Kohlberg Kravis Roberts says it has incorrectly referred to an in-house consultancy, KKR Capstone, as a "subsidiary" or an "affiliate" in annual reports and regulatory filings. The nomenclature is important because KKR must share with investors any consulting fees collected by an affiliate. KKR says Capstone is not an affiliate, even though it consolidates Capstone for accounting purposes. The issue has come to light as the Securities and Exchange Commission increases focus on fees and disclosure among private equity companies.
The Private Company Council is moving forward with proposed financial-reporting alternatives for private companies. The alternatives would affect goodwill, particular post-combination intangible assets and accounting simplification related to certain interest-rate swaps.
Indian magazine Bureaucracy Today has a column called Horoscope for Bureaucrats. A sample: For April, the Pisces bureaucrat would have looked forward to "much needed respite from mental tension. You will regain confidence and will find the road ahead easy to negotiate. ... There will be total harmony on the domestic front."
Hirofumi Hirano is succeeding Shusaku Minoda as Japan chief executive for Kohlberg Kravis Roberts. Hirano was considered an expert in turnarounds in his previous post at AlixPartners Asia. Minoda has been promoted to chairman of KKR Japan.