The National Association of Insurance Commissioners says its plan to improve the uniformity, efficiency and effectiveness of state insurance regulation will serve consumers better than the American Council of Life Insurers’ call for an optional federal charter for life insurance companies. Meanwhile, the Shadow Financial Regulatory Committee—an independent research group—evaluates
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TOPICS / TAX
International tax
FYI
Gary S. Schieneman, CPA, begins a two-year term with FASB on July 1, replacing Anthony T. Cope, who has joined the International Accounting Standards Board ( http://accounting.rutgers.edu/raw/fasb/news/nr051401.html ). The United Kingdom’s accounting standards board appoints Douglas Flint to a three-year term ( www.frc.org.uk/publications/publication335.html ).
International
A new IFAC discussion paper examines the methods different countries’ accounting organizations advocate for defining and achieving competence in professional accountancy. Comments are due by October 31 ( www.ifac.org/News/LastestReleases.tmpl?NID=99010990012150 ). The Organisation for Economic Co-operation and Development’s initiative on harmful tax practices draws the opposition of the U.S. Treasury secretary,
Accounting
For news from the AICPA and state societies, visit www.cpaweb.org , which also offers online CPE, AICPA professional literature, practice management aids and links to state society Web sites. FASB reaffirms its restrictions on how banks can qualify for sale accounting treatment and issues a series of related questions and
Fraud
Belgian software maker Lernout & Hauspie says its Korean division faked $100 million in revenue and assigned staff to pose as customers, deceiving its auditors (ftp://ftp.lhsl.com/b ports/KoreaReport.pdf).
Professional Issues
The AICPA develops a practice guide to assist members in observing FTC and SEC privacy and disclosure requirements established by the Graham-Leach-Bliley Act ( http://ftp.aicpa.org/public/download/news/ftc.doc ). The SBA presents outstanding entrepreneurship awards to two CPAs—David A. Cottrell of Anchorage, Alaska, and Margaret A. Johnsson of Chicago—recognized for their personal achievements
Banking
The FDIC chairman says a forthcoming reform proposal will address the allocation of deposit insurance costs among covered institutions, the timing of premium collections and inflation’s effect on insurance benefits ( www.fdic.gov/news/news/speeches/chairman/sp07mar01.html ).
Employee Benefits
Researchers warn that a potential Social Security shortfall and a shift from defined-benefit to defined-contribution retirement plans will put the onus on workers to ration benefits effectively throughout their retirement years ( www.ebri.org/ibex/ib232.htm ).
Financial Reporting
A FASB report de-emphasizes “new economy” considerations and recommends cooperation among national and international standard setters to improve business and financial reporting. Comments are due by July 1 ( accounting.rutgers.edu/raw/fasb/sr_new_economy.pdf ). FASB plans to issue final statements in July on business combinations and intangible assets. The new rules likely will
Auditing
New OCC guidance says the agency is not conducting “audits of the auditors” when it reviews banks’ external audits, but instead is assessing how and whether banks are meeting requirements ( www.aicpa.org/belt/notices.htm ).
The CPA’s Role in Fighting Money Laundering.
EXECUTIVE SUMMARY MONEY LAUNDERING HELPS ILLICIT ORGANIZATIONS by lowering their cost of capital, giving them a competitive advantage over legitimate businesses. NEITHER GOVERNMENT OFFICIALS NOR THE BUSINESS community alone has the resources to counter international money laundering by drug cartels and other organized criminal groups. ACCOUNTANTS ACTING IN A
Government Accounting And Auditing
A FASAB proposed standard would eliminate the requirement to report changes in certain receivables from the public as a resource on the statement of financing. Comments are due by June 8 ( www.financenet.gov/financenet/fed/fasab/pdf/ed_para80.pdf ). New FASAB guidance amends standards for direct loans and loan guarantees, effective for periods beginning after
FYI
A commission of business and government leaders will propose ways to make the Social Security program more modern and fiscally sound ( www.ssa.gov/ssacommission.htm ). The SEC launches an online margin calculator that helps an investor estimate the likelihood of his or her broker’s issuing a margin call—for insufficient account equity—in
International
Canada’s securities regulator requests opinions on the pros and cons of allowing Canadian and foreign equity issuers to file financial statements according to U.S. GAAP or international accounting standards. Comments are due by June 30 ( www.iasc. org.uk/news/cen8_195.htm ). IFAC exposes a draft statement on strengthening the relationship between bank
Outsourcing a 401(k) Plan
EMPLOYEE BENEFITS How to make the right choices. Outsourcing a 401(k) Plan BY MAUREEN NEVIN DUFFY EXECUTIVE SUMMARY WITH 401(k) BALANCES GROWING, SMALL AND MEDIUM- sized companies are finding themselves burdened with myriad responsibilities of operating a retirement plan for employees. Many companies are choosing to outsource the plan to
Government
SEC to host roundtable discussions on regulating financial portals, global markets ( www.sec.gov/news/speech/spch465.htm ).
CPAs Speak Up on New Global Credential
EXECUTIVE SUMMARY THE CONCEPT OF A NEW GLOBAL CREDENTIAL grew out of the AICPA’s efforts to uncover opportunities to help members continue to excel in a competitive marketplace. STUDENTS SEE XYZ AS A COMPLEMENT to existing professions, rather than as a replacement. The concept of a combined XYZ and CPA
Technology
IASC issues list of terms to be used in XBRL-based financial reports ( www.iasc.org.uk/xbrl/index.html ).
Fraud
SEC crackdown on Internet securities fraud continues ( www.sec.gov/news/press/2001-24.txt ). SEC files suit against former CUC officers for filing allegedly false company income reports ( www.sec.gov/news/digest/02-28.txt ).
Banking
For news from the AICPA and state societies, visit www.cpaweb.org , which also offers online CPE, AICPA professional literature, practice management aids and links to state society Web sites. Panel critiques Basel Committee’s proposed international capital standards for banks ( www.aei.org/shdw/shdw169.htm ). Draft IFAC standard focuses on roles of
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