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The AICPA accounting and review services committee (ARSC) issues three interpretations of AR section 100, “Compilation and Review of Financial Statements.” They are no. 8, “Reports on Specified Elements, Accounts, or Items of a Financial Statement— Revised ”; no. 24, “Reference to the Country of Origin in a Review or Compilation Report”; and no. 25, “Omission of the Display of Comprehensive Income in a Compilation.” The committee encourages implementation of the interpretations ( www.aicpa.org/download/members/ ) as soon as practicable.

FASB defers implementation of Interpretation no. 46, “Consolidation of Variable Interest Entities” ( www.aicpa.org/pubs/jofa/apr2003/news.htm#financial ) and releases an exposure draft (ED) of a clarification ( www.fasb.org/draft/ed_prop_interp_vie.pdf ) of its requirements. The deferral applies only to such entities created before February 1, 2003, and gives companies and their auditors more time to determine which ones to include in their consolidated financial statements. Companies must complete their evaluations and consolidate—for the first reporting period ending after December 15—those variable interest entities of which they are the primary beneficiary. Calendar-year companies must include such consolidations in their December 31 financial statements ( www.fasb.org/news/nr100903.shtml ). The board issued the ED in response to constituents’ concerns about implementation requirements; its provisions would apply at the same time as those of the interpretation. Comments are due by December 1.

The auditing standards board (ASB) issues Statement of Position 03-2, Attest Engagements on Greenhouse Gas Emissions Information (see Official Releases, JofA , Nov.03, page 99). It provides practitioners with performance and reporting guidance for examinations of information about greenhouse gas emissions for a compliance period or about a greenhouse gas emission reduction. Auditors should perform such examination engagements in keeping with chapter 1, “Attest Engagements,” of Statement on Standards for Attestation Engagements (SSAE) no. 10, Attestation Standards: Revision and Recodification (AICPA, Professional Standards, AT section 101, vol. 1), as amended. Clients may request such services from their auditors in connection with recording greenhouse gas inventory information with a registry, such as the Chicago Climate Exchange ( www.chicagoclimateexchange.com ), or with trading emission reduction credits. Copies of the SOP (product no. 014937JA) are available at 888-777-7077 or www.cpa2biz.com .

The ASB’s audit issues task force releases an interpretation also of chapter 1, “Attest Engagements,” of SSAE no. 10 ( www.aicpa.org/members/div/auditstd/announce/xbrl_09_16_03_final.htm ). The guidance, “Attest Engagements on Financial Information Included in XBRL Instance Documents,” describes the practitioner’s considerations when he or she has been engaged to examine and report on whether an XBRL instance document (which presents financial information in a format computers can read) accurately reflects certain client financial information. The interpretation provides sample examination reports as well as information on such documents.

The Public Company Accounting Oversight Board (PCAOB) adopts rules—subject to SEC approval—relating to inspections of public accounting firms registered with the board as a prerequisite to auditing public companies. ( www.pcaobus.org/pcaob_news_10-07-03a.asp ). These rules would subject registered firms to both regular (scheduled) and special (unscheduled) inspections by the board and would establish a regular inspection timetable consistent with section 104(b)(1) of the Sarbanes-Oxley Act of 2002. The board also voted unanimously to propose and issue for public comment a standard for audits of internal controls over financial reporting and a rule that clearly defines auditing terms (www.pcaobus.org/pcaob_news_10-07-03b.asp ).

Also subject to SEC approval, the PCAOB adopted rules governing investigations and adjudications and the process by which registered public accounting firms can withdraw their registration to audit public companies ( www.pcaobus.org/pcaob_news_9-29-03.asp ). The AICPA’s comments on the proposals are at www.pcaobus.org/rules/comments2003-012.pdf .

The Federal Accounting Advisory Standards Board (FASAB) issues an exposure draft, Identifying and Reporting Earmarked Funds ( www.fasab.gov/exposure.htm ). The ED distinguishes such funds from traditional trust or fiduciary activities and requires that financial statements present the cumulative amount designated for specific federal programs. If adopted, the proposal would be effective for periods beginning after September 30, 2005. Comments are due December 17.

GASB issues Guide to Implementation of GASB Statement No. 40 on Deposit and Investment Risk Disclosures: Questions and Answers, a reference and instructional tool for financial statement preparers and attestors. Copies (product code GQA40) are available from GASB at 800-748-0659 or at http://store.yahoo.com/gasbpubs/publications-implementation-guides.html .

The European Commission adopts a regulation endorsing international accounting standards (IAS), including related interpretations, thereby requiring the approximately 7,000 European Union public companies to implement them beginning in 2005 ( www.iasb.org.uk ). The regulation includes all IASs and interpretations except those pertaining to the accounting and disclosure of financial instruments, which the International Accounting Standards Board is revising and will reissue by 2004.

The International Federation of Accountants releases an exposure draft of an international public sector accounting standard (IPSAS) on impairment of public sector assets, including those not held to generate cash ( www.ifac.org ). The ED complements IPSAS 17, Property, Plant and Equipment, and strengthens and enhances IFAC’s guidance on financial reporting of such assets. Comments are due January 31.

S. Scott Voynich assumed the AICPA chairmanship at council’s fall meeting ( www.aicpa.org/download/ ). He is managing partner of Robinson, Grimes & Co. in Columbus, Georgia. Last month, Voynich sat for an interview with the JofA ( www.aicpa.org/pubs/jofa/nov2003/tie.htm ).

The AICPA is presenting a series of Web-based programs on the computerized Uniform CPA Examination. Prepared in cooperation with the National Association of State Boards of Accountancy and Prometric, a developer of technology-based testing services, the webcasts inform candidates, students, educators and CPA employers about the new exam format, which makes its debut in April 2004. Each presentation takes place from 1 p.m. to 3 p.m. (eastern standard time) ( www.aicpa.org ). The January 14 webcast will provide information on registering for the exam, and the February 17 webcast will supply an overview of the computer-based test experience. (At press time two installments of the four-part series had yet to be webcast). Earlier presentations on October 15 and November 12 focused, respectively, on helping candidates prepare for the exam and on educating employers about how it differs from the paper-based test. To participate, viewers should register at the CPA exam Web site, www.cpa-exam.org . Following the live webcasts, each presentation is archived and will be available for repeated viewing at that site.

James P. Wesberry, CPA, received the highest honor of the “Western Hemisphere’s accountancy profession” at the 25th Interamerican Accounting Conference in Panama in September. The award recognized Wesberry’s professional merits, ethical values and enthusiastic efforts in the service of the profession. Only 22 CPAs—three from the United States—have won the award since it was established 52 years ago. A member of the AICPA for 46 years, Wesberry chaired its delegation to the conference for 6 years.

The IRS named Bennett E. Shifman of Braintree, Massachusetts, the 2003 Exemplary Electronic Return Originator National Champion. In granting the award, the service commended Shifman for his “excellent performance” in meeting all IRS expectations of tax firms that file income tax returns electronically.

The SEC seeks to fill four professional accounting fellow positions in the Office of the Chief Accountant. During their two-year terms, which will commence in June 2004, successful candidates will study and develop rule proposals under federal securities laws, interact with professional accounting standard setters and advise registrants on accounting and financial reporting issues. Applications are due by December 19, 2003 ( www.sec.gov/news/digest/dig102103.txt ).