Financial reporting

American workers have lost as much as $2 trillion in their pensions and retirement savings in the past 15 months, witnesses told a hearing of the House Education and Labor Committee.

The Internal Revenue Service issued a notice aimed at calming fears that it would act against insurance-dedicated money market funds that take advantage of a new temporary guarantee program.

In "The Graduate," A family friend utters one word, "Plastics," to Dustin Hoffman at his graduation party. Let’s fast forward some thirty–plus years later and understand that Benjamin Braddock, Dustin’s character, is now a Baby Boomer, and let’s make a healthy substitute for the word “plastic” and update that conversation to: “I just want to say one word to you ... just one word." says Mr. McGuire "Yes, sir."--Ben "Are you listening?"--Mr.McGuire "Yes, sir. I am."--Ben "Sugar-free."--Mr. McGuire Let me explain the reasoning for the change. In the exhibit area at the last annual conference of the Association for Accounting Marketing in San Diego, I stopped by a booth to talk to a representative of a business development company that has and continues to impress me. I had met the individual before, so we struck up an easy-going conversation of how the conference was going for each of us. As I left, he reached to give me a tin of mints with the company’s name printed on it. I refused it I told him the tin, unlike an offer of a piece of candy, was a great idea, as every time you take the tin out of your pocket for a mint, you are reminded about the company. He beamed as I spoke and explained that he came up with the idea of imprinted tins, and then convinced his CEO to approve the expenditure even though it cost considerably more than simply having out a bowl of sour balls. I suggested that his company’s next order should include tins of sugar-free mints, explaining that his company’s target was primarily the managing partners of firms (those that would approve using his company), and like me are probably Baby-Boomers, many of whom aren’t supposed to eat sugar as they are diabetic or pre-diabetic. If you want to see my theory in action, come to Atlantic City with me the next time I go. The busiest casinos are those that have a substantial sugar-free dessert section at their buffets and offer many sugar-free dessert choices at their restaurants, thereby appealing to and drawing those with the most disposable income and wealth, the same Baby Boomers. Column dedication: To GH.

With the credit markets tightening, a majority of the 688 CFOs and senior comptrollers surveyed by Grant Thornton see the cost of credit increasing for their companies, and the availability of credit decreasing.

The International Accounting Standards Board said it is taking steps in conjunction with the U.S.'s Financial Accounting Standards Board to address the crisis in the credit markets.

I believe there are some important points that should be addressed in response to the author's perspective of the life settlement industry ("Be your own life settlement broker," Accounting Today, Aug. 4-17, 2008, page 16).A provider's No. 1 objective is to have the least amount of competition possible on any policy that they're reviewing, so they can pay the least amount for that policy. The provider is representing the institutional buyer, and their responsibility is to protect that fund's rate of return on its portfolio.

SURVEY: EMPLOYEES WORK HARDER WITH STOCK PLANSSome 76 percent of employees participating in a Fidelity Investments survey indicated that they work harder for a company that offers employee stock purchase programs and employer-sponsored stock plans.

With literally millions of Baby Boomers moving rapidly toward retirement, the demand for retirement income planning is slated to grow dramatically, says the Financial Planning Association in a new study sponsored by Transamerica. The study, 2008 FPA Financial Planner Attitudes and Perceptions about Retirement Income Planning, concludes that the demand for retirement income planning, retirement income products, and services, is increasing quite a lot, driven by what the FPA says is a greater understanding on the part of Americans relating to the important differences between the two broad phases of retirement: the accumulation or preparation phase and the distribution or income phase. According to the Diversified Services Group, which conducted the study along with the FPAS and Transamerica, this trend is likely to continue as Baby Boomers get older and want to learn more about retirement issues and solutions. Actually, financial planners say that they expect retirement income planning to be a key foundation of both their short- and long-term business growth. In fact, some 25 percent of advisers surveyed report that more than 50 percent of their new clients and assets will come from IRA rollover activities alone over the next year. Moreover, the planners surveyed say that 50 percent of their clients will retire over the next five years. For financial planners, this study shows an urgent need for them to become experts in retirement income planning as well as the need for them to examine their practices and how their revenue, revenue mix, and profitability could change as their clients retire. “The findings in this report point out that there is a significant spike in consumers’ appetites for help in retirement income planning, and advisers who become the subject matter experts in this area are the ones who will continue to find success as the market shifts due to demographics and the changing reality of what retirees' need to do in their retirement years,” concludes Will Prest, chief marketing officer of Transamerica Retirement Management, Inc. The study, the third annual study of its kind, is available for purchase by FPA institutional members for $7,500. Nonmembers can purchase the study for $10,000. To learn more about this study, send an e-mail to ResearchCenter@FPAnet.org.

The Internal Revenue Service said it would send compliance questionnaires to about 400 colleges and universities asking about their unrelated business income, endowments and executive compensation practices.

The Financial Accounting Standards Board has decided to shorten the comment period on its proposed guidance for determining the fair value of assets in inactive markets, even as Congress may allow banks to temporarily suspend mark-to-market accounting.

The House approved the $700 billion financial industry rescue package by a 263-171 margin on Friday, after defeating it on Monday.

What's the future of CPAs in the financial planning area?The answer has been the same for the past 100 years.

After failing to clear a House vote on Monday, the $700 billion rescue plan for Wall Street passed the Senate by a comfortable margin of 74-25 and now awaits a House vote, which could come Friday.

The Center for Audit Quality has joined with the Council of Institutional Investors and the CFA Institute to come out in opposition of suspending mark-to-market or fair value accounting.

The Treasury Department said it has opened its Temporary Guarantee Program for Money Market Funds, whereupon the Treasury will guarantee the share price of any publicly offered eligible money market mutual fund – both retail and institutional – that applies, and pays a fee, to participate in the program.

Senate leaders were expected to vote Wednesday evening on their version of the $700 billion financial bailout package after compromising on a series of tax breaks and increasing the limit on insured bank deposits.

In a massive setback for the Bush administration and the Treasury Department, House lawmakers defeated the mammoth $700 billion bailout plan for Wall Street, sending stocks spiraling and leaders on both sides of the aisle vowing to resurrect the package as soon as possible.

The issuance of the so-called Final Report of the Advisory Committee on the Auditing Profession to the U.S. Department proves conclusively to me that many of the powers that be need to gain a better understanding of transparency. It isn’t what’s in the massive document that tells me this, but it is what is specifically left out of both the document and the press release announcing the report’s approval.

iPro One said it has acquired a minority ownership interest in Tegra Financial Partners, an affiliate of the Georgia accounting firm Habif, Arogeti & Wynne.

Harper, Van Scoik & Co. is merging with Carr, Riggs & Ingram, the fourth largest accounting firm in the Southeast, expanding the combined firms' services in the Tampa Bay area.