Accounting standards

The International Auditing and Assurance Standards Board has proposed two new standards focusing on enhancing auditors’ consideration of controls at service organizations, along with a third standard that addresses the communication of deficiencies in internal control to those charged with governance.

The Internal Revenue Service and the Treasury Department have proposed two sets of regulations relating to pension plans.

The Securities and Exchange Commission has issued a final rule on accepting financial statements prepared by foreign companies in accordance with International Financial Reporting Standards without reconciling them with U.S. generally accepted accounting principles.

The Securities and Exchange Commission introduced an online tool that allows investors to compare executive pay at 500 of the largest American companies.

ATM and voting machine maker Diebold said that the Justice Department, in addition to the Securities and Exchange Commission’s Office of the Chief Accountant, has been investigating its accounting practices.

The Securities and Exchange Commission's Office of the Chief Accountant and Division of Corporation Finance have released a staff accounting bulletin intended to help public companies value stock option grants to employees on their income statements.

Financial Executives International, a 15,000-member trade group headquartered here, has compiled what it considers to be the top financial challenges for 2008.

The Securities and Exchange Commission has charged Joseph P. Collins, a partner with the law firm Mayer Brown, with aiding and abetting fraud at his client Refco. He is the fourth person accused in the case.

The Financial Accounting Standards Board has proposed an overhaul of the board's structure that would cut the number of members of the board from seven to five and allow the chairman to put items on the agenda.

'Tis the season for holiday cheer and especially gifts, so herewith are some presents that accountants might like to find coming down the chimney this year in the company of a chubby bearded man.

IRS is driven in its desire to close the tax gap and views tax practitioners as being an obstacle in the middle, according to Charles Rettig with the law firm of Hochman, Salkin, Toscher & Perez, P.C.,in Beverly Hills, Calif.

While friends and family are more concerned with the holidays at hand, tax practitioners are taking last-minute steps to ensure that they and their clients have a successful tax season.Training people to be able to staff the offices properly is key for Peoples Income Tax Inc., said chief executive Charles McCabe. "There just isn't a supply of qualified preparers out there who are willing to work for three months. And if someone is available, you have to ask why they are available - you don't want to hire someone else's problem."

FASB DELAYS FIN 48 FOR PRIVATE COS.Norwalk, Conn. - The Financial Accounting Standards Board has decided to defer the effective date for FASB Interpretation No. 48, Accounting for Uncertainty in Income Taxes, for nonpublic entities.

The House has voted to approve a $78 billion bill that would provide a temporary fix to prevent the alternative minimum tax from spreading to about 23 million more taxpayers this coming tax season.Congress was under pressure to pass an AMT fix in time to allow the Internal Revenue Service to produce the necessary tax forms without delaying processing and refunds. However, in a sign of the controversy over provisions to raise taxes on some high-income taxpayers and close loopholes, no Republicans voted for the bill and eight Democrats voted against it.

Creating opportunities for mid-tier audit firms to enter the international market could include relaxing ownership rules to permit investment from outsiders - non-accounting professionals - according to an independent study prepared for the European Commission.The report suggested that such a revision would result in opportunities for the mid-level firms to cope with the needs of larger clients, most of whom are currently served by the Big Four.

The current wrangling over the alternative minimum tax is a symptom of the larger problems with having a Tax Code built on patchwork over nearly a century, to the point that it resembles a Rube Goldberg contraption, according to David A. Lifson, president of the New York State Society of CPAs and a co-managing partner at New York-based Hays & Co. LLP.Lifson, who recently testified before the Select Revenue Measures Subcommittee of the House Ways and Means Committee on the AMT, also chaired the NYSSCPA Committee on Tax Reform that issued a comprehensive proposal to revise the current tax system.

One week after Ways and Means Committee Chairman Rep. Charles Rangel, D-N.Y., introduced his massive, dream tax reform proposal, and after acknowledging that that proposal had no chance of passage this year, Chairman Rangel introduced a more modest stop-gap proposal, H.R. 3996, including primarily one-year fixes for expiring provisions and some proposals to address the mortgage crisis.Most commentators seem to feel that this legislation has a fairly good chance of passing this year in something close to its present form.

Our previous two columns addressed the Securities and Exchange Commission's recently appointed Committee on Improvements to Financial Reporting, which has been charged with suggesting things that can be done to strengthen the system.Specifically, we have looked at some of the premises and other points in a discussion paper produced by the chair, Robert Pozen (available online at www.sec.gov), finding a few flaws here and there.

The Institute of Management Accountants hailed Securities and Exchange Commission Chairman Christopher Cox's plan to delay implementation for one year of Sarbanes-Oxley Section 404(b) requirements for small public companies, but expressed some reservations.

During a roundtable discussion revealing top issues in its advisory services practice, Big Four firm PricewaterhouseCoopers talked about how change and current market trends are transforming its clients' needs.