Financial reporting

The real value of bank holdings has been generating controversy in the accounting profession as banks find themselves under increasing pressure to be more upfront about the true value of their assets, assuming they can be accurately valued, even with ballpark estimates.

Accounting firms are using Google text ads this tax season and beyond to bring in clients for tax prep and other types of accounting and financial planning services.

Somerset CPAs said it plans to launch a consulting program to help CEOs cope with the economic downturn.

A House subcommittee plans to conduct a hearing into the tax treatment of derivatives next week.

The Financial Accounting Foundation's board of trustees has voted to approve sweeping changes in the oversight, structure and operations of the Financial Accounting Foundation and its two standards-setting boards, the Financial Accounting Standards Board and the Governmental Accounting Standards Board.

A 61 percent majority of chief financial officers at leading U.S. technology companies feel that shareholders should have a say on executive compensation plans, according to a new survey.

I sat in on part of a meeting of the Financial Accounting Foundation and heard that many in Europe are taken aback at the swift pace of convergence in the U.S. with international accounting standards, but they are still waiting for us to set a deadline.

The Internal Revenue Service has introduced an electronic filing system that allows small tax-exempt organizations to file Form 990-N "e-Postcards" to report their annual income.

The International Accounting Standards Board said its Fair Value Measurement project team has begun a standard-by-standard review of existing fair value measurements in International Financial Reporting Standards to assess whether each standard's use of a fair value measurement basis was intended to be an exit price.

For investment property owners, the first and last concern in a Sec. 1031 exchange transaction should be safety. "Will my funds be secure?" is the most important question to ask a qualified intermediary before beginning a Sec. 1031 exchange.Recent events by a handful of disreputable qualified intermediaries have led to speculation on what is the true litmus test for security of funds in a 1031 exchange. In response, a few QIs and pundits have generated a rash of propaganda and half-truths.

EISENBERG GARNERS PFP DISTINGUISHED SERVICE AWARDThe American Institute of CPAs has named Michael Eisenberg, CPA/PFS, of Los Angeles, the recipient of the 2007 Personal Financial Planning Distinguished Service Award.

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In January, the Mortgage Bankers Association, supported by five of the nation's largest lending institutions, asked the Financial Accounting Standards Board to relax certain accounting rules concerning how restructured -- that is, failed -- loans are written down.

The Financial Accounting Standards Board has issued a proposed FASB Staff Position on the endowments of nonprofit organizations that could have large implications for how they recognize their assets and use donor-restricted funds.

The results of a new survey were released a few weeks ago at the AICPA Advanced Personal Financial Planning Conference. It concluded that retirement savings is a key concern for Americans and that life decisions are in limbo because of finances. According to the survey, having enough money to retire and to pay for major life needs such as healthcare and education are at the top of the list of concerns for Americans. In fact, the AICPA says that in response to an open-ended question, nine out of 10 CPAs surveyed said their individual clients were concerned about retirement and that costs associated with healthcare and education were ranked by respondents as the second (59 percent) and third (47 percent) financial concerns of clients. “Many Baby Boomers are discovering their retirement kitty is not as big as it needs to be to fund a comfortable retirement and that they are going to have to work longer than they had intended,” says James Metzler, AICPA vice president. By the way, respondents included CPAs who hold the Personal Financial Specialist (PFS) credential. The survey also revealed that nearly a third of the respondents (32 percent) reported that clients who are approaching retirement age are postponing leaving the workforce for financial reasons. Also, as many as one-third of CPAs with clients between the ages of 25 and 34 are seeing individuals foregoing buying a home, having children, and even saving for retirement. Moreover, one third of the CPA planners say their clients were carrying more credit card debt than they did five years ago, with excessive discretionary spending pinpointed as the primary culprit. The median level of increased credit card dent is $8,333. “With so many people in debt because of unnecessary spending, Americans of all ages need education and guidance about how to improve their financial well-being,” notes Carl George, chair of the Institute’s National CPA Financial Literacy Commission. Actually, three years ago, the AICPA launched the 360 Degrees of Financial Literacy effort, which has a dedicated consumer Website (www.360financialliteracy,.org) containing hundreds of tools and resources to help Americans improve their financial understanding. A related campaign, Feed the Pig (www.FeedthePig.org) is designed to help Americans aged 25-34 save for long-term financial security. It should be noted that the survey was conducted this past December via a questionnaire mailed to members of the AICPA Financial Planning Membership Section. Of the respondents, some 44 percent manage more than $10 million in assets.

The Financial Accounting Standards Board has issued final guidance on transfers of financial assets and repurchase financing, which should have an impact on the mortgage and real estate investment trust industry.

Two accounting firms, Mueller Yuva & Osterman and Larson and Associates, have merged to combine their strengths in auditing, estate planning and other services.

The Securities and Exchange Commission has introduced Financial Explorer, a tool that shows corporate financial performance using interactive data in Extensible Business Reporting Language.

Last year, we published for the first time a ranking of CPAs by AUM (Assets Under Management). It was a huge undertaking by CPA Wealth Provider because we reached out to as many CPA firms as possible. Admittedly, we didn’t get all of them but we received a response that was staggering. 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 11 firms that were in “The Billion Dollar Club” while another 41 firms were in “The $100+ Million Club” and then a listing of those in the eight-figure category that we deemed “Rising Stars.” We also delved beneath the surface of just a ranking and unearthed what affiliations each firm had, such as broker/dealers, wire-houses, financial services companies, and the like. 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 was simply wonderful. No one had ever seen such a ranking before and it opened the door now for a second ranking. 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 2008 CPA Wealth Provider. We encourage you to participate. For a copy of the Survey Form, contact me by email (stuart.kahan@sourcemedia.com), by fax (646) 264-6828, or write to me at Source Media, One State Street Plaza, 27th Floor, New York, NY 10004.

Mutual fund research company Morningstar has begun rating hedge funds.