customer walks hopefully into a car dealership. When the salesperson asks what she is looking for, the customer says she is tired of the standard model and wants a car with a CD player, leather seats, cruise control and a bright color. The salesperson breaks out laughing and responds, “You
Advertisement
TOPICS
Accounting & reporting
Employee Benefits
The Department of Labor’s Pension and Welfare Benefits Administration (PWBA) adds a series of questions and answers to its Web site to help employee-benefit-plan administrators comply with pension, health and disability claims regulations it published last year. The new rules establish shorter claims-processing time frames, additional disclosure requirements and new
Financial Reporting
AICPA Board Chairman James G. Castellano testified in February before the House Energy and Commerce Committee in support of accounting, auditing and financial reporting reforms. He called for a modernized financial reporting model, more frequent reporting, revised accounting rules for special purpose entities, a new auditing standard enabling auditors to
Auditing
The GAO issues final standards on auditor independence ( www.gao.gov/special.pubs/agagas3.pdf ). They contain significant changes affecting audits of governments and non- and for-profit entities that participate in federal programs. Among the new rules’ provisions are restrictions on auditing firms’ ability to offer consulting services to their audit clients. The AICPA
Insurance
Rating service Standard & Poor’s says the financial performance of personal insurers—which offer auto, health and similar coverage—continued a downward trend in 2001. Under earlier, more favorable market conditions, these insurers had amassed huge financial reserves and cut prices aggressively. However, since 1998, S&P says, managed care and other cost-reduction
Banking
The Office of the Comptroller of the Currency releases interim guidance to financial institutions on complying with two anti-money-laundering provisions of the Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism (USA PATRIOT) Act of 2001 ( www.occ.treas.gov/fr/fedregister/66fr59342.pdf ). As of December 25, 2001, this
Financial Reporting
The AICPA and the Big Five issue a document ( http://ftp.aicpa.org/public/download/news/risk_factor.doc ) that assesses current economic and business conditions that could hinder complete and accurate financial reporting. It offers financial statement preparers, auditors and audit committees advice on how to make their financial reports more useful to investors. SEC Chairman
Auditing
The auditing standards board issues Statement on Auditing Standards no. 95, Generally Accepted Auditing Standards, superseding the section by that name in SAS no. 1, Codification of Auditing Standards and Procedures (AICPA, Professional Standards, AU section 150). To purchase a copy of the SAS (product no. 060697JA), call 888-777-7077.
Insurance
According to Fitch IBCA, Duff & Phelps, a rating service, life insurers face an estimated $3 billion to $5 billion in losses related to the September 11 terrorist attacks. But, Fitch says, the industry has $3.1 trillion in assets, it already pays—on average—$52 billion in claims annually, and it has
FYI
The AICPA publishes a document, Accounting and Auditing for Related Parties and Related Party Transactions, which it describes as a free “tool kit.” It gives CPAs an overview of selected authoritative literature, SEC requirements, best-practice guidance and illustrative checklists. ( http://ftp.aicpa.org/public/download/news/relpty_toolkit.doc ) GASB issues an implementation guide to Statement no.
International
The International Accounting Standards Board issues six interpretations of international accounting standards. The new guidance applies to evaluating the substance of leasing transactions, business combinations, disclosure of service concession arrangements, currency reporting, barter transactions revenue and the consolidation and equity method of accounting for ownership interests. ( www.iasb.org.uk/cmt/0001.asp?s=319297&sc={D06C3078-9A3D-47C9-A481-DF2FA450F624}&n=63 ) A
Accounting
For news from the AICPA and state societies, visit www.cpa2biz.com , which also offers online CPE, AICPA professional literature, practice management aids and links to state society Web sites. The AICPA accounting standards executive committee issues SOP 01-6, Accounting by Certain Entities (Including Entities With Trade Receivables) That Lend to
Retirement
The President’s Commission to Strengthen Social Security calls for the establishment of “voluntary personal accounts” in which workers would own their contributions and be able to pass them on to heirs. The group has developed three model accounts and says any of them would bolster Social Security’s financial stability and
Tax
The IRS is offering to waive certain penalties if taxpayers that participated in illegal tax shelters disclose them and identify their promoters. The amnesty does not apply to taxpayers involved in fraud, crime, concealment of foreign financial accounts or reporting of personal expenses as deductible business expenses. ( http://ftp.fedworld.gov/pub/irs-news/ir01-121.pdf )
Graphical Sleight of Hand
EXECUTIVE SUMMARY GRAPHS IN CORPORATE ANNUAL REPORTS may have an altered vertical scale and often report a more favorable picture than warranted by the underlying financial information. Auditors can perform a real service for their clients by pointing out the existence of graphical alterations in financial statements and helping companies
Accounting
For news from the AICPA and state societies, visit www.cpa2biz.com , which also offers online CPE, AICPA professional literature, practice management aids and links to state society Web sites. The Financial Accounting Standards Advisory Council (FASAC) releases the results of its annual survey, which asks council and FASB members to
Securities
Amid ongoing turbulence in the equity and debt markets, Paul F. Roye, director of the SEC’s investment management division, warns investment companies—also known as mutual funds—against laying off essential compliance personnel to cut costs. U.S. mutual funds’ combined assets climbed 3.1% to $6.6 trillion at the beginning of October, says
Fraud
The SEC is investigating more Fortune 500 companies for financial fraud than ever before and the market impact of failed corporations is growing, said Charles Niemeier, chief accountant of the commission’s division of enforcement, at the annual AICPA conference on current SEC developments. Until recently, the SEC rarely investigated large
Tax
The U.S. Senate signs into law an extension through November 1, 2003, of the Internet Tax Freedom Act’s moratorium on state or local taxation of electronic commerce. The temporary ban does not affect Internet taxes in place before October 1, 1998. ( http://thomas.loc.gov/cgi-bin/bdquery/z?d107:h.r.01552: )
Government Accounting
The Federal Accounting Standards Advisory Board (FASAB) issues three pronouncements that amend Statement of Federal Financial Accounting Standards (SFFAS) no. 7, Accounting for Revenue and Other Financing Sources. The changes relate to the elimination of certain tax revenue transaction disclosures by the IRS, the Customs Service and others (SFFAS no.
Features
SPONSORED REPORT
How to find the right CAS clients
The key to success with CAS is selecting the best clients. Tools like ideal client profiles (ICPs), buyer personas, and even artificial intelligence can help identify the businesses that best fit each CAS practice.
From The Tax Adviser
April 30, 2026
Current developments in taxation of individuals: Part 2
April 30, 2026
Hedge funds: Tax structuring, planning, and compliance
March 31, 2026
Current developments in taxation of individuals: Part 1
March 31, 2026
