Dean dela Paz on SALN and the ad hominems of the Noynoy cultists

Dear insansapinas,

I blogged about a lady who is a relative of an ex-President who insulted me just because I am not a harvard material daw and her consultants on her article about SALN are better qualified than I am because they are both teaching accounting, HA Ha

Because of my deadline for my teaxtbook project, I left the forum to avoid stress for nothing.

Dean de la Paz who blogs in GMA 7 shared my thoughts about the audit of a SALN which according to the lady was made by her consultants who are being offered teaching in Harvard? bwahaha.


This is the article of Dean dela Paz who is also a CPA and an assoc . professor in Ateneo. I could not comment in his blog. The paid hacks are bombarding his blog with a lot of ad hominems.

Recently, like ambulant squidball vendors, hucksters and public relations operators peddled material packaged to paint a front-running presidential candidate a crook.

Like Operation Market Garden, the failed 1944 plan to cross the Rhine, the offensive looked good on photographs, charts, and maps but its sorties suffered when analyzed in detail.

Because of its fallibilities, publicity stunt artists gambled wow-factors might suffice.

Given the electorate’s propensity for sound byte analysis, that was understandable.

When asked whether a candidate was mentally fit, the simple-minded diagnose from mannerisms.

When asked if a candidate grabbed land, sappy tales of the landless surface.

Never mind that bullet-riddled cadavers of massacred farmers at Malacanang’s perimeter and the seven slaughtered at Hacienda Luisita are more poignant and eloquent.

In each, profound analyses are absent.

Basically questioning net worth, the offensive augments the mudslinging campaign to paint one candidate not simply predisposed to allowing Gloria Arroyo to escape criminal accountability but also to embody specters of colossal expenses.

Substance did not matter as did kilometric footnotes ibidem ad nauseam, though most, other than unbundled estimates, drew from secondhand sources, sound bytes, newsreels and headlines —unacceptable in generally accepted accounting principles (GAAP) and international financial reporting standards (IFRS).

Like the destitute of Tondo, even the pseudo-literati salivate. If not for money, those slobbering for recognition salivate for stature.

The mosaic was indeed colorful. That the palette did not match the contents did not matter. What mattered was the product peddled appeared as a clinical audit.

Never mind that these carried the same incredulity as the forged psychiatric evaluations of Benigno Aquino III that paid hacks inhale and then ventilate despite billowing from gastric infarctions.

Of note is a sloppy attempt at a forensic audit of the Statement of Assets, Liabilities and Net Worth (SALN) of one candidate where we are made to trust in its “auditor” despite the absence of appropriate credentials in accountancy.

What passes for analysis are hearsay and third-hand consultations from anonymous and gutless eunuchs who abdicate to innuendo and surrender legitimacy to partisanship.

Cutting to the chase, the fake audit concludes its targeted candidate could not have afforded an electoral bid. Never mind its ignorance of what comprises net worth.

It also disregards that under SALN requisites net worth is a limited and static picture of financial capacity. True financial capacity includes net future valuations that change daily.

In the package the so-called auditor also asks, regardless of the increase in net worth, should not income taxes be paid on those increases.

It then dwells on tax non-payment, makes a quantum leap to perjury and from there another leap to money-laundering.

The ignorance is brazenly disingenuous.

Increases in net worth do not necessarily emanate from current income. Most come from valuation increments, realized and passive income. A real forensic auditor analyzes from cash flow statements to determine source and composition before entertaining questions of income taxes, and accusations of perjury and money-laundering.

The audit likewise equated acquisition costs with book values for all assets whether real property or personal assets.

While real property are reported at acquisition cost, personal property are reflected at current values, the latter greater than the former.

Moreover, the audit is duplicitous where cash flow sources are suggested rather than validated. More when the audit fills in its own gaps, and employing grout it itself mixed, suddenly leaps to accusations of wrong-doing.

In accountancy, balance sheets are backstopped by cash flow and income statements.

Absent these, legitimate auditors do not speculate and from speculation condemn. Innuendos in place of cash flows do not suffice.

The amateur audit likewise suggests receivables account for the increase in net worth to justify campaign spending. That conjecture is flawed.

One, it assumes receivables came from debt yet under GAAP receivables can come from leases, rentals or dividends.

Two, net worth does not imply liquidity and does not come from cash increases alone.

Three, the numbers don’t reconcile.

The false conclusion leads to another that suggests the candidate earns income from debts.

Yet increases in net worth do not necessarily relate to current year taxable income, whether from lending, rentals or dividends.

Mudslingers, regardless of collar and pedigree should try a different tack in this season of payola.

Intellectual incompetence, no matter how glazed, peppered, or curried is worthless.

This fake audit makes sense only as hollow-point ordnance.

Like the notorious peddled squidball sold along gutters, its recipe is as dubious as its ingredients and its substance is only in its spice.

This was my comment on the article written by the lady.

The increase in the networth does not necessarily suggest a realized income or earned income that is equivalent to the income reported in the income tax returns.
Personal assets can be reported at its current value which may be higher than the acquisition cost. (it is a pity that these were not itemized in the SALN and which is also difficult to do taking into consideration that personal asset also include jewelry and other collections like painting, antiques, etc. ).
Buildings and other real properties are presented at acqusition cost because any appraisal (fair market value or assessed value) are recorded at separate accounts in the balance sheet. It is only when these assets are sold when gain or loss on its sales are recorded in the books. Even the accumulated depreciation is recorded separately.
It is not suprising that the couple (joint income tax returns) may report dividend income from their investments and passive income such as rent income. They own buildings, don’t they.
Receivables may come in the form of rent and cash dividend. When cash dividend is declared by a corporation, it is liability to the issuing corporation and a receivable to the recipient.
The CHANGE in the networth equals the realized income, passive income and the increase in the value of personal assets. It is not only the salaries received.

The lady remarked:

I am pretty certain that the people who went over the data with me r more qualified than u or me put together (I am not a CPA but did have to do a lot of macro/micro economics, finance and accounting in grad school).Two were not only CPAs; they actually teach accounting in respected institutions.

This was my response: madugo siya.

My book project which is a book on financial management has a deadline to beat too and that is what is written in my blog together with trivial matters which I chose to write about in between formulating and solving accounting problems to go with the illustrative problems in the book.

Humility aside, I did not only teach Accounting in the undergraduate but also Managerial Accounting, Financial management, Economic Analysis and Quantitative Techniques in the Graduate School. To teach in the graduate school, I must have post graduate degrees too. Isn’t it?
I served as a dean in one university. But teaching alone does not give you the qualification of an expert, neither is the title CPA. CPA is just a license to practice the profession. You should really have worked in an accounting/auditing firm to develop that investigative skills and have worked in the industry.
And I have worked as a consultant too aside from putting up an S and regular corporations in the US. Do I qualify as an expert?
Did I tell you that my other doctorate is in Economics?
This is not tooting my horn but is just presenting my credentials to show you that I know what I am talking about.
If you read my suggestion for you to read, I am giving you a tip as to how they hide the hidden wealth or how they milk the cash cow or giving you the hint that there are ways by which the controlling ownership of corporations is hidden not only from the public but also from regulatory agencies such as SEC.

Why am I blogging this? Because the lady is circulating that thrash audit of SALN and whoever are the CPA consultants should be stripped of their licence of being a CPA.  Nakakahiya. 


Pinaysaamerika