Accounting


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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.

SPONSORED REPORT

CPEOs provide peace of mind around payroll services

The creation of these new IRS-certified service providers for small businesses clarifies some issues around traditional professional employer organizations.

QUIZ

8 sentences to help you master subject-verb agreement

When professionals prepare written material for readers inside their organization or outside, they should make sure that no errors distract from the message they need to convey. Take this short quiz for practice in subject-verb agreement.