WASHINGTON - Google's Chairman Eric Schmidt plans to sell 3.2 million
"A" shares, currently worth $2.5 billion, over the next year, Google
said Friday in a filing with the Securities and Exchange Commission.
The sale amounts to 42 percent of Schmidt's 7.6 million Class A and
Class B shares in the company, a 2.3 percent stake in the company, but
8.2 percent of voting power.
The sale is part of a pre-arranged trading plan for Schmidt's
"long-term strategy for individual asset diversification and liquidity,"
according to the filing.
"Using this trading plan, Eric can diversify his investment portfolio
and can spread stock trades out over a period of one year to reduce
market impact."
Google's share price climbed 1.5 percent Friday to a new all-time
record of $785.37, putting the value of the shares Schmidt will sell at
$2.51 billion.
In its September 2012 billionaires list -- when Google shares crossed
the $700 line for the first time -- Forbes ranked Schmidt 138th in the
world, with his fortune worth $7.5 billion.
Saturday, 9 February 2013
1 Critical Marketing Rule Steve Jobs and Marc Benioff Taught Us, and Google Helps Us Apply for Free
Divert a river, don’t dig a well.
Simple.
Find existing need, tap into it, shape it. Don’t try and create need.
Now to really divert a river, you shape need. Steve Jobs was a master at diverting a river, shaping need… anticipating the future. He used innovation and human ingenuity.
Look at his iPod.
Everyone loves music. That’s the river. Sony built the Walkman for portable listening, first on cassette, then CD. They dug a well. MP3 players were around, but not exciting, no ‘sizzle’. Too hard to dig a well. It took some innovation… flash memory, simple interface, iTunes, deals with record labels, Bono and U2, and finally, The Beatles.
Steve Jobs diverted a river, he didn’t dig a well.
Look at his iPad, and the iPhone. They are relegating desktop computers to a support device. They diverted the river around them. Steve saw portable and mobile devices as bigger than the Internet. He was right.
I’ve heard more people have a mobile device around the world than a toothbrush. Really?
We learned this ‘divert a river’ rule again when we invested in the domain name for our company, InsideSales.com, in late 2004.
Why was this so powerful?
If you go to Google and type in the phrase ‘inside sales’, you see 277,000,000 results. Tens of thousands of companies hiring inside sales people. And we appear first, and second, and third. Then Wikipedia shows up. Then something about us appears fifth, sixth, seventh, eighth, ninth, tenth…
Ok, so what?
Now go to the Google Keyword Tool and type in the keyword ‘inside sales.’
It is searched 60,500 times a month globally, 40,500 times monthly locally. That is over 60,000 searches with 9 ads appearing for our business every month. What would that cost? To us, it’s free.
Divert a river, don’t dig a well.
My grandfather, William E. (Bill) Baker, was over the water department in St. George, Utah. He found and developed most of the water sources that helped put St. George on the map. St. George is the thriving retirement community in southern Utah that wouldn’t be nearly what it is today.
Bill knew the value of water.
They have irrigated lawns and gardens with streams of flowing water in the gutters throughout all of St. George for the last half century. You lift the gate on the ditch to your yard and put a gate down in the main ditch and divert the flow during your watering time. If your yard is angled well, it even flows back into the gutter at the end of your property. When your time is up, you switch the gates again.
There was a little lady up stream who would sneak and steal my grandfather’s watering time. She would divert the water before it even got to him in the middle of the night. He often had to stand guard by looking out the window. Talk about feuding neighbors!
Bill usually won. I miss him.
Salesforce.com, the dominant player in the SaaS cloud computing software industry learned this early on. Marc Benioff knew that Seibel had already started a river flowing of demand for a customer relationship management (CRM) database package for businesses, but they were a traditional software model. They had invested incredible time and money to start the flow. They had already dug the well. It was like plowing the deep snow (we know that metaphor well in Utah.) For the person walking behind it’s easy. No effort. No money. Little time.
Marc Benioff, diverted the river by offering a much better model, he didn’t have to dig a well.
As Harvard Business Professor Clayton Christensen says, he ‘disrupted’ an entire industry, never to be the same. In Benioff’s case, the water never came back to the ditch. Too many great things are growing and
My #1 Most Popular article on Forbes was called The Death of SEO: the Rise of Social, PR, and Real Content. I knew what I wanted to say. But before I wrote it, I went to Google Keyword Tool, and found that the phrase ‘death of seo’ had some pretty good recurring traffic: 880 searches globally a month, 480 in the US. I get 2-3 comments a week and hundreds of readers a month… still. I wrote it on July 20, 2012 from Philmont, the Boy Scout camp in New Mexico. In the arid country of New Mexico you really think about water. Trust me.
Divert a river, don’t dig a well.
I applied this ‘divert a river’ rule when I wrote an article for my blog, KenKrogue.com, called What is Inside Sales? Our Definition of Inside Sales. My goal was to try and put a definition around this new up and coming industry that would stand the test of time. It has. It’s been quoted in several books, hundreds of blogs, and at inside sales industry events even a few days ago.
How will it stand the test of time?
Continual traffic, long after the newness wears off.
I started by going to the Google Keyword Tool to find rivers that were continually flowing:
I’ve written hundreds of articles. This article generates more traffic, even today, than almost all the others combined.
Why?
I diverted a river rather than digging a well.
Try it!
Simple.
Find existing need, tap into it, shape it. Don’t try and create need.
Now to really divert a river, you shape need. Steve Jobs was a master at diverting a river, shaping need… anticipating the future. He used innovation and human ingenuity.
Look at his iPod.
Everyone loves music. That’s the river. Sony built the Walkman for portable listening, first on cassette, then CD. They dug a well. MP3 players were around, but not exciting, no ‘sizzle’. Too hard to dig a well. It took some innovation… flash memory, simple interface, iTunes, deals with record labels, Bono and U2, and finally, The Beatles.
Steve Jobs diverted a river, he didn’t dig a well.
Look at his iPad, and the iPhone. They are relegating desktop computers to a support device. They diverted the river around them. Steve saw portable and mobile devices as bigger than the Internet. He was right.
I’ve heard more people have a mobile device around the world than a toothbrush. Really?
We learned this ‘divert a river’ rule again when we invested in the domain name for our company, InsideSales.com, in late 2004.
Why was this so powerful?
If you go to Google and type in the phrase ‘inside sales’, you see 277,000,000 results. Tens of thousands of companies hiring inside sales people. And we appear first, and second, and third. Then Wikipedia shows up. Then something about us appears fifth, sixth, seventh, eighth, ninth, tenth…
Ok, so what?
Now go to the Google Keyword Tool and type in the keyword ‘inside sales.’
It is searched 60,500 times a month globally, 40,500 times monthly locally. That is over 60,000 searches with 9 ads appearing for our business every month. What would that cost? To us, it’s free.
Divert a river, don’t dig a well.
My grandfather, William E. (Bill) Baker, was over the water department in St. George, Utah. He found and developed most of the water sources that helped put St. George on the map. St. George is the thriving retirement community in southern Utah that wouldn’t be nearly what it is today.
Bill knew the value of water.
They have irrigated lawns and gardens with streams of flowing water in the gutters throughout all of St. George for the last half century. You lift the gate on the ditch to your yard and put a gate down in the main ditch and divert the flow during your watering time. If your yard is angled well, it even flows back into the gutter at the end of your property. When your time is up, you switch the gates again.
There was a little lady up stream who would sneak and steal my grandfather’s watering time. She would divert the water before it even got to him in the middle of the night. He often had to stand guard by looking out the window. Talk about feuding neighbors!
Bill usually won. I miss him.
Salesforce.com, the dominant player in the SaaS cloud computing software industry learned this early on. Marc Benioff knew that Seibel had already started a river flowing of demand for a customer relationship management (CRM) database package for businesses, but they were a traditional software model. They had invested incredible time and money to start the flow. They had already dug the well. It was like plowing the deep snow (we know that metaphor well in Utah.) For the person walking behind it’s easy. No effort. No money. Little time.
Marc Benioff, diverted the river by offering a much better model, he didn’t have to dig a well.
As Harvard Business Professor Clayton Christensen says, he ‘disrupted’ an entire industry, never to be the same. In Benioff’s case, the water never came back to the ditch. Too many great things are growing and
My #1 Most Popular article on Forbes was called The Death of SEO: the Rise of Social, PR, and Real Content. I knew what I wanted to say. But before I wrote it, I went to Google Keyword Tool, and found that the phrase ‘death of seo’ had some pretty good recurring traffic: 880 searches globally a month, 480 in the US. I get 2-3 comments a week and hundreds of readers a month… still. I wrote it on July 20, 2012 from Philmont, the Boy Scout camp in New Mexico. In the arid country of New Mexico you really think about water. Trust me.
Divert a river, don’t dig a well.
I applied this ‘divert a river’ rule when I wrote an article for my blog, KenKrogue.com, called What is Inside Sales? Our Definition of Inside Sales. My goal was to try and put a definition around this new up and coming industry that would stand the test of time. It has. It’s been quoted in several books, hundreds of blogs, and at inside sales industry events even a few days ago.
How will it stand the test of time?
Continual traffic, long after the newness wears off.
I started by going to the Google Keyword Tool to find rivers that were continually flowing:
- ‘inside sales’ – 60,500 searches
- ‘what is inside sales’ – 60,500 searches
- ‘definition of inside sales’ – 880 searches monthly
I’ve written hundreds of articles. This article generates more traffic, even today, than almost all the others combined.
Why?
I diverted a river rather than digging a well.
Try it!
And it helps that the river keeps growing. Inside sales as an industry is growing significantly faster than traditional outside sales, or field sales.This article was written by Ken Krogue, a contributor of Forbes.
By the way, Google Trends tells you if your river in increasing or ebbing. Let me know your thoughts and comments! – Ken
The Power Of 'What If'
What if? What if you could reinvent your business? What if you could change the perception of your brand? What if you could break from the status quo? What if you could attract better talent? What if you could reenergize your corporate culture? What if you could make the changes you know you need to make? What if? To the one, great leaders aggressively pursue what if – do you?
I’ve always said status quo is mediocrity’s best friend. While static thinking is the best short cut to obsolescence you’ll ever find, why would you want to travel that path? The sad thing is, I observe many more people willing to travel a path of ruin than I do people willing to change their thinking. While companies destined to fail reward average thinking, successful companies reward the bold thinking revealed through the microscope of what if.
Much has been written about the power of creative thinking, ideation, disruptive innovation, etc., but little has been written on how to successfully implement these processes. If you’ve ever wondered how to find those “ah-ha” moments, they all begin through observations inspired by asking what if. Just because what I’m espousing today is simple doesn’t mean it isn’t effective.While many so-called business gurus sell profit through complexity, the reality is leaders rarely profit from complexity – real profit is found in the pure elegance of simplicity.
Change doesn’t need to be complex. In fact, what’s more simple than using the filter of what if? It doesn’t require any special skills or ability, just the willingness to look beyond what presently exists. Let me be as clear as I can – there is simply no reason to continue to do things that make no sense. Leadership and herd mentality should have nothing to do with one another. If you want to become a better leader stop doing things the way they’ve always been done – don’t copy create.
What if Larry Page and Sergey Brin didn’t ask what if search could be more simple and relevant? What if Steve Jobs failed to ask what if you combined technology and design to create the ultimate customer experience? What if Richard Branson didn’t ask what if about almost everything? Real leaders are open to the possibility that most things not only can, but should be improved upon. They understand it’s the ability to innovate and change which creates competitive advantage, adds value, and ensures sustainability.
The process of unleashing what if begins with not painting yourself into corners. Perhaps the single greatest barrier impeding the transition from what is to what if is allowing yourself to fall into the trap of either/or thinking. The best leaders realize there’s rarely a good reason to juxtapose one option against another. This is simply a false paradigm created by intellectually dishonest rationalizations. The use of A/B frameworks as a decision making model unnecessarily limit opportunity by impeding creative thought and innovation. The job of a leader is to create, expand and preserve options – not limit them.
Utilizing what if thinking allows you to maximize the present while securing the future. The best leaders know how to attain desired outcomes while remaining discovery driven. It’s clearly important to achieve short-term hurdles, but not at the expense of long-term sustainability. Smart leaders understand the present is simply a springboard to the future. Absent an aggressive forward leaning bias, short-term wins will represent little more than pyrrhic victories as the innovators, the what if thinkers, pass you by.
My recommendation is a simple one – not only do I suggest you put everything you do through a “what if audit,” but ask your team to do the same thing. Question: What if you challenged everything, slaughtered a few sacred cows, and stopped holding false truths as real? Answer: creativity would be inspired, innovation would occur, and things would change for the better. Remember, conventional wisdom usually isn’t.
Source: www.forbes.com
Thursday, 31 January 2013
Top Ten Famous Accountants
The first true written evidence of accounting come from a man named
Luca Pacioli, a Franciscan monk and contemporary of Columbus. His
seminal work, Summa de Arithmetica, Geometrica, Propotioni et
Proportionalite, published in 1494, contained a section, "Particularis
de Computis et Scripturis" (Details of Accounting and Recording) that
described "the system used in Venice".
But history aside, there are many famous folks today who started out in accounting. You’ll find a few surprises on this list.
1. John Grisham. While this red-hot novelist is well known for being a lawyer prior to his writing career, what is less well known is the fact that his first degree was in Accounting from Mississippi State University. It wasn’t until later that he went to law school and watched a 12-year-old rape victim testify and inspire his first novel.
2. Kenny G. The famous soprano saxophone player graduated Magna Cum Laude from the University of Washington with a degree in accounting. Although he’d already been playing semi-professionally since high school, he wasn’t sure he’d make in the music world so accounting seemed like a much safer bet.
3. Bob Newhart. This funny man got his first job out of the army working as an accountant in downtown Chicago. He claims to have invented his own system for balancing the petty cash—when the drawer was short, he replaced any missing money from his own pocket. When his boss accused him of not using sound accounting practices, he decided to try something else. Ironically, it was while he was working as an accountant that he began doing his famous telephone routines.
4. Gibby Haynes. It might be hard to believe, but this outrageous lead singer of the hot punk band The Butthole Surfers went to Trinity University and earned his degree in accounting. In fact, he was captain of the basketball team, president of his fraternity, and was voted Accounting Student of the Year. After graduating, he worked for over a year at an accounting firm before starting the band.
5. Tim DuBois. You might not know this name right off the bat, but he’s known as The Singing Accountant. He’s written many a hit country song, including “Love In The First Degree”, “She Got the Goldmine, I Got The Shaft” and the Vince Gill hit “When I Call Your Name.” While currently the head of Arista Records, he taught accounting at Owen University for many years.
6. Walter Diemer. Another name you might not recognize, he worked as an accountant for the Fleer Corporation in the 1920’s. But in his spare time he tinkered with recipes until he invented a little something we know today as Bubble Gum.
7. J. P. Morgan. This famous financier and banker began his early career as an accountant on Wall Street. But after his father died and left him the family business, J.P. Morgan went on to become a banking and corporate pioneer. He began buying distressed businesses, in particular railroads, and merging them—a common business practice still today.
8. Walter L. Morgan. A name well known in the business world, Walter L. Morgan was a CPA—and is considered the father of the mutual fund industry. His fund—The Wellington Fund—became the flagship fund of the Vanguard Group, the second largest mutual fund company in the world. When he died in 2000 at the age of 102, he was the oldest living accountant and CPA.
9. Arthur Blank. Today best known for owning the Atlanta Falcons football team, he started his early career as an accountant. But he worked part-time in a hardware store and along with another employee went on to found Home Depot, the famous chain of hardware stores. This little company made him a billionaire—and his accounting know-how taught him how to spend it.
10. Josiah Wedgewood. Yes, that Wedgewood, the famous potter—he invented what we now call Cost Accounting. Thanks to a lucky combination of an embezzling clerk and a depression, Josiah was forced to come up with a system of tracking bottom line costs and profit. He used this system to determine the costs of his product, and was only one of hundreds of potters to survive the depression.
Source: www.topaccountingdegrees.com
But history aside, there are many famous folks today who started out in accounting. You’ll find a few surprises on this list.
1. John Grisham. While this red-hot novelist is well known for being a lawyer prior to his writing career, what is less well known is the fact that his first degree was in Accounting from Mississippi State University. It wasn’t until later that he went to law school and watched a 12-year-old rape victim testify and inspire his first novel.
2. Kenny G. The famous soprano saxophone player graduated Magna Cum Laude from the University of Washington with a degree in accounting. Although he’d already been playing semi-professionally since high school, he wasn’t sure he’d make in the music world so accounting seemed like a much safer bet.
3. Bob Newhart. This funny man got his first job out of the army working as an accountant in downtown Chicago. He claims to have invented his own system for balancing the petty cash—when the drawer was short, he replaced any missing money from his own pocket. When his boss accused him of not using sound accounting practices, he decided to try something else. Ironically, it was while he was working as an accountant that he began doing his famous telephone routines.
4. Gibby Haynes. It might be hard to believe, but this outrageous lead singer of the hot punk band The Butthole Surfers went to Trinity University and earned his degree in accounting. In fact, he was captain of the basketball team, president of his fraternity, and was voted Accounting Student of the Year. After graduating, he worked for over a year at an accounting firm before starting the band.
5. Tim DuBois. You might not know this name right off the bat, but he’s known as The Singing Accountant. He’s written many a hit country song, including “Love In The First Degree”, “She Got the Goldmine, I Got The Shaft” and the Vince Gill hit “When I Call Your Name.” While currently the head of Arista Records, he taught accounting at Owen University for many years.
6. Walter Diemer. Another name you might not recognize, he worked as an accountant for the Fleer Corporation in the 1920’s. But in his spare time he tinkered with recipes until he invented a little something we know today as Bubble Gum.
7. J. P. Morgan. This famous financier and banker began his early career as an accountant on Wall Street. But after his father died and left him the family business, J.P. Morgan went on to become a banking and corporate pioneer. He began buying distressed businesses, in particular railroads, and merging them—a common business practice still today.
8. Walter L. Morgan. A name well known in the business world, Walter L. Morgan was a CPA—and is considered the father of the mutual fund industry. His fund—The Wellington Fund—became the flagship fund of the Vanguard Group, the second largest mutual fund company in the world. When he died in 2000 at the age of 102, he was the oldest living accountant and CPA.
9. Arthur Blank. Today best known for owning the Atlanta Falcons football team, he started his early career as an accountant. But he worked part-time in a hardware store and along with another employee went on to found Home Depot, the famous chain of hardware stores. This little company made him a billionaire—and his accounting know-how taught him how to spend it.
10. Josiah Wedgewood. Yes, that Wedgewood, the famous potter—he invented what we now call Cost Accounting. Thanks to a lucky combination of an embezzling clerk and a depression, Josiah was forced to come up with a system of tracking bottom line costs and profit. He used this system to determine the costs of his product, and was only one of hundreds of potters to survive the depression.
Source: www.topaccountingdegrees.com
Saturday, 26 January 2013
The Best-Paying Tech Companies for Interns
Most tech industry internship-seekers would do anything to work at Facebook, Google, Amazon or Apple. In fact, they’d probably even do it for free.
But as it turns out, all of these companies offer paid internships. And they compensate remarkably well.
Facebook interns earn an average monthly base pay of $6,056, according to Glassdoor. Interns at Google rake in $5,678 per month, on average—while those at Amazon and Apple make $5,366 and $4,914 per month, respectively.
“It’s no secret that the war for tech talent continues to be fierce, and this even includes the internship level,” says Glassdoor spokesperson Samantha Zupan. “Companies are fighting for the best and brightest tech minds coming out of college, and handsome compensation packages during an internship are just one way to entice a talented young tech employee to potentially stay with the company upon graduation.”
While interns at the Internet’s “Fantastic Four” are bringing home heaps of cash each month–those at VMware are making even more. The Palo Alto-based software giant pays its interns a base salary of $6,536 per month, on average, making it the best-paying tech company for interns.
One former VMware technical staff intern wrote on the Glassdoor site: “I was making more than any of my classmates.”
A software engineering intern at Facebook, the second hightest-paying tech company, said: “The benefits and pay are obviously great, and since it’s a well-known company it’s a good place to start if you’re looking to get recognized at other tech companies and startups.”
Microsoft rounds out the top three. Interns there earn $5,936 per month, on average.
“The process varies from company to company–but generally, it’s not easy to land a coveted internship at a major tech company where interns earn a higher monthly base pay,” Zupan says. “On Glassdoor, interns at several of these companies talk about an interview process that can include three different interviews, technical problem solving questions, and in some cases, personality tests. Because internships can often translate to job opportunities, several of these companies tend to treat the intern interview process similar to any other job candidate. HR’s goal is to always identify the very best talent at all levels.”
If you’re interested in one of these positions, you’ll want to start by doing some research to find which company is the best fit for you, Zupan says. “Also, it’s never too early to network,” she adds. “Check out who you already know at the company, who your friends, parents and professors might know, and see if there is an inside connection to help get your résumé noticed.”
If you’re not offered an internship position the first time around, keep applying and stay in contact with the intern coordinator. “It just might pay off and set you apart if you show that you’re really serious about contributing to the company,” she concludes.
Here are the top 10 highest-paying tech companies for interns:
VMware
Average monthly base pay: $6,536
Facebook
Average monthly base pay: $6,056
Microsoft
Average monthly base pay: $5,936
LinkedIn
Average monthly base pay: $5,808
Adobe
Average monthly base pay: $5,757
Google
Average monthly base pay: $5,678
Amazon
Average monthly base pay: $5,366
NVIDIA
Average monthly base pay: $5,215
Yahoo
Average monthly base pay: $5,191
Apple
Average monthly base pay: $4,914
Source: www.forbes.com by Jacquelyn Smith
But as it turns out, all of these companies offer paid internships. And they compensate remarkably well.
Facebook interns earn an average monthly base pay of $6,056, according to Glassdoor. Interns at Google rake in $5,678 per month, on average—while those at Amazon and Apple make $5,366 and $4,914 per month, respectively.
“It’s no secret that the war for tech talent continues to be fierce, and this even includes the internship level,” says Glassdoor spokesperson Samantha Zupan. “Companies are fighting for the best and brightest tech minds coming out of college, and handsome compensation packages during an internship are just one way to entice a talented young tech employee to potentially stay with the company upon graduation.”
While interns at the Internet’s “Fantastic Four” are bringing home heaps of cash each month–those at VMware are making even more. The Palo Alto-based software giant pays its interns a base salary of $6,536 per month, on average, making it the best-paying tech company for interns.
One former VMware technical staff intern wrote on the Glassdoor site: “I was making more than any of my classmates.”
A software engineering intern at Facebook, the second hightest-paying tech company, said: “The benefits and pay are obviously great, and since it’s a well-known company it’s a good place to start if you’re looking to get recognized at other tech companies and startups.”
Microsoft rounds out the top three. Interns there earn $5,936 per month, on average.
“The process varies from company to company–but generally, it’s not easy to land a coveted internship at a major tech company where interns earn a higher monthly base pay,” Zupan says. “On Glassdoor, interns at several of these companies talk about an interview process that can include three different interviews, technical problem solving questions, and in some cases, personality tests. Because internships can often translate to job opportunities, several of these companies tend to treat the intern interview process similar to any other job candidate. HR’s goal is to always identify the very best talent at all levels.”
If you’re interested in one of these positions, you’ll want to start by doing some research to find which company is the best fit for you, Zupan says. “Also, it’s never too early to network,” she adds. “Check out who you already know at the company, who your friends, parents and professors might know, and see if there is an inside connection to help get your résumé noticed.”
If you’re not offered an internship position the first time around, keep applying and stay in contact with the intern coordinator. “It just might pay off and set you apart if you show that you’re really serious about contributing to the company,” she concludes.
Here are the top 10 highest-paying tech companies for interns:
VMware
Average monthly base pay: $6,536
Average monthly base pay: $6,056
Microsoft
Average monthly base pay: $5,936
Average monthly base pay: $5,808
Adobe
Average monthly base pay: $5,757
Average monthly base pay: $5,678
Amazon
Average monthly base pay: $5,366
NVIDIA
Average monthly base pay: $5,215
Yahoo
Average monthly base pay: $5,191
Apple
Average monthly base pay: $4,914
Source: www.forbes.com by Jacquelyn Smith
Sunday, 20 January 2013
Notable Accounting Scandals And Outcomes
NOTABLE ACCOUNTING SCANDALS |
|---|
NOTABLE OUTCOMES
The Enron scandal turned in the indictment and criminal conviction of one of the Big Five auditor Arthur Andersen on June 15, 2002. Although the conviction was overturned on May 31, 2005 by the Supreme Court of the United States, the firm ceased performing audits and is currently unwinding its business operations. The Enron scandal was defined as being one of the biggest audit failures. The scandal included utilizing loopholes that were found within the GAAP (General Accepted Accounting Principles). For auditing a big sized company such as Enron, the auditors were criticized for having a brief meeting few times a year that covered lots of material. By January 17, 2002 Enron decided to discontinue its business with Arthur Andersen claiming they had failed in accounting advice and related documents. Arthur Andersen was judged guilty of obstruction of justice for getting rid of many emails and documents that were related to auditing Enron. From this incident little less than 100,000 employees lost their jobs. Although later the ruling was overturned by the U.S. Supreme Court, the image of the auditing firm have been damaged beyond repair, and was never able to come back to its full operation capacity.On July 9, 2002 George W. Bush gave a speech about recent accounting scandals that had been uncovered. In spite of its stern tone, the speech did not focus on establishing new policy, but instead focused on actually enforcing current laws, which include holding CEOs and directors personally responsible for accountancy fraud.
In July, 2002, WorldCom filed for bankruptcy protection, in what was considered the largest corporate insolvency ever at the time.
These scandals reignited the debate over the relative merits of US GAAP, which takes a "rules-based" approach to accounting, versus International Accounting Standards and UK GAAP, which takes a "principles-based" approach. The Financial Accounting Standards Board announced that it intends to introduce more principles-based standards. More radical means of accounting reform have been proposed, but so far have very little support. The debate itself, however, overlooks the difficulties of classifying any system of knowledge, including accounting, as rules-based or principles-based.This also led to the establishment of Sarbanes-Oxley.
On a lighter note, the 2002 Ig Nobel Prize in Economics went to the CEOs of those companies involved in the corporate accounting scandals of that year for "adapting the mathematical concept of imaginary numbers for use in the business world".
In 2003, Nortel made a big contribution to this list of scandals by incorrectly reporting a one cent per share earnings directly after their massive layoff period. They used this money to pay the top 43 managers of the company. The SEC and the Ontario securities commission eventually settled civil action with Nortel. However, a separate civil action will be taken up against top Nortel executives including former CEO Frank A. Dunn, Douglas C. Beatty, Michael J. Gollogly and MaryAnne E. Pahapill and Hamilton. These proceedings have been postponed pending criminal proceedings in Canada, which opened in Toronto on January 12, 2012. Crown lawyers at this fraud trial of three former Nortel Networks executives say the men defrauded the shareholders of Nortel of more than $5 million. According to the prosecutor this was accomplished by engineering a financial loss in 2002, and a profit in 2003 thereby triggering Return to Profit bonuses of $70 million for top executives.
In 2005, after a scandal on insurance and mutual funds the year before, AIG was investigated for accounting fraud. The company already lost over 45 billion US dollars worth of market capitalisation because of the scandal. Investigations also discovered over a billion US dollars worth of errors in accounting transactions. The New York Attorney General's investigation led to a $1.6 billion fine for AIG and criminal charges for some of its executives. CEO Maurice R. "Hank" Greenberg was forced to step down and is still fighting civil charges being pursued by New York state.
Source: www.wikipedia.org
Saturday, 19 January 2013
Neat Trick? Attorney-Client Privilege From An Accountant
Thanks to attorney-client privilege, if you tell your lawyer you are hiding money offshore, the IRS can’t make your lawyer talk. The IRS generally can’t even make your lawyer produce documents. See Latest Foreign Account Prosecution Fuels Fears. The privilege is strong so clients (in both civil and criminal cases) will be forthcoming with their lawyers.
Accountants, however, don’t have this privilege. If you make statements or provide documents to your accountant, he can be compelled to divulge them no matter how incriminating. Although a statutory “tax preparation” privilege was added in 1998 (IRC Section 7525(a)(1)), it is inapplicable to criminal tax cases so is of little value.
In sensitive tax matters, the answer to this quandary is the Kovel letter, named after United States v. Kovel. Your tax lawyer hires an accountant. In effect, the accountant is doing your tax accounting and return preparation, but reporting as a subcontractor to your lawyer.
Properly executed, it imports attorney-client privilege to the accountant’s work and communications. However, recent IRS lawsuits are eroding it. For example, in United States v. Richey, the Ninth Circuit refused to protect an appraisal that a taxpayer, lawyer and accountant were trying to keep from the IRS. In United States v. Hatfield, the court forced disclosure of discussions between the lawyer and accountant.
Pre-existing relationships between the accountant and the ultimate client are especially prickly. A Kovel arrangement is premised on the notion that the accountant’s communications were “made in confidence for the purpose of obtaining legal advice from the lawyer.” See United States v. Adlman. The attorney is the client in a Kovel engagement so the accountant should address all correspondence to the lawyer.
That means information acquired by an accountant under a Kovel agreement should be distinguished from information collected by the accountant as an auditor or in some other capacity. Keep things as separate and well-documented as you can. That may include using a different accounting firm for the audit or other work where possible.
Attorney-client privilege is rarely tested in this context. However, you don’t want to end up having to fight about disclosure before a judge, especially where the communications may be very revealing.
Source: www.forbes.com by Robert Wood
Robert W. Wood practices law with Wood LLP, in San Francisco. The author of more than 30 books, including Taxation of Damage Awards & Settlement Payments (4th Ed. 2009 with 2012 Supplement, Tax Institute), he can be reached at Wood@WoodLLP.com. This discussion is not intended as legal advice, and cannot be relied upon for any purpose without the services of a qualified professional.
Thursday, 20 December 2012
US' Top 100 Accounting Firms
- Deloitte & Touche - Big 4, 107 U.S. offices
- Ernst & Young - Big 4, 95 U.S. offices
- PricewaterhouseCoopers - Big 4, 99 U.S. offices
- KPMG - Big 4, 95 U.S. offices
- Grant Thornton - 48 U.S. offices
- McGladrey & Pullen - 103 U.S. offices
- BDO Seidman - 35 U.S. offices
- Mayer Hoffman McCann - Offices in: CA, AZ, UT, CO, KS, MN, WI, IL, MO, OH, TN, GA, FL, MD, PA, and NY.
- Crowe, Chizek and Co. - Offices in: IN, IL, OH, KY, TN, MI, and FL
- BKD - Baird Kurtz & Dobson - Offices in: TX, IL, MO, IN, OH, KY, CO, KS, OK, AR, NE
- Plante & Moran - Offices in: MI, OH, and IL
- Moss Adams - Offices in: AZ, CA, NM, OR, and WA
- Clifton Gunderson - Offices in: IL, CA, AZ, CO, IA, MD, IN, MO, NM, OH, TX, VA, WI, and D.C.
- UHY - Offices in: CA, TX, MO, IL, MI, NY, MA, CT, and D.C.
- Virchow Krause & Co. - Offices in WI, MN, IL, and MI
- J.H. Cohn - Offices in NY, NJ, and CA
- Dixon Hughes - Offices in: NC, SC, GA, AL, WV, TX, and TN
- Larson, Allen, Weishair & Co. - Offices in: MN, WI, MO, PA, and NC
- Reznick Fedder & Silverman - Offices in: MD, NC, and GA
- Rothstein, Kass & Co. - Offices in: CA, NY, NJ, CO, and TX
- Eisner & Co. - Offices in NY and NJ
- Wipfli Ullrich Bertelson - Offices in WI and MN
- Eide Bailly - Offices in IA, MN, ND, SD, MT, OK, and AZ
- M.R. Weiser & Co. - Offices in: NY and NJ
- Cherry Bekaert & Holland - Offices in VA, NC, SC, GA, FL, TN, and AL
- Berdon LLP - Offices in NY
- Marcum & Kliegman - Offices in NY and CT
- Smart and Associates - Located in PA, GA, MD, IL, and NY
- Goodman & Co. - Offices in: VA and MD
- Amper, Politziner & Mattia - Offices in: NY and NJ
- Parente Randolph - Offices in: PA, NJ, DE, and Washington DC
- Marks Paneth & Shron - Offices in NY
- Schenck & Associates - 11 Offices in WI
- Anchin, Block & Anchin - Located in NY
- The Rehmann Group - Offices in MI
- Rubin, Brown, Gornstein & Co. - Located in MO
- Mahoney Cohen & Co. - Located in NY
- Vitale Caturano & Company - Located in Boston, MA
- Carr, Riggs & Ingram - Offices in: FL, AL, and MS
- Withum, Smith & Brown - Offices in: NJ and PA
- Goldenberg Rosenthal - Located in: Philadelphia, PA
- SVA - Suby, Von Haden & Associates - Offices in: WI and IL
- Citrin Cooperman & Co. - Offices in: NY and NJ
- Blackman Kallick Bartelstein - Located in Chicago, IL
- Clark, Schaefer, Hackett & Co. - Offices in: OH
- Kaufman, Rossin & Co. - Located in FL
- Beard Miller Company - Located in PA, and MD
- Friedman - Offices in: NY, and NJ
- Schneider, Downs & Co. - Offices in: PA and OH
- Aronson & Company - Located in MD / D.C.
- Tofias - Located in MA, and RI
- Horne CPA Group - Located in TN, MS, and LA
- Doeren Mayhew - Located in MI
- Lattimore, Black, Morgan & Cain - Offices in: TN
- Margolin, Winer & Evens - Located in NY
- Hill, Barth & King - Offices in: FL, OH, PA, and VA
- Carlin, Charron & Rosen - Offices in: MA, RI, and CT
- SS&G - Saltz, Shamis & Goldfarb - Offices in: OH and KY
- Lurie, Besikof, Lapidus & Co. - Located in MN
- Elliott Davis, LLC - Offices in: SC and GA
- Morrison, Brown, Argiz & Co. - Offices in: FL and CO
- Beers & Cutler - Offices in: D.C. and VA
- O'Connor Davies Munns & Dobbins - Offices in: NY, NJ, and CT
- Rachlin Cohen & Holtz - Offices in: FL
- Frank, Rimerman & Co. - Offices in: CA
- Katz Sapper & Miller - Offices in: IN
- Kennedy & Coe - Offices in: KS, OK, and CO
- Weaver and Tidwell - Offices in: TX
- Schonbraun McCann Group - Offices in: NJ, NY, and FL
- Joseph Decosimo and Co. - Offices in: OH, TN, and GA
- Watkins, Meegan, Drury & Co. - Offices in: MD, VA, and D.C.
- Armanino McKenna - Offices in: CA
- Hein & Associates - Offices in: CO, TX, AZ, and CA
- LeMaster & Daniels - Offices in WA, and ID
- Kemper CPA Group - Offices in: IL, IN, KY, CA, and FL
- Novogradac & Company - Offices in: CA, TX, GA, MD, KS, MA, and OH
- Sikich Gardner & Co. - Offices in: IL
- Rosen Seymour Shapss Martin & Co. - Offices in: NY
- Stout Causey & Horning - Offices in: MD, VA, TX, and GA
- Warren, Averett, Kimbrough & Marino - Offices in: AL
- Berry, Dunn, McNeil & Parker - Offices in: ME, NH, and MA
- Holthouse Carlin & Van Trigt - Offices in CA
- Habif, Arogeti & Wynne - Located in GA
- Berkowitz Dick Pollack & Brant - Offices in: FL
- Holtz Rubenstein Reminick - Offices in: NY
- Blue & Co. - Offices in: IN, OH, and KY
- Vavrinek, Trine, Day & Co. - Offices in CA
- Mohler, Nixon & Williams - Offices in: CA
- Stonefield Josephson - Offices in CA and Mexico
- Mauldin & Jenkins - Offices in: GA, and AL
- Freed Maxick & Battaglia - Offices in NY
- Honkamp Krueger & Co. - Offices in IA, WI, and IL
- Seiler & Company - Offices in CA
- Yeo & Yeo - Offices in MI
- Burr Pilger & Mayer - Offices in CA
- Postlethwaite & Netterville - Offices in LA
- Ehrhardt Keefe Steiner & Hottman - Offices in: CO
- Blum Shapiro & Co. - Located in: CT
- The Bonadio Group - Offices in: NY
- Alpern, Rosenthal & Co. - Located in PA
The New Accounting Practice that's Saving Lockheed Martin, Chevron and the DOD Millions
Although the term “sustainability” has become something that most
businesspeople associate with marketing or maybe compliance, at its core
sustainability is as much about saving companies as saving the earth:
it all boils down to maximizing resources and minimizing risk. Until
recently, however, sustainability initiatives at most companies have
tended to start with the sustainability director, who takes a
good-for-the-environment idea and tries to build a good-for-business
argument around it. That approach is fundamentally flawed according to
Yann Risz, vice president of strategy and environmental finance
for Environmental ERP software company Enviance. Instead, Risz suggests
starting with the day-to-day operations of business–what the procurement
folks deal with daily, for example, or the sales force–and looking for
ways that sustainability initiatives might address some of the company’s
pain points. Risz has been thinking about the subject nonstop for the
past several years as he developed the company’s environmental finance
tool and began to roll it out to many of Enviance’s compliance software
customers, including Lockheed Martin, Chevron and the Department of Defense.
“If you want to scale sustainability you don’t start with sustainability and incrementally change it to make it business-friendly,” he says. “You start with understanding the average day of a procurement officer – he has five minutes to listen to you, so you need to understand what he needs and give him something he can understand in that time.”
A recent Gartner case study on Enviance’s work with Lockheed Martin shows just how effective that approach can be. In the course of that work, Enviance analyzed 2,000 environmental factors that are relevant to Lockheed’s business and found that only ten were material from an environmental point of view. In fact 10 environmental factors accounted for 96 percent of the company’s environmental impact, and much of them were not direct Lockheed impacts but factors that could be traced further up the company’s supply chain.
“As CFO, maybe that’s interesting but what does that mean to my job?” Risz says. “What’s the financial exposure linked to those factors? We estimated that 35 percent of Lockheed’s EBIT [Earnings before interest and taxes] was associated with energy-related commodities in its supply chain. Now that gets the CFO’s attention. Suddenly it’s not the crazy green guy talking, but the business guy going hey we have 35 percent earnings exposure here, so we’d better deal with it.”
Marrying environmental impacts and finance doesn’t just help to reveal financial risks associated with environmental exposures, it also helps companies pinpoint where they should be spending their sustainability budgets to get the most bang for their buck. In Lockheed’s case, for example, seven of the top ten environmental factors were energy-related while waste and water–both traditional targets for sustainability departments–were of relatively minor importance. That knowledge gave the company the opportunity to reconsider capital investment of water and waste projects, and reprioritization of longer-term project planning. Accurately accounting for environmental risks and benefits also helped Lockheed pinpoint more than $30 million in potential savings.
Lockheed isn’t the first company to marry finance and sustainability. WalMart was an early leader in this realm, as were Procter and Gamble and Unilever. However, although these early adopters attempted to link supply chain sustainability initiatives with financial returns ($1 billion in two years, in P&G’s case), they lacked the sort of granular data that would enable the sort of change in strategy that Lockheed is undertaking. Puma came closer when it issued its environmental profit and loss statement for its global supply chain, which revealed that approximately 94 percent of its total environmental burden lay in its upstream supply chain.
As notions around sustainability mature, more and more companies are embracing this new form of environmental accounting. Risz says Enviance has worked with companies in various sectors, including fast food, oil and gas, and banking, and the idea is really beginning to gain traction. In Italy, the company recently worked with Unicredit Bank, for example, to determine the financial risks associated with the bank loaning money to coal companies. “We were helping loan officers understand when they make loans to the coal industry, what is the impact their loans have and how they should assess the risk behind these loans,” Risz explains. “There are environmental risks there, but also reputational.”
The bottom line? If you want to get [all the various stakeholders in a company] on board with sustainability initiatives, you have to appeal to their KPIs [key performance indicators, the metric upon which many companies base annual bonuses],” Risz says.
Source: www.forbes.com by Amy Westervelt
“If you want to scale sustainability you don’t start with sustainability and incrementally change it to make it business-friendly,” he says. “You start with understanding the average day of a procurement officer – he has five minutes to listen to you, so you need to understand what he needs and give him something he can understand in that time.”
A recent Gartner case study on Enviance’s work with Lockheed Martin shows just how effective that approach can be. In the course of that work, Enviance analyzed 2,000 environmental factors that are relevant to Lockheed’s business and found that only ten were material from an environmental point of view. In fact 10 environmental factors accounted for 96 percent of the company’s environmental impact, and much of them were not direct Lockheed impacts but factors that could be traced further up the company’s supply chain.
“As CFO, maybe that’s interesting but what does that mean to my job?” Risz says. “What’s the financial exposure linked to those factors? We estimated that 35 percent of Lockheed’s EBIT [Earnings before interest and taxes] was associated with energy-related commodities in its supply chain. Now that gets the CFO’s attention. Suddenly it’s not the crazy green guy talking, but the business guy going hey we have 35 percent earnings exposure here, so we’d better deal with it.”
Marrying environmental impacts and finance doesn’t just help to reveal financial risks associated with environmental exposures, it also helps companies pinpoint where they should be spending their sustainability budgets to get the most bang for their buck. In Lockheed’s case, for example, seven of the top ten environmental factors were energy-related while waste and water–both traditional targets for sustainability departments–were of relatively minor importance. That knowledge gave the company the opportunity to reconsider capital investment of water and waste projects, and reprioritization of longer-term project planning. Accurately accounting for environmental risks and benefits also helped Lockheed pinpoint more than $30 million in potential savings.
Lockheed isn’t the first company to marry finance and sustainability. WalMart was an early leader in this realm, as were Procter and Gamble and Unilever. However, although these early adopters attempted to link supply chain sustainability initiatives with financial returns ($1 billion in two years, in P&G’s case), they lacked the sort of granular data that would enable the sort of change in strategy that Lockheed is undertaking. Puma came closer when it issued its environmental profit and loss statement for its global supply chain, which revealed that approximately 94 percent of its total environmental burden lay in its upstream supply chain.
As notions around sustainability mature, more and more companies are embracing this new form of environmental accounting. Risz says Enviance has worked with companies in various sectors, including fast food, oil and gas, and banking, and the idea is really beginning to gain traction. In Italy, the company recently worked with Unicredit Bank, for example, to determine the financial risks associated with the bank loaning money to coal companies. “We were helping loan officers understand when they make loans to the coal industry, what is the impact their loans have and how they should assess the risk behind these loans,” Risz explains. “There are environmental risks there, but also reputational.”
The bottom line? If you want to get [all the various stakeholders in a company] on board with sustainability initiatives, you have to appeal to their KPIs [key performance indicators, the metric upon which many companies base annual bonuses],” Risz says.
Source: www.forbes.com by Amy Westervelt
Tuesday, 4 December 2012
10 Phrases That Are Holding Your Career Back
“The difference between the almost-right word and the right word
is really a large matter–it’s the difference between the lightning bug
and the lightning.”—Mark Twain
Whether dealing with clients, coworkers or superiors, how you phrase and frame your message colors the way people perceive you. The words you choose may be the difference between being thought of as problem-solver or a problem.
“Words are very important because they shape not only how other people hear you, but how they feel about you,” says Karen Friedman, author of Shut Up and Say Something: Business Communication Strategies to Overcome Challenges and Influence Listeners. “If you garner some kind of positive emotion, then you’ll make people care. Then you’re in a much better position for them to listen.”
However, too often business communication is peppered with filler words (umm, uh huh, well) that muddle the message, qualifiers (sort of, kind of, mostly) that diminish authority, and negative framing (can’t, impossible, never) that is discouraging and unproductive. In an informal poll of communication experts and career advisers, these 10 phrases were voted the worst things to say in your career.
That’s not my job.
“This makes it about what you can’t do as opposed to what you can do,” says Friedman. “It paints you as not being a team player.” Furthermore, it flies in the face of crucial career assets like flexibility and the willingness to learn new skills, which are required for leadership roles. Take it to a positive place by saying, “It’s not really my area of expertise. Let’s see who might be able to better help with this.”
I think…
Lorrie Thomas Ross, chief executive of consultancy Web Marketing Therapy, calls this and others like it (“I believe” and “I feel”) “discounting phrases.” They make you seem less authoritative and reduce the power of the message. The statement, “I think this is the best strategy,” is much weaker than, “This is the best strategy.” Likewise, eliminate prefaces like “I want” or “I’d like to.” So, rather than saying, “I want to thank you,” simply say, “Thank you.”
I don’t know.
“You think that’s being honest, but it’s really a cop out,” says Henry Devries, assistant dean for continuing education at the University of California San Diego and co-author of Closing America’s Job Gap. “It can be seen as lazy and not willing to take the next step.” Instead, say: “Let me find out the answer.” Similarly, saying, “I don’t know how to do that,” is better framed as, “Where could I get help to learn how to do that?” Then, you’re bridging the solution.
I can’t.
Again, this suggests a rigidity and unwillingness to be helpful or provide solutions. “You want to show employers you are ready to learn and tackle any challenge,” says Josh Tolan, chief executive of video interviewing platform Spark Hire. Instead of dismissively saying “I can’t,” pinpoint the issue and suggest a way around it. For example, if you’re asked to present a project at a time that conflicts with another commitment, say, “Unfortunately, I have a conflict then. However, I’ve been working closely with Sarah on this, and she would be fantastic.”
But…
“Using the word ‘but’ completely negates whatever you’ve said before it,” says Devries. While you may be well-intentioned, a comment like “that blouse looks nice on you, but the earrings don’t match” will not be taken well. We are conditioned to always listen for the negative information. “We’re used to the manure sandwich,” he says—that’s something nice, something negative, something nice, so that the negative bit is sandwiched in between. Oftentimes, “but” is easily replaced with “and,” which softens the message.
That’s not a good idea.
Nancy Mobley, founder and chief executive of consultancy Insight Performance, says quickly shooting down ideas makes employees and coworkers feel less comfortable about sharing their opinions and ideas, which can hamper creativity and innovation. “Some of the best ideas might be something you’re apt to shoot down before vetting them and getting more information,” she says. Instead of dismissing something outright, ask a question like, “How would it work?”
I’ll try.
“The word ‘try’ implies the possibility it may not get finished; it presupposes possible failure,” says communication expert Darlene Price, author of Well Said. If your boss asks for a proposal first thing in the morning and you respond, “I’ll try to get it finished,” you’re undermining yourself and putting doubts in your boss’s mind. Instead, say, “I’ll have it on your desk by 9 a.m.”
It wasn’t my fault.
“People hear it as defensive,” says Friedman. If someone asks what went wrong, they may not even be blaming you, so immediately diverting blame only draws attention to it. Take the higher ground, and try to be a problem solver. Say, “Let me try to better understand what happened,” or, “Let’s figure out how we can prevent it from happening again.”
I guess.
This is a common qualifier, which people use to hedge their bets against saying the wrong thing. “Avoid language that is tentative and not reflecting confidence,” says Dale Austin, director of the career development center at Hope College. Erase it from your vocabulary. If there’s a concern that gives you pause, instead of speaking tentatively, express the concern outright.
That’s impossible.
Like saying “it can’t be done,” “that’s impossible” is extremely negative. “It signifies that you’re not willing to even try,” says Friedman. “Negativity is infectious and spreads like a virus.” To keep it positive, say, “Let’s look at some different ways to tackle it.”
Source: www.forbes.com by Jenna Goudreau
Whether dealing with clients, coworkers or superiors, how you phrase and frame your message colors the way people perceive you. The words you choose may be the difference between being thought of as problem-solver or a problem.
“Words are very important because they shape not only how other people hear you, but how they feel about you,” says Karen Friedman, author of Shut Up and Say Something: Business Communication Strategies to Overcome Challenges and Influence Listeners. “If you garner some kind of positive emotion, then you’ll make people care. Then you’re in a much better position for them to listen.”
However, too often business communication is peppered with filler words (umm, uh huh, well) that muddle the message, qualifiers (sort of, kind of, mostly) that diminish authority, and negative framing (can’t, impossible, never) that is discouraging and unproductive. In an informal poll of communication experts and career advisers, these 10 phrases were voted the worst things to say in your career.
That’s not my job.
“This makes it about what you can’t do as opposed to what you can do,” says Friedman. “It paints you as not being a team player.” Furthermore, it flies in the face of crucial career assets like flexibility and the willingness to learn new skills, which are required for leadership roles. Take it to a positive place by saying, “It’s not really my area of expertise. Let’s see who might be able to better help with this.”
I think…
Lorrie Thomas Ross, chief executive of consultancy Web Marketing Therapy, calls this and others like it (“I believe” and “I feel”) “discounting phrases.” They make you seem less authoritative and reduce the power of the message. The statement, “I think this is the best strategy,” is much weaker than, “This is the best strategy.” Likewise, eliminate prefaces like “I want” or “I’d like to.” So, rather than saying, “I want to thank you,” simply say, “Thank you.”
I don’t know.
“You think that’s being honest, but it’s really a cop out,” says Henry Devries, assistant dean for continuing education at the University of California San Diego and co-author of Closing America’s Job Gap. “It can be seen as lazy and not willing to take the next step.” Instead, say: “Let me find out the answer.” Similarly, saying, “I don’t know how to do that,” is better framed as, “Where could I get help to learn how to do that?” Then, you’re bridging the solution.
I can’t.
Again, this suggests a rigidity and unwillingness to be helpful or provide solutions. “You want to show employers you are ready to learn and tackle any challenge,” says Josh Tolan, chief executive of video interviewing platform Spark Hire. Instead of dismissively saying “I can’t,” pinpoint the issue and suggest a way around it. For example, if you’re asked to present a project at a time that conflicts with another commitment, say, “Unfortunately, I have a conflict then. However, I’ve been working closely with Sarah on this, and she would be fantastic.”
But…
“Using the word ‘but’ completely negates whatever you’ve said before it,” says Devries. While you may be well-intentioned, a comment like “that blouse looks nice on you, but the earrings don’t match” will not be taken well. We are conditioned to always listen for the negative information. “We’re used to the manure sandwich,” he says—that’s something nice, something negative, something nice, so that the negative bit is sandwiched in between. Oftentimes, “but” is easily replaced with “and,” which softens the message.
That’s not a good idea.
Nancy Mobley, founder and chief executive of consultancy Insight Performance, says quickly shooting down ideas makes employees and coworkers feel less comfortable about sharing their opinions and ideas, which can hamper creativity and innovation. “Some of the best ideas might be something you’re apt to shoot down before vetting them and getting more information,” she says. Instead of dismissing something outright, ask a question like, “How would it work?”
I’ll try.
“The word ‘try’ implies the possibility it may not get finished; it presupposes possible failure,” says communication expert Darlene Price, author of Well Said. If your boss asks for a proposal first thing in the morning and you respond, “I’ll try to get it finished,” you’re undermining yourself and putting doubts in your boss’s mind. Instead, say, “I’ll have it on your desk by 9 a.m.”
It wasn’t my fault.
“People hear it as defensive,” says Friedman. If someone asks what went wrong, they may not even be blaming you, so immediately diverting blame only draws attention to it. Take the higher ground, and try to be a problem solver. Say, “Let me try to better understand what happened,” or, “Let’s figure out how we can prevent it from happening again.”
I guess.
This is a common qualifier, which people use to hedge their bets against saying the wrong thing. “Avoid language that is tentative and not reflecting confidence,” says Dale Austin, director of the career development center at Hope College. Erase it from your vocabulary. If there’s a concern that gives you pause, instead of speaking tentatively, express the concern outright.
That’s impossible.
Like saying “it can’t be done,” “that’s impossible” is extremely negative. “It signifies that you’re not willing to even try,” says Friedman. “Negativity is infectious and spreads like a virus.” To keep it positive, say, “Let’s look at some different ways to tackle it.”
Source: www.forbes.com by Jenna Goudreau
15 Phrases That Build Bridges Between People
Business is changing. The experts sure seem to think so. Every day, some new article hypes a brave new world of egalitarian openness and collaboration. That might be true if you work for yourself. For the rest of us, it’s still a winner-take-all, command-and-control world. Always has been, always will be. The experts may own the language, but not reality. When leaders feel threatened or the ink runs red, they rarely tap into their talent for solutions. More often, they cut communication and withdraw behind closed doors. Corporate culture can overcome many hurdles, but never human nature.
In reality, business has changed little. Work still involves small victories and slow progress, often ambiguous and rarely permanent. That said, what drives workers has changed little too. Besides money, they want a voice. They dream of receiving a fair shot to make a difference. And they long to feel special. And all that starts with communication. These days, we’re taught that tone and body language are the message. But words – and what they signify – matter too. Over time, your character, competence, and caring may be revealed by your actions. In a micro world, it is the right words used at the right moments that spark conversations and build bridges between people.
Want to tap into the deepest yearnings of your peers and employees? Consider sprinkling these phrases into your daily conversations:
1) Thank You: Common courtesy? Sure. But tell me this: When was the last time you forgot (or rejected) gratitude? Whether given in private or public, a sincere ‘thanks’ creates goodwill. Don’t forget your mother’s advice: “Say please.” People are always happier doing a favor than taking an order.
2) I Trust Your Judgment: Translation: “You have my permission. I believe in you. Now, go make it happen.” Feels pretty uplifting to hear that, doesn’t it? And I’ll bet you’d do almost anything to please someone who makes you feel that way. Your employees and peers are no different.
3) I Don’t Know: We don’t have all the answers. And it scares us to death. That’s a perfect point to start a dialogue…over facts and fears. Facing the unknown – and seeking assurances and answers – bonds people like nothing else. All you have to do is first admit what you don’t know.
4) Tell Me More: “I’m all ears.” It’s the ultimate conversation starter! When you signal that you’re open and intrigued, the other party will respond in kind. And who can resist flattery? Use phrases like “What do you think” or “What would you do” to acknowledge someone’s expertise. In doing so, you’re courting authentic suggestions, even if they challenge convention or skewer a sacred cow. If your interest is genuine, you may just fuel a productive exchange.
5) What I Hear You Saying Is: Ever wonder if someone has been listening to you? Be assured the person speaking to you is. So here’s a way to keep the ideas flowing. Step back and rephrase what someone says. In fact, vaguely distort or stray from it. This offers two benefits. It implies that you’re engaged, increasing the likelihood you’ll get more detail. It also helps you gauge the other person’s preparation, reasoning, and seriousness. It’s a win-win for everyone.
6) I’m On It: You’re giving your full attention. You’re saying, “Relax. Don’t worry about a thing. I’ll see to it personally.” That response can disarm just about anyone. To express a deeper commitment, use “You have my word.” This makes you more accountable to someone, conveying that you’re on board and will make it happen…whatever it takes.
7) How Else Can I Help You: It takes guts to speak up. People risk rejection, ridicule, or retaliation. Sure, you’ve discussed one issue. Chances are, this was just a test balloon to see how you’d react. This person probably wants to cover more; he’s just hesitant to ask. Make it easy on him. Extend the proverbial “what can I do” invitation to widen the conversation. And don’t be afraid to ask for help occasionally, either. People love to lend a hand. It provides purpose. When you’re humble and vulnerable, it humanizes you. It makes you one of them. And people trust those with whom they can identify.
8) I’ve Got Your Back: We’ve all made big mistakes. When we’ve recognized the gravity, the same question automatically pops up: “Am I getting fired for this?” It’s natural for co-workers and reports to imagine worst case scenarios. In those times, step in with a reassurance: “I’m not judging you. You’re going to get through this. You’re not alone. We’ll figure this out together. It’s going to be OK.”
9) My Pleasure: This subtle reminder reinforces a key point. You’re here to help others. You have all the time they need. And you’re happy to do it.
10) What If: Call it whatever you want: Imagination, wonder, inspiration, or vision. It’s that “why not” spirit that’s driven men and women to dream, create, and push limits. How often do you channel this force to hit it off with others? When was the last time you used a phrase like “How can we make this happen” or “Let’s try this out?” Go ahead. Open the floor to everyone. Put every option on the table. Don’t judge them based on budgetary, time, labor, or cultural considerations. Sure, most ideas won’t be feasible or relevant. But you’re seeking that nugget that makes your organization just a little more competitive and enjoyable. You can find the means another time.
11) Let Me Play Devil’s Advocate: Looking for a subtle way to critique? Turn the conversation into an exercise where you’re a detached party performing a function: Poking holes in the logic and plan of attack. Maybe you need to reel the other person back to the big picture. Maybe you want to direct him towards missing pieces, pros and cons, or alternatives. Either way, you use this strategy to stress test ideas without making the process personal.
12) Let Me Think About That: Yeah, it sounds like a cop out. And it is…sometimes. Fact is, we don’t always have the authority or expertise to make decisions. This phrase buys you time and breathing space. It intimates that you’re open-minded and the request merits consideration. Then, set a date and time for follow up so the other person knows you’re taking him serious.
13) Well Done: It’s a cliché, no doubt. Sometimes, it isn’t enough just to say thanks. People want to know what they did was great and why. They pour so much sweat and soul into their projects. They need more than recognition that a task or goal was completed. They need to know their work was special and had meaning to someone.
14) You’re Right: Want to get someone’s attention? Tell him that he’s right. Once you yield the high ground, it’s much easier for the other party to swallow that the right plan and sentiment can’t always overcome the absurdities and restraints we face every day.
15) I Understand: People have such an innate desire to connect. They long to know they’re not alone, seeking others who’ve been where they are – and have successfully made it through. Helping someone doesn’t always involve making suggestions or calls. It may just involve being there, paying attention to what a person has to say. Most times, that’s enough to show you understand.
What phrases do you use to make people feel more comfortable, motivated, and appreciated?
Source: www.forbes.com by Jeff Schmitt
Thursday, 15 November 2012
10 key countries for accounting careers
Where in the world can you find the warmest welcome for accountancy skills?
As economies such as China, India and the Middle East grow,
so too does the demand for qualified accountants. Tougher trading
climates also make the financial insight provided by chartered
accountants even more valuable. As the adoption and updating of
International Financial Reporting Standards (IFRS) gathers speed,
qualified accountants will be needed in increasing numbers to help
organisations interpret and apply these complex standards. ICAEW’s ACA
qualification is recognized in 170 countries in the world. So if you’re
contemplating broadening your horizons and working in pastures new, here
are 10 to whet your whistle.
In 2005 it adopted IFRS and in 2008 ICAEW launched its ACA qualification in Romania. Former ICAEW president Martin Hagen described accountants and auditors as "crucial for the continuing growth of the Romanian economy."
The cost of living is currently very low in Romania. Bucharest, its lively capital, is packed with restaurants, cafes, bars, museums and parks. Companies including all of the Big Four, Citibank, Renault and Visa have offices there and most expats in Bucharest work for major European corporations with smaller operations in Romania.
Companies generally follow IFRS and best industry practices for financial reporting. In terms of job opportunities the emirate is refocusing on its traditional strengths: trade, logistics and tourism. But professional services and advice is also sought by other sectors including banking and financial services, real estate, leisure and hospitality, retail construction, telecoms and energy.
It slipped into recession in 2009 and the forecast for GDP growth stands between 1% and 3%. But compared with Western economies, growth is robust. Singapore’s vision is to be a leading global accountancy hub for the Asia-Pacific region. The Singapore Financial Reporting Standards are closely modelled after the IFRS. Major industries include manufacturing (particularly electronics, engineering, biomedical sciences and chemicals) and commerce. Many of the major long-term British investors have increased their footprint in Singapore recently, including Barclays, Dyson, HSBC, Rolls-Royce, Shell and Standard Chartered. Development of the IT, bio-medical and tourism sectors are the government’s next priority.
Already a "tiger" economy, Malaysia aims to become a developed country by 2020. In 2010 the country recorded a GDP growth of 7% – one of the strongest showings in the region. However, foreigners are encouraged to take up employment only in areas where there is a shortage of suitably trained Malaysians. CFOs, partners and senior accountants are predicting buoyant demand for qualified accountants over the next five years. Expats speaking a second language will have an advantage, particularly if it is Mandarin or another Asian language.
Key business centres in Australia include Sydney, Melbourne, Brisbane and Perth. Australia is a leading financial centre in the Asia Pacific region and its alliance with markets throughout the region provides business people with a comprehensive range of financial services. As Richard Stokes, contact member for the Institute of Chartered Accountants in Australia says: "Our members continue to find good career challenges and opportunities in Australia as well as enjoying the lifestyle. We have around 3,500 members here and we are ICAEW’s largest group of UK-qualified members based outside the UK. The local economy continues to expand while many other world economies struggle."
"The ACA qualification is prestigious and always in demand," says Pougnet. "There are over 10 organisations that are ICAEW authorised training employers. Mauritius is one of the countries with the highest number of ICAEW members in relation to its population."
Professional accountants must be registered with MIPA (Mauritius Institute of Professional Accountants) and non citizens must obtain a work permit.
The capital of Vietnam is Hanoi, which lies in the north of the country, but other major cities include Ho Chi Minh City (the primary economic hub), Can Tho, Hai Phong, Hue, Da Nang, Nha Trang and Da Lat. Over half of the US Fortune 100 companies have operations in Vietnam and it will only become more attractive with its continuing tax incentives, long coastline, low cost of living, increasingly modern and sophisticated port infrastructure and very friendly locals.
Vietnamese Accounting Standards are followed and ICAEW works closely with the Vietnam Association of Certified Public Accountants (VACPA) to advance the accountancy profession in Vietnam and South East Asia.
The Swiss economy did relatively well during the global financial turmoil but is now struggling with the knock-on effects of the sovereign debt crisis in the neighbouring eurozone. Its largest banks, UBS and Credit Suisse, suffered significant losses in 2008-09 and the EU, the US and international institutions have increasingly put pressure on Switzerland to reform its banking secrecy laws.
But business expectations for revenue, profitability and employment are positive and Switzerland offers ideal operating conditions for foreign companies, including liberal and business-friendly legislation, political and financial stability and first-class infrastructure. According to expatfocus.com, a large percentage of Switzerland’s population consists of foreign nationals who move there for employment. Professionals working for large multinationals or in financial services tend to be found in Zurich.
Karachi, Lahore, Islamabad, Rawalpindi, Faisalabad, Gujranwala and Sialkot are the country’s key business centres and, according to expat Heather Carreiro, there is a big market in Lahore for qualified professionals. Many educated Pakistanis leave their country to settle in the West, which leaves a lot of room in the market for those with experience and education. "You may find yourself with several job offers within a short period of time," she says, adding: "Qualified foreigners can afford a higher standard of living in Lahore than in many North American or European cities."
Romania
Since the fall of communism in December 1989, Romania has undergone dynamic changes. The country experienced a boom on the back of accession to the EU in 2007 and, according to the World Bank, the last eight years have seen rapid economic growth. Despite the problems in the eurozone, the former finance minister says Romania has a "very comfortable" financing buffer amounting to €5bn.In 2005 it adopted IFRS and in 2008 ICAEW launched its ACA qualification in Romania. Former ICAEW president Martin Hagen described accountants and auditors as "crucial for the continuing growth of the Romanian economy."
The cost of living is currently very low in Romania. Bucharest, its lively capital, is packed with restaurants, cafes, bars, museums and parks. Companies including all of the Big Four, Citibank, Renault and Visa have offices there and most expats in Bucharest work for major European corporations with smaller operations in Romania.
United Arab Emirates
The vibrant UAE is a federation of seven Emirates: Abu Dhabi, Dubai, Sharjah, Fujairah, Ajman, Ras Al Khaimah and Umm Al Quwain. With its liberal business environment, high standard of living, sunny climate, affordable housing and hospitable locals, the UAE continues to attract expats from around the world. The region experienced strong economic growth until the global economic downturn – in 2009, Abu Dhabi had to bail out Dubai to the tune of US$10bn. But its free zones remain attractive to business and companies including Rolls-Royce, BAe Systems and Deloitte have a presence in the UAE.Companies generally follow IFRS and best industry practices for financial reporting. In terms of job opportunities the emirate is refocusing on its traditional strengths: trade, logistics and tourism. But professional services and advice is also sought by other sectors including banking and financial services, real estate, leisure and hospitality, retail construction, telecoms and energy.
Singapore
Consistently ranked as either the best, cleanest, easiest, efficient or most competitive country in which to work, Singapore’s open immigration policy makes it easy for foreigners to enter the city-state. Its pro-business attitude means that government agencies work closely with the business sector to promote economic growth.It slipped into recession in 2009 and the forecast for GDP growth stands between 1% and 3%. But compared with Western economies, growth is robust. Singapore’s vision is to be a leading global accountancy hub for the Asia-Pacific region. The Singapore Financial Reporting Standards are closely modelled after the IFRS. Major industries include manufacturing (particularly electronics, engineering, biomedical sciences and chemicals) and commerce. Many of the major long-term British investors have increased their footprint in Singapore recently, including Barclays, Dyson, HSBC, Rolls-Royce, Shell and Standard Chartered. Development of the IT, bio-medical and tourism sectors are the government’s next priority.
Malaysia
A multi-ethnic, multicultural and multilingual society, Malaysia has become one of the world’s top locations for offshore manufacturing and service-based operations. The capital, Kuala Lumpur, is home to the Bank Negara Malaysia and a hub for finance, real estate, business, arts and media companies. There’s a diverse expat community and lots of expat jobs.Already a "tiger" economy, Malaysia aims to become a developed country by 2020. In 2010 the country recorded a GDP growth of 7% – one of the strongest showings in the region. However, foreigners are encouraged to take up employment only in areas where there is a shortage of suitably trained Malaysians. CFOs, partners and senior accountants are predicting buoyant demand for qualified accountants over the next five years. Expats speaking a second language will have an advantage, particularly if it is Mandarin or another Asian language.
China and Hong Kong
No longer an emerging market, Greater China has transformed itself into a global superpower. According to ICAEW’s 2012 Economic insight: Greater China report, average annual growth of 10% for the past three decades means its output has roughly doubled every seven years. Hong Kong’s top spot on the World Economic Forum’s ranking of financial development and Shanghai’s fast growth as an important financial centre in its own right is attracting global corporations to the East. But as James Lee, ICAEW’s representative in Beijing says, there is still an acute shortage of qualified accountants in China. The Ministry of Finance and the Chinese Institute of Certified Public Accountants (CICPA) are working with ICAEW to attract top talent into the accountancy profession. "ICAEW actively encourages contact between Chinese and UK accountancy practice firms," says Lee. "We promote our members’ expertise to business and ICAEW has a reciprocal recognition agreement with the Hong Kong Institute of Certified Public Accountants (HKICPA)."Australia
The Australian economy has been ranked as the world’s most resilient for six out of the last eight years and is currently one of the best performing economies in the OECD. But the laid-back lifestyle is also a big draw. With the low cost of living, affordable quality housing, extensive healthcare benefits and one of the best education and social systems in the world, Australia has much to offer.Key business centres in Australia include Sydney, Melbourne, Brisbane and Perth. Australia is a leading financial centre in the Asia Pacific region and its alliance with markets throughout the region provides business people with a comprehensive range of financial services. As Richard Stokes, contact member for the Institute of Chartered Accountants in Australia says: "Our members continue to find good career challenges and opportunities in Australia as well as enjoying the lifestyle. We have around 3,500 members here and we are ICAEW’s largest group of UK-qualified members based outside the UK. The local economy continues to expand while many other world economies struggle."
Mauritius
"With its warm and sunny climate, beautiful beaches and great golf courses, Mauritius is a nice place to live… and to work as a chartered accountant," says Jacques Pougnet, international liaison partner at BDO in Port Louis. It enjoys a long-established democratic tradition and political stability, while the people are friendly and bilingual (English and French). "Its economy (mainly financial services, tourism, ICT, sugar, textiles) has so far withstood the financial crisis and growth is currently estimated at slightly less than 4%", adds Pougnet. International Financial Reporting Standards (IFRS) have been adopted since 2001."The ACA qualification is prestigious and always in demand," says Pougnet. "There are over 10 organisations that are ICAEW authorised training employers. Mauritius is one of the countries with the highest number of ICAEW members in relation to its population."
Professional accountants must be registered with MIPA (Mauritius Institute of Professional Accountants) and non citizens must obtain a work permit.
Vietnam
PwC recently listed Vietnam as the fastest-growing economy among emerging markets. In 2011 the Vietnamese economy recorded an annual growth rate of 5.89%. With an increasing number of Vietnamese companies looking to trade internationally, and multinationals setting up base in Vietnam, there has been a private sector boom in recent years. The changes in Enterprise and Investment Law in 2005 also created new opportunities for foreign investors in Vietnam by establishing partnerships with local private firms. The major goal of Vietnam’s foreign direct investment (FDI) policy is to attract capital but also management skills in order to exploit the country’s potential and improve living standards.The capital of Vietnam is Hanoi, which lies in the north of the country, but other major cities include Ho Chi Minh City (the primary economic hub), Can Tho, Hai Phong, Hue, Da Nang, Nha Trang and Da Lat. Over half of the US Fortune 100 companies have operations in Vietnam and it will only become more attractive with its continuing tax incentives, long coastline, low cost of living, increasingly modern and sophisticated port infrastructure and very friendly locals.
Vietnamese Accounting Standards are followed and ICAEW works closely with the Vietnam Association of Certified Public Accountants (VACPA) to advance the accountancy profession in Vietnam and South East Asia.
Switzerland
It manages around a third of all private and institutional offshore funds, but Switzerland is also renowned for its high-quality precision engineering industry. Other key sectors include pharmaceuticals, chemicals, telecoms, food processing and packaging, graphics and electrical and mechanical engineering.The Swiss economy did relatively well during the global financial turmoil but is now struggling with the knock-on effects of the sovereign debt crisis in the neighbouring eurozone. Its largest banks, UBS and Credit Suisse, suffered significant losses in 2008-09 and the EU, the US and international institutions have increasingly put pressure on Switzerland to reform its banking secrecy laws.
But business expectations for revenue, profitability and employment are positive and Switzerland offers ideal operating conditions for foreign companies, including liberal and business-friendly legislation, political and financial stability and first-class infrastructure. According to expatfocus.com, a large percentage of Switzerland’s population consists of foreign nationals who move there for employment. Professionals working for large multinationals or in financial services tend to be found in Zurich.
Pakistan
Pakistan’s economy has fared much better than other developed economies during the financial crisis. The UK business community already has a significant presence in Pakistan, with investments in oil and gas, IT and telecoms, education, pharmaceuticals, and the financial services sector. Major British companies include HSBC, Barclays, GlaxoSmithKline, Royal Bank of Scotland and Standard Chartered.Karachi, Lahore, Islamabad, Rawalpindi, Faisalabad, Gujranwala and Sialkot are the country’s key business centres and, according to expat Heather Carreiro, there is a big market in Lahore for qualified professionals. Many educated Pakistanis leave their country to settle in the West, which leaves a lot of room in the market for those with experience and education. "You may find yourself with several job offers within a short period of time," she says, adding: "Qualified foreigners can afford a higher standard of living in Lahore than in many North American or European cities."
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