Accounting Corporate lingo irl |
- Corporate lingo irl
- Petition to make the upvotes look like Dr. And downvotes like Cr.
- Why does it have to be harder than it should be
- I'll keep that mind, Ned.
- [Storytime] Company accidentally opened a massive gold short position
- Normal reddit procedure throw a photo of Bezos on an oversimplified inaccurate explanation of shell corps even though they don't factor into Amazon's tax strategy. Great commentary.
- Or public accounting in a nut shell
- Cries
- Laughs in Transfer Pricing Rules
- One more time
- nobody wants me, and I'm going to have to go crawling back to public tax right in time for busy season.
- Took half a day off, feeling guilty
- Interesting
- When someone asks you to explain leases under IFRS vs ASPE
- Questions: What order did you take the CPA Exams? Why did you choose that order? Did you pass the first try?
- Valuations vs Risk Advisory Offers
- Why are there so many more open senior positions for IT auditors than for regular auditors?
- When do you get into tax planning?
- Anyone experience burnout in school?
- Does it get better?
- THE IRS HATES THIS TRICK! Cuz you know, transfer pricing is not a thing.
- Trying to avoid fraud but working the system.
- PwC Start internship interview GPA question
| Posted: 05 Dec 2020 09:52 AM PST
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| Petition to make the upvotes look like Dr. And downvotes like Cr. Posted: 05 Dec 2020 08:08 AM PST I mean, why not? We can also do the opposite, sounds fun [link] [comments]  | ||
| Why does it have to be harder than it should be Posted: 05 Dec 2020 04:28 AM PST
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| Posted: 05 Dec 2020 03:43 PM PST
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| [Storytime] Company accidentally opened a massive gold short position Posted: 05 Dec 2020 11:29 AM PST I'm going to simplify the details a bit to make it easier to follow but this all actually happened. The company uses gold in industrial processes. They need to have a sizable amount of gold but they don't actually use very much of it at a time and so a decade ago they decided they wanted to rent it rather than tie up the cash in owning it. The rental arrangement they agreed upon has the following key details
Seems simple enough, right? Let's plug in some example details to show how it should, in theory, work. 1/1/10 gold spot = $1,000, leased coins = 100 12/31/10 gold spot = $1,100, remaining coins = 95 1/1/11 gold spot = $1,100, leased coins = 95 12/31/11 gold spot = $1,200, remaining coins = 90 1/1/12 gold spot = $1,200, leased coins = 90 12/31/12 gold spot = $1,400, remaining coins = 85 Our year 1 rental expense is $6k and our year 1 consumption expense is $5.5k. Our year 2 rental expense is $6.27k and our year 2 consumption expense is $6k. Our year 3 rental expense is $6.48k and our year 3 consumption expense is $7k. What I learned this week is that the 12/31 counts and payouts never took place because neither party saw the point in doing them. After all, the missing gold coins were still owed, right? They could be paid back later. So as long as they didn't adjust the number of leased coins to include the coins consumed they could, effectively, continue to rent the coins that were consumed last year and it would all work out in the end. So they recorded 1/1/10 gold spot = $1,000, leased coins = 100, rental expense $6k 1/1/11 gold spot = $1,100, leased coins = 100, rental expense $6.6k + $5k consumption expense, -$5k liability 1/1/12 gold spot = $1,200, leased coins = 100, rental expense $7.2k + $5k consumption expense, -$5k liability Everyone involved in the transaction thought that it basically made sense. Sure, they're signing a lease on 1/1/13 for 100 coins, even though they're only actually receiving 85 coins, but they got 100 coins originally and they know they owe the 15 coins back so what's the difference between borrowing 85 and borrowing 100 - 15. 100 - 15 = 85 so it's the same really. The problem is that each lease renewal isn't 1 transaction, it's actually 2 transactions when you break it down into the specific obligations that are getting met and how they're being met. On 1/1/11 the company owes $5.5k cash and would like to lease 95 coins. They settle both obligations by deciding to sign a lease for 100 coins while knowing that really they're only getting 95. In fact they make it even simpler, they never gave the 95 coins back, they just hung onto them. But in logical terms what they have done is signed a lease for 95 coins and also borrowed another 5 coins, sold them for $5.5k cash, and settled that obligation. Instead of owing 95 coins on a new lease of 95 and being $5.5k out of pocket they've decided to owe 100 coins, even though they know they're starting with 95, and pay $0 out of pocket. This is called a short position. They've borrowed a commodity and sold it for cash. The lessor in this case is now both a lessor and a precious metals brokerage service. And the 6% rental interest he's charging on the gold coins that don't exist, that's not rent, that's really interest on the value of their open short position. In the immediate term my company gets a cash inflow (or rather avoid a cash outflow but it's the same thing) but in the long term they have a noncash obligation of unknown value. If the price of gold were to go down in year 3 then on 12/31/13 they could settle up all of the prior year deficits in cash at the new lower spot price and come out ahead. If the price of gold were to go up then their liability related to the prior year deficits would increase. Pretty cool stuff, right? So the original contract actually ended on 12/31/18 but the plant manager at the time didn't want to pay out all that cash and so they just made a handshake deal to have the contract continue until either party terminates it at will. We've continue to pay rent on all of the original 100 gold coins, even though we've used most of them. We've also expanded the lease to 200 gold coins because although the rental invoices we're paying each month said we were leasing the original 100 gold coins in practice they don't exist beyond an acknowledgement that we still owe them. I recently took over as the new Controller and dug into this and it's really amazing. Based on current gold prices our current obligation is about $15m, payable on demand (because the original contract has expired), and our current accrual against that obligation is about $6m. And this is at a plant that makes about $1m in profit per year. I had a bunch of meetings yesterday with the plant manager where I attempted to explain that he had opened a massive naked short position on gold and he tried to explain to me that I was new here and didn't know how the last controller did it but if you check the invoices you can see that they quite clearly say rental on them. However, given that I am the controller and what goes on the books isn't fucking up to him, I'm booking us a $9m unfavorable adjustment to the accrual in December. On Monday he's going to call the CEO and CFO and tell them that I'm an idiot who doesn't understand what a rental is. He's going to explain to them that the old controller knew how this all worked and never had any problems. He's probably going to say they should fire me. And then I'm going to ask him how much gold we owe (about 250,000g) and what the price of gold is (about $60/g) and have him tell them how much it would cost to pay back the gold. And then I'll have him explain to them that right now the gold is owed on a purely verbal handshake deal so the broker could call up at any time and ask for his $15m. TLDR: Company settled current cash obligations with deferred noncash obligations which have appreciated causing the associated liability to increase. Nobody involved in this, neither my company nor the lessor, had any idea that they were engaging in precious metal speculation and I'm pretty sure they won't believe me when I tell them. [link] [comments]  | ||
| Posted: 05 Dec 2020 12:03 PM PST
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| Or public accounting in a nut shell Posted: 05 Dec 2020 05:39 AM PST
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| Posted: 05 Dec 2020 03:03 PM PST
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| Laughs in Transfer Pricing Rules Posted: 05 Dec 2020 02:48 PM PST
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| Posted: 05 Dec 2020 09:21 AM PST
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| Posted: 05 Dec 2020 07:45 AM PST I decided to go into tax over audit because I dreaded the idea of having to travel and be at different client sites every day rather than have a stable office that I could get comfortable in. but tax sucks, so I tried to get out. I knew I wasn't ever going to make it as a senior because that's the worst job in the office. so about a year and a half into tax (including a couple of internships) I started applying pretty much everywhere. it was such an uphill battle. I rarely even got interviews, but when I did, they didn't go well. I think I'm a good interviewer, I use the STAR method, I'm not dry and robotic, I'm as personable as I think is appropriate during an interview. that was never the problem. the problem was always that I was desperately trying selling my lack of "real" accounting experience, trying to upsell the stuff I did in tax as relevant to some random internal staff accounting position. I did account reconciliations to tie out accounts in client books! I analyzed client books to ensure entries were properly recorded! I posted adjusting entries to correct client misstatements! I had an understanding of accrual accounting as we regularly needed to make accrual to cash adjustments! I gained an understanding of GAAP as I prepared tax returns based off of audited client financials prepared in accordance with GAAP! I assisted auditors in the preparation of tax provisions! I performed bookkeeping services for small business clients! but, it never really worked. "so you've never been involved in month end close?" nope. "you've never used our ERP, yardi, etc.?" nope. "you've never assisted with payroll, AR, AP?" nope, also pretty sure an organization of this size has dedicated AR, AP and payroll staff, why do you need a staff accountant to worry about that? no, it seems my experience means very little. my degrees mean very little. my CPA license means very little. it's all fucking worthless, isn't it? I'm branded by tax. I'm a tax accountant, how could I do anything else? and how many internal tax positions have I seen? exactly 1. I've seen and applied to exactly 1 corporate tax position this entire time. I didn't get it. I feel like I would've been so, so much better off quitting college after my bachelor's, skipping the CPA, skipping public, and working as an accounting clerk. maybe then I'd have more attractive experience. but then it happened. I got the interview. and I did good, or at least I got lucky. I finally got a staff accountant position. I worked 40 hours a week, and did 15 hours of work a week for 3 weeks a month, and 35 hours during month-end. I finally got someone to take a chance on me. I don't know why. maybe I was finally able to compensate for my lack of experience just enough during the interview. maybe someone with tax experience felt sorry enough for my poor ass and hired me out of pity. or maybe it's because the universe is cruel, and knew 6 months into the job COVID would make me lose it anyways, and I'd spend the next 4 months desperately applying to every accounting opening before realizing, hey, tax season starts up in a little over a month, I need to secure a tax position while I still can, because it's better than homelessness and it's better than the amazon warehouse (but...is it?). so I'm going back. after throwing a fucking party because I got out, feeling like I broke out of prison, feeling like I fixed the worst mistake I've ever made in my life, feeling like I got my life back, feeling so sorry for your poor fuckers who'd be stuck in hell for the next busy season, feeling like I won the fucking lottery because I could quit my job and go work another job, telling myself I'd never, ever go back...I'm going back. I don't want to. every fiber of my being is screaming at me not to. every bone in my body says don't you fucking dare. I've never had such an all-encompassing feeling of terror, dread, fear, anxiety. my mental state has never been more fragile, and I'm taking all of that, and diving in headfirst. but what else can I do? nobody wants me. public tax is my abusive ex. she says I need her, and I can't live without her, and I'm a worthless piece of shit and she's the only person who'll ever want me, and I spent so much time fighting with her, fighting against her, and I broke free, and now I'm crawling back, because it turns out she was right. I'm a worthless piece of shit. nobody wants me. I can't live without her. [link] [comments]  | ||
| Took half a day off, feeling guilty Posted: 05 Dec 2020 08:30 PM PST My office (one out of 10 in the firm) has seen a lot of turnover this year. 12 months ago, we had 4 partners, 3 managers, 1 senior, and 5 staff accountants. Now we have 2 partners, 1 senior, and 2 staff accountants. I'm the senior and have been picking up more and more slack as people quit. I've been working 7 days a week and still falling far behind. I had to take a half day off today because I'm getting burnt out but now I feel guilty that I basically did nothing for most of the day. Has anyone else had experience with this? How do you cope with feeling that you've failed every day? [link] [comments]  | ||
| Posted: 05 Dec 2020 09:10 PM PST | ||
| When someone asks you to explain leases under IFRS vs ASPE Posted: 05 Dec 2020 07:44 AM PST
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| Posted: 05 Dec 2020 06:06 PM PST Just got my NTS! Trying to decide what order to take the exams. Any advice is appreciated! TIA [link] [comments]  | ||
| Valuations vs Risk Advisory Offers Posted: 05 Dec 2020 06:03 PM PST Currently have 2 Big 4 offers from a super non-target. Leaning towards risk as I am a computer science and finance double major but prefer to have finance complement CS in my career. Any advice? [link] [comments]  | ||
| Why are there so many more open senior positions for IT auditors than for regular auditors? Posted: 05 Dec 2020 04:43 PM PST When I go on LinkedIn and search "auditor" for places like Denver or Austin, I seem to find many more open positions for IT Audit seniors than for financial auditors in the results (at least for positions at F500 companies). It seems like there's more open manager positions for financial audit than senior positions. Company's like apple, zoom, and big banks on these areas have had a ton of open IT auditor positions open for months in these areas. I have my masters in MIS and BBA in accounting and have been thinking of making the switch from financial auditor at a Big4 to IT audit while I'm still early in my career. Thoughts? [link] [comments]  | ||
| When do you get into tax planning? Posted: 05 Dec 2020 08:31 PM PST Is your first few years in big 4 tax just doing compliance like filling out tax returns? When do you start dipping your toes in tax planning and more advanced stuff? [link] [comments]  | ||
| Anyone experience burnout in school? Posted: 05 Dec 2020 03:14 PM PST I hear so many students talk about how excited they are to get out and work in their chosen field, and I can't help but feel dread, and fear for mine. Working on my Macc and just bought Becker, so gonna power through next year, and finish out my masters, and hopefully the first 3 exams. But I feel like I"m kind of in autopilot, and just doing what I"m "supposed" to do after picking this path. I'm hoping it'll get better when I get in the field. I just feel so exhausted and burnt out. I'm wondering if anyone else has experienced this? I worry because it's before I even get out there. I had a solid 4.0 in undergrad, and have a 4.0 in graduate school, but feel like I'm bored and not challenging myself, or doing anything interesting. My previous major was Aerospace Engineering, and I dropped out. (I had an abusive boyfriend, it's a long story) But that's what I'm really passionate about, but this was many many years ago. Is this kind of a school isn't like real life situation? Or should I have second thoughts? My issue is that I"m 28, and trying to make up for lost time. (doing an accelerated 1 year degree, ect) I finished my bachelors in the spring. and started my masters this fall, taking the summer off. It doesn't help that I moved halfway across the country in the middle of a pandemic to get away from toxic parents (I was dating a girl for a hot minute this summer, and was clearly a "dumb dyke ect"), and know no one here due to the pandemic. Maybe I just have too much time with my thoughts right now? Was working in the real world easier than school? Has anyone had these burnouts? How did you bounce back? [link] [comments]  | ||
| Posted: 05 Dec 2020 10:54 AM PST I work in audit, Big 4 (started a little over a month ago) and well, I'm super confused on understanding the work I'm doing. Does this understanding come with experience and age? It's just all so overwhelming [link] [comments]  | ||
| THE IRS HATES THIS TRICK! Cuz you know, transfer pricing is not a thing. Posted: 05 Dec 2020 04:09 PM PST
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| Trying to avoid fraud but working the system. Posted: 05 Dec 2020 07:39 PM PST I drive through a couple states for work. I've been approached by a few people to put their logos on my car to advertise their products or business etc. If I plan to charge them my weekly gas cost. If I create an advertising company, can I write off my cars depreciation? It might be a bit greedy, but I think a write off would be worth more than 90$ a month. Would this be illegal or would I just need a decent lawyer if I get audited. [link] [comments]  | ||
| PwC Start internship interview GPA question Posted: 05 Dec 2020 07:17 PM PST I have an interview for PwC in a couple days. They're preferred GPA is 3.3, on my resume I put 3.2 because thats what it was at the time. Now, since the semester is over and grades are in it has increased to 3.4. How should I bring this up to the interviewer during the interview? Should I even bring it up? I figure they don't mind my 3.2 GPA because I got accepted for an interview but I don't want to chance it. Btw my stated major GPA is 4.0, cum 3.2. Any suggestions? [link] [comments]  |
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