Financial reporting

There has been talk, and some hope, that the current financial crisis might be the perfect storm for tax reform, allowing the Obama administration to push through significant policy changes.

Accounting firm Wiss & Co. has created an economic advisory group to help business owners and executives deal with the recession.

A new board that includes the Securities and Exchange Commission and other regulatory bodies will now oversee the trustees who oversee the International Accounting Standards Board.

The Financial Accounting Standards Board has issued a proposed standard that would require disclosures about the fair value of financial instruments in interim financial statements as well as annual statements.

The Financial Accounting Standards Board wants to bring more clarity to some of the complex credit derivatives that contributed to the financial crisis.

The American Institute of CPAs has opened an online Economic Crisis Resource Center with information to help accountants advise their clients, employers, family members and friends on how to cope with the recession.

The House included a taxpayer accountability amendment in the economic stimulus bill that provides protections to federal workers who expose waste, fraud and abuse, drawing praise from whistleblower advocacy groups.

Whether navigating your firm through the choppy waters of today’s unstable economy or mapping out both long- and short-term strategies, a trio of CEOs from CPA firms in both the U.S. and Canada agreed that communication with staff members and an understanding of the competition are among the more critical factors in driving a firm’s growth and evolution.

The Internal Revenue Service touted Earned Income Tax Awareness Day as a way to raise consciousness about the credit for low-income taxpayers as the economic crisis forces more Americans into lower tax brackets.

Last year, we published for the second time a ranking of CPAs by AUM (Assets Under Management). The response was staggering. We more than doubled the prior year’s number and went over the 200 mark. We had two criteria for consideration: They must be a CPA firm that has a financial planning practice, even as a subsidiary or affiliate, and the financial planner in the office must hold a CPA credential. In the top list were 18 firms that were in “The Billion Dollar Club,” or as we called it, “Wealth Magnet Elite.” We had 87 firms were in “The $100+ Million Club” or “Wealth Magnet Select,” and then 37 in the “$50 Million Club.” In the eight-figure category that we deemed “Rising Stars,” we had another 40. We also delved beneath the surface of just a ranking and unearthed what share broker/dealers, wire-houses, financial services companies, and the like had. We went even further and revealed the areas of financial planning products that each firm recommended in basic categories such as IRAs, 401(k)s, mutual funds, life insurance, bonds, 529 plans, to name a few. The reaction from the accounting profession has been simply wonderful. No one had ever seen such a ranking before we did the first one in 2007 and it opened the door more. Firms clamored for this to be an annual event, and we are complying. We are contacting everyone on our list from last year for updates plus additional firms that have contacted us. The final list will be compiled on May 1 and we will publish the rankings in the July 2009 CPA Wealth Provider. We encourage you to participate. For a copy of the Survey Form, contact me by email (stuart.kahan@sourcemedia.com), or write to me at Source Media, One State Street

New York Governor David Paterson has signed a bill expanding the regulation of CPAs throughout the state.

The House has approved an $819 billion economic stimulus package despite unanimous Republican opposition.

The Association of Chartered Certified Accountants has created a new site that gives its members the opportunity to share experiences and receive personal support on how to deal with the global economic crisis.

Newly approved Treasury Secretary Timothy Geithner moved to provide more transparency in the controversial Troubled Assets Relief Program by posting investment contracts on the Internet.

The Senate Finance Committee has approved approximately $522 billion in tax cuts, incentives and investments by a vote of 14-9.

Congress and the Obama administration are crafting what is shaping up to be the single most expensive spending bill in American history, and nobody can agree on whether it will work.

The Senate Finance Committee is considering President Obama's economic stimulus package as leaders call for increased tax cuts.

South Florida accounting firm Daszkal Bolton is the latest to offer services to clients who have suffered losses from Bernard Madoff's $50 billion Ponzi scheme.

One of the fastest-growing practice niches among CPA firms over the past several years, forensic accounting has ushered in an era in which CPAs are in constant demand as expert witnesses and in other litigation support capacities.

Here's a smart idea for all you financial planners out there. Target the children of your Baby Boomer clients. Read more on the Accounting Tomorrow blog.