Accounting education

Want to really know what an intern at a Big Four firm is thinking? Now you can, because one accounting elf is writing it all online. Read more on Accounting Tomorrow's blog.

Accounting firm BDO Seidman anticipates that shareholder meetings this year will be dominated by concerns about excessive executive compensation, recession plans and credit concerns.

Many financial executives in the U.S. have begun the initial stages of convergence with International Financial Reporting Standards at their companies, but early adoption in 2009 for qualifying companies will be difficult, if not impossible, due to the significant time requirements, according to a new report.

So, do you get the feeling that American seniors will be living longer but on less money? Well, according to a new study from the Senior Economic Security Index, a new research project developed by the Institute on Assets and Social Policy at Brandeis University and Demos, a national public policy and research organization, some three out of four senior households lack the economic security needed to sustain them through their lives. The study points out that older Americans have experienced huge, negative financial shifts that now make it more difficult to enter retirement with sustainable economic security. In fact, 87 percent of all senior households are financially vulnerable when it comes to their ability to meet essential expenses and to cover projected costs over their lifetimes. It also notes that single households, African-American households, and Latino households are the most likely groups of seniors to be financially vulnerable. Particular areas of vulnerability include: *45 percent of seniors households spend nearly a third of their income on housing while 31 percent either rent or have no home equity to draw on in tough times *40 percent of senior households spend more than 15 percent of their income on healthcare *One in three senior households has no money whatsoever left over after meeting essential expenses *More than half of senior households (some 54 percent) do not have sufficient financial resources to meet median projected expenses based on their current financial net worth, projected Social Security, and pension incomes. However, it’s not all doom and gloom. Tatjana Meschede, lead author of Living Longer on Less: The New Economic (In)Security of Seniors, says that “Even in their current precarious state, it is important to note that today’s seniors are better prepared for retirement than subsequent generations will be. They have benefited from pensions, jobs with significant retirement benefits, and a stronger social safety net than subsequent generations will enjoy.” But, left unchanged, the report points out that the current decline in employer-based retirement savings, the weakening of Social Security and Medicare, and rising debt experienced by younger Americans will add up to even greater vulnerability as they retire, “Younger generations who face historically low savings rates, declining assets, and an unsure future for their retirement accounts and Social Security itself, must urge our policy leaders to take action to strengthen the security of today’s seniors and to ensure their own,” says Jennifer Wheary, a co-author of Living Longer on Less. For more information and to download the report, go to iasp.brandeis.edu and demos.org.

The American College has introduced a video-on-demand Web site that will provide information for financial planners on wealth management and related topics.

Although admittedly many people look upon January 1st as the trigger-point for resolutions, an organization known as Savvy Ladies figures that April 15th is really the better date. “Tax time is often the only time of the year when a lot of people sit down and look at how much they’ve earned and how much they’ve been able to save,” says Stacy Francis, founder of Savvy Ladies and a certified financial planner,. “It’s a bit of a shock for many to see how much cash slips through their fingers every month.” Savvy Ladies is dedicated to providing financial education to women in their quest for financial independence. It has free monthly newsletters, seminars, and teleconferences that are pegged at fostering a sense of community and are specifically designed to educate, amuse, and fulfill savvy women who want to take control of their financial future. There are currently 2,100 members and growing rapidly. The founder of this organization is Stacy Francis who is the president of Francis Financial, a New York City-based firm that specializes in helping individuals create more fulfilling lives through financial freedom.

Rep. Paul Kanjorski, D-Pa., has introduced a bill in Congress to close a legal loophole that allowed Bernard Madoff’s tiny auditing firm to avoid scrutiny.

Stetson University has partnered with Toronto-based online curriculum provider Embanet to develop a one-year Master of Accountancy program.

Children with investment income may have part or all of this income taxed at their parent’s tax rate rather than at the child’s rate, according to the IRS.

Talking with your clients about investment strategies may not be easy given the current economic climate, but preparation and ongoing assessment of an investor's portfolio are the keys to restoring confidence.Money managers agree that mutual funds continue to be a strong investment vehicle, offering investors a number of options for accessing the market - that is, if they stick with their investment strategy.

A growing number of Baby Boomers, America's largest generation, are considering retirement in the midst of what many are calling the worst economic environment since the Great Depression. This year alone, Americans have seen the value of their 401(k) and other retirement plans decline by over $2 trillion.If Boomers are planning to use these assets to retire in the lifestyles they envision, advisors owe them some straight talk before they retire.

Despite tightening their wallets, Americans are now further from achieving their retirement goals amidst the weakening economy. That’s the word from Bank of America in its new 2008 Retirement Savings Survey which says that a growing number of Americans are concerned that the current economic crisis is threatening to leave them further behind on their retirement plans. This survey finds that 60 percent of Americans are spending less than they were three months ago as a result of the current economic climate and more than half (51 percent) of the general public and 40 percent of affluent Americans are also saving less than they were, also three months ago; in fact, one in five say it is “much less.” Although the majority of respondents (69 percent) with at least one retirement account say that they have not withdrawn assets from their account(s) prematurely, recent economic conditions have caused 18 percent to withdraw assets prematurely. The leading reasons for these early withdrawals are near-term financial obligations, such as credit card debt (26 percent), and mortgage payments (22 percent), with an additional 22 percent citing recent job loss. Keep in mind that these numbers may increase significantly if the economy worsens because many more people will be dipping into their retirement savings and that could have profound implications for the country’s economic well-being. Moreover, this study shows that many Americans now (a nice 43 percent) believe they face more years in the work force than they expected just a year ago. By the same token, 36 percent of affluent respondents said that the current economic conditions have pushed back their own expected retirement age. The survey also confirms what many of us in the financial planning area already suspected: Americans need better guidance and education regarding how best to plan for retirement and manage their retirement assets. Actually, 59 percent of the general public and 52 percent of affluent Americans don’t know or don’t even have a good idea of how much they’ll need to save in order to maintain their current standard of living in retirement. That’s where the financial planner can enter. Taking it a step further, the findings point out that 47 percent of retired Americans currently do not believe or are unsure if their retirement assets will cover their financial needs throughout their lifetime. And, they are already retired. That’s frightening! So, the bottom line on this latter subject is that many individuals may not be receiving the financial guidance necessary to fully realize the opportunities that retirement presents. Need I say more?

CFOs and senior-level executive CPAs see the domestic economic downturn as lasting longer than previously expected, according to a survey by the American Institute of CPAs and the University of North Carolina’s Kenan-Flagler Business School.

The Securities and Exchange Commission has appointed former Public Company Accounting Oversight Board member Kayla Gillan as senior advisor to new Securities and Exchange Commission Chair Mary Schapiro, effective immediately.

Education tax credits can help offset the costs of higher education for yourself or a dependent.

Canadian consumers are in structurally better financial shape than U.S. consumers. So then, why do Canadians plan more dramatic spending cuts and shifts in behavior this year in response to the recession than do U.S. consumers? "Compared with U.S. consumers, Canadian consumers are entering the downturn with more secure household finances, healthier real-estate fundamentals, and more conservative levels of credit and debt,” says Cliff Grevler, a partner at The Boston Consulting Group (BCG), which has recently completed research and a new survey. “Despite this structural superiority, Canadians are battening down the hatches and bracing for a tough year ahead. Canadian consumers are planning cutbacks in 2009 to a greater degree than their U.S. counterparts. We anticipate that the result will be a 'cycle of thrift' in Canada, and it will have self-fulfilling effects." The BCG research--the first to compare Canadian, U.S., and European consumers in the current downturn--shows that Canadian consumers have entered the recession in a better structural position than U.S. consumers. It is reported that they have higher savings rates: three percent last year compared with about 1.5 percent among U.S. consumers. Moreover, Canadians have lower debt-to-income ratios and bigger equity stakes in their homes. Of course, the residential real-estate market is healthier in Canada than in the United States. In fact, Canada has a lower mortgage-delinquency rate, sub-prime loans aren't nearly as common, and there is less securitization of mortgages, thereby leading to more rigorous lending standards. Canadians are also more conservative with credit cards, notes the survey. Average credit-card debt per household in Canada is $3,100 compared with $8,200 in the United States. More than 70 percent of Canadian households pay off credit card debt each month, but less than half of U.S. households do. Canadians average two credit cards per household, while U.S. consumers average six. And the credit card delinquency rate in Canada is half of what it is in the United States. Despite their superior financial position, Canadians express great economic concern and voice intentions to shift their behavior more dramatically than U.S. consumers say they will, according to BCG. A greater numbers of Canadians--62 percent--plan to reduce spending over the next year, compared with 58 percent of U.S. consumers and 56 percent of European consumers in the United Kingdom, Germany, Spain, Italy, and France. Although the Canadians who plan to cut spending anticipate doing so by 15 percent, the comparable U.S. and European consumers plan to do so by only 13 percent and 12 percent, respectively. "Canadians are more intent on stretching their dollars in 2009 than are their U.S. counterparts," says Grevler. Nearly three-quarters--72 percent--of Canadians said that they will pay more attention to and buy more products that are on promotion. Only 65 percent of U.S. consumers expressed that intention. Incidentally, some 69 percent of Canadians said that they will defer major expenses that can wait, while only 63 percent of U.S. consumers expressed that intention. Furthermore, 58 percent of Canadians said that they will significantly cut spending on nonessential items, compared with only 50 percent of U.S. consumers. The categories that both Canadian and U.S. residents are most likely to focus on for cuts are restaurants and fast food (49 percent), vacation travel (40 percent), consumer electronics (28 percent), home furnishings and décor (27 percent), and cars (20 percent). The Boston Consulting Group (BCG) is a global management consulting firm and the world's leading advisor on business strategy. For more information, please visit www.bcg.com

CCH has signed a deal with the American Institute of CPAs to sell and distribute AICPA publications to the undergraduate and graduate college market.

The Securities and Exchange Commission has begun requiring 500 of the largest companies to start filing their financial statements in an interactive data format.

The Center for Audit Quality has published a free online reference source for public company auditors with lessons on performing audits of internal control over financial reporting.

Retirement doesn’t have to be just about bingo and shuffleboard.