Financial Reporting


The Council of Institutional Investors decides to support including the cost of stock options as an expense on businesses’ reported income statements—a reversal of its long-standing opposition to the practice ( www.cii.org/press/expensing.htm ). The group, which includes pension funds, money managers, other financial services entities and lawyers, says its new position acknowledges companies’ vastly increased use of such financial instruments to compensate employees. The council does not recommend a specific valuation formula for them. But it urges the International Accounting Standards Board, which is considering issuing standards on accounting for options, to ask corporations, institutional investors and other affected parties for input on valuing them.

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Cybersecurity threats proliferating for midsize and smaller businesses

This report details how SMBs can properly protect private information from breaches, design and implement a cybersecurity policy, and create safeguards for training and education.

CHECKLIST

Being responsive to clients

CPAs and their firms have daily pressures and hectic schedules, but being responsive is crucial to client satisfaction. Leaders in the profession offer advice for CPA firms that want to be responsive to clients.

QUIZ

Test yourself on these often confused words

The spelling checker on your word processing program can do only so much to flag problems. Your best insurance is to learn the troublesome words that trip up writers and use them correctly by the standards of formal, written English.