FINANCIAL PLANNING

F our in 10 adults are holding off on major life decisions—including home ownership, higher education, marriage, having children and retirement—because of financial concerns. This is an increase from 30% last year.

Of the 41% of survey respondents who said they are postponing life goals, 28% blamed a lack of savings and 18% pointed to concerns about the economy as the main reasons.

Harris Interactive conducted the study on behalf of the AICPA.

Source: www.aicpa.org .

FINANCIAL REPORTING 

T he XBRL International Steering Committee announced the formation of the XBRL International Best Practices Board (BPB), charged with the production, dissemination and improvement of XBRL work products to assist with the implementation and usage of XBRL specifications.

The XBRL Nominations Committee hopes to fill the board with a mix of seven experts in XBRL program management, regulatory reporting management, financial analysis and software; all members must have a record of working in international settings, as well as negotiation and strategic planning skills.

The BPB Charter, approved on March 4, can be found at www.xbrl.org/GoverningDocuments .

Source: www.xbrl.org .

FINANCIAL REPORTING

The Changing Nature and Consequences of Public Company Financial Restatements analyzed financial restatements in the years before and after the Sarbanes-Oxley Act was enacted, when the number of restatements grew from 90 in 1997 to 1,577 in 2006.

Major findings of the study, authored by Susan Scholz, an accounting professor at the University of Kansas, included:

Fraud was a factor in only 2% of 2006 restatements, down from 29% in 1997.

Revenue-related restatements decreased from 41% in 1997 to 11% in 2006.

Companies that issue restatements are typically unprofitable, with more than half reporting a net loss in the year prior to announcing the restatement.

The proportion of restatements for annual, audited financial statements (rather than quarterly, unaudited ones) increased from 50% to 70%.

The complete study is available at www.treasury.gov

Source: Treasury Department, www.treas.gov/press/releases/reports/FinancialRestatements_1997_2006.pdf .

ON THE RECORD

“It would be easy for us to dismiss [derivatives] as [investment products] only sophisticated investors use minimizing any impact to our economy. …If we think back to the collapse of Enron, or even farther back to Long-Term Capital Management, we understand how the abuse of derivatives can have a negative impact not only on the parties to the contract, but also on the market and the economy.”

—Rep. Richard Neal, D-Mass., chairman of the House Ways and Means Select Revenue Measures Subcommittee, at a March 5 hearing on tax treatment of derivatives

Source: House Ways and Means Committee, http://waysandmeans.house.gov .

CAREERS & RECRUITING

T hese days, job-seekers are increasingly likely to research potential employers, according to a survey by Accountemps. Almost 80% of executives surveyed said that today’s candidates display knowledge of the company or its industry during interviews. That’s up from almost 60% in a 1997 survey.

However, some candidates may be missing an opportunity to show what they’ve learned.

Only 44% of the executives said job candidates demonstrate knowledge of the company or industry in their cover letters, up from 37% in 1997.

Source: www.accountemps.com .

TECH TALK

W hen comparing online financial services, banking Web sites set the bar when it comes to customer satisfaction.

Using the American Customer Satisfaction Index�s methodology, online banking scored 82 on the ACSI�s 100-point scale, while credit card and investment Web sites both scored 75.

Online banking also outperformed overall retail banking, which scored 78 in a 2007 ACSI measurement.

For investment Web sites, the study found that highly satisfied customers are 37% more likely to increase online transactions and 51% more likely to purchase more services than dissatisfied customers.

Source: 2008 ForeSee Results/Forbes.com Online Financial Services Study, www.foreseeresults.com .

DATA POINT

20

Percentage of major American companies that pick up the tab on at least one tax owed by their CEO.

Source: The Corporate Library,
www.thecorporatelibrary.com .

CAREERS & RECRUITING

T o appeal to today’s workers, technology and telecommunications companies are dropping the traditional approach to talent management—like big salaries and retirement packages—in favor of the personalized career guidance and management favored by Generation Y/Millennial workers.

Between 2006 and 2007, these companies significantly increased their talent investment in the following programs:

Internal communications (increased by 52%)

Learning and development (46%)

Experienced staff recruitment (45%)

Mentoring and coaching (44%)

Reward packages (42%)

Culture change (33%)

According to the report, the next step for these companies is to make personalized career development a standard practice, instead of reserving it for special circumstances.

The complete report is available at www.deloitte.com/us/techtalent .

Source: Deloitte Consulting LLP�s Competing for Talent .

TONE AT THE TOP

W hat could be the key to creating an ethical, productive and engaging workplace? According to a new survey, it’s transparency.

Transparency in the workplace, described in the survey as “an open and honest communication channel between employees and leadership regarding work/life issues,” greatly impacted overall workplace culture.

In its 2008 Ethics and Workplace survey, Deloitte found that a majority of employees thought openness by leadership contributed to a more ethical workplace (84%) and created a more values-based organization (68%).

Respondents also said the ability to balance work schedules and personal priorities produced a more productive and engaging work environment. But is this balance as easy to achieve if you’re working in a cubicle versus a C–suite office?

Maybe not. Half of the respondents felt their bosses set different standards for themselves when it comes to flexible work options, and 40% of employees in a higher salary bracket (income over $75,000 annually) had an easier time balancing work and personal priorities than those who made between $25,000 and $35,000 (29%).

Source: Deloitte 2008 Ethics & Workplace survey, www.deloitte.com .

TECH TALK

Should shareholders approve executive compensation plans?

According to a recent survey, only 31% of technology CFOs said their company allows shareholders to vote on these plans, yet 61% personally felt shareholders should have a say.

In its 2008 Technology Outlook Survey , BDO Seidman examined the opinions of 100 CFOs at leading U.S. technology companies with annual revenues between $100 million and $15 billion.

Other findings included:

67% said their company’s executive compensation plans were affected by legislative and regulatory changes—such as IRC § 409A and FASB Statement no. 123(R). More than one-quarter (27%) described the impact as high.

49% and 36% identified Sarbanes-Oxley section 404 and FIN 48, respectively, as the financial reporting requirements that posed the greatest compliance challenges. Only 12% cited section 409A.

54% managed SOX section 404 compliance function in-house, while only 11% said they outsource the function to an external provider. More than one-third (35%) said they co-source compliance through a combination of in-house and outsourcing.

Source: BDO Seidman LLP, www.bdo.com .

CAREERS & RECRUITING

M ore than one-third (37%) of employers surveyed by the National Association of Colleges and Employers reported higher retention in the first year of hire among former interns than their full-time colleagues who did not go through their internship program. Five years after hire, nearly half (49%) said former interns had higher retention.

Source: 2008 Experiential Education Survey, www.naceweb.org .