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The Financial Accounting Standards Advisory Council (FASAC) releases the results of its annual survey, which asks council and FASB members to rank current FASB projects by priority. Respondents deemed the following topics most worthy of the board’s attention this year: business combinations and application of the purchase method of accounting, liability and revenue recognition, codification and simplification of GAAP and standards overload. ( www.fasb.org/fasac/resultpg2001.html)

The current economic downturn has put pressure on employees to better manage their retirement plan accounts. But new research highlights the gap between employees’ understanding of their 401(k)s and the benefits training companies provide. An October 2000 CIGNA Corp. study, Workplace Report on Retirement Planning, found that while human resources executives gave their employee education plans an average grade of “B,” employees rated them a “C.” ( http://qa.corp.cigna.com/general/pdf/WorkplaceReport.pdf)

FASB issues an exposure draft that proposes rescinding Statement no. 4, Reporting Gains and Losses from Extinguishment of Debt. The ED also would rescind an amendment to it—Statement no. 64, Extinguishments of Debt Made to Satisfy Sinking-Fund Requirements, as well as Statement no. 44, Accounting for Intangible Assets of Motor Carriers, and make various technical corrections to other authoritative pronouncements. The ED is accessible at the FASB Web site. Comments are due by January 14. ( www.fasb.org/news/nr111501.html)

Speaking before the AICPA governing council at its fall meeting, SEC Chairman Harvey L. Pitt bemoans the breakdown, in recent times, of communication between accountants and the SEC. He promises, however, that “those days are ended.” Pitt pledges good-faith cooperation with the profession in fostering full, timely and clear disclosure of corporate performance information. Urgent issues he will focus on include the “staleness” of information contained in periodic disclosures, the frequent inaccuracy of pro forma earnings releases, the use of jargon in many financial reports and the inadequacy of information financial statements provide on intangible assets. ( www.sec.gov/news/speech/spch516.htm )

The SEC issues a report on an inquiry into possible financial statement irregularities in which it identifies four broad measures of a company’s cooperation in an investigation: self-policing prior to discovering misconduct; self-reporting of misconduct; remedial action including dismissing offenders and modifying internal controls and assisting law enforcement authorities. In return for such efforts, the SEC may, among other steps, reduce charges or penalties. ( www.sec.gov/news/press/2001-117.txt )

The AICPA issues a collection of 15 case studies on quality of earnings to shed light on various accounting and internal control issues including relations among managers’ personal incentives—such as bonuses and personal credibility—investor relations programs, earnings management, cost of capital and accounting controversies with auditors and regulators. (ABBREVIATED URL) (www.cpa2biz.com/CS2000/ResourceCenters/Business+Reporting%2c+Audit+and+Attest/Quality+of+Earnings/)

The Federal Accounting Standards Advisory Board (FASAB) issues three pronouncements that amend Statement of Federal Financial Accounting Standards (SFFAS) no. 7, Accounting for Revenue and Other Financing Sources. The changes relate to the elimination of certain tax revenue transaction disclosures by the IRS, the Customs Service and others (SFFAS no. 20), reporting corrections of errors and changes in accounting principles (SFFAS no. 21) and certain requirements for reconciling obligations and net cost of operations (SFFAS no. 21). ( www.fasab.gov/pdf/stdedition7.pdf; www.fasab.gov/pdf/sffas21.pdf; www.fasab.gov/pdf/sffas-22.pdf)

The International Accounting Standards Board (IASB) publishes an exposure draft, Preface to International Financial Reporting Standards. The proposed preface, which the board last revised in 1982, updates the objectives and due process of the IASB and explains the scope, authority and timing of application of the standards. Comments are due by February 15. (www.iasb.org.uk/cmt/0001.asp?s=199491&sc={259F31BF-D964-11D5-BE6E-003048110251}&n=4016)

A new International Federation of Accountants (IFAC) study, An Assessment of International Needs and Analysis of the Activities Offered within Seven Member Bodies, offers small and midsize accounting firms advice on expanding into international markets. IFAC based its report on current programs in Canada, India, Italy, Israel, the United Kingdom and the United States. (ABBREVIATED URL) ( www.ifac.org/Store/Details.tmpl?SID=1005347606279344&Category=small and medium practices(smPs)&Cart=100877754214012&Tit )

The Federation of European Accountants (FEE) releases the results of a survey, How European Companies Are Applying IAS 19 on Pension Accounting in the First Year of Accounting. International Accounting Standard (IAS) no. 19, Employee Benefits, became effective for annual financial statements covering periods beginning on or after January 1, 2000. It requires recognition of defined-contribution-plan contributions and defined-benefit-plan current service costs as expenses. The survey found many companies were either exceeding or not meeting IAS no. 19’s disclosure requirements. ( www.fee.be/publications/LatestPubs.htm )

The AICPA creates a nationwide network of CPA volunteers to provide pro bono financial counseling to survivors of the September 11 attacks and their families. Members of the public can request assistance by contacting the AICPA at 877-CPA-4all or www.CPA4all.org . CPAs interested in contributing their services should either call the above phone number or send e-mail to cpa4all@aicpa.org .

The statement on responsibilities task force of the AICPA consulting service executive committee’s litigation and dispute resolution subcommittee issues Proposed Statement on Responsibilities for Litigation Services no. 1. The exposure draft lists the responsibilities of a practitioner in a litigation service consulting engagement. It also analyzes the scope of such services, provides a comparative analysis of standards and responsibilities and describes the limits of standards and responsibilities for practitioners. Comments are due by January 31. ( www.aicpa.org/members/div/pfp/litsvcs.htm )

The SEC issues a concept release, Actively Managed Exchange-Traded Funds, that seeks opinions on the potential structure, operation, benefits and use of such funds, as well as any potential regulatory issues relating to them. Comments are due by January 7. See “A Primer on Exchange-Traded Funds.” ( www.sec.gov/news/press/2001-133.txt )

The IRS increases certain optional standard-mileage rates for computing the deductible costs of using a car. For costs related to business, medical care and moving expenses, the rates increase January 1 to 36.5 cents, 13 cents and 13 cents a mile, respectively. The rate when providing services to a charitable organization remains 14 cents a mile. ( http://ftp.fedworld.gov/pub/irs-news/ir01-106.pdf )

FASB Chairman Edmund L. Jenkins, CPA, says he will retire when his five-year term ends June 30. During his tenure the board issued rules that mandated major changes in accounting for business combinations and derivatives.( www.fasb.org/news/nr102501.html)

Richard J. Swift becomes chairman of the Financial Accounting Standards Advisory Committee (FASAC) January 1. He replaces Robert C. Butler, who took office in 1997. FASAC chairmen serve for a term of unspecified length. The committee counsels FASB on its agenda and project priorities. (www.fasb.org/news/nr110501.html)

Edward J. Mazur, CPA, will serve a second consecutive five-year term as GASB chairman beginning July 1. During his first term, GASB introduced a new financial reporting model for state and local governments that gives financial statement users the unprecedented ability to measure the effectiveness of governments’ operational expenditures. ( www.gasb.org/news/nr110101.html )

The FASB releases “Financially Correct,” a public-education video program featuring Warren E. Buffett, Abby Joseph Cohen and other financial experts who explain the importance of complete and accurate financial reporting. Copies are available from the FASB order department (800-748-0659) for $15 each. (www.fasb.org/news/nr101501.html)

The SEC appoints Stephen M. Cutler director of the commission’s division of enforcement, succeeding Richard H. Walker, under whom he served as deputy director for two years. During the 10 years Walker held the post, the SEC stepped up its efforts against financial reporting offenses and violations of federal securities laws and established a program to ensure observance of SEC rules on the Internet. ( www.sec.gov/news/press/2001-120.txt )

Jo Anne B. Barnhart becomes the commissioner of the Social Security Administration (SSA) after the Senate confirmed President George W. Bush’s nomination of her. A former member of the SSA advisory board, which counsels Congress on Social Security issues, Barnhart’s term will expire in 2007. ( www.ssa.gov/pressoffice/swearing-in-pr.htm )

The SSA launches a Web site ( www.ssa.gov/slge/ ) with Social Security and Medicare benefit and eligibility information for state and local government employers.

Beneficiaries of the Social Security and Supplemental Security Income (SSI) programs receive a 2.6% cost-of-living adjustment effective January 1, 2002, for Social Security beneficiaries and December 31, 2001, for those receiving SSI benefits. ( www.ssa.gov/pressoffice/colapress2001.htm )

The AICPA releases a new practice aid, Assets Acquired in a Business Combination to Be Used in Research and Development Activities: A Focus on Software, Electronic Devices and Pharmaceutical Industries. It identifies best practices related to defining and accounting for, disclosing, valuing and auditing assets acquired for use in research and development (R&D), including specific in-process R&D projects. Practitioners working in all industries dealing with other kinds of intangible assets acquired in a business combination also should find the practice aid useful. To order it, call 888-777-7077.

The Federal Reserve Bank of New York adds a list of frequently asked questions (FAQs) to its Web site ( www.newyorkfed.org/pifaqs.html ), addressing issues relating to the Federal Reserve System, its services and financial instruments.