Financial Reporting

Halifax to Boost Canada's Move to Int. Accounting Standards

Canada's move to international accounting standards is expected to get a big boost from an influx of international banking and financial services companies into Halifax, Nova Scotia. Peter Secord, an accounting professor at St.
Community News

Judith O’Dell to Chair Private Company Financial Reporting Committee

Judith H. O’Dell, CPA, has been named Chair of the new Private Company Financial Reporting Committee (the Committee), part of the Financial Accounting Standards Board (FASB) and the American Institute of Certified Public Accountants (AICPA) initiative to improve the FASB’s standard-setting process to include the needs of private companies.
A&A

SEC and PCAOB Still Working on Sarbanes-Oxley Changes

Christopher Cox, the Securities and Exchange Commission (SEC) Chairman, said Monday that regulators were still working on revisions to its rule requiring companies to adopt internal controls and procedures for financial reporting but said he was “confident” that the result would “improve the reliability of public company financial statements and better protect investors,” the Washington Post reports. The SEC will issue its proposed revision on December 13.
Community News

BearingPoint Faces Delisting From NYSE

BearingPoint, the tech and management consulting firm forced to split off from parent KPMG by the Sarbenes-Oxley Act (SOX), could be dropped from the New York Stock Exchange (NYSE), the company’s 2005 annual report said.Advertisement
Community News

KPMG Posts Revenue Growth

Big Four firm KPMG reported 2006 combined revenues of US$16.9 for the fiscal year ending September 30. The figure represents an increase of 7.6 percent in U.S.

IFAC Seeks Comments on Disclosure of External Assistance

The International Federation of Accountants (IFAC)has issued an exposure draft designed to strengthen the disclosure of financial information about external assistance, such as emergency assistance and development aid received by governments in other countries.Advertisement
Tax

Churches Adopt Business Management Methods

Megachurches with memberships in the thousands and budgets in the millions are hiring more staff and consultants with business experience as they look to implement corporate management and accounting methods for their congregations.Advertisement

Government Agencies In Compliance for 2nd Consecutive Year

The Office of Management and Budget (OMB) reports that for fiscal 2006, eighteen of 24 agencies received clean audits.
Tax

Standardized Income Trust Accounting Proposed

Although limited in clout, the Canadian Institute of Chartered Accountants (CICA) has proposed standard rules to make trust reporting more transparent, according to the Toronto Star. Income trusts have had been very popular, but intelligent comparison between trusts has been difficult, even for those carefully digesting financial reports and disclosures.

SEC Enforcement Actions are Down While Penalties Are Up

The Securities and Exchange Commission (SEC) has announced that the number of their new enforcement actions in the last fiscal year have fallen by some 9 percent, according to DealBreaker.com. The first reaction might be pride in enacting Sarbanes-Oxley (SOX) back in 2002. It makes corporate executives more responsible for the actions of their organizations. SOX also increased the transparency of corporate financial reporting for the benefit of investors and regulators alike.

Senate May Reverse Closing of Iraq Auditor’s Office

The military authorization bill signed by President Bush in mid-October calls for the termination of the Office of the Special Inspector General for Iraq Reconstruction (SIGIR) by October 1, 2007. Susan Collins (R – Maine), chairwoman of the Senate Committee on Homeland Security and Government Affairs, says that provision was not in the conference version of the bill, the New York Times reports. In addition, some analysts say that the content of reports issued by the office, which were critical of weapons oversight by the U.S. military and accounting methods used by the U.S.
Practice Management

Tips for Overcoming Financial Complexity in Presentations

Presenting financial information to a non-financial audience presents several challenges. Whether you are presenting to a single individual, small group, or shareholders meetings, here are ten tips to help you communicate complex financial data effectively. Use visuals. It is difficult for some people to put numbers on a page, even numbers in a table, into a context they can understand. Help them out. Give them some visuals to go along with the information you are presenting.
Technology

Corporate Focus Now Meets FAS 123R Option Expensing Regulations

Two Step Software, Inc. introduced its new version of Corporate Focus at the National Association of Stock Plan Professionals’ Conference October 10-13 in Las Vegas. The new software includes option expensing to meet FAS 123R valuation regulations, Two Step said. FAS 123R rules require financial institutions to recognize in their income statement the grant-date fair value of stock options and other equity-based compensation issued to employees.The new Corporate Focus release will now be able to calculate that valuation according to FAS 123R guidelines.
Technology

Spreadsheets Advance Beyond the Boundaries of Excel

Standalone spreadsheets, such as Excel, have not seen much innovation for a decade. The need for enterprise utility has become necessary in the face of Sarbanes-Oxley (SOX), according to Intelligent Enterprise. With all the corporate uses for spreadsheets, other companies are developing new applications to manage and control them more effectively.A quote by PricewaterhouseCoopers (PwC) posted on the ClusterSeven web site reads, “As some companies have discovered, errors in relatively simple spreadsheets can result in potential material misstatements in their financial results.
Tax

Grant Thornton LLP Fiscal 2006 Revenues Rise to $886 Million

Grant Thornton LLP, the U.S. member firm of Grant Thornton International, one of the six global accounting organizations, today reported that revenues climbed 22 percent, to $886 million in the fiscal year that ended July 31, 2006.
Practice Management

PCAOB Issues Fair Value Auditing Guidance

The Public Company Accounting Oversight Board (PCAOB) on Tuesday issued staff questions and answers providing direction for auditing a company’s estimation of the fair value of stock options granted to employees pursuant to Statement of Financial Accounting Standards No. 123 (Revised), Share-Based Payment (FAS 123R).This series of questions and answers is limited to addressing auditing the fair value measurements associated with determining compensation cost.
A&A

Landmark Study Reveals SOX Compliance Issues

COSO 1992 Control Framework and Management Reporting on Internal Control: Survey and Analysis of Implementation Practices, a landmark research study by the Institute of Management Accountants (IMA), reveals two key cost drivers for public companies complying with Sarbanes Oxley (SOX) Section 404. “IMA’s study is the first comprehensive study of its kind that goes beyond estimating the cost of compliance.
Tax

Avoid Using “Accounting Gimmicks”

Warren Buffett, the second richest man in America after Bill Gates, told his senior managers at Berkshire Hathaway Inc. in a memo published by FT.com, to resist the temptation to use “accounting gimmicks” to manipulate earnings, Bloomberg.com says. “Every time you hear the phrase ‘Everybody else is doing it’, it should raise a huge red flag,” Buffet wrote.
A&A

New FASB Exposure Drafts Address Not-for-Profit Accounting, Usability Issues

On Monday, the Financial Accounting Standards Board (FASB) issued two Exposure Drafts intended to improve the accounting and disclosures for mergers and acquisition (M&A) activities among not-for-profit organizations. The deadline for submitting comments on the new Exposure Drafts is January 29, 2007.“The not-for-profit sector makes up a sizable portion of reporting entities and GDP in the U.S.
Practice

Technology Speeds Financial Close Process without Sacrificing Accuracy

Firms are still spending significant time and resources completing their reconciliation process despite technological advances that make it unnecessary. Increasingly tight regulatory guidelines, more stringent reporting requirements and complex operations over wide geographic regions, are only a few of the hurdles companies must overcome to achieve a faster, more efficient financial close process.

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