International tax

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. AcSEC exposes a draft statement of position, Accounting for Derivative Instruments and Hedging Activities by Not-for-Profit Health Care Organizations, and Clarification

A GAO report ( www.gao.gov/new.items/d02676t.pdf ) on the use of purchase cards at the Education, Navy, Agriculture, Interior and Transportation departments reveals internal control weaknesses permitted thousands of unauthorized or questionable transactions between 1998 and 2001, involving potentially millions of dollars in waste and abuse. The watchdog agency discovered failures

The AICPA and NASBA sign an agreement with Prometric, a designer of technology-based testing services, under which CPA candidates will be able to take a computerized uniform examination at more than 300 locations in early 2004 ( www.aicpa.org/news/2002/p052802.htm ). The electronic test will differ from its paper predecessor not only

The Business Roundtable, a trade group representing 150 of the nation’s largest companies, issues Principles of Corporate Governance ( www.brtable.org/pdf/704.pdf ). The publication provides a set of best practices for senior management, the board of directors and others in the corporate hierarchy to ensure companies comply with applicable regulations and

GASB issues Statement no. 39, Determining Whether Certain Organizations Are Component Units ( www.gasb.org/news/nr052802.html ). Under it state and local governments with certain fundraising organizations, such as not-for-profit foundations that have a relationship with public universities and/or school districts, must include in their financial statements separate presentations of those subordinate

The AICPA professional ethics executive committee issues an exposure draft ( www.aicpa.org/members/div/ethics/ed020617.htm ) with revisions of five independence interpretations and/ or rulings. The proposed changes relate to trustee or executor relationships with clients, former practitioners and firm independence, relationships with entities included in government financial statements, auditors of insurance companies

The Department of Labor made final a rule ( www.dol.gov/pwba/regs/fedreg/final/2002008499.htm ) giving employee benefit plan administrators the option of using e-mail, the Internet and other computer-based systems for making, to participants and beneficiaries, disclosures required by the Employee Retirement Income Security Act of 1974 (ERISA). Under the provision, which takes

The SEC proposes rules requiring CEOs and CFOs of publicly traded companies to certify their organizations’ quarterly and annual reports are accurate, timely and contain all the information a “reasonable” investor would consider “significant” ( www.sec.gov/news/press/2002-88.htm ). The rules also would cut to two business days—from the current five to

The auditing standards board issues SAS no. 97, Amendment to Statement on Auditing Standards (SAS) no. 50, Reports on the Application of Accounting Principles. The new statement (see Official Releases, page 90), which is effective for written reports issued or oral advice provided on or after June 30, amends SAS

The Financial Accounting Standards Advisory Board issues Implementation Guide to the Statement of Financing in Statement of Federal Financial Accounting Standards No. 7, Accounting for Revenue and Other Financing Sources and Concepts for Reconciling Budgetary and Financial Accounting ( www.fasab.gov/pdf/ig7sof.pdf ). It illustrates concepts underlying the statement of financing, in

The European Union adopts a provision requiring EU-listed companies, including banks and insurers, to prepare their financial statements, beginning in January 2005, in accordance with international accounting standards ( www.fee.be/european/eunews.htm ). European regulators believe the directive will increase the reliability, transparency and comparability of member states’ consolidated accounts, thus promoting