Global Business, Finance, and Management Newsletter – October 2009

Dear friends and colleagues,

Welcome to this month’s issue of my newsletter featuring selected articles on finance, accounting, audit, and global business.

I hope you will find this information interesting.

Feel free to contact me in case you require any additional information on the topics discussed below.

With very best regards,
Armando Nuricumbo


FINANCE AND ACCOUNTING

Internal Audit: The Continuous Conundrum
A definition of "continuous auditing" remains elusive and expert practitioners rare. Here are some tips for getting a program going.
http://www.cfo.com/article.cfm/14440838/c_14441373?f=home_todayinfinance

IFRS Risk Planning and Controls Execution
Implementing IFRS will impact many, if not all, aspects of your business operations, including information technology.
http://www.journalofaccountancy.com/Issues/2009/Sep/20091594.htm

5 skills CPAs need to become CFOs
Veteran CPA financial executives say CPAs must be well-versed in five key skills before stepping into the lead finance role.
http://www.journalofaccountancy.com/Issues/2009/Sep/20091501.htm

CPAs Can Benefit From Flu Preparation
Several federal agencies have jointly developed a “Preparedness Guide for Small Business” to help small businesses plan for the H1N1 flu.
http://www.journalofaccountancy.com/Web/20092158.htm


GLOBAL ECONOMY

How Did Economists Get It So Wrong?
The Great Recession was the result not only of lax regulation and reckless risk-taking but also of faulty theorizing in academia.
http://www.nytimes.com/2009/09/06/magazine/06Economic-t.html?_r=1&ref=magazine

Coca-Cola still viewed as most valuable brand
Consumers lost trust in brands as the recession deepened, but Coca-Cola and IBM retained spots as the world's two most valuable brands.
http://www.usatoday.com/money/advertising/2009-09-17-coke-brand_N.htm

Why capitalism fails
The man who saw the meltdown coming had another troubling insight: it will happen again.
http://www.boston.com/bostonglobe/ideas/articles/2009/09/13/why_capitalism_fails/

Global capital markets: Entering a new era
A new report by the McKinsey Global Institute highlights the impact of the global financial crisis on global capital flows.
http://www.mckinseyquarterly.com/Economic_Studies/Productivity_Performance/Global_capital_markets_Entering_a_new_era_2443


MEXICO AND LATIN AMERICA

For Mexico and Canada, the ‘War on Terror’ is Over
On the eighth anniversary of the global “war on terror”, America’s continental neighbors – Mexico and Canada – have had enough.
http://laprensa-sandiego.org/featured/for-mexico-and-canada-the-%e2%80%98war-on-terror%e2%80%99-is-over/

Brazil’s VP wants to go nuclear
Brazil's vice president says in an interview that his country should develop nuclear weapons.
http://www.huffingtonpost.com/2009/09/25/jose-alencar-brazil-vp-sa_n_300187.html

Latin America Rebound to Be ‘Strong,’ Barclays Says
Latin America’s economic recovery will be “remarkably strong”, bolstering currencies and spurring interest rate increases in 2010.
http://www.bloomberg.com/apps/news?pid=20601013&sid=aM7BYn6lPsDo


OPPORTUNITIES

Inter-American Accounting Conference
Most important accounting event in the Americas, which will take place in October in the beautiful city of Cancun, Mexico.
www.cic.org.mx/index.php?option=com_content&task=view&id=32&Itemid=50

Land for sale in Zumpango, Estado de México.
45 minutes from Mexico City. Approximately 10,000 m2. Flat. All legal documentation in order. Excellent investment. Sold by owner.
http://www.nuricumbo.com/files/Terreno_en_Zumpango.pdf

Historic house for sale in San Diego, Guanajuato.
30 minutes from Dolores Hidalgo. 3 hours from Mexico City. Excellent location for business. 300 m2. Sold by owner.
http://www.nuricumbo.com/files/Casa_en_San_Diego_de_la_Uni_n.pdf

Global Business, Finance, and Management Newsletter – September 2009

Dear friends and colleagues,

Welcome to the September 2009 issue of my newsletter featuring selected articles on finance, accounting, audit, and global business.

I hope you will find this information interesting.

Feel free to contact me in case you require any additional information on the topics discussed below.

With very best regards,
Armando Nuricumbo

FINANCE AND ACCOUNTING

Financial Crisis Group Exonerates Accounting
The Financial Crisis Advisory Group has published a report concluding that accounting standards are not to blame for the economic crisis.
http://www.webcpa.com/news/Financial-Crisis-Group-Exonerates-Accounting-51155-1.html?zkPrintable=true

SEC Fines GE $50 Million for Accounting Misdeeds
General Electric broke rules to meet or beat earnings expectations intentionally defrauding investors, says the SEC.
http://www.businessweek.com/bwdaily/dnflash/content/aug2009/db2009084_567813.htm

Accounting Standards Board Moves Decisively to End U.K. GAAP
The ASB released a new draft policy which sets the stage for a future where 'UK GAAP will cease to exist'.
http://www.accountancyage.com/accountancyage/news/2247650/asb-sounds-death-knell-uk-gaap

For Fraud Investigators: Listen, Do Not Look
Forget what you've learned from years of watching cop shows on TV. Liars do not have trouble making eye contact. The guilty don't fidget.
http://www.npr.org/templates/story/story.php?storyId=111809280&sc=nl&cc=es-20090823

MEXICO AND LATIN AMERICA

Mexico smuggler plotted to kill President Calderon
Mexico captured a drug smuggler believed to plot to assassinate President Calderon in revenge for the army's crackdown on trafficking.
http://www.dose.ca/news/story.html?id=1878449

Conservative Piñera Leads Chilean Presidential Race
Sebastián Piñera is poised to secure a victory in this year’s presidential election in Chile, according to a poll by CERC.
http://www.angus-reid.com/polls/view/conservative_piera_leads_chilean_presidential_race/

Santiago airport expansion will require US$500mn
The new concessionaire of Chilean capital Santiago's international airport will have to invest US$500mn.
http://www.bnamericas.com/news/privatization/Santiago_airport_expansion_will_require_US*500mn

Bus-eye view: Seeing Mexico City from the Turibus
If this is your first visit, the hop-on, hop-off Turibus is a must to get the lay of the land and shake off any fear of this enormous city.
http://www.contracostatimes.com/travel/ci_13179381?source=rss

OTHER MANAGEMENT TOPICS

Valuing social responsibility programs
Companies see social responsibility as a way to fulfill the contract between business and society. But do they create financial value?
http://www.nuricumbo.com/files/Valuing_Social_Responsibility_Programs.pdf

Harnessing the power of informal employee networks
Formalizing a company’s ad hoc peer groups can spur collaboration and unlock value.
http://www.mckinseyquarterly.com/Organization/Strategic_Organization/Harnessing_the_power_of_informal_employee_networks_2051

Recommendations

Inter-American Accounting Conference
The most important accounting event in the Americas will take place in October in the beautiful city of Cancun, Mexico.
http://www.cic.org.mx

Land for sale in Zumpango, Estado de México.
45 minutes from Mexico City. Approximately 10,000 m2. Flat. All legal documentation in order. Excellent investment. Sold by owner.
http://www.nuricumbo.com/files/Terreno_en_Zumpango.pdf

Historic house for sale in San Diego, Guanajuato.
30 minutes from Dolores Hidalgo. 3 hours from Mexico City. Excellent location for business. 300 m2. Sold by owner.
http://www.nuricumbo.com/files/Casa_en_San_Diego_de_la_Uni_n.pdf

Global Business, Finance, and Management Newsletter – August 2009

Dear friends and colleagues,

Welcome to the August 2009 issue of my newsletter featuring selected articles on finance, accounting, audit, and global business.

I hope you will find this information interesting.

Feel free to contact me in case you require any additional information on the topics discussed below.

With very best regards,
Armando Nuricumbo


FINANCE AND ACCOUNTING

Tips on Curbing Corporate Fraud
In 2008, U.S. companies lost $994 billion due to occupational fraud. Here some advice to stop such fraudulent activities.
http://www.webcpa.com/news/Tips-Curbing-Corporate-Fraud-51039-1.html?zkPrintable=true

Audit Problems Found at BDO and Grant Thornton
The PCAOB has released reports on the audit deficiencies that its inspectors found last year at BDO Seidman and Grant Thornton.
http://www.webcpa.com/news/Audit-Problems-Found-BDO-Grant-Thornton-51061-1.html?zkPrintable=true

Accounting standard setters stir controversy
The IASB and the FASB are quickly rewriting accounting rules as companies and nations continue to grapple with the financial crisis.
http://www.economist.com/businessfinance/displaystory.cfm?story_id=14036928


GLOBAL ECONOMY

State capitalism and the crisis
Many corporate leaders and investors act as though globalization remains the dominant paradigm. That is a mistake.
http://www.mckinseyquarterly.com/Strategy/Globalization/State_capitalism_and_the_crisis_2403

CEO manifesto from GE's Immelt
GE CEO Jeff Immelt has a plan for businesses looking for a way forward. Step 1: Ditch the service sector and think exports again.
http://blogs.harvardbusiness.org/hbr/hbreditors/2009/06/finally_a_ceo_speaks_up_on_how.html

Oil-price volatility could jeopardize economic recovery
Energy analysts are mystified by the wild swings in the price of oil. The level of uncertainty is becoming an obstacle to economic recovery.
http://www.nytimes.com/2009/07/06/business/06oil.html?_r=1&ref=business

Skilled Immigrants on Why They're Leaving the U.S.
A long wait for a green card, coupled with the soft U.S. economy, is prompting an exodus of some of the best and brightest.
http://www.businessweek.com/bwdaily/dnflash/content/jul2009/db20090724_178761.htm?chan=rss_topStories_ssi_5


MEXICO AND LATIN AMERICA

New Strategy Urged in Mexico
Mexican President Felipe Calderón's U.S.-Backed War Against Drug Cartels is Rapidly Losing Political Support.
http://www.washingtonpost.com/wp-dyn/content/article/2009/07/27/AR2009072703074.html

Energy Deal With Brazil Gives Boost to Paraguay
For decades Paraguayans have protested the deal they got when they built the largest hydroelectric plant with Brazil along their border.
http://www.nytimes.com/2009/07/27/world/americas/27paraguay.html?_r=1&scp=2&sq=brazil&st=cse

Rebels Obtained Arms Sold to Venezuela, Colombia Says
Colombia’s largest rebel group managed to obtain Swedish-made antitank rocket launchers that had been sold to Venezuela years ago.
http://www.nytimes.com/2009/07/28/world/americas/28Colombia.html?scp=2&sq=colombia&st=cse

Developing nations shine amid the crisis gloom
Many emerging markets have had a good crisis year, or at least a better one than their industrialized peers.
http://www.ft.com/cms/s/0/64976d4c-7b0d-11de-8c34-00144feabdc0.html?nclick_check=1

Fears of deep recession in Argentina growing
Fears that Argentina may slip into prolonged recession are growing despite efforts by the government to paint a very different picture.
http://www.ft.com/cms/s/0/3a570ae0-75fb-11de-84c7-00144feabdc0.html


OTHER MANAGEMENT TOPICS

Managing beyond Web 2.0
Companies should prepare now for the day when Web 2.0 morphs into Web 3.0.
http://www.mckinseyquarterly.com/Business_Technology/BT_Strategy/Managing_beyond_Web_20_2389

Does social-media investment pay off?
Companies that display the most social-media activity show higher rates of growth, a new study shows.
http://www.mediapost.com/publications/?fa=Articles.showArticle&art_aid=110120

Researcher predicts $65B global ad shift to online
An estimated $65 billion in funds that would have been spent on traditional media this year will be directed toward online media.
http://www.forbes.com/2009/07/21/advertising-marketing-business-media-stratigos.html


Recommendations

Language school in Montreal, Canada
The Horizon Language Institute offers a wide variety of options for international students in one of Canada’s most beautiful cities.
http://www.horizoninstitute.ca/en/index.php

Global Business, Finance, and Management Newsletter – July 2009

Dear friends and colleagues,

Welcome to the July 2009 issue of my newsletter featuring selected articles on finance, accounting, audit, and global business.

I hope you will find this information interesting.

Feel free to contact me in case you require any additional information on the topics discussed below.

With very best regards,
Armando Nuricumbo


FINANCE AND ACCOUNTING

Accountants: Ability to inspire, motivate is top leadership skill
A survey found that the ability to inspire and motivate others is the most urgently needed leadership skill in accounting.
http://www.accountingweb.com/cgi-bin/item.cgi?id=107653&d=883&h=884&f=882&dateformat=%25o%20%25B%20%25Y

Issues for Audit Committees to consider surrounding IFRS
It is important that audit committees now gain an understanding of IFRS and contemplate the company's readiness.
http://media.cpa2biz.com/Publication/IFRS/1939-347_ifrs-audit_comm_news.pdf

IIA Releases 2008 Annual Report
The IIA has released A New Horizon in Internal Auditing – The IIA’s 2008 Annual Report.
http://www.theiia.org/recent-iia-news/?i=10120

PCAOB Delays Foreign Firm Inspections
PCAOB has delayed inspections of foreign accountants for up to three years after outcry over the legality of the inspections from regulators.
http://www.webcpa.com/news/PCAOB-Delays-Foreign-Firm-Inspections-50846-1.html?zkPrintable=true


GLOBAL ECONOMY

IRS develops strategy for overseas tax-evasion cases
The IRS has requested an extension of the current three-year statute of limitations to prosecute cases of overseas tax evasion.
http://www.webcpa.com/news/IRS-Commish-Details-Global-Tax-Enforcement-Plans-50679-1.html?zkPrintable=true

End the Corporate Income Tax
The corporate income tax may be the stupidest tax we have.
http://www.theatlantic.com/doc/200907/ideas-income-tax

Goodwill Impairments Doubled in 2008
A study found goodwill impairments more than doubled during 2008 from 2007 levels at U.S.-based public companies.
http://www.webcpa.com/news/Goodwill-Impairments-Doubled-2008-50840-1.html?zkPrintable=true


MEXICO AND LATIN AMERICA

Mexico's 10 most romantic honeymoon hideaways
If you seek exotic surroundings, intriguing culture and warm-hearted hosts, you'll find that Mexico is by far your best option.
http://www.sfgate.com/cgi-bin/article.cgi?file=/g/a/2009/06/24/mexicomix062409.DTL

Mexico City's Soundtrack: A Symphonic Cacophony
Mexico City is a noisy metropolis of more than 20 million people, but amid the noise, it's also a place where sounds have meaning.
http://api.npr.org/templates/story/story.php?storyId=105837804&sc=emaf


OTHER MANAGEMENT TOPICS

Rebuilding corporate reputations
A perfect storm has hit the standing of big business. Companies must step up their reputation-management efforts in response.
http://www.mckinseyquarterly.com/Strategy/Strategy_in_Practice/Rebuilding_corporate_reputations_2367

Why board membership should be a full-time job
The financial crisis could have been avoided if the boards of financial firms were more engaged, independent and more willing to challenge.
http://www.newyorker.com/talk/financial/2009/06/01/090601ta_talk_surowiecki

10 skills you need to survive layoffs
Key to surviving isn't the skills you have, the awards you've won, or the tasks you perform. It's about qualities, habits, and capacities.
http://www.hirestrategy.com/articles/feature_content.asp?ID=752&referrer=newsletter

GM's collapse offers lessons for government, automakers
The biggest industrial bankruptcy offers lessons that might benefit both the auto industry and the government in the long term.
http://www.economist.com/opinion/displaystory.cfm?story_id=13783014


Recommendations

Hotels in Polanco neighborhood offer a great dining experience
This luxury hotel strip is dotted by high-rise buildings overlooking the massive Chapultepec park in the lovely Polanco neighborhood.
http://www.dallasnews.com/sharedcontent/dws/fea/travel/thisweek/stories/DN-polanco_0628tra.ART.State.Edition1.4bfec85.html

Language school in Montreal, Canada
The Horizon Language Institute offers a wide variety of options for international students in one of Canada’s most beautiful cities.
http://www.horizoninstitute.ca/en/index.php

Global Business, Finance, and Accounting Newsletter - June 2009

Dear friends and colleagues,

Welcome to the June 2009 issue of my newsletter featuring selected articles on finance, accounting, audit, fraud, and global business.

I hope you will find value in these articles.

Feel free to contact me in case you require any additional information on the topics discussed below.

With very best regards,
Armando Nuricumbo, CPA, CPC


FINANCE AND ACCOUNTING

Audit Watchdog Group Warns About Starbucks
Research firm Audit Integrity issued a negative report to investors and auditing firms about Starbucks Corp.
http://www.webcpa.com/news/Audit-Watchdog-Group-Warns-Starbucks-50486-1.html?zkPrintable=true

IFRS and Your Tax Practice
International Financial Reporting Standards are coming, and tax advisers need to understand the implications for their clients.
http://www.aicpa.org/pubs/taxadv/may2009/dccurrents.pdf

What next? Ten questions for CFOs
As companies shift their attention from fighting the crisis to getting the most from the recovery, CFOs must keep them focused.
http://www.mckinseyquarterly.com/Corporate_Finance/Capital_Management/What_next_ten_questions_for_CFOs_2360


FRAUD PREVENTION AND DETECTION

The Reasons Fraud Spikes in a Recession
As sure as growth slides and employment numbers tumble, so cases of fraud rise during recessions. This time is no different.
http://www.time.com/time/business/article/0,8599,1899798,00.html

Companies Worried About Anti-Bribery Laws
75% of executives in a recent survey by Deloitte reported increased concern over violating anti-bribery laws such as the FCPA.
http://www.webcpa.com/news/Companies-Worried-Anti-Bribery-Laws-50495-1.html?zkPrintable=true

CAQ Offers Pointers for Integrated Audits of Internal Control
The Center for Audit Quality (CAQ) issued a report highlighting lessons learned from section 404 audits and identifies 21 practical tips.
http://www.journalofaccountancy.com/Web/PointersforAuditsofInternalControl.htm


GLOBAL ECONOMY

The Economist Intelligence Unit – Global Outlook May 2009
The global economy will probably stop deteriorating, but a return to healthy growth remains a distant prospect.
http://graphics.eiu.com/upload/eb/Global_economic_forecast.pdf

Economic Sentiment Cautiously Optimistic: AICPA Survey
Pessimism about the U.S. economy eased in the Second Quarter, according to a new survey conducted by the AICPA.
http://www.aicpa.org/download/news/2009/ECONOMIC_SENTIMENT_TURNS_CAUTIOUSLY_OPTIMISTIC.pdf

The Financial Meltdown's Unhappy Anniversary
The global credit-market meltdown was triggered on June 12, 2007, with the collapse of two Bear Stearns mortgage hedge funds.
http://money.cnn.com/2009/05/15/news/economy/bear.stearns.fortune/index.htm?postversion=2009051512

Risk and regulation: A new era for capitalism
After close to 30 years of light-touch regulation, globalisation and free-markets, many suggest that capitalism itself is entering a new phase.
http://www.eiu.com/site_info.asp?info_name=risk_and_regulation&page=noads&rf=0


MEXICO AND LATIN AMERICA

The Other Mexico: A Wave of investment
Corporations continue pouring billions of dollars in foreign direct investment in this country. Who says Mexico is a failed state?
http://www.nuricumbo.com/files/The_Other_Mexico.pdf

Mexican Data Show Migration to U.S. in Decline
Census data indicate an extraordinary decline in the number of Mexican immigrants going to the United States.
http://www.nytimes.com/2009/05/15/us/15immig.html?_r=1


OTHER MANAGEMENT TOPICS

Sex Sells. Here's Why We Buy
That iPhone in your pocket? That's for sex. As is pretty much everything you've ever bought, from your car to your T shirt.
http://www.time.com/time/health/article/0,8599,1900032,00.html

Confucius' Three Keys To Successful Leadership
Here are three ultimate lessons that business people can derive from Confucius. If anything has ever stood the test of time, they have.
http://www.forbes.com/2009/05/21/confucius-tips-wisdom-leadership-managing-philosophy.html

Test your Knowledge about Technology
CPAs could use this tool to gauge how technology-savvy they really are and pinpoint areas of improvement.
http://www.journalofaccountancy.com/Issues/2009/Jun/20091632.htm


RECOMMENDATIONS

The Horizon Institute
World-class Language School in Montreal, Canada.
http://www.horizoninstitute.ca/en/index.php

"As It Is In Heaven"

Had a great movie experience last night. I saw "As it is in heaven", 2004 Swedish movie that was nominated for Best Foreign Film and won top honors at the Berlinale that year. It's the story of a successful orchestra director that has to retire young due to health problems and ends up conducting his local town choir. "Do not be afraid. Death does not exist" - says Lena close to the end.

Recomendacion

La temporada de conciertos de la Orquesta Filarmónica de la UNAM ha comenzado. Les recomiendo ampliamente el concierto de este fin de semana. Serenata para Violín de Bernstein y la Tercera Sinfonía de Beethoven. Un solista de lujo y precios muy accesibles. La cita es el sábado a las 8pm en la Sala Nezahualcóyotl. Créanme que esta orquesta está cada día mejor.