Financial reporting

Adaptive Planning has added team collaboration and the sharing of best practices to the latest version of its business performance management software.

A new accounting standard is giving executives second thoughts about plans for mergers and acquisitions.

Nonprofit accounting software vendor Blackbaud has struck a deal to acquire rival Kintera for $1.12 per share, or approximately $46 million.

The Internal Revenue Service said that economic stimulus payments directly deposited to individual retirement accounts and other tax-favored accounts may be withdrawn tax- and penalty-free.The relief is designed to help taxpayers who may have been unaware that by choosing direct deposit for their entire regular tax refund, they were also choosing to have their stimulus payment directly deposited as well. The tax relief is available for amounts withdrawn from tax-favored accounts that are less than or equal to a taxpayer’s directly deposited stimulus payment.

There are some classes of software that simply don’t change much from year to year, and retirement planning software is one of them.In any given year, you may see tax tables updated or compatibility with new operating systems and hardware slip in, but these are, by definition, very stable applications whose core strength is that they offer reliability and a strong set of features. Nor do they need to compete with consumer applications for the beauty of their interface or use of colors. Most of the work of a good retirement planner is done in the background, with little or no reason to bother with aesthetics anywhere other than in the final client presentation.

PLANNING NICHE GROWS FOR CPASFinancial planning has helped fuel an increase in revenues at CPA firms, according to a new study by the American Institute of CPAs and CPA firm Moss Adams. The survey found an average financial planning practice size of $460,000 among the 431 CPA firms that responded, with an average yearly growth rate of 34.9 percent between 2004 and 2006. Respondents anticipated a 20.6 percent increase in assets under management in 2007.

With governmental accounting changing fast in a fast-changing financial environment, the Governmental Accounting Standards Board has added projects to its agenda to deal with the increasing variety of public/private partnerships, the common presentation of financial statements for reporting units that do not qualify as reporting entities, and for developments in pension accounting.The decision to review existing standards on post-employment benefits was based on an extensive research project that began in early 2006.

The May 2008 issue of The Journal of Accountancy ran opinion pieces on the role of accounting in the subprime crisis and subsequent bursting of the credit market bubble. Paul Miller was invited to comment on a controversial claim that mark-to-market practices made things worse. The critics claim that GAAP practices weakened institutions that invested in collateralized debt obligations by revealing large losses when the CDOs’ market values evaporated.They assert that financial statements would better serve the public interest if managers can keep unrealized losses (which they consider to be unreal) out of their financial statements. By a huge leap of ego, they conclude that they and everyone else would be better off if nobody is aware that those losses had occurred. After all, everyone knows they aren’t real because they are always followed by gains. Except when they aren’t, of course.

The Financial Accounting Standards Board may change some accounting rules to make it more difficult for banks to get subprime loans off their books.At an accounting conference held last month in New York, FASB Chairman Robert Herz said that the rules might require banks to keep loans on their books that they previously have been able to package and sell off or securitize.

The American Institute of CPAs has sent the Internal Revenue Service a spreadsheet-full of comments on the draft instructions for the revised Form 990 that will be used by tax-exempt organizations to file their returns next year.

The MetLife Mature Market Institute has available to consumers, especially those who are not in "traditional families," some tips on how to make the right choices in preparing for retirement, notwithstanding the challenges they face.

The U.S. Financial Accounting Standards Board and the International Accounting Standards Board said they are seeking public comment on two documents that are part of their joint project for developing an improved conceptual framework for future accounting standards.

UCLA Extension has teamed up with Dalton Education to offer an online certificate program in personal financial planning.

XBRL International has appointed Gilles Maguet as secretary general of XBRL Europe, giving him the job of promoting the adoption of the Extensible Business Reporting Language in Europe.

The Financial Accounting Standards Board has issued FASB Statement No. 163, "Accounting for Financial Guarantee Insurance Contracts."

As economic indicators continue to trend downward, Baby Boomers are feeling less confident that their retirement savings will see them through retirement. So says the results of a new research by Longevity Alliance that was conducted by Harris Interactive. Interestingly enough, the survey shows that few of these Baby Boomers really know what steps to take next. According to Longevity, 56 percent of all Boomers (adults 44-62) claim they are less confident than they were only three months ago that their retirement savings will last them through retirement. In fact, of those with such savings, seven in 10 say that were “less confident” overall, with 35 percent being “somewhat less confident,” and 36 percent indicating that they were “much less confident.” Despite the concern, few Boomers have done anything—or plan to do anything—about such flagging retirement savings. Longevity shows that only two out of five with such savings have changed or plan to change their retirement savings as a direct result of the current economic conditions. In fact, of those with such savings who have made a change (or plan to), some 43 percent say they would seek the advice of a financial advisor or retirement planning professional. Hooray! There’s hope alive here. Longevity president Steve Zaleznick says that the Boomers “know the train is coming, but they’re frozen on the tracks.” Unfortunately, he adds, too many are unsure of the best steps to take to guarantee that their money lasts. “In uncertain economic times like these, knowing what to do and when to act is critical; and seeking the advice of a professional can be extremely reassuring.” Also of interest were the distinct differences in attitudes about retirement between men and women. Among adults of all ages, men were more likely to have retirement savings although female Boomers are much more likely to say they have less confidence in their savings. Zaleznick notes that the survey shows clear consumer preferences among Boomers who plan to make changes in their retirement savings. Seeking the advice of a financial advisor or retirement planning professional was the top response followed by a reallocation of funds from stocks to more conservative investments. Other options were investing in value-priced stocks, buying long-term care insurance, and purchasing an annuity. Longevity has a Web site where you can tap into its “Five Tips for Retirement Planning” (www.longevityalliance.com). Boomers can also take the “Longevity Ready” quiz to get a better understanding of their personal preferences and planning style for a longer life.

Nonprofit accounting software developer Kintera said it has received notice of a possible delisting from Nasdaq after falling below the required threshold of stockholders' equity.

The U.S. Small Business Administration said that homeowners, renters, nonprofit organizations and businesses have one more month to submit disaster loan applications for damage caused by the severe storms and tornadoes on April 4.

A week after proposing requirements for public companies to start filing their financial statements with interactive data tags, the Securities and Exchange Commission wants mutual fund companies to begin filing risk and return information using the technology.

The Financial Accounting Foundation has tapped Teresa S. Polley as its new president and chief operating officer.