|JANUARY 4, 2008|
|This Issue's News Theme: THE YEAR IN REVIEW|
New SOX guidelines benefit small businesses: costs uncertain
The new standard for audits of public companies under section 404 of the Sarbanes Oxley Act, Accounting Standard No. 5, released by the Public Company Accounting Oversight Board last month, should ease the burden of compliance for small businesses.
FIN 48 from different perspectives
Financial Accounting Standards Board Interpretation No. 48 (FIN 48), Accounting for Uncertainty in Income Taxes, is intended to substantially reduce uncertainty in accounting for income taxes.
Bonds' homer ball creates tax controversy
Even before San Francisco Giants slugger Barry Bonds hit his record-breaking 756th home run, the analysts were lining up, giving their opinions about how much the ball would be worth and how and when the value of the ball would be taxed.
They're back! IRS resurrects random audits
The Internal Revenue Service has announced plans to return to its practice of selecting random tax returns for audits this fall. Beginning in October, 2007 the Service will target approximately 50,000 income tax returns from 2006.
Supreme Court inaction could change nexus rules
The U.S. Supreme Court announced on Monday, June 25, 2007, it would not hear two cases that could have long-ranging effects on the nexus rules followed by state taxing authorities.
SEC releases taxonomy for GAAP financial reports
The Securities and Exchange Commission's Office of Interactive Disclosure is heralding the release for public comment of computer labels that will help companies make their financial disclosures more useful for investors.
Fair Isaac to close loophole and reduce FICO credit scores
There's a provision in the FICO credit scoring process that allows a person who is added as an authorized user on someone else's credit card to essentially piggyback that person's credit activity, thus possibly improving his or her own credit score. Correction. There was such a provision.
FAS 157: Auditors are ready to assign fair value to financial assets
When credit markets all but dried up as a result of the sub-prime mortgage crisis in the late summer, auditors of investment and commercial banks that elected to adopt Financial Accounting Standard 157, Fair Value Measurements, earlier than the effective date of November 15th were called upon to play a key role in determining the market value of mortgage-backed assets when few were being traded.
Accountants were presented with several pieces of major
legislation and rules changes in 2007 - excellent fodder for
continuing education classes and some good material for
conversations around the office coffee pot as well. The
articles chosen for this Year in Review news wire summarize the
most notable events of 2007, from edge-of-the-seat last minute
tax legislation that is expected to delay tax return processing
this spring, to ground-breaking changes in financial reporting,
to a bit of controversy over our national pastime. This is your
chance to catch up on the year's events and refresh your memory
on major changes. We can also take a moment to imagine what big
stories will grace this report a year from now. The future is
ours to write.