Wednesday, March 31, 2010
Congress passes a law that requires companies to recognize taxation of some health care benefits. Companies take accounting write-down as they are supposed to do under Generally Accepted Accounting Practice. Congressman gets upset and threatens to haul companies before Congress to explain their egregious behavior. This would be funny if it weren't true, but it is, apparently. It is a comedy of error and unintended consequences, but it threatens the reputations of the companies involved, and it is a PR headache. Now these companies need to explain Accounting 101 to Congress under the glare of lights and cameras. This is one more reason why the need for PR will never go away.