SEC Chairman Christopher Cox
expressed support for the Basel Committee on Banking
Supervision committee’s planned updated guidance on
liquidity management for banking organizations in
light of the recent market turmoil, in a
March letter to the committee’s chairman. Cox provided
specific data concerning Bear Stearns’ liquidity and
broker-dealer regulatory capital before its sale to JP
Morgan Chase. “The conclusion to which these
data point is that the fate of Bear Stearns was the
result of a lack of confidence, not a lack of
capital,” Cox wrote. “When the tumult began…, and at
all times until its agreement to be acquired by JP
Morgan Chase…, the firm had a capital cushion well
above what is required to meet supervisory standards
calculated using the Basel II standard.” To
view the letter, visit www.sec.gov/news/press/2008/2008-48.htm
.
FASB and its parent organization,
the Financial Accounting Foundation (FAF), will host
a forum on convergence, High-Quality Global
Accounting Standards: Issues and Implications for U.S.
Financial Reporting, June 16 at Baruch College in New
York. Panelists will include users of financial
statements; representatives of small and large companies
both public and private; auditors; regulators;
educators; and others representing facets of the U.S.
economy that would be affected if there were a move from
U.S. GAAP to International Financial Reporting Standards
(IFRS). The panel agenda is likely to include
whether IFRS and U.S. GAAP should ultimately converge
and, if so, how and when; how to prepare the United
States for a possible shift to IFRS; issues of
accounting education and professional certification;
regulatory and tax issues; potential effects on
reporting by private companies and not-for-profit
entities; and the future role of FASB. Advance
registration online is required to attend the event in
person. The forum will also be webcast live on FASB’s
Web site. To register, or for more information, go to
www.fasb.org .
The International Federation of
Accountants Board approved a proposal to move to one
quality translation of IFAC standards per language.
As a result, IFAC released for public comment
a consultation paper, Translation of IFAC
Standards , which outlines a proposed
translation process. The process is designed to
facilitate the ability of member bodies and other
qualified organizations to translate IFAC standards
and to ensure the timeliness and quality of such
translations. While the official working language of
IFAC and its boards and committees is English, IFAC
has said that it is crucial for practitioners,
legislators, regulators, educators, students and
others who work in languages other than English to
have access to current IFAC standards in their native
languages. IFAC is working to strengthen its
translation processes. It has created a translation
Web page that, among other things, features a
translation database based on information submitted by
third parties. The database features a listing of IFAC
publications that have been translated, along with the
name of the translating body and links to a list of
key terms. The consultation paper can be
viewed at www.ifac.org/eds
. Comments are due by June 30.
The AICPA is seeking volunteers
to help develop a set of best practices relating to
the possible U.S. convergence with International
Accounting Standards. The purpose of the
best practices will be to guide preparers and
auditors, influence the content of the CPA
examination, and share thought leadership. Qualified
volunteers will have experience preparing financial
statements based on International Accounting
Standards, auditing those financial statements, or
teaching the subject. If you have experience with
international standards and are interested in helping,
submit your name to Volunteer Services at
volunteerservices@aicpa.org .
The FDIC developed a free
curriculum to teach people ages 12 to 20 basic
skills for handling money and finances.
Money Smart for Young Adults , according to
FDIC Chairman Sheila Bair, will help schools, youth
groups and other organizations teach young adults the
importance of saving and how to develop good financial
habits early in life. The curriculum, which is
distributed on a CD, is aligned with the educational
standards of all 50 states and the District of
Columbia. It includes optional computer-based
exercises for each module. More information is
available at www.fdic.gov/consumers/consumer/moneysmart/young.html
.
At an April joint meeting in
Tokyo, the Accounting Standards Board of Japan
(ASBJ) and the International Accounting Standards
Board (IASB) confirmed that the convergence project
to eliminate major differences between Japanese GAAP
and current IFRS by the end of 2008 is on schedule.
The boards plan to hold their next joint
meeting in London in September. |