Financial Reporting

Survey Reveals Section 404 Compliance Results in Committee Agenda Refocus

A survey recently conducted by the Audit Committee Institute (ACI) of KPMG International and the National Association of Corporate Directors found that although a majority of audit committee members rate their committees as "very effective", many feel some improvement can be made-including oversight of accounting judgments and estimates, risk management and agenda setting. While about 70 percent of the 317 audit committee members rated their committee as "very effective" and nearly 85 percent rated themselves "very effective" on ensuring the independence of external auditors from manag
Community News

BDO Seidman LLP Reports Revenue Growth Exceeding 25 Percent in 2006

BDO Seidman, LLP, a national professional services firm providing assurance, tax, financial advisory and consulting services, is reporting a 27 percent increase in revenues during the fiscal year ending June 30, 2006.
A&A

FASB Adds Joint Lease Accounting Project with IASB

Concerns that current lease accounting does not accurate reflect the resources and obligations of lease transactions, the Financial Accounting Standards Board (FASB) on Wednesday officially added a lease accounting project to their agenda.
A&A

FASB Increases Relevance & Comparability of Income Tax in Financial Reporting

The Financial Accounting Standards Board (FASB) on Thursday issued an interpretation that increases the relevancy and comparability of financial reporting by clarifying the way companies account for uncertainty in income taxes. “T[his] interpretation reflects our concerns that widespread diversity in practice, including inconsistent measurement associated with uncertainty in accounting for income taxes, has resulted in less relevant, less comparable and less complete information for investors and other users of financial statements,” Edward W.
Practice

Professional Accounting Societies Applaud COSO Small Business Guidance

The American Institute of Certified Public Accountants (AICPA) and the Institute of Management Accountants have both affirmed support for new guidance for smaller public companies released during a webcast on July 11 by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).

AICPA Brings XBRL Closer to Reporting Improvement Effort

The American Institute of Certified Public Accountants’ (AICPA) merger of the management of its Extensible Business Reporting Language (XBRL) development and Enhanced Business Reporting (EBR) initiatives may be more than just a reshuffling of operational hierarchy.
A&A

IASB Chairman Calls For Accounting Standards Convergence by 2011

Sir David Tweedie, chairman of the International Accounting Standards Board (IASB), sees small differences in worldwide accounting standards within five years. CFO.com reports that Robert Herz, the Financial Accounting Standards Board (FASB) chairman, predicts that within three to five years, U.S.
A&A

FASB Pension Draft Draws Fire

The Financial Accounting Standards Board (FASB) issued an exposure draft Employers’ Disclosures about Pensions and Other Postretirement Benefits that required all written comments for the proposal be submitted by May 31, 2006. That is exactly what they got. CFO.com reports that the draft is stage one of two stages designed to overhaul retiree benefits accounting.The FASB received some 112 letters from senior management and other corporate executives voicing strong opposition to the implementation of these changes.
A&A

Historic AICPA/FASB Joint Proposal Aims to Improve Private Company Financial Reporting

The Financial Accounting Standards Board (FASB) joins the American Institute of Certified Public Accountants (AICPA) today in announcing a joint proposal exploring the development of accounting standards for privately held companies.
Tax

Accounting Anomalies Continue for Computer Associates

Computer Associates (CA) will delay its fourth quarter and full year financial results, according to their announcement this week. CA was expected to post 2 cents per share earnings for their fourth quarter, according to the Register.

GASB Schedules Hearing on Derivatives Accounting & Financial Reporting

The Governmental Accounting Standards Board (GASB) will hold a public hearing on Accounting and Financial Reporting for Derivatives. A Preliminary View (PV) of the board’s position was released on April 28, 2006. The hearing will be held on June 21 beginning, at 9:00 a.m. at the San Diego Marriott Hotel and Marina, San Diego, Calif.

Financial Reporting; Cost Burdens Expected to Grow with New Accounting & Tax Rules

Public and private companies of all sizes expect to face a heavier burden in reporting their tax liabilities, both to the Internal Revenue Service (IRS) and to their shareholders, according to a Grant Thornton LLP survey of senior financial executives.

SEC Calls for Greater Disclosure of Executive Pay, Probes Options Dating

With companies now required under FAS 123 to disclose the value of stock option grants on their income statements for fiscal years beginning after December 15, 2005, the Securities and Exchange Commission (SEC) and members of Congress are pressing for more detailed disclosure of total executive compensation.

Accounting Manipulations at Fannie Mae Tied to Bonuses, OFHEO Says

A report by the Office of Federal Housing Enterprise Oversight (OFHEO) released on Tuesday charged senior management of the mortgage giant Fannie Mae with manipulating accounting to hit earnings targets in order to maximize their bonuses and other executive compensation, the New York Times reports.

Stock-Option Backdating Scandal Expands

Although not illegal, the accounting associated with executive stock option backdating “doesn’t feel right,” according to The CorporateCounsel.net. One company, UnitedHealth Group, may end up restating three years of financial results due to option back-dating. This accounting adjustment will see a change of some $286 million in net income for the company.
Tax

Survey Shows Fear of SOX Keeps Accounting Functions in U.S.

Companies are looking first to automation before moving their finance functions offshore, even as manufacturing and customer-service jobs are sent overseas.Advertisement
Practice

GM Restructures Controller’s Office; Hires Outside Financial Advisor

General Motors (GM) announced last week that it will combine the positions of Corporate Controller and Chief Accounting Officer as part of a restructuring of the Corporate Controller’s office. The company’s current controller, Paul W. Schmidt, will retire later in the year. Peter Bible, chief accounting officer, will resign effective June 1st but will assist the company during the transition to the new structure.

PCAOB to Consider Periodic Reporting Rules for Accounting Firms on Tuesday

The Public Company Accounting Oversight Board (PCAOB) has scheduled an open meeting for 10:30 a.m. Tuesday, May 23, 2006, to consider proposing rules for annual and special reporting of information and events by accounting firms registered with the PCAOB. The meeting will be held in the Board’s open meeting room at 1666 K St. NW, Washington, D.C.

SEC Announces Next Steps for SOX Implementation Includes Smaller Companies

The Securities and Exchange Commission (SEC) on Wednesday announced a series of actions intended to improve the implementation of the Section 404 internal control requirements of the Sarbanes-Oxley Act 2002.
A&A

Financial Statements Still Significant In Predicting Bankruptcy

Researchers have found that financial ratios are still valuable tools in predicting bankruptcy.

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