Financial reporting

Deloitte Touche Tohmatsu sees continuing problems for the global economy in the first quarter of 2009 in a new report, but predicts that companies can still find attractive opportunities in emerging nations in the years ahead.

Adaptive Planning introduced the latest version of its on-demand corporate financial planning software, adding new collaboration features, including cell notes and an audit trail.

The House Appropriations Committee has proposed an economic stimulus bill containing $275 billion in tax cuts and $550 billion worth of spending on renewable energy, infrastructure, education and other projects.

Henry R. Keizer is global head of audit for KPMG International and also serves as U.S. vice chair, audit, for the U.S. member firm, KPMG LLP.

President-elect Barack Obama reportedly plans to modify several of the tax break proposals that his transition team has been planning for the economic stimulus package after encountering resistance from key lawmakers.

Financial Executives International's Committee on Taxation has written to congressional leaders encouraging them to include more tax relief provisions for businesses in the economic stimulus package.

In these tough economic times, as in others, there are many news items on companies declaring bankruptcies and announcing substantial staff cuts. What is different this time is that I am also reading about a number of cost-cutting strategies that are gaining in popularity and aimed at reducing expenses without disrupting business operations or laying off staff.

The American Institute of CPAs has released an alert warning about audit risks from the economic crisis.

The latest economic stimulus plan advanced by the incoming administration may approach $1 trillion, with $300 billion in tax cuts or refunds.

The Private Company Financial Reporting Committee met with the Financial Accounting Standards Board to discuss some of the problems that led to deferring controversial rules for accounting for uncertainty in income taxes.

The Public Company Accounting Oversight Board said the financial statements of non-public broker-dealers now need to be certified by PCAOB-registered auditing firms.

College students attending an Ernst & Young tax career event acknowledged they are seeing more interest on campus in accounting as jobs in the financial industry dry up.

U.S. households worth $1 million or more have seen their assets decline 30 percent during the financial crisis, according to a new report.

Patty Duke and her look-alike cousin from her old TV series are back, this time helping seniors apply for Social Security benefits online.

Wade Slome has led an adventurous life. He started trading penny stocks in high school stock market competitions after the 1987 crash. As a freshly minted MBA graduate from Cornell University in 1998, he never expected in his wildest dreams to land on one of the largest mutual funds in the entire United States, but at the age of 32 he was managing a $20 billion dollar fund. In his newly released book, How I Managed $20,000,000,000.00 by Age 32, Slome shares what he learned on his way to becoming an investment giant, trading billions of dollars while rubbing elbows and hanging out with corporate heavyweights. Here are his key recommendations for surviving the present economic climate. 1. Don’t listen to the TV and don’t take what you read as gospel. Reporters are merely looking in the rear-view mirror and telling you what happened – not what is going to happen. You make money by anticipating what’s next, not by reacting to what has happened. 2. Invest objectively and independently, not emotionally. The worst decisions are made under the pressure to follow the herd. It is best to buy fear and sell greed--not the opposite. The historic Nifty Fifty, technology, real estate, credit, and tulip bubbles exemplify the hazards of following crowds. 3. The financial markets are inefficient and emotional in the short-run and efficient in the long-run. History proves over and over again that an unbiased approach that takes advantage of short-term dislocations will lead to prosperity. This philosophy requires a patient, then aggressively opportunistic mentality if you want to build true wealth over time. 4. The long-term efficiency of the financial markets requires a healthy dosage of passive investing strategies. Seventy-five percent of all active professional money managers under-perform the passive indexes over time. Investors can dramatically improve their investment performance over the long run by integrating passive investing products like index funds and exchange traded funds (ETFs). 5. Understand three things: Fees, fees, and fees. Brokers (salesmen) do a great job at being your friend and partner, and they are perfectly willing to make excessive fees for this privilege. It’s your responsibility to understand and ask the right questions that are buried in the fine print. The more you pay in fees, the further you push out retirement and the farther the path to reach your financial goals. 6. Don’t be myopically focused on your backyard. Opportunity abounds internationally, especially in certain emerging markets. The U.S. is five percent of the global population, but 25-30 percent of global Gross Domestic Product (GDP). Our slice of the GDP pie will be smaller in the decades to come due to faster growth rates abroad. Grab a larger slice of the pie by opening your eyes to international possibilities. 7. Experience matters. Would you want a nurse to handle your brain surgery? Or how about the flight attendant controlling your plane? Obviously not. And so goes the case for your investment/financial advisor. It behooves the investor to shop around and ask the right questions. Are the advisors registered? What type of education do they have? Do they hold any certifications? Have they ever invested money before, or are they just selling product? 8. The power of compounding interest is a miracle. Einstein called the power of compounding interest the "8th wonder of the world." What would 1¢ invested in 1492 by Christopher Columbus be worth today if it was invested at six percent with interest compounded? The answer: $114,242,178,628.50. Yes, that right, $114 billion with a “b”! Apply the power of compounding to your portfolios. 9. Taxes matter. That’s great if you make a lot of money, but if you pay it all back to the IRS in the form of capital gains or estate taxes, then what good is that? Longer term tax efficient products and strategies will build your wealth faster, all else equal. 10. Learn from your mistakes. The best investors make errors, learn from them, and avoid repeating similar mistakes in the future. Slome says that perhaps the most important recommendation is the crucial need to have a disciplined, systematic investment plan that can be reviewed periodically to chart your path to your financial goals. His new book is available at bookstores online. For more information visit www.Sidoxia.com

Southern California lender Valley Economic Development Center said it has received a $16 million infusion after it almost ran out of money to lend to small businesses.

Payroll-processing giant ADP reported that private sector employment fell by 693,000 in December.

There’s nothing like a good clear financial statement. And in a time when lenders are very stingy, those basic reports are more valuable than ever. In fact, this is one of those times that good accounting and advisory services are more valuable than ever.

The Internal Revenue Service plans to offer several new ways to help people struggling to meet their tax obligations because of the recession, and will expand its Free File program to allow nearly all taxpayers to electronically file their taxes for free.

Israel's fifth largest accounting firm, BDO Ziv Haft, has reportedly cut salaries across the board by 5 to 10 percent for all but the lowest paid employees.