempted to clear them of error, omission or downright skullduggery. I for one do not see how an error or omission of the magnitude currently being discussed went unnoticed by anyone.

]]> By: Joe Hartley http://polizeros.com/2007/05/04/new-century-faces-criminal-probe/comment-page-1/#comment-134662 Joe Hartley Sat, 05 May 2007 04:07:23 +0000 http://polizeros.com/2007/05/04/new-century-faces-criminal-probe/#comment-134662 After the Arthur Anderson indictments, EVERY auditor is scared! After the Arthur Anderson indictments, EVERY auditor is scared!

]]> By: DJ http://polizeros.com/2007/05/04/new-century-faces-criminal-probe/comment-page-1/#comment-134542 DJ Fri, 04 May 2007 14:46:36 +0000 http://polizeros.com/2007/05/04/new-century-faces-criminal-probe/#comment-134542 Actually the MSU method of accounting is perfectly acceptable, as long as it is "well documented, with clear explanations of the supporting analyses and rationale.” In my understanding, there is (and could be) no method of accurately stating future losses-- that would be predicting the future-- so accounting relies on estimates, which are by definition educated guesses (some more educated than others). That's one thing that makes accounting fun! I have not done future loss estimates, except in the classroom, but in choosing a tax position, you try to get one that's to your best advantage, while still in the ballpark of what is "acceptable." It's when you screw up and find yourself out in the parking lot alone (and without your auditor) that you're in trouble. Incidentally, don't you wonder why KPMG is just quitting now, when New Century probably has been using the same estmate method for some years? I guess they were fully on board while the fat cats were making money. Now that the ship is sinking, they're rethinking their position? Actually the MSU method of accounting is perfectly acceptable, as long as it is “well documented, with clear explanations of the supporting analyses and rationale.” In my understanding, there is (and could be) no method of accurately stating future losses– that would be predicting the future– so accounting relies on estimates, which are by definition educated guesses (some more educated than others). That’s one thing that makes accounting fun!

I have not done future loss estimates, except in the classroom, but in choosing a tax position, you try to get one that’s to your best advantage, while still in the ballpark of what is “acceptable.” It’s when you screw up and find yourself out in the parking lot alone (and without your auditor) that you’re in trouble.

Incidentally, don’t you wonder why KPMG is just quitting now, when New Century probably has been using the same estmate method for some years? I guess they were fully on board while the fat cats were making money. Now that the ship is sinking, they’re rethinking their position?

]]> By: Gus Abraham http://polizeros.com/2007/05/04/new-century-faces-criminal-probe/comment-page-1/#comment-134541 Gus Abraham Fri, 04 May 2007 14:35:52 +0000 http://polizeros.com/2007/05/04/new-century-faces-criminal-probe/#comment-134541 Remember the hanging chads? There was lots of superior sniggering about it at the time this side of the pond as you might imagine. Looks like our own chads are hanging right now: http://1820.org.uk Couldnt be anything to do with the masisve rise in popularity of the Scottish National Party could it? Its not over yet: 31 seats still to be announced: http://news.bbc.co.uk/1/shared/vote2007/scottish_parliment/html/region_99999.stm Remember the hanging chads? There was lots of superior sniggering about it at the time this side of the pond as you might imagine.

Looks like our own chads are hanging right now: http://1820.org.uk

Couldnt be anything to do with the masisve rise in popularity of the Scottish National Party could it? Its not over yet: 31 seats still to be announced:
http://news.bbc.co.uk/1/shared/vote2007/scottish_parliment/html/region_99999.stm

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