Financial Reporting

A&A

Financial Statements Still Significant In Predicting Bankruptcy

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

Survey Reveals Alarming Contract Management Practices

A new AberdeenGroup analyst report reveals some alarming practices in global business today. The report The Contract Management Benchmark Report: Sales Contracts reveals that 85 percent of responding companies are using manual or only partially automated systems to manage sales contracts and 32 percent of customer contracts are not tracked, improperly serviced or forgotten entirely.
Technology

Strange Bedfellows: Newt Gingrich and XBRL Software Community

At about the same time last week that Newt Gingrich, former speaker of the U.S.

SEC Beefing Up Internal Reporting in Response to GAO Audits

The Securities and Exchange Commission (SEC), the agency charged with overseeing the financial reporting of public companies, is “redoubling” its efforts to shore up major deficiencies in its own financial reporting procedures and internal controls that were uncovered in an audit by the Government Accountability Office.Advertisement
A&A

Alternative Approaches to Accounting Outsourcing

Clients are turning to their accounting firms to provide “resource services” -- full-time accounting professionals who work on special projects on a contract basis at the CFO or controller level, the Philadelphia Business Journal reports. Resource servicing differs from typical staff or consulting outsourcing because the client manages the project, and the positions are high level.

Proposed GASB Document Intends to Improve Derivatives Accounting

The Governmental Accounting Standards Board (GASB) voted unanimously this week to issue a Preliminary Views document that is intended to improve the accounting and financial reporting of derivatives by state and local governments. The New York Times reports that derivatives are increasing in popularity among local governments as a means of reducing their cost of borrowing. The governments enter into derivatives contracts at the same time they issue bonds, in what is known as interest rate swaps.

Bill Requires Reporting Unfunded Federal Liabilities

With state and local governments scrambling to meet the Government Accounting Standards Board’s (GASB) amended rules for reporting on postretirement benefits, and private and public companies getting ready for compliance with the Financial Accounting Standards Board’s (FASB) proposed statement on recording pension liabilities, a congressman from Indiana has introduced legislation that would require the federal government to meet a similar standard. The Truth in Accounting Act, sponsored by Rep. Chris Chocola (R-Ind) and co-sponsored by Reps.
A&A

FASB Proposes Bringing Pension Obligations to Balance Sheet

The Financial Accounting Standards Board (FASB) issued a proposed statement on Friday that would require public companies to recognize the overfunded or underfunded position of defined benefit postretirement plans on their balance sheets, effective for fiscal years ending after December 31, 2006.
A&A

15 Business Performance Management Capabilities for Better Compliance

A new study, Improving Compliance Sustainability with Business Performance Management, from Cartesis and Robert Frances Group, proposes that organizations seeking sustainable financial reporting and regulatory compliance shift their focus to business performance management (BPM) technologies.
Community News

Ex-Qwest Accountant Accuses SEC of “Abuse of Process”

The lawyer for former Qwest accountant James Kozlowski alleged in a suit filed in U.S. District Court in Denver last week that the the Securities and Exchange Commission (SEC) charged Kozlowski with fraud in March 2005 because he wouldn’t “spill the beans” on ex-chief executive Joe Nacchio. Eleven other ex-officials of the company were charged along with Kozlowski and Nacchio.
Practice Management

Former Andersen Partners Testify in Trial of Lay and Skilling

John R.

GM Revising 2000 to 2005 Profit Figures

Better times behind them, General Motors announced their intention to restate their profit figures, for years 2000 through the first quarter of 2005, that have already been reported. There is an indication that the car giant used highly questionable accounting methods in 2000, because profits fell sharply in the following year. GM made this announcement on the eve of filing its annual report that has already been delayed.
A&A

Martin Baumann, CFO of Freddie Mac Resigns

Martin F. Baumann, executive vice president of Finance and Chief Financial Officer (CFO) of Freddie Mac, today announced his resignation.“Marty Baumann has been a key contributor to the turnaround currently underway at Freddie Mac,” Richard Syron, Freddie Mac’s chairman and CEO, said in a prepared statement about the resignation.

GASB Identifies Key Differences Between Governmental & Business Financial Reporting

The Governmental Accounting Standards Board (GASB) released a white paper last week describing how the information needs of individuals and organizations interested in the financial performance of state and local governments differ from those following the financial performance of for-profit businesses. According to the GASB, these diverse needs result from basic environmental differences between governments and businesses. The primary purpose of governments is to enhance or maintain the well being of citizens by providing services in accordance with the public policy goals.
Technology

Mark Your Calendar: IAASB Consultative Advisory Group Meeting

Paris in the springtime is a popular place to be. The Consultative Advisory Group (CAG) of the International Auditing and Assurance Standards Board (IAASB) is offering a great excuse to visit Paris on May 11 and 12, by opening their meetings to the public.Opening the CAG meetings to the public provides organizations, other than the CAG member organizations, and the general public, an opportunity to observe the discussion and follow the various points of view put forward.
A&A

Fair Value Reporting Getting A Closer Look

The Financial Accounting Standards Board (FASB) and International Accounting Standards Board (IASB) have commissioned a survey concerning the trend toward requiring or allowing more financial instruments to be measured at fair value. The FASB/IASB survey seeks to address whether current reporting standards provide enough information for investors and creditors to analyze companies that report any financial instruments at fair value.
Tax

Learned Inefficiency: Box-Cutters vs. Bad Numbers

These days, it seems like everyone is in trouble. Just pick up a paper or turn on the news and you can hear about accounting firms getting fined for violating independence rules and federal agents breaching airport security with alarming regularity.
Community News

Accounting Firm J.H. Cohn LLP Posts 12% Growth

“This past year, we positioned ourselves to leverage all the positive events in the marketplace, and our business has never been better at the firm,” Thomas J. Marino, CEO of J.H.Cohn LLP said in a statement announcing that the firm’s revenues increased by 12 percent, from $128 million to $144 million, during the fiscal year ending January 31, 2006.

FASB and IASB Set Goals for Convergence

Acknowledging the role of their convergence project in the ‘roadmap’ to removing reconciliation requirements for non-US companies registered in the US, the International Accounting Standards Board (IASB) and the Financial Accounting Standards Board (FASB) released a joint memorandum of understanding (MOU) on Monday that lists 11 specific areas where progress is to be achieved by 2008.
Practice Management

Internal Review of Fannie Mae Cites “Attitude of Arrogance”

In a 1996 internal memo to Timothy Howard, Chief Financial Officer of Fannie Mae, Leanne Spencer, Vice President of Financial Reporting wrote, “What do I have up my sleeve to solve an earnings shortfall?” She adds in the same document, according to Bloomberg.com, “I recognize (and thought about it yesterday) that we might want to show the board $2.48. I made the decision that I wanted to show you the real answer and the let you decide if you wanted me to make any adjustment.

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