The AICPA 360 Degrees of Financial Literacy program has provided additional resources to help CPAs and state societies educate the public on financial matters related to couples and marriage, home ownership, life crises and retirement. Eight previously issued resource kits addressed general financial literacy and life stages including career, childhood,
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TOPICS / TAX
International tax
Accounting
FASB requested comments on selected issues relating to assets and liabilities with uncertainties ( www.fasb.org/draft/itc_assets_liabilities_with_uncertainties.pdf ). The invitation is part of a joint project through which FASB and the International Accounting Standards Board are working to converge and improve their respective guidance frameworks, which FASB’s staff believes do not adequately
Government Accounting
The Governmental Accounting Standards Board (GASB) issued an exposure draft, Sales and Pledges of Receivables and Future Revenues, that would establish criteria for governments to determine whether the proceeds from certain transactions—such as the sale of delinquent taxes, specific mortgages, student loans or upcoming payments from tobacco liability settlements—should be
Pro Bono
The AICPA has established an online Disaster Recovery Resource Center that offers a wide range of practical tools members can use to assist their employers and clients ( www.aicpa.org/news/2005/disaster_recovery_resources.htm ). It also provides up-to-date information, useful links and practice management guidance for firms directly affected by Hurricanes Katrina and
Professional Issues
Gallup Poll results released in 2005 showed that accountants are steadily regaining the public’s confidence. The profession’s positive rating of 45% was 14 percentage points higher than in 2004—an improvement greater than that of any other business sector—and nearly equal to its 47% rating in 2001, just before the accounting
Financial Reporting
In response to an SEC request, XBRL International—of which the AICPA is a founding member—proposed three ways the commission could increase XBRL use in U.S. capital markets: announce it ultimately will require all registrants to file offerings in XBRL format, participate in taxonomy development and maintenance and upgrade the SEC
Personal Financial Planning
The SEC and the North American Securities Administrators Association waived—through October 31, 2006—various system fees certain investment advisers and their representatives pay for mandatory registration in the Investment Adviser Registration Depository (IARD). The IARD enables firms and their representatives to satisfy federal and state regulatory requirements with one electronic filing
FYI
The SEC is seeking to fill up to four professional accounting positions in the Office of the Chief Accountant. During their two-year terms commencing June 2006, participants will study and develop rule proposals under federal securities laws, interact with accounting, auditing and other professional standard setters and advise registrants on
International
The International Auditing and Assurance Standards Board of the International Federation of Accountants (IFAC) approved International Standard on Auditing 230 (Revised), Audit Documentation. It requires auditors to prepare documentation sufficient for an experienced auditor previously uninvolved in a particular audit to understand the work performed, the evidence obtained, significant matters
Accounting
FASB issued Staff Position (FSP) FAS 123(R)-1, Classification and Measurement of Freestanding Financial Instruments Originally Issued in Exchange for Employee Services under FASB Statement No. 123(R) ( www.fasb.org/fasb_staff_positions/fsp_fas123r-1.pdf ). The board, which continues to believe freestanding financial instruments should be accounted for consistently, plans to consider broadly the distinction between
Government Accounting
The Governmental Accounting Standards Board’s (GASB) new Guide to Implementation of GASB Statements 43 and 45 on Other Postemployment Benefits can help preparers and auditors implement recent GASB standards on accounting and reporting for health care and other nonpension benefits provided to retirees. To order the guide (# GQA43/45), go
Money Laundering
The Treasury Department’s Financial Crimes Enforcement Network released two sets of questions and answers on completing Form 104, Currency Transaction Report ( www.fincen.gov/faq08122005.pdf ), and on the applicability of Bank Secrecy Act requirements to new accounts opened by people displaced by Hurricane Katrina ( www.fincen.gov/faqkatrinalead.pdf ).
Compliance
The Office of Management and Budget (OMB) issued the Circular A-133 2005 Compliance Supplement ( www.whitehouse.gov/omb/financial/2005_compliance_supp.html ), which is not a complete reissuance of the 2004 edition. The circular governs audits of entities that receive federal funds. The 2005 supplement addresses only new or significantly changed information on agency program
Professional Issues
A white paper prepared by the AICPA’s Business and Industry Executive Committee reported that CPAs’ skills and values are well-suited to meet new demands facing chief financial officers. CPAs as CFOs: Why You Should Have a CPA in Your C-Suite says CPAs are particularly qualified to manage the unprecedented operational,
Audit And Attest
The Institute’s Accounting and Review Services Committee (ARSC) released three statements on standards for accounting and review services (SSARSs) and an interpretation (see Official Releases, page 109). SSARS no. 12, Omnibus Statement on Standards for Accounting and Review Services—2005 (# 060650JA); SSARS no. 13, Compilation of Specified Elements, Accounts, or
Employee Benefits
The Institute and the Department of Labor’s Employee Benefit Security Administration (EBSA) are conducting seminars with state CPA societies for small business clients on how to establish and administer pension, health and other employee benefit plans. Ian MacKay, director of the AICPA Employee Benefit Plan Audit Quality Center ( http://ebpaqc.aicpa.org
Financial Reporting
The SEC invited mutual funds to join other registrants already voluntarily submitting their filings electronically in extensible business reporting language (XBRL) format ( www.sec.gov/spotlight/xbrl.htm ). The commission will assess registrants’ ability to properly tag their data in XBRL and will weigh the benefits of tagged data. Information on XBRL is
Internal Controls
The AICPA Audit Committee Effectiveness Center issued “SOX Section 404: Responding to an Adverse Report—A Checklist for the Audit Committee,” which can be downloaded free at www.aicpa.org/audcommctr . The checklist provides an overview of the Sarbanes-Oxley Act’s internal control evaluation requirements and specifies actions audit committees should take in response
FYI
The Institute launched the AICPA Tax Center ( www.aicpa.org/tax ), offering news related to taxation, information on tax professional standards and the Institute’s tax advocacy activities, and access to premium resources, including The Tax Adviser magazine, tax practice guides and checklists, and discussion forums focused on specific aspects of taxation.
International
The International Accounting Standards Board (IASB) issued one standard and amended three others ( www.iasb.org ). International Financial Reporting Standard (IFRS) 7, Financial Instruments: Disclosures, introduces requirements to improve information on financial instruments in entities’ financial statements, replacing International Accounting Standard (IAS) 30, Disclosures in the Financial Statements of Banks
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