Tax, accounting, auditing news - Journal of Accountancy

October 17, 2008

Court of Appeals Upholds PCAOB, SOX Constitutionality

The U.S. Court of Appeals for the District of Columbia upheld a lower court decision on the constitutionality of the PCAOB and Sarbanes-Oxley Act, which spawned the regulator. The plaintiffs in Free Enterprise Fund v. PCAOB argued that SOX and the PCAOB violate the appointments clause, separation of powers and

October 16, 2008

IPSASB Proposes Changes to Borrowing Costs Standard

The International Public Sector Accounting Standards Board (IPSASB), an independent standard-setting board within the International Federation of Accountants (IFAC), is seeking comments on its proposed changes to IPSAS 5, Borrowing Costs, set forth in Exposure Draft 35, Borrowing Costs (Revised 200X). Most notably, ED 35 proposes amendments to reflect that

October 15, 2008

IRS Appeals Jelke to Supreme Court

The government asked the U.S. Supreme Court to review the Eleventh Circuit’s decision in Estate of Frazier Jelke III v. Commissioner (100 AFTR2d 2007-6694, “Tax Matters: Dunn Does It Again,” JofA, March 08, page 70). The Eleventh Circuit previously declined to rehear en banc its decision overruling the Tax Court

October 14, 2008

FASB Adds “Business Combinations” to Accounting Standards Codification

FASB added the topic “business combinations” to the FASB Accounting Standards Codification. The addition integrates various standards, including FASB Statement no. 141(R), Business Combinations; FASB Statement no. 109, Accounting for Income Taxes; FASB Interpretation no. 48, Accounting for Uncertainty in Income Taxes—an interpretation of FASB Statement No. 109; and various

October 13, 2008

IASB, FASB Update MOU

The International Accounting Standards Board (IASB) and FASB published an update to their 2006 memorandum of understanding (MOU). The update reports the progress they have made since 2006 and sets the goal of completing their major joint projects by 2011. “This update outlines a plan and projected timeline for completing

October 13, 2008

Service Launches LILO, SILO Settlement Initiative

The IRS followed up its recent court victories against LILOs (lease in, lease out) and SILOs (sale in, lease out) with an offer to settle the estimated hundreds of the listed-transaction tax shelters still on companies’ books. The offer, sent initially on Aug. 6 to 45 large corporations known to

October 13, 2008

AICPA Issues Gaming Guide for Comment

The AICPA’s Accounting Standards Executive Committee issued an exposure draft of a proposed Audit and Accounting Guide, Gaming. The proposed guide addresses new accounting issues that have emerged over the years. It also includes guidance dedicated specifically to governmental gaming entities. Comments are due Dec. 9. The ED is available

October 13, 2008

FASB Members Favor Convergence with IAS 1, IAS 10

FASB members favor shifting to international rules for an auditor’s evaluation of an entity’s ability to function as a going concern. The rules under U.S. GAAP would converge with the International Accounting Standards Board’s International Accounting Standard (IAS) 1, Presentation of Financial Statements, and IAS 10, Events after the Balance

October 13, 2008

SEC Unveils Successor to EDGAR Database

The SEC unveiled the successor to the agency’s 1980s-era EDGAR database, which will give investors far faster and easier access to key financial information about public companies and mutual funds, according to an SEC news release. The new system is called IDEA, short for Interactive Data Electronic Applications. Based on

October 13, 2008

SEC, ASIC, Australian Government Enter Recognition Arrangement

SEC Chairman Christopher Cox, the Australian Minister for Superannuation and Corporate Law, and the Australian Securities and Investments Commission (ASIC) chairman entered into a mutual recognition arrangement among the SEC, the Australian government and ASIC. Through the arrangement, the SEC and the Australian authorities agreed to consider providing exemptions to

October 13, 2008

Modernizing Business Reporting

The AICPA’s Assurance Services Executive Committee issued a white paper to address how transparency in financial reporting will be improved through the use of eXtensible Business Reporting Language (XBRL) and enhanced business reporting (EBR) that takes into account nonfinancial factors that affect a company’s value. The paper, The Shifting Paradigm in