News Headlines From the Journal of Accountancy
THIS WEEK'S NEWS HEADLINES
Friday, Nov. 20, 2009
UBS Targets Come Into Focus
The IRS has released the selection criteria for identifying holders of accounts with Swiss bank UBS under a U.S. settlement agreement with the Swiss government negotiated in August. Under the agreement, UBS will turn over information concerning approximately 4,450 accounts for investigation.
OCC Head Calls for Minimum Mortgage Underwriting Standards Worldwide
Comptroller of the Currency John C. Dugan, speaking in Tokyo on Wednesday, said that regulators around the world should establish minimum underwriting standards for all mortgages as a response to a problem that sparked the financial crisis of the past two years.
Thursday, Nov. 19, 2009
IRS Will Allow Truncated Social Security Numbers on Certain Information Returns
The IRS on Thursday announced a pilot program aimed at deterring identity theft (Notice 2009-93). Under the program, filers of certain paper information returns will be allowed to truncate the payee’s Social Security number on the payee statement. The change affects statements for 2009 and 2010.
Panelists Advise Companies to Take Responsibility for XBRL Tagging—Even When Outsourcing
When reporting financials in XBRL, companies need to take responsibility by documenting the reasons items are tagged the way they are and allocating ample time for management review—even if they outsource the data tagging to a third party, according to panelists at the 2009 XBRL US National Conference that took place in New York this week.
Wednesday, Nov. 18, 2009
FDIC Approves Transitional Safe Harbor on Securitizations in Light of New FASB Standards
The FDIC Board of Directors, responding to accounting standard changes promulgated by FASB, adopted an interim rule amending 12 C.F.R. § 360.6 to provide a transitional safe harbor effective immediately for all participations and securitizations in compliance with that rule as originally adopted in 2000.
Tuesday, Nov. 17, 2009
PBGC Deficit Climbs to $22B in 2009
The Pension Benefit Guaranty Corp. (PBGC) had an overall deficit of $22 billion for the fiscal year ending Sept. 30, 2009, according to the agency’s Annual Management Report, nearly double the $11.2 billion deficit it had at the end of fiscal year 2008. The deficit was, however, sharply lower than the record $33.5 billion deficit in an unaudited report to Congress as of March 31, 2009, the midpoint of the fiscal year.
Monday, Nov. 16, 2009
Economic Optimism Levels Off, Execs Concerned About Government Policies
Optimism among CPA financial executives about the U.S. economy flattened after two quarters of improvement as managers paid more attention to potential challenges and concerns associated with the federal budget deficit, tax reform and regulatory requirements, according to a survey released Monday.
Sunday, Nov. 15, 2009
President Signs Military Spouses Residency Relief Act
President Barack Obama signed into law the Military Spouses Residency Relief Act (PL 111-97), which will ensure that the spouses of military personnel who move because their spouse is posted for military duty will be treated as not having changed residency for tax purposes.
LAST WEEK'S NEWS HEADLINES
Thursday, Nov. 12, 2009
IASB Releases New Standard for Financial Instruments
The International Accounting Standards Board (IASB) on Thursday issued a new standard on the classification and measurement of financial assets. Publication of the standard represents completion of the first part of a three-part project to replace IAS 39, Financial Instruments: Recognition and Measurement, with a new standard, IFRS 9, Financial Instruments.
Wednesday, Nov. 11, 2009
AICPA Files Suit Challenging Identity Theft Rule
The AICPA filed a lawsuit on Tuesday seeking to bar the Federal Trade Commission from applying its so-called Red Flags Rule to CPAs. The Institute says the rule, which is designed to help prevent identity theft, would “impose onerous and unnecessary requirements on AICPA members.”
NEWS HEADLINES FOR NOV. 1–NOV. 7, 2009
Friday, Nov. 6, 2009
President Signs Unemployment Bill With Tax Items
On Friday, President Obama signed into law a bill that includes changes to the first-time homebuyer credit, increased NOL carrybacks for small businesses, and mandatory e-filing for most tax return preparers. The bill cleared Congress on Thursday.
Thursday, Nov. 5, 2009
IASB Proposes New Accounting Model for Financial Instruments
The International Accounting Standards Board on Thursday published proposals that if implemented would fundamentally shift the way banks and other financial institutions report the value of loans (or portfolios of loans) and other financial instruments carried at amortized cost.
AICPA Opposes Attempt to "Undermine" FASB's Independence
AICPA President and CEO Barry Melancon sent a letter to the leadership of the House Financial Services Committee on Wednesday to state that the Institute is “strongly opposed” to any legislation that would “undermine the independent accounting standard process as currently carried out by the Financial Accounting Standards Board.”
Tuesday, Nov. 3, 2009
Letter Encourages Congress to Retain SEC Oversight of FASB
A group of key stakeholders in U.S. capital market regulations sent a joint letter to the leaders of the House Financial Services Committee to discourage possible proposals that would realign the oversight of FASB within the structure of systemic risk regulation. The letter said the SEC should remain “the primary agency with oversight over accounting standard setting.”
NEWS FOR OCT. 25–oCT. 31, 2009
Friday, Oct. 30, 2009
SEC Chief Accountant Promises "Clarity" on IFRS Road Map This Fall
SEC Chief Accountant James Kroeker on Friday reconfirmed the SEC’s commitment to provide clarity this fall on its proposed road map for the adoption of IFRS by U.S. public companies.
Final Regulations Issued on S Corporation COD Income Exclusion and Tax Attributes
The IRS and Treasury Department issued final regulations this week governing how an S corporation reduces its tax attributes under IRC § 108(b) when the S corporation has discharge of indebtedness (COD) income that is excluded from gross income under section 108(a).
Thursday, Oct. 29, 2009
FASB, IASB Leaders Boost Collaboration Efforts to Meet 2011 Convergence Goal
FASB and the International Accounting Standards Board will begin meeting monthly to try to speed up efforts to develop a common set of accounting standards by the target date of 2011, the heads of both boards said Thursday during a general session at a conference on IFRS held in New York.
Impact of IFRS Adoption in Global Capital Markets
Paul A. Volcker, Chairman of the President’s Economic Recovery Advisory Board, on Thursday discussed the advantages of adopting IFRS in the United States, whether 2011 is a reasonable convergence deadline and how the independence of FASB and the IASB should be maintained.
Wednesday, Oct. 28, 2009
FASAB Proposes Making AICPA's Subsequent Events Guidance Authoritative
The Federal Accounting Standards Advisory Board released an exposure draft, Subsequent Events: Codification of Accounting and Financial Reporting Standards Contained in the AICPA Statements on Auditing Standards. The proposal would incorporate the guidance in the AICPA’s Statements on Auditing Standards AU section 560, Subsequent Events, into the authoritative FASAB literature.
Tuesday, Oct. 27, 2009
FASB Chairman Defends Rules Limiting Off-Balance-Sheet Accounting
Responding to concerns from the banking sector that new accounting rules could further damage an already wounded securitization market, Robert Herz says allowing a lack of transparency to continue is a greater risk.
Shulman: 'Big Shift' Possible in Preparer Standards, But No Details Yet
IRS Commissioner Douglas Shulman discussed return preparer standards, enforcement in a globalized economy and a new IRS initiative focused on high-wealth individuals’ tax compliance during a speech to the AICPA’s National Tax Conference in Washington on Monday.
Sunday, Oct. 25, 2009
Government Loses LILO Case
In a rare setback for the IRS in its litigation against lease-in, lease-out tax shelters, the Court of Federal Claims held that an arrangement Consolidated Edison Co. of New York had with an electric utility in the Netherlands should be respected for federal tax purposes because it had valid business purposes beyond its tax benefits.
NEWS FOR OCT. 18–oCT. 24, 2009
Thursday, Oct. 22, 2009
Coalition Urges Congress to Ban Tax Strategy Patents
A coalition of various organizations, including the AICPA, has written to members of Congress to ask for a ban on the patenting of tax strategies. The letter says tax strategy patents “pose a significant threat to taxpayers and their advisers,” and urges Congress to prohibit them.
Tuesday, Oct. 20, 2009
New AICPA Chairman Outlines Goals, Council Releases GAAP Survey at Fall Meeting
CPAs must embrace change if they are to succeed in the future, newly elected AICPA Chairman Robert R. Harris said Tuesday during his inaugural speech at the Institute’s fall Council meeting in Las Vegas, where he began a one-year term.
Melancon: Issues Facing CPAs Include Globalization, Economic Recovery
AICPA President and CEO Barry Melancon, speaking at the fall meeting of the Institute’s governing Council in Las Vegas on Monday, gave an update on the impact of globalization on the profession, the AICPA’s ongoing efforts to support members and the public during the economic downturn and recovery, and on new technology efforts on the horizon.
Monday, Oct. 19, 2009
Video: H.R.H. The Prince of Wales on Accounting for Sustainability
Address to 2009 AICPA Fall Council from H.R.H. The Prince of Wales on accounting for sustainability.
NEWS FOR OCT. 11–oCT. 17, 2009
Friday, Oct. 16, 2009
IRS Releases Annual Inflation Adjustments, Many Unchanged for 2010
The IRS has released its annual revenue procedure updating the tax bracket amounts and making inflation adjustments for various credits and other tax items (Revenue Procedure 2009-50). Because inflation has been minimal, many of the numbers are unchanged from 2009 or have only been adjusted slightly.
Wednesday, Oct. 14, 2009
Mortgage Loan Fraud Reports Slow Dramatically
The Financial Crimes Enforcement Network’s semiannual SAR Activity Review: Trends, Tips & Issues says mortgage loan fraud suspicious activity reports increased less than 1% for the six-month period ended June 30, 2009, compared with the prior-year period. This is a sharp decline in the rate of increase after 33% and 44% increases in 2007 and 2008.