Financial Reporting


The AICPA and the Big Five issue a document ( http://ftp.aicpa.org/public/download/news/risk_factor.doc ) that assesses current economic and business conditions that could hinder complete and accurate financial reporting. It offers financial statement preparers, auditors and audit committees advice on how to make their financial reports more useful to investors.

SEC Chairman Harvey L. Pitt says the commission’s division of corporation finance will monitor the annual reports Fortune 500 companies submit to the SEC in 2002. This scrutiny, Pitt says, will focus on disclosed information that seems essential to clear understanding of a company’s financial returns and outlook, but that also appears to conflict with GAAP or to be unclear or incomplete. ( www.sec.gov/news/digest/12-21.txt )

The SEC amends its rules under the Securities Exchange Act of 1934 to require that, beginning in the second quarter of 2002, companies disclose in their annual reports more information about their employee stock option plans and other equity compensation agreements. ( www.sec.gov/news/headlines/comm121901mtg.htm )

At its December board meeting, FASB decided ( http://accounting.rutgers.edu/raw/fasb/derivatives/bdmtg121901.html ) not to make final the tentative guidance in Implementation Issue no. C13, When a Loan Commitment Is Included in the Scope of Statement no. 133. Instead, the board adopted an alternative approach requiring evaluation of loan commitments under that statement’s characteristic-based definition of a derivative.

SPONSORED REPORT

Year-end tax planning and what’s new for 2016

Practitioners need to consider several tax planning opportunities to review with their clients before the end of the year. This report offers strategies for individuals and businesses, as well as recent federal tax law changes affecting this year’s tax returns.

QUIZ

News quiz: IRS warning on cyberattacks and a change in pension rules

Once again, the IRS sounds the alarm about a threat from cyberthieves. See how much you know about this and other recent news with this short quiz.

CHECKLIST

Bolster your data defenses

As you weather the dog days of summer, it’s a good time to make sure your cybersecurity structure can stand up to the heat of external and internal threats. Here are six steps to help shore up your systems.