Highlights


  

 
 

HIGHLIGHTS

With FASB affirming its implementation date for FIN 48, several organizations, including the AICPA and FASB itself, are producing educational materials or additional guidance to help issuers comply with its new requirements for recognizing and measuring tax assets and liabilities. FASB Interpretation no. 48, Accounting for Uncertainty in Income Taxes, is effective for tax years beginning after Dec. 15, 2006.

On Jan. 17, FASB denied requests by the Tax Executives Institute and others to delay implementation of FIN 48 by a year but directed FASB staff to better define FIN 48’s provisions relating to “ultimate settlement” of tax positions. The additional guidance will address whether the ability of taxing authorities to reopen an audit affects entities’ ability to change their recognition and measurement of uncertain tax positions.

CPA2Biz.com has produced a self-study CPE course on CD-ROM titled Implementing FIN 48: Issues for Accountants, Auditors and Tax Practitioners that can be ordered at www.cpa2biz.com/CS2000/Products . Also, members of the AICPA’s Tax, Accounting Standards and Audit and Attest teams have produced a FIN 48 practice guide available at http://tax.aicpa.org/Resources/ .

The AICPA and NASBA drafted proposed revisions to the Uniform Accountancy Act designed to improve the model state legislation’s provisions for mobility of CPA practice across state lines and corresponding issues of enforcement. The proposed changes would delete the substantial equivalency requirement that CPAs provide notice of intent to practice in a state other than in their principal place of business. Instead, the CPA and CPA firm would consent to the automatic jurisdiction of the state where practice privileges are being sought. An exposure draft is available at www.aicpa.org . Comments are invited through May 15, by e-mail to sbango@aicpa.org and lhaberman@nasba.org .

Fostering confidence in the audit process and aiding investors and the capital markets is the mission of the new Center for Audit Quality (CAQ), a restructuring and expansion of the AICPA’s former Center for Public Company Audit Firms (CPCAF). The Center for Audit Quality, an autonomous, nonpartisan, nonprofit organization affiliated with the AICPA, will continue to pursue its objective of serving as the voice of the profession on matters relating to public company audits. The center recognizes that “reliable financial information is the bedrock of investor confidence in capital markets,” according to its Web site.

CAQ Executive Director Cynthia Fornelli said the center’s “single-minded focus” on public company audits will increase public confidence in and enhance the quality of auditing practices through improved research, communication and education.

The CAQ’s 12-member board will include the CEO from the AICPA, chief executives of the six largest CPA firms and two rotating firms, and leaders from the investor and issuer communities. Firms registered with the PCAOB are eligible for membership. Associate membership is available for U.S. CPA firms not registered with the PCAOB.

Firms that were members of CPCAF automatically become members or associate members (depending on their PCAOB registration status) of the Center for Audit Quality as a CPCAF successor and will continue to receive the benefits of membership. While the CPCAF Web site will be for members only, the Center for Audit Quality Web site, www.thecaq.org , is for public, non-CPA audiences.

The PCAOB will continue to hold forums on auditing in the small business environment throughout 2007. These forums are designed to help share important information on the PCAOB inspections process and the effect of new auditing standards. Feedback assists the PCAOB in understanding the unique needs and challenges of the small business community. Although the program will be similar to last year’s forums, the PCAOB plans to significantly change it to address emerging issues. In three cities, directors and financial executives of small public companies are invited to participate in a separate event to be held the following day. Upcoming forums will be held in:

• Houston—April 23
• Fort Lauderdale, Fla.—June 1
• San Francisco—June 27, 28*
• Atlanta—Sept. 10, 11*
• New York City—Oct. 22, 23*
• Chicago—Nov. 9
• Washington—December date pending
* Includes second-day event for directors and financial executives of smaller public companies.

Admission is free; however, preregistration is required. For more information, visit www.pcaobus.org/ . For registration questions call 202-207-9061 or e-mail info@pcaobus.org .

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