#accounting

In IT&V, the pressure to produce is increasing. Good thing most of us came from public accounting. Time to start eating time like a pro!

Investors bid the stock up on short‑term good news (earnings, investor stake, dividend), but the Q1 beat could be misleading because it’s pro‑forma and boosted by Lexmark purchase‑accounting adjustments rather than pure organic profit or cash‑flow improvement.

I got wind accounting in LM only goes in two days a week. Is this true???? If so how’s that fair for the rest of us getting RTO shoved down our throats?

If you’re over 40 and you were affected, you will be receiving a list of those included in the layoff and a list of those not laid off. Not with names, but with titles and characteristics. It would be interesting to hear how many associates are on your layoff list.

Here’s what should be in it:

Mandatory OWBPA Disclosure (for Employees 40+)When a reduction in force (RIF) involves two or more employees and a severance waiver is requested, employers must provide a written document containing:The Decisional Unit: A description of the specific group, class, or unit of employees that was considered for the layoff (e.g., "all employees in the Accounting Department").Selection Criteria: The eligibility factors or criteria used to determine who would be laid off and who would be retained.Job Titles and Ages (Selected): A list of the job titles and ages of every individual in that decisional unit who was selected for the RIF.Job Titles and Ages (Not Selected): A list of the ages of all individuals in the same decisional unit who were not selected for the layoff.

A new job has been posted, they are looking to hire someone to develop AI to take processes, procedures, analysis, etc out of the hands of current workers and into the bowels of AI. The worst part is that the job description includes making the AI in compliance with audit standards and SOX public standards. All while following the rules of controls and separation of duties? How can this be taken seriously? Trusting that data is properly handled, accounting is done up to high standards, and that our financial statements are accurate in the hands of newly developed AI? More layoffs coming to FP&A if this job gets filled? Whoever takes this job will be a yes-man and completely wreck our financial accuracy.

Is it true? Left recently, should've waited for the package....

Controller, director and a couple more bounced. Ruthless!

As you all know 75% of teh contractors in CX were made redundant during the last 3 months. Most of it happened in the CX centres.
The latest is, CX is getting rid of all small accounts and they are keeping only what they call signature accounts. These are major SP accounts like AT&T,verizon, BT, TI, DT,Telstra etc.
The CX enterprise business is in a lot of trouble for a long time. So except for few strategic accounts like Microsoft,google, etc, CX is getting rid of all small accounts. Their plan is to manage such accounts through partners. This is a big shift that will happen in the next 12 months. As a primary step, they are planning to cut 15% of all blue badges in all theaters. They are planning to justify it with AI efficiency improvement and margin pressure. So Braze for it amigos.

You may want to check the balance on your ExxonMobil gas card account.

When we swapped over to the new company which handles our paychecks someone forgot to check a box. The money was taken from the paychecks but never sent to the credit card company for payment.

While some employee's balances have been paid...............I am finding the majority have not. Interest is being charged.

Heard we lost some long timers in a group at Finance accounting.

KPMG UK intends to reduce its audit division workforce. Up to 440 employees are expected to be laid off. Nearly 600 staff members were warned about potential job losses. Low staff turnover and changing market conditions are cited as reasons. This move primarily affects assistant managers with accounting qualifications.

https://www.hrkatha.com/news/kpmg-uk-to-layoff-up-to-440-audit-staff/

What is included in W2 Box 1?

Are the vested securities included in here? Is there anything else like employer portion of health plan?

This is the only explanation. And to cover his tracks, let's throw out a good bonus to really make it look like we really did these numbers.

http://techrights.org/n/2026/02/11/With_an_IBM_Company_Down_Over_75_After_Apparent_Accounting_Frau.shtml

Barron's: 2/10/26 -

• Kyndryl Holdings shares plunged 55% to $10.59 after multiple executive departures and an SEC review of accounting practices.
• Guggenheim Partners downgraded the stock to Neutral, citing unanswered questions and weak fiscal third-quarter results.
• The company cut its fiscal 2026 revenue outlook to a 2% to 3% decline and reduced free cash flow guidance to $350 million.

Kyndryl’s future is too uncertain for investors to feel comfortable, according to Guggenheim Partners.

If there is one thing investors dislike most, it is uncertainty. Kyndryl Holdings’ future now looks more uncertain than ever after a historic selloff on Monday, analysts say.

Shares of the IT infrastructure company plunged 55% to $10.59 after Kyndryl announced the departures of Chief Financial Officer David Wyshner, General Counsel Edward Sebold, and Global Controller Vineet Khurana. The company also disclosed that it is reviewing its accounting practices following voluntary document requests from the Securities and Exchange Commission.

Guggenheim Partners downgraded Kyndryl stock to Neutral from Buy and withdrew its price target. In a research note, analyst Jonathan Lee said the announcements, combined with weak fiscal third-quarter results, raised more questions than answers.

The stock rebounded 5.3% on Tuesday to $11.15.

Lee said investors likely anticipated a weak earnings report from the former IBM spinoff but were unprepared for the abrupt exit of key legal and financial executives or the disclosure of material weaknesses in internal controls over financial reporting. The SEC review, in particular, is expected to remain an overhang on the stock.

Kyndryl said it is developing a remediation plan but offered no details, noting that additional information would be provided in a delayed quarterly securities filing.

“We expect investors to continue questioning execution and credibility until management provides an update on material weaknesses,” Lee wrote.

The company’s updated guidance also failed to reassure investors. Kyndryl now expects fiscal 2026 revenue to decline 2% to 3%, compared with a prior forecast of 1% growth. It also cut its midpoint free cash flow forecast to $350 million, down from $550 million.

According to Lee, the revised outlook casts doubt on Kyndryl’s long-term goal of generating $1 billion in adjusted free cash flow by 2028. Restoring confidence in that target will require a credible management team capable of executing a turnaround.

For now, analysts recommend caution. J.P. Morgan double-downgraded Kyndryl to Underweight from Overweight, and Oppenheimer cut its rating to Perform from Outperform.

https://www.barrons.com/articles/kyndryl-stock-downgrade-accounting-review-7245a725

"For nearly a year, the company dismissed short-seller allegations as mere 'falsehoods,' but today those chickens came home to roost with a $2.8 billion loss in market cap."

https://www.chartmill.com/news/KD/Chartmill-41541-kyndryl-accounting-implosion-sec-gotham-city-vindicates

This reminds me of ENRON. How could this happen ? Martin buddy, where were you ?

brilliant moves, as always

https://www.zerohedge.com/markets/kyndryl-crashes-accounting-review-cfo-exit-analysts-brand-mess-disaster

Why are you guys surprised? All along I projected the stock to be in the 50s.

What is next? Fiserv is no longer a fintech company, it is a company with a bunch of accountants and top-heavy with VPs and SVPs. All its IP 🧐 assets are contractors. No one would invest in an accounting firm. Clover? It’s only 8% of the market and going down.

Infinite? Simply an agent, facilitating, accounting cover-up to beautify quarterly earnings.

Sad but this company is dead without its full time IP committed to Fiserv. Mike can’t do anything, Frank left him with long term contracts with third parties and many Frank’s kool-aid guys still around. Stock to $40 .

It will take Mike about another 2 years to know IP is a must to the survival of this company.

Oklahoma City took the biggest hit. Anyone know the numbers?
What other locations were impacted?

Or have you been successful getting them from ADP?

Out of curiosity I did some AI based research to see how and when a company must account for severence expenses under GAAP, taking into consideration 60 day notice periods, and basically they can incur the expense when they notify you so long as their is little chance of a reversal. additionally. if they have already made their lists for the first part of 2026 (q1/2) and are certain those positions are going away they can take the expense earlier such as in the $612MM hit we took this past quarter. So while severance expenses are expected to be lower by $700MM in 2026, part of the reason they can say that is that layoffs happening in the next few months are already paid for.

What system do you use? Asking for a friend. SAP?

Is anyone working on this project at a corporate level? Accounting was told the timeframe is 12-18 months, can anyone comment that’s in the know?

Reading all types of potential nonsense talking about its going to be one of the hardest hit in layoffs and pressure to run the back office function even leaner, etc.

Accounting, fpa, reporting&policy?

Has anyone heard about accounting or specific departments?

What kind of Accounting is Krabanaugh doing?

Does anyone normal think it's worth over 300 a share? I would not be surprised if he is cooking the books. Remember he said the quiet part out loud when he said he wanted to reach 300 at a F&O All hands earlier this year.

And if IBM is really valued that much, why all the RAs?

@michaeljburry

Understating depreciation by extending useful life of assets artificially boosts earnings - one of the more common frauds of the modern era.

Massively ramping capex through purchase of Nvidia chips/servers on a 2–3 yr product cycle should not result in the extension of useful lives of compute equipment.

https://x.com/michaeljburry/status/1987918650104283372?s=20

Yet this is exactly what all the hyperscalers have done. By my estimates they will understate depreciation by $176 billion 2026–2028.

By 2028, ORCL will overstate earnings 26.9%, META by 20.8%, etc. But it gets worse. More detail coming November 25th. Stay tuned.

It's good to know there are 'laws' in place to prevent telecoms from doing this again. We know they have the best interest of the customer (shareholders) as their top 'priority'!

https://www.linkedin.com/pulse/analyzing-accounting-fraud-worldcom-lessons-learned-future-almutairi

This is probably a good thing since Humana and most other Large MA Private Insurance Corporations seem to have a difficult job at doing simple accounting math when it comes to accurate Pharmacy RX Rebate numbers being reported to CMS and to Providers.

They have to do it once a year, by SEC regulation, and 3 quarters are gone now, so it will be December. As bad as it was, the next call will be a lot worse.

Realize that there are significant number of well enumerated drone workers at Shell, but doing business in and traveling to India have potential regulatory burdens…the Chevron model.

Summary of the Situation

Chevron has invested approximately $1 billion in its Engineering and Innovation Excellence Center (ENGINE) located in Bengaluru, India. While this expansion is intended to improve efficiency and global project collaboration, there may be long-term tax and compliance costs associated with how the operation is structured under Indian law.

The following sections outline general, factual information based on standard international taxation frameworks such as Permanent Establishment (PE) and Transfer Pricing — not internal Chevron data.

⸻

Permanent Establishment (PE) and Tax Liability
• If a foreign company establishes a fixed place of business in India (for example, an engineering or project office), Indian authorities may classify it as a Permanent Establishment (PE).
• This triggers tax obligations on profits attributed to work performed in India, even if the project serves clients elsewhere.
⸻

Profit Attribution
• Under Indian law, part of a company’s global income can be taxed locally if significant value creation or management occurs in India.
• For instance, if Australian or U.S. projects are executed by teams in India, India can claim a portion of those profits for taxation.
⸻

Taxation of Foreign Subsidiaries
• Corporate Tax: Subsidiaries or branches in India are taxed on income earned locally, typically around 22% (plus surcharge and cess).
• Transfer Pricing: Intercompany transactions (e.g., management fees, subcontracting, asset transfers) must follow India’s arm’s-length pricing rules.
• Withholding Tax: Payments from India to foreign parent entities (royalties, fees, or dividends) may face withholding taxes depending on applicable treaties.
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Cross-Border and Expat Implications
• Projects Managed from India: Even if work supports projects in Australia or the U.S., India can still tax the related income if the work is performed domestically.
• Foreign Expats in India: Employees from other countries working in India may be taxed under Indian income tax laws based on their residency status.
⸻

Estimated Financial Impact (Industry Benchmarks)
Benchmarking studies (e.g., from KPMG and EY) indicate potential cost impacts in several areas:
• Transfer Pricing Adjustments: 5–15% increase in taxable income due to stricter cost scrutiny (e.g., management fees, FX losses, share-based pay).
• Profit Attribution: 15–25% of global project profits could be attributed to India for high-value engineering or design work.
• Compliance Costs: Ongoing regulatory, IT, and operational costs may total $2M–$5M annually depending on scale.

Five-Year Projection (2025–2030):
• Transfer Pricing Adjustments: estimated at $10 million to $20 million per year, totaling $50 million to $100 million over five years.
• Profit Attribution Tax Impact: estimated at $15 million to $30 million per year, totaling $75 million to $150 million over five years.
• Compliance and Administrative Costs: estimated at $2 million to $5 million per year, totaling $10 million to $25 million over five years.
• Total Global Business Unit Cost: approximately $27 million to $55 million per year, or $135 million to $275 million over a five-year period across all Chevron business units utilizing the Indian center.

⸻

Strategic Considerations
While India offers substantial cost and talent advantages, aggressive profit attribution and tax compliance requirements could partially offset those savings. This highlights a broader issue many multinationals face when expanding shared services or engineering hubs abroad.

⸻

Sources:
• Indian Income Tax Act and Transfer Pricing Rules
• OECD Guidelines on Permanent Establishments
• Public benchmarking data from KPMG and EY

⸻

Would be interested to hear others’ perspectives on how these kinds of global engineering consolidations impact overall efficiency and cost management across Chevron’s business units.

https://www.wsj.com/finance/regulation/massmutual-sec-probe-63d73f31?mod=hp_lead_pos10

Regulators Are Investigating MassMutual’s Accounting Practices
SEC is focused on how the insurer accounts for income on billions of dollars of loans

Were the previous executives cooking the books or is Sammy just looking for a scapegoat?

I have been hearing things about changes that will be affecting Accounting Department - do you hear anything?