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Following its July decision to ban the pooling-of-interests method of accounting, FASB issues Statement no. 141, Business Combinations, which requires that companies use only the purchase method to account for business combinations initiated after June 30 of this year. At the same time, the board issues Statement no. 142, Goodwill and Other Intangible Assets, which substitutes impairment testing for the amortization method of accounting for goodwill. The effective date for companies reporting on a calendar-year basis is January 1, 2002 ( www.fasb.org/news/nr070501.html ; www.fasb.org/news/nr072001.html ). (See also “Say Good-Bye to Pooling and Goodwill Amortization,” page 31, and Official Releases, page 115.)

An AcSEC exposure draft of a proposed statement of position, Accounting for Certain Costs and Activities Related to Property, Plant, and Equipment, addresses the variety of accounting methods applied to expenditures related to PP&E. A related FASB exposure draft of a proposed statement of financial accounting standards, Accounting in Interim and Annual Financial Statements for Certain Costs and Activities Related to Property, Plant and Equipment, discusses the same topic. Comments on both proposals are due by October 15 ( www.aicpa.org/members/div/acctstd/edo/index.htm ).

A FASB technical bulletin, Effective Date for Certain Financial Institutions of Certain Provisions of Statement 140 Related to the Isolation of Transferred Financial Assets, defers application of the isolation standards until 2002 ( www.fasb.org/news/nr072301.html ).

The SEC issues staff accounting bulletin no. 102, Loan Loss Allowance Methodology and Documentation Issues, which offers views on the development, documentation and application of a systematic loan-loss allowance methodology, but does not change existing rules on accounting for loan-loss provisions or allowances ( www.sec.gov/news/press/2001-67.txt ).

A new FASB standard, Statement no. 143, Accounting for Asset Retirement Obligations, requires entities to record the fair value of a liability for such an obligation in the period in which it is incurred. The statement is effective for fiscal years beginning after June 15, 2002 ( www.fasb.org/news/nr070501A.html ).

Four years after its founding, the Independence Standards Board disbands, following the incorporation of many of its recommendations into the new SEC auditor independence rules and the strengthening of the AICPA’s professional ethics executive committee ( www.sec.gov/news/press/2001-72.txt ).

The Treasury reports a sharp rise in the frequency of identity theft—for example, fraudulent use of Social Security numbers to obtain loans for buying luxury cars—and offers tips on how to detect suspicious financial activity and notify the appropriate authorities ( www.treas.gov/fincen/sarreview06182001.pdf ; www.treas.gov/fincen/sarreview2issue4web.pdf )

To help state and local governments implement its new financial reporting model, GASB issues two additional standards: Statement no. 37, Basic Financial Statements—and Management’s Discussion and Analysis—for State and Local Governments: Omnibus and Statement no. 38, Certain Financial Statement Note Disclosures ( http://accounting.rutgers.edu/raw/gasb/news/nr062801.html ).

A European private-sector financial reporting advisory group will offer technical guidance on use of the IASB’s international accounting standards ( www.fee.be/secretariat/pressreleases.htm ).

The IASB publishes draft interpretations to clarify the international accounting standards approach to business combinations, disclosure, reporting currency, revenue and intangible assets. Comments are due by September 10 ( www.iasb.org.uk/cmt/0001.asp ).

A congressional study assesses the current U.S. economic slowdown and offers varied scenarios for an eventual recovery ( www.house.gov/jec/press/2001/07-03-1.htm ).

Following Senate banking committee approval, the full Senate confirms Harvey L. Pitt’s nomination to the SEC. Since President George W. Bush has indicated he will appoint Pitt SEC chairman if the Senate confirms him, that formality is expected to take place soon. ( www.senate.gov/~banking/prel01/0724pitt.htm ).

Lynn E. Turner, the chief accountant of the SEC, leaves for an academic post in which he will continue his advocacy of high-quality financial reporting, a focal point of his commission tenure ( www.sec.gov/news/press/2001-77.txt ).

The SEC’s enforcement chief resigns, and it names an interim successor ( www.sec.gov/news/press/2001-68.txt ; www.sec.gov/news/press/2001-69.txt )

The AICPA issues a guide for lawmakers and other public policymakers to help them evaluate proposed changes in the tax system ( http://ftp.aicpa.org/public/download/members/div/tax/3-01.pdf ).

A new book explains what CPAs need to know about XBRL (extensible business reporting language) ( www.cpa2biz.com/CS2000/Products/CPA2BIZ/XBRL+Essentials.htm ).