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A&A

McKinsey Finds Big Investors Split Between IAS And GAAP

U.S. President George Bush has called for accounting standards to be responsive to the needs of investors. But results of a survey by McKinsey & Company announced the day before the President's ground-breaking speech to Wall Street show this may be easier said than done.McKinsey surveyed more than 200 institutional investors in 31 countries.
A&A

Small Business Owners Still Favorable Towards The Accounting Industry

Despite the negative publicity surrounding Enron, WorldCom, Arthur Andersen, and accounting irregularities up and down Wall Street, small business owners still view the accounting profession towards the top of the list of other professions and industries, according to a new study by the NETWORK of City Business Journals.In the study, which ranked "favorable" and "unfavorable" opinions of a number of industries, 41% of small business owners had an overall positive impression of the accounting profes
A&A

FASB Proposes Accounting Treatment For SPEs

On July 1, 2002, the Financial Accounting Standards Board released a draft of its proposed rules for consolidation of special purpose entities (SPEs), including the types that kept debt off Enron's balance sheet. The proposal explains that SPEs are used for all kinds of purposes, ranging from leasing, hedging, and securitization to research and development. The most troublesome SPEs from an accounting perspective are those that are controlled by a business through some means other than through clear-cut ownership of voting interests.
A&A

FASB Fights Reforms, Xerox Ignites Squabble Over GAAP

On June 26, 2002, the House Energy Committee heard testimony from the chairman of the Financial Accounting Standards Board (FASB) urging Congress to back-off, leave FASB alone, and stop trying to reform US generally accepted accounting principles (GAAP). The timing could not have been worse.
A&A

Five Steps to Reduce Company Health Insurance Costs

by Dr. David Rearick, Chief Medical Officer of Coalition America, Inc.With healthcare costs again creeping toward double-digit levels and business profits still lagging, top corporate managers must take a personal and pro-active role in addressing those factors that drive up medical insurance costs. That is an assessment by leading companies and consultants who work with corporations to manage their healthcare costs."We have entered another period when medical insurance costs are moving upward," said Dr.
A&A

SEC Talks Tough on Changes in Store for FASB

The media may have called him the "wishy-washiest watchdog since Scooby-Doo," but Securities and Exchange Commission (SEC) Chairman Harvey Pitt is talking tough about reforming accounting standards.
A&A

FASB Releases Exposure Draft on Guarantees

On May 22, 2002, the Financial Accounting Standards Board (FASB) released an exposure draft (ED) of a proposed Interpretation entitled, "Guarantor's Accounting and Disclosure Requirements for Guarantees, Including Indirect Guarantees of Indebtedness of Others."The accounting and disclosure requirements for guarantees were reconsidered in connection with FASB's post-Enron project on accounting for special purpose entities (SPEs).
A&A

The Facts About FASB's Funding Controversy

As part of post-Enron accounting reforms, lawmakers are considering government funding for the Financial Accounting Standards Board (FASB), the organization that sets U.S. accounting standards. This article explains the facts about FASB's funding and asks your input. To help you sort through the issues, below is a summary of the two main concerns, including explanations of FASB's current funding. The explanations incorporate insights provided by spokespersons for the American Institute of CPAs (AICPA) and Financial Accounting Foundation (FAF), the board that oversees FASB.
A&A

Financial Revolution Finds Its Way to Women

Ten years ago, Oppenheimer Funds conducted a survey of more than 1,000 men and women about their personal finances and financial attitudes. The results of that survey were published in Money magazine. The 1992 survey showed that 62% of women surveyed didn't know how a mutual fund worked and only half were involved in their families' investment decisions.Ten years later, the survey has been repeated, and the results show a startling change in the financial acumen of women.
A&A

Congress Hears Five Ways GAAP Falls Short

At a May 14, 2002 hearing of a House Financial Services subcommittee on the issue of "Corporate Accounting Practices: Is There a Credibility GAAP?," lawmakers were briefed on a number of topics, including five areas in which generally accepted accounting principles (GAAP) fall short.
A&A

Standard & Poor's Sets Standard For Core Earnings

Standard & Poor's stepped into a standard-setting vacuum on May 14, 2002 and introduced a new set of definitions for measures of corporate earnings commonly used by the financial community. The newly-defined measure of core earnings will soon take on added importance, as the firm plans to incorporate this measure into its COMPUSTAT database for the U.S. and in its U.S.
A&A

Microsoft to Acquire Navision For $1.33 Billion

Accounting software giant Navision has accepted an offer from Microsoft to purchase the Denmark-based company for cash and stock valued at $1.33 billion.Navision provides back-end software solutions to mid sized businesses with revenues from $5 million to $500 million through its software line, including Navision Attain®, Navision Axapta®, and Navision Financials®."Microsoft and Navision have had parallel lives, each with a deep belief in building long-term customer relationships achieved through lasting
A&A

Are You Providing Your Clients With The 'Right Kind of Counsel'?

By IntuitAdvisorThere are almost 17 million small businesses in the United States, (U.S.
A&A

FASB Releases Flurry of Publications, Awaits Reform Bill

On May 1, 2002, as leaders of the House Energy Committee put the final touches on a radical reform bill to be titled the "Financial Accounting Standards Board Act," the standards board itself rushed to post a flurry of publications to its Web site. The Reform BillAlthough the reform bill is still subject to change, Reuters obtained a copy of the discussion draft of the proposed legislation.
A&A

FASB To Set 'Squeak-Through' Standards Over Protests

In a controversial move greeted with considerable skepticism by accounting firms and their clients, the Financial Accounting Standards Board (FASB) has changed the voting requirement for setting accounting standards. Standards may now be set by a simple majority vote of 4 out of 7 board members. Previously, the minimum requirement was a 5-2 supermajority vote.
Community News

The Benefits of Incorporating Your Business

By, Brian Liu, Esq., CEO & Co-Founder, LegalZoom.comAs the tax season draws to a close and many lament their generous yet grudging contributions to Uncle Sam, it is the perfect time for small business owners to start planning for next year. One of the most overlooked, yet most beneficial, ways to help save on taxes is to form a corporation.There is one thing that General Motors, Microsoft, AT&T and all other major businesses in America have in common - they are corporations.
A&A

FASB Changes Chairmen Amidst Turmoil and Criticism

The Financial Accounting Foundation (FAF), the organization that oversees the Financial Accounting Standards Board (FASB), announced a change in the head of the FASB. Chairman Ed Jenkins will retire on June 30, 2002, and PricewaterhouseCoopers Partner Robert H. Herz will become the fifth chairman in FASB's 29-year history. Mr. Herz's appointment puts an end to speculation that FAF might appoint a chairman from outside the Big Five.
A&A

Senate Bill of Rights To Address Audits, FASB, Options

On April 22, 2002, as the Financial Accounting Standards Board (FASB) prepared for a new chairman and the House of Representatives prepared for a vote on its leading accounting reform bill, Senator Carl Levin unveiled the Shareholders' Bill of Rights. Tougher and more comprehensive than the House bill, this new Senate bill will address audit reforms, accounting standard-setting, executive stock options, and more.Senator Levin is chairman of the Senate Permanent Subcommittee on Investigations.
A&A

Small Corporations Say Good-bye to Schedules L and M

The IRS announced last week that beginning with tax year 2002, companies with less than $250,000 in gross receipts and less than $250,000 in assets can bypass filling out the Schedules L, M-1, and M-2 on their corporate income tax returns. Corporations who file Form 1120-A and who are under the $250,000 threshold no longer have to prepare Parts III and IV of their 1120-A.The immediate result of this ruling will be a significant reduction in record-keeping and paperwork for small businesses. Many small businesses will no longer need to struggle to learn accounting rules.
A&A

Wireless Security Cameras May Leave You More Exposed

If you are among the thousands of homeowners and business owners who have installed a wireless video camera to monitor activities inside, beware. Someone else may be watching too.The so-called "nanny cams," like the highly advertised X-10 Camera, are made to transmit an unscrambled analog radio signal which is sent to a base station in the home or office attached to a computer monitor or television set for viewing.

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