Although U.S. CFOs and finance chiefs say a Federal Reserve chairman has the ability to significantly affect the world’s economy, they are not optimistic that the coming change in Fed leadership will hasten the economic recovery. Nearly six in 10 (59%) of 688 U.S. CGMA designation holders surveyed in October
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United States and France sign FATCA agreement
The Treasury Department announced on Thursday that the United States and France have signed a bilateral agreement requiring French banks to report to the French government information about their U.S. account holders. The government of France will forward that information to the IRS, and in return the IRS will provide
Regs. permit midyear changes to employer contributions to 401(k) plans
The IRS issued final regulations that permit employers to make midyear reductions or suspensions of safe-harbor matching or nonelective contributions to retirement plans in certain situations (T.D. 9641). To qualify for salary deferral, Sec. 401(k) plans must meet certain nondiscrimination rules that require non-highly compensated employees to participate in the
Significant changes to compilation included in 3 proposed standards
From Staff Reports Three standards proposed by the AICPA Accounting and Review Services Committee (ARSC) as part of its clarity project include a proposal that would significantly change compilation literature. An exposure draft (ED) invites public comment on the proposals. The ED includes: A proposed, revised compilation standard that would
GASB’s five things to watch in pension standards implementation
New financial reporting standards for pensions of U.S. state and local governments are among the most significant rules GASB has ever approved. The standards will place unfunded pension liabilities on the balance sheets of state and local governments that provide defined benefit pensions and call for immediate recognition of more
Tax return preparers suspected of filing inaccurate EITC claims to be targeted by IRS
The IRS announced in an email to tax practitioners that it will send letters in November and December to return preparers “suspected of filing inaccurate EITC [earned income tax credit] claims” (Quick Alerts for Tax Professionals, Nov. 6, 2013). According to the IRS, the letters will explain “critical issues identified
Private company VIE exception approved by PCC
A GAAP exception approved Tuesday by the Private Company Council (PCC) would exempt private companies from applying consolidation guidance for variable-interest entities (VIEs) under common-control leasing arrangements. Some changes were made from the original proposal, as the PCC struggled with concerns over the definition of “common control” and other issues.
Prepare for new revenue guidance with six key actions
There may be some false comfort in the faraway implementation date of the proposed, converged financial reporting standard FASB and the International Accounting Standards Board (IASB) are in the final stages of developing. The standard, scheduled to be released in the first quarter of 2014, would take effect for reporting
Permanent injunction closes large tax preparation firm
A federal district court in Ohio has issued a permanent injunction ordering ITS Financial LLC, the parent company of Instant Tax Service tax franchiser, to cease operations (ITS Financial LLC, No. 3:12-cv-95 (S.D. Ohio 11/6/13). The order, which was issued as a result of a two-week trial in June, also
New guide helps navigate goodwill impairment testing challenges
Goodwill impairment testing has been a challenging area for many financial statement preparers since the issuance in 2001 of FASB Accounting Standards Codification (ASC) Subtopic 350-20 (formerly FASB Statement No. 142). A FASB Accounting Standards Update issued in September 2011 was designed to make this topic easier for preparers. The
Affordable Care Act holds opportunities, challenges for internal auditors
Health care regulations associated with the Patient Protection and Affordable Care Act (PPACA), P.L. 111-148, have created new opportunities for internal auditors. But internal auditors may need to get more familiar with PPACA’s provisions to help their organizations understand the risks associated with the law and their organization’s preparedness to
FASB proposes eliminating “development stage entity” distinction
A new FASB proposal seeks to eliminate the designation of “development stage entity,” as well as related disclosure requirements, from U.S. GAAP. FASB on Thursday issued a Proposed Accounting Standards Update (ASU) that originated with the Private Company Council (PCC) and was expanded in scope to include public and private
Historic revenue recognition standard takes big step forward
A financial reporting standard designed to increase global comparability of one of the most important items in financial statements is nearing completion after an important vote Wednesday. FASB directed the board’s staff to draft a final revenue recognition standard to be submitted to the board in December for final approval.
IRS extends fast-track settlement to smaller businesses nationwide
Formerly available only to large and midsize businesses and in a geographically limited pilot program for smaller entities, the IRS’s Fast Track Settlement program is now available to smaller businesses nationwide, the IRS announced Wednesday. Fast-track settlement allows the IRS and business or self-employed taxpayers under examination to use alternative
PCAOB establishing Center for Economic Analysis
The PCAOB is establishing a Center for Economic Analysis to advise the board on how economic theory, analysis, and tools can enhance the effectiveness of the board’s programs. University of Chicago economist Luigi Zingales will be the founding director of the center, which will promote and encourage economic research related
SEC’s ramped-up scrutiny means CFOs need to reevaluate processes
CFOs and finance departments may want to undergo a careful evaluation of their financial reporting systems and processes, experts say, now that the SEC is ramping up its scrutiny of accounting and auditing. After years of declining enforcement actions for financial fraud and issuer disclosure, the SEC’s Division of Enforcement
Health FSA use-it-or-lose-it rule modified to allow a $500 carryover
On Thursday, the IRS issued Notice 2013-71, which permits companies to amend their Sec. 125 cafeteria plans to allow participants in health flexible spending arrangements (FSAs) who do not use all of the money in a plan year to use up to $500 in the next plan year, in addition
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