Could Europe become the next superpower?

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


Could Europe become the next superpower?
America's competitive advantage over Europe is disappearing and the EU could finally be ready to emerge as a true global force.
http://www.newsweek.com/id/221614


FINANCE AND ACCOUNTING

Nine measures of strategic value
Evaluating assets such as human capital, unique processes, and reputation can unlock opportunities to recognize strategic value.
http://www.journalofaccountancy.com/Issues/2009/Nov/20092092.htm

ACFE Warns Not to Change SOX Rules
A measure to change Sarbanes-Oxley rules would lead to a higher incidence of fraud and an increase in the amount of fraud losses.
http://www.webcpa.com/news/ACFE-Warns-Change-SOX-Rules-52422-1.html?zkPrintable=true

Tax Authorities Demand Transfer Pricing Evidence
Tax authorities around the world are requiring companies to provide more documentation to support their transfer pricing strategies.
http://www.webcpa.com/news/Tax-Authorities-Demand-Transfer-Pricing-Evidence-52427-1.html?zkPrintable=true

Russia has the world's most fraudulent economy
71% of Russian respondents to PwC's global economic crime survey said they had been subject to economic crime in the past year.
http://www.reuters.com/article/marketsNews/idUSLK39923620091120


GLOBAL ECONOMY

Senior Financial Execs Favor Separate CEO, Chairman
Eighty-eight percent of senior financial executives believe the positions of CEO and chairman of the board should be separate.
http://www.webcpa.com/news/Senior-Financial-Execs-Favor-Separate-CEO-Chairman-52384-1.html?zkPrintable=true

U.S. hunt for tax evaders turns to Hong Kong
U.S. Justice Department and the IRS are turning to Hong Kong in their search for Americans hiding money in foreign banks.
http://www.bloomberg.com/apps/news?pid=20601103&sid=axQFGFjoAzkE#

Top 100 Global Advertisers Heap Their Spending Abroad
If you want to follow the money in advertising, get a passport. Top 100 advertisers spent 62% of their budgets outside the U.S. last year.
http://adage.com/globalnews/article?article_id=140723


MEXICO AND LATIN AMERICA

Meet Goodby and Wieden's Favorite Mexican Ad Agency
Saltillo-Based Grupo W's Portfolio Contains Awarded Work for Sprint, Unilever, Coke
http://adage.com/globalnews/article?article_id=140843

Mexico ‘Not Going Anywhere’ Without Reform
Mexico’s political parties are preventing the country from adopting reforms, holding the country back while others in the region progress.
http://www.bloomberg.com/apps/news?pid=20601086&sid=aJsgS7_nINsg

Chile To Be Admitted Into OECD Later This Month
Chile will be admitted into the Organization for Economic Cooperation and Development later this month.
http://www.nasdaq.com/aspx/stock-market-news-story.aspx?storyid=200912021225dowjonesdjonline000560&title=chile-to-be-admitted-into-oecd-later-this-month--president

Bolivia's Morales is re-elected for a second term
The government has said it now controls 28 percent of the economy, up from about 8 percent before Morales took office.
http://thestar.com.my/news/story.asp?file=/2009/12/7/worldupdates/2009-12-07T110402Z_01_NOOTR_RTRMDNC_0_-445212-1&sec=Worldupdates


OTHER

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

Historic house for sale in the State of 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

Risk Reward Limited
Risk Reward provides independent risk management consultancy for banks and financial institutions worldwide.
http://www.riskrewardlimited.com/

Global Business, Finance, and Management Newsletter – November 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

SEC Publishes its Strategic Plan 2010-2015
The Securities and Exchange Commission has released for public comment its draft Strategic Plan for Fiscal Years 2010-2015.
http://www.journalofaccountancy.com/Web/20092237.htm

Internal Audit Staff Hit Hard by Recession
The staffing level of internal audit departments was hurt badly by the recession, but the worst might be over, according to a new survey.
http://www.webcpa.com/news/Internal-Audit-Staff-Hit-Hard-by-Recession-52011-1.html?ET=webcpa:e520:84563a:&st=email

Regulators to create standard for climate-change reporting
The accountant has a valuable role in climate-change strategy such as helping to create a standard for project evaluation and reporting.
http://www.webcpa.com/news/ACCA-Accountants-Climate-Change-Reporting-51979-1.html

Bank of America could face breakup
As the government shows an increasing tendency to penalize large banks, a breakup into smaller units could be the way forward for BoA.
http://www.washingtonpost.com/wp-dyn/content/article/2009/10/02/AR2009100205138.html

Whistle-blowers help IRS find evaders
The IRS's whistle-blower program received 476 tips in the past fiscal year, providing information about 1,246 tax evaders.
http://www.webcpa.com/news/Informant-Program-Spurs-IRS-Whistleblower-Tips-51964-1.html?zkPrintable=true

Fraud fugitive busted after unwise friend request
He was living the dream of a fugitive abroad, kicking back on the beaches of Cancun by day, partying in the clubs by night. Then…
http://www.google.com/hostednews/ap/article/ALeqM5ilOmrpv165cB6Tb-U8Hg15YkJAvAD9BAELSO0


GLOBAL ECONOMY

The new, more frugal, American consumer?
For all the uncertainty about the economy, everyone is sure of one thing: this recession has permanently remade American consumers.
http://www.newyorker.com/talk/financial/2009/10/12/091012ta_talk_surowiecki

Soon, Bloggers Must Give Full Disclosure
Bloggers will be required to disclose remuneration on their blogs. Penalties range from warnings to fines as high as $11,000 USD.
http://www.nytimes.com/2009/10/06/business/media/06adco.html?_r=1&ref=technology

In The US, Nearly Half of Households Pay No Income Taxes
About 47 percent of households will not be paying any income taxes this year, placing a greater burden on those who do.
http://www.webcpa.com/debits_credits/Nearly-Half-of-Households-Pay-No-Income-Taxes-51975-1.html?ET=webcpa:e514:84563a:&st=email

Too Rich to Worry? Not in This Downturn
Ultra-rich families are finding that great wealth does not necessarily shield them in a hard-hit economy.
http://www.nytimes.com/2009/10/03/your-money/03wealth.html?nl=your-money&emc=your-moneyema1


MEXICO AND LATIN AMERICA

Bargains in Latin America, Where Luxury Costs Less
Meals are often half the cost, hotels are more luxurious, and spa treatments are so affordable you feel good about splurging.
http://travel.nytimes.com/2009/10/25/travel/25praclatin.html?nl=your-money&emc=your-moneyema3

Tax Cheats in Mexico Find U.S. Banks a Safe Haven
For all the scandal about Americans who hide money overseas, the US turns a blind eye to foreigners who park money in the US.
http://www.time.com/time/business/article/0,8599,1933288,00.html?xid=rss-topstories

Brazil Best Place to Invest Among BRICs
Brazil is best place to invest among large emerging markets because of rising demand for commodities.
http://www.bloomberg.com/apps/news?pid=20601086&sid=asTBbZ0842FM

German living for 13 days in Brazil airport
A German man dumped by a Brazilian woman he met on the Internet stayed at the airport for 13 days before being taken to the hospital.
http://www.msnbc.msn.com/id/33542483/ns/travel-news/


OPPORTUNITIES

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 – 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.

Campañas Políticas

Comienza nuevamente esa terrible época en nuestras vidas: Las campañas políticas. Anuncios, promesas, acusaciones y alguno que otro político ingenuo que de verdad piensa que alguien, tal vez, en algún lugar, pudiera creerle alguna de sus promesas. Somos una de las democracias más caras del mundo y los resultados no llegan. ¿Este modelo es sustentable?

H1N1 Influenza Update - 3 May 2009

Dear friends,

Hope you are doing well.

Here is an update on the H1N1 virus outbreak from Mexico City, along with some links to other resources dealing with this topic. I hope you will find this information useful for your projects in Mexico and elsewhere.

Current Status as of 3 May 2009
- 18 countries have officially reported 898 cases of influenza A(H1N1) infection.

- Mexico has reported 506 confirmed human cases of infection, including 19 deaths. The following countries have reported laboratory confirmed cases with no deaths - Austria (1), Canada (85), China, Hong Kong Special Administrative Region (1), Costa Rica (1), Denmark (1), France (2), Germany (8), Ireland (1), Israel (3), Italy (1), Netherlands (1), New Zealand (4), Republic of Korea (1), Spain (40), Switzerland (1) and the United Kingdom (15). The only other death outside Mexico was at a 2 year-old Mexican boy at a clinic in Houston, Texas.

- Mexico's health secretary has said that the H1N1 influenza epidemic in Mexico "is now in its declining phase". He said data suggest the epidemic peaked sometime between April 23 and April 28, and that drastic measures — closing the nation's schools, shuttering most of its businesses and banning mass public gatherings — apparently have helped curb the influenza's spread.

- Nestlé, the world’s biggest food group, has banned all non-essential travel by its global executives to the US, as well as to Mexico, reflecting growing concerns among international business at the threat of H1N1 influenza.

- The World Health Organization (WHO) advises no restriction of regular travel or closure of borders. It is considered prudent for people who are ill to delay international travel and for people developing symptoms following international travel to seek medical attention, in line with guidance from national authorities. The WHO considers that limiting travel and imposing travel restrictions would have very little effect on stopping the virus from spreading, but would be highly disruptive to the global community. Scientific research based on mathematical modeling indicates that restricting travel will be of limited or no benefit in stopping the spread of disease. Historical records of previous influenza pandemics, as well as experience with SARS, have validated this point.

- There is no risk of infection from this virus from consumption of well-cooked pork and pork products.

- Smithfield Foods, a Virginia-based producer, denied claims in Mexico that a joint venture it runs in Veracruz was the source of the virus. Its chief executive said in a letter to employees that Mexican authorities had found no evidence of the virus at their farm and that the results of further independent tests would be available and released by the company in a few days.

- President Barack Obama asked Congress for $1.5bn to combat H1N1 influenza. His request came after a Senate committee heard that the disease was expected to spread and that cases might become more severe than the mild ones so far identified in the US.

- According to the U.S. Centers for Disease Control and Prevention (CDC), the strain of human H1N1 influenza reported in North America is a new virus, "unique because it is a combination of genes from swine, bird, and human influenza viruses. Infected individuals report flu-like symptoms of fever, aches and pains, sore throats, coughing, and trouble breathing. Some people have also reported diarrhea and vomiting."

- The WHO noted, "There are no vaccines that contain the current H1N1 influenza virus causing illness in humans. It is not known whether current human seasonal influenza vaccines can provide any protection."

- But the WHO site also pointed out, "Most of the previously reported H1N1 influenza cases recovered fully from the disease without requiring medical attention and without antiviral medicines."

Other resources
Key Facts About Swine Influenza
US Centers for Disease Control and Prevention
http://www.cdc.gov/h1n1flu/key_facts.htm

Things you can do to stay healthy
US Centers for Disease Control and Prevention
http://www.cdc.gov/h1n1flu/#stay_healthy

H1N1 Outbreak in US & Mexico: Potential for a Pandemic.
University of Pittsburgh.
http://www.pitt.edu/~super1/lecture/lec34601/index.htm

Five Things You Should Not Do During the H1N1 Outbreak
Time Magazine
http://www.time.com/time/health/article/0,8599,1895216,00.html


Please keep well and let me know if there is anything I can do to help minimize the impact of this crisis on your business operations in Mexico.

Mexico's Monetary Response to the Crisis

EPIDEMIE DE GRIPPE – ACTUALISATION

Le Président de la République Nicolas Sarkozy a transmis aujourd’hui un message de solidarité au Président Calderón.

Par ailleurs, la Commissaire européenne pour la Santé, Androulla Vassiliou, a déclaré que l’Union Européenne étudiait actuellement une série de mesures d’aide au Mexique.

L’Association des Tour Opérateurs français a annoncé la suspension jusqu’à nouvel ordre des départs pour le Mexique et l’organisation de vols de retour vers la France jusqu’au 3 mai.

Au Mexique, les autorités migratoires ont annoncé qu’elles repoussaient les dates d’expiration des titres de séjour des étrangers résidant dans le pays, à partir du 24 avril et jusqu’à la fin de l’alerte sanitaire.

The origins of the swine flu crisis...

All he wanted was to have a nice pet...

Timeline of the Swine Flu Crisis

This website shows the timeline of the outbreak of the infection in Mexico, from the point of view of a private company operating in the health monitoring business.

http://biosurveillance.typepad.com/biosurveillance/2009/04/swine-flu-in-mexico-timeline-of-events.html

Algo sobre la crisis

“No pretendamos que las cosas cambien, si siempre hacemos lo mismo. La crisis es la mejor bendición que puede sucederle a personas y países porque la crisis trae progresos. La creatividad nace de la angustia como el día nace de la noche oscura. Es en la crisis que nace la inventiva, los descubrimientos y las grandes estrategias. Quien supera la crisis se supera a sí mismo sin quedar superado. Quien atribuye a la crisis sus fracasos y sus penurias, violenta su propio talento y respeta más a los problemas que a las soluciones.

La verdadera crisis es la crisis de la incompetencia. El problema de las personas y los países es la pereza para encontrar salidas y soluciones. Sin crisis no hay desafíos, sin desafíos la vida es una rutina, una lenta agonía.

Sin crisis no hay méritos. Es en la crisis donde aflora lo mejor de cada uno, porque en crisis todo viento es caricia. Hablar de crisis es promoverla, y callar en la crisis es exaltar el conformismo; en vez de esto trabajemos duro. Acabemos de una vez con la única crisis amenazadora, que es la tragedia de no querer luchar por superarla.” -Albert Einstein

Sustainability Framework from IFAC

The International Federation of Accountants has created a Sustainability Framework that aims to get accountants involved in making their companies and firms more environmentally and socially conscious. The framework, developed by IFAC’s Professional Accountants in Business committee, addresses sustainability issues from four different perspectives: business strategy, internal management, financial investors and other stakeholders.

“Although the accounting sector itself might be considered a relatively low-impact sector in terms of direct environmental and social impacts, it is the accountant’s involvement in the twin issues of organizational decision-making and external reporting that imposes on the accountancy profession the responsibility for understanding, absorbing and articulating the implications of the sustainable development debate," said Roger Adams, who chaired the project.

IFAC’s Sustainability Framework is a Web-based tool that allows users to navigate the sustainability issues that are most important to their immediate roles, and to select and use those examples of good sustainability practice that can work in their organizations. It can be accessed for free at www.ifac.org/paib.

Bush's Letter

Obama Reads Bush's Letter - watch more funny videos