Financial reporting

When it comes to personal finances and investing, affluent women are hard working, smart, and self-driven, according to Women & Co., Citigroup’s resource program dedicated to helping women achieve their financial goals. The survey, Women and Affluence 2008: A Generational Study, reveals that affluent women are knowledgeable about investing, confident about their retirement, often the primary decision maker, and influencing the next generation of women to do the same. Lisa Caputo, founder and CEO of Women & Co. says that the study is part of the ongoing dialogue with women. “This survey is the latest example of how we listen to women and continue to learn about their distinct financial needs, attitudes, and perspectives. The results indicate that today’s affluent women have far surpassed their mothers in financial acumen, and decision making responsibility. Despite a lack of female financial role models, affluent women empowered themselves and are committed to being a positive financial role model for their daughters.” In fact, according to the survey, women stated they talk to their daughters more about money than any other topic. Why? The research shows that women are embracing their role as CFO (Chief Financial Officer) of the household and encouraging their daughters to do the same. Some key findings from the study include:

The financial crisis will make it more difficult for businesses to comply with sales and use tax payments, according to a new survey.

The Center for Audit Quality defended the use of fair value accounting in a letter to the Securities and Exchange Commission as the standard comes under attack from banking interests.

Treasury Secretary Henry Paulson said the department's Troubled Asset Relief Program would begin to focus more on relieving tight consumer credit markets and shift away from the original plans to buy mortgage-backed securities.

The House Committee on Oversight and Government Reform held hearings on the role of hedge funds in the financial crisis and whether they should be more strictly regulated.

International Accounting Standards Board Chairman Sir David Tweedie said he nearly resigned before giving in to pressure from European regulators to modify fair value accounting standards to allow banks to reclassify their assets.

H.D. Vest Financial Services is offering remote check scanning and depositing services to its network of financial planning advisors.

The International Accounting Standards Committee Foundation has written a letter to President Bush asking him and other world leaders to respect fair value accounting and the standards-setting process.

The American Institute of CPAs has written to the Securities and Exchange Commission urging it to allow the Financial Accounting Standards Board to continue to set standards for mark-to-market accounting.

I haven’t known a month’s financial confidence in my whole adult life.

“The best defense in these interesting economic times is to do nothing out of panic.” So says Brent Neiser, a certified financial planner and director with the National Endowment for Financial Education. “People react emotionally without information about situations that apply to them.” Neiser believes that with the financial markets looking like a roller coaster, many investors are now considering cutting their losses and racing to the sidelines. And then they will wait until the market hits bottom and starts to go in the other direction. I have heard the same tactic being employed by many of my friends. Of course, the reply from me usually is, when will you know when you hit bottom?” Neiser warns that unless you actually must have the money for a child’s college tuition or to purchase a “must do” big ticket item like replacing a car that has died on you, he feels the best bet is to continue investing in your 401(k) plan, at least up to the company match threshold. “That’s free money. Take it unless you absolutely can’t afford to.” Neiser also advises that keeping about three to six months of ready cash to cover expected circumstances is a good idea. “You don’t want to be selling investments as the market is going down just to pay the mortgage or put food on the table.” That’s why he recommends putting cash in a money market to even a checking account to keep the cushion safe from market swings. In other words, keeping yourself liquid, and not to make any major changes in your portfolio. As to credit card debt, Neiser believes that while it may be important to pay yourself first, as the old adage goes, why would you continue paying 18 percent interest rates on unsecured debt while you earn just two percent on your savings? “Pay off your plastic and get rid of them.” He also feels that this is the perfect time to check how you are protecting your assets through automobile, home, life, disability, and health insurance policies. He points out that it might be better taking higher deductibles and putting the savings from lower insurance premiums into a dedicated “insurance deductibles” savings account. Even if nothing happens, you at least have an account with money in it. And should something unforeseen happen, you have money to help cover the increased deductible. For more tips, you might want to visit www.smartaboutmoney.org. Also, to learn more about the National Endowment for Financial Education and how they can help people acquire the knowledge and skills necessary to take control of their financial destiny, visit www.nefe.org.

A tax attorney predicts that small businesses and high-net-worth individuals will need tax-planning advice to help protect their assets from anticipated changes in tax law.

The Securities and Exchange Commission is expected to publish the long-delayed roadmap for transitioning to International Financial Reporting Standards on Friday.

The American Institute of CPAs’ Fall Council meeting in October focused on the state of the economy, a proposal to internationalize the CPA credential, distinguished service awards and welcoming the upcoming year’s new chairman of the board.

President-elect Barack Obama is expected to begin working on passing an economic stimulus package, possibly even before he takes office.

Learn what practitioners should be focusing on in their upcoming year-end and general tax planning with both individual and corporate clients in this free webcast.

The Securities and Exchange Commission and the North American Securities Administrators Association said they would waive for nine months the initial set-up and annual renewal fees paid by investment adviser firms to join their registration system.

“As the economic slump deepens, more companies are expected to join General Motors in suspending matches of contributions to their employees' 401(k) retirement accounts. “GM last week became only the latest on a list of well-known companies trying to conserve cash to weather the downturn by halting 401(k) account matches. Also among them are Goodyear, Frontier Airlines, commercial real estate firm Cushman & Wakefield, broadcast group Entercom and rental car agency Dollar Thrifty Automotive Group. “ The above was from USA Today of October 28, 2008 and indicates a very interesting new, possible growing trend that will probably increase and become especially attractive to companies hardest hit in these tough economic times. The ramifications, if this becomes widespread, are extremely significant, and this is true even on the firm level, whether it involves business clients currently matching 401(k) employee contributions or individuals saving for retirement. Beside costs and retirement savings, there is the obvious concern of the impact on attracting and retaining talent, and the need for development of special compensation packages for key employees. It also indicates that businesses will be making some very tough decisions as a result of this extended, and continued financial and economic crisis. Some firms are already creating internal financial crisis teams. This is a time to be proactive and respond, not a time to wait and react. What is your firm doing?

The College for Financial Planning plans to significantly expand its scholarship program to further support financial professionals facing the turbulent economic market.

As the turmoil continued to wreak havoc with the markets and Congress mulled the mammoth $700 billion bailout package for Wall Street, five high-profile CPA financial planners holding the American Institute of CPAs' Personal Financial Specialist credential advised concerned investors to take a calm approach to savings and investments amid the present financial crisis.While their individual investment strategies may differ slightly, all agreed that clients should not lock in market losses through panic selling.