The U.S. Department of Housing and Urban Development (HUD) issued notice of a Federal Housing Administration (FHA) program change as a result of Mortgagee Letter 2009-31, “Strengthening Counterparty Risk Management,” issued Sept. 18, 2009. This policy change affects all supervised mortgagees. Effective for fiscal years ending on or after Jan.
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Expediency at Heart of Panel’s Recommendations on Private Company Reporting
Asked why the panel on private company financial reporting appears to be favoring a separate standards board making modifications to existing U.S. GAAP (as compared to writing new standards)several members of the panel pointed to a simple factor – time. “How we got to where we got to as
Futurist to CPAs: Prepare for the Inevitable
The U.S. economy won’t be getting back to “normal” anytime soon, strategic forecaster David Pearce Snyder said Monday in a presentation to the AICPA’s 2010 fall meeting of Council in New Orleans. Increased emphasis on personal saving will combine with tightened credit and higher taxes to keep “consumer spending 5%
Regulations Provide Guidance on Hybrid Pension Plans
On Monday, the IRS released final and proposed regulations providing guidance on so-called hybrid defined benefit pension plans (TD 9505 and REG-132554-08). The regulations deal with changes made by the Pension Protection Act of 2006 and the Worker, Retiree, and Employer Recovery Act of 2008. They generally apply to plan
CPA Exam Offered in Five International Locations Next Year
The Uniform CPA Examination will be offered in Japan, Bahrain, Kuwait, Lebanon and the United Arab Emirates in 2011, marking the first time in the exam’s history that it will be offered outside the 55 U.S. jurisdictions. The three organizations that jointly offer the CPA Examination in the United States—the
AICPA to SEC: Companies Will Need as Much as Five Years to Ready for IFRS Adoption
Giving companies enough time to carefully prepare for a move from U.S. GAAP to IFRS is critical, the AICPA told the SEC in a comment letter filed Thursday. The AICPA assembled members from business and industry with public company backgrounds to discuss questions the SEC posed in a recent request
FDIC Tells Creditors to Expect Losses in Dodd-Frank Liquidations
The FDIC board last Friday proposed a rule clarifying how the agency would treat certain creditor claims under the new orderly liquidation authority established under the Dodd-Frank Wall Street Reform and Consumer Protection Act. The proposal advances the principle that all creditors must expect to absorb losses in any liquidation.
IRS Rules That Mortgages Over $1 Million Can Be Deductible
The IRS has ruled that indebtedness incurred by a taxpayer to acquire, construct or substantially improve a qualified residence can constitute “home equity indebtedness” to the extent it exceeds $1 million, up to an excess of $100,000 (Revenue Ruling 2010-25). In the fact situation discussed in the ruling, an unmarried
IRS Issues Final Regulations on Stock Basis Reporting Requirements
The IRS issued final regulations on Wednesday regarding a new requirement for reporting of basis and other information by stockbrokers and mutual fund companies for most stock purchased in 2011 and all stock purchased in 2012 and later years (TD 9504). The final regulations implement a provision from the Energy
FASB Seeks Greater Transparency, Consistency for Troubled Debt Restructurings
FASB issued an exposure draft Tuesday that contains clarifying guidance intended to improve consistency and transparency in financial reporting about troubled debt restructurings. “Investors, regulators and practitioners asked the board to clarify what types of loan modifications should be considered troubled debt restructurings for accounting and disclosure purposes,” FASB’s Acting
IRS Delays Mandatory W-2 Reporting of Health Care Coverage Costs
On Tuesday, the IRS issued a notice providing interim relief to employers regarding reporting the costs of group health plan coverage to employees (Notice 2010-69). Under the notice, notification to employees on Form W-2 will not be required for 2011. The IRS also posted a draft 2011 Form W-2 on
Dutch Official to Succeed Tweedie at IASB
Hans Hoogervorst will become the next chairman of the International Accounting Standards Board (IASB). The Trustees of the IFRS Foundation, the IASB’s oversight body, named Hoogervorst as the successor to Sir David Tweedie, who will retire as chairman of the IASB at the end of June 2011. The trustees announced
AICPA Members Approve Proposal to Modernize Admission Requirements
Members of the AICPA who cast ballots voted by an 81.39% majority to modernize admission requirements, as detailed in a recent proposed bylaw amendment. Individuals may join the AICPA as voting members if they hold or previously held a CPA certificate/license and it was not revoked because of disciplinary action or
Panel Majority Signals Support for Separate Board, U.S. GAAP Exceptions for Private Companies
The blue ribbon panel on private company financial reporting is heading down a path to recommend that the Financial Accounting Foundation, FASB’s parent organization, accept U.S. GAAP with exceptions for private companies and that those standards should be set not by FASB but by a separate board under FAF’s oversight.
AICPA VP Testifies on Changes Needed to IRS Return Preparer Regulation Plan
Edward Karl, AICPA vice president–Taxation, testified at an IRS hearing on Friday about proposed amendments to Circular 230 that would put into place many parts of the IRS’ plan to register and regulate tax return preparers (REG-138637-07). The proposed regulations would clarify the definition of tax practice, establish a new
Panel May Recommend Alternative Models for Private Company GAAP Friday
A blue-ribbon panel will meet Friday at the AICPA’s New York office to possibly recommend alternative models and structures related to GAAP standard setting for private companies. The panel will receive a brief overview of the more than 140 public comments FASB received in response to a series of questions
CAQ Outlines Plan to Mitigate Fraud, Announces Partnerships
The Center for Audit Quality (CAQ) on Wednesday published a report that outlines the organization’s long-term agenda to combat financial reporting fraud. The report, Deterring and Detecting Financial Reporting Fraud—A Platform for Action, identifies three areas of focus: a strong, highly ethical tone at the top that permeates the corporate
PTIN Registration Site Offline This Weekend
The IRS announced that its new online preparer tax identification number (PTIN) registration site will undergo system maintenance this weekend and be unavailable for use. The Service estimates that the site will be taken down at approximately 8 a.m. EDT Saturday, Oct. 9, and will remain unavailable until approximately 8
Executive Roundtable: Emerging Issues and Opportunities in Payroll and Employee Benefits
Driven by massive regulatory and technological changes, finance and accounting professionals are grappling with a tidal wave of change and complexity in payroll and employee benefits. To gain some insight into the issues and opportunities, the Journal of Accountancy gathered several leading executives to join a virtual roundtable discussion. Here,
AICPA Expresses Concerns on FASB Financial Instruments Proposal
The AICPA’s Financial Reporting Executive Committee (FinREC) on Thursday said it was concerned about the fair value measurement and impairment models along with other provisions of FASB’s comprehensive proposal to revamp financial instruments accounting. FinREC (formerly the Accounting Standards Executive Committee) said that while it shares the board’s desire
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FROM THIS MONTH'S ISSUE
Accountancy in America: Meeting the moment for 250 years
As the United States celebrates its semiquincentennial, explore the history of the accountancy profession’s essential role in the U.S. economy.
