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. FASB staff members issue implementation guidance ( www.fasb.org/q&a87.pdf ) on FASB statement no. 87, Employers’ Accounting for Pensions. The advisory addresses

The Social Security board of trustees, in its 2002 annual report to Congress ( www.ssa.gov/OACT/TR/TR02/index.html ), says long-range program deficits remain although the short-term outlook has improved. According to the report, tax revenue will fall below program costs in 2017—one year later than the board estimated in 2001. The board

The International Federation of Accountants issues a paper, E-Business and the Accountant: Risk Management for Accounting Systems in an E-Business Environment. The study can be downloaded at www.ifac.org/store —the group’s Web site.

Less than two weeks before its self-imposed March 31 termination, the Public Oversight Board publishes a white paper, The Road to Reform, ( www.publicoversightboard.org/White_Pa.pdf ) proposing the creation—through federal legislation—of an independent organization that would assume the board’s responsibility for voluntary private-sector regulation of the profession. Among other things, the

The Office of Thrift Supervision (OTS) says it is closely monitoring compliance with a new law, the Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism (USA PATRIOT) Act of 2001. In March the OTS provided savings institutions with guidance ( www.ots.treas.gov/docs/48896.pdf ) on complying

The Council of Institutional Investors decides to support including the cost of stock options as an expense on businesses’ reported income statements—a reversal of its long-standing opposition to the practice ( www.cii.org/press/expensing.htm ). The group, which includes pension funds, money managers, other financial services entities and lawyers, says its new

Giovanni P. Prezioso replaces David M. Becker as the SEC’s general counsel. Coming from the Washington office of international law firm Cleary, Gottlieb, Steen & Hamilton, Prezioso has extensive experience in securities-related legal matters. Becker resigned to return to private practice after serving as the commission’s chief legal officer since

The IASB’s former standing interpretations committee—now the international financial reporting interpretations committee—issues guidance ( www.iasb.org.uk/cmt/0001.asp ) on accounting for Web site costs under international accounting standards (IASs). The interpretation clarifies existing requirements of IAS 38, Intangible Assets, that apply to expenses associated with an entity’s development and operation of an

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

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

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.

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

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.

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

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

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

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 )