bluuebunny/crossref_metadata_2025 huggingface dataset:
The effect of gender role, attitude toward leadership, and self‐confidence on leader emergence: Implications for leadership development
Authors: Kolb Judith A.
Published: July 2007

Although research has indicated no substantial differences between the behaviors of male and female leaders, differences exist in perceptions of these behaviors. Leadership continues to be described in stereotypically masculine terms, although some evidence exists that an androgynous leadership style also may be related to perceptions of leadership. This study examined whether self‐perceptions of masculine gender role characteristics would predict individuals who were perceived by others as leaders on a team project and if other self‐report measures might be used instead to predict leadership. Results indicate that both attitude toward leadership and leadership experience were stronger predictors of leader emergence than masculine gender role.
The influence of job motivation versus downsizing on individual behavior
Authors: Jalajas David S. , Bommer Michael
Published: July 2007

The turbulence caused when a company downsizes places unusual demands on training and development personnel. For their efforts to be successful in such an environment, these professionals must understand the effects of down‐sizing on the survivors. Studies of the impact of downsizing on the behaviors of survivors have yielded mixed results. We propose and test a model that focuses on job motivation as well as past and future downsizing factors. The results indicate that job motivation dominates the downsizing factors, which may explain why the findings of previous studies are mixed. The implication is that job design that promotes empowerment and intrinsic motivation is more important than the effects of downsizing.
Accounting winds of change—new accounting rules for financial instruments are coming
Authors: Parks James T.
Published: July 2007

Accounting rules for financial instruments and financial institutions are changing. The astronomical cost of financial institution failures has forced a reexamination of accounting principles for all financial assets and liabilities, regardless of whether they are currently recorded either on or off the balance sheet. Some regulators are advocating more market value accounting and disclosures to provide a fuller picture of institutions' economic health and the risks posed by new, innovative financial instruments. The Financial Accounting Standards Board (FASB) and the Accounting Standards Executive Committee (AcSEC) of the AICPA are trying to address many of these complex accounting issues. How they resolve these issues may affect a company's financial reports in ways not currently imagined. (The views expressed in this article are the author's and not necessarily those of Fannie Mae or the Savings and Loan Associations Committee of the AICPA of which he is a member).
Purchase accounting without goodwill two‐step falls out of style
Authors: Ditman Stephen M.
Published: July 2007

Fueled by the publicity generated from the Dow Chemical‐Marion Laboratories transactions in 1989, the business and financial community's interest in a new and creative form of business combination, which appeared to result in “purchase accounting without goodwill,” continued to gain momentum through the first half of 1990. However, the Emerging Issues Task Force (EITF) of the Financial Accounting Standards Board (FASB) effectively squelched the concept of “purchase accounting without goodwill” via a series of consensuses in July and September 1990. The effects of these consensuses are analyzed in this article, using the Dow‐Marion transaction for illustrative purposes.
Software costs—a growing accounting issue
Authors: Munter Paul , Moores Tommy , Sanders George
Published: July 2007

The issue of accounting for computer software costs that a company incurs for its own internal use has not been adequately addressed in the accounting literature. As such, many questions and comparability issues remain regarding the appropriate accounting for such costs. In this article, the authors discuss the accounting issues and their implications and report the results of a survey on current accounting practices.
The complex business and accounting issues in other postretirement benefits
Authors: Saslow Mary S.
Published: July 2007

The controversy surrounding FAS No. 106, “Employers' Accounting for Postretirement Benefits Other Than Pensions” goes well beyond the statement's new accounting requirements. This article provides insights into the pervasiveness and complexity of the business issues related to retiree health care benefits, the principal benefits covered by FAS No. 106, and provides suggestions to employers as to areas in which immediate attention may be warranted.
A corporate perspective on the revenue reconciliation act of 1990
Authors: Woolf Steven M.
Published: July 2007

The Revenue Reconciliation Act of 1990 is intended to raise over $140 billion over the next five years. Although the corporate income tax rate remains unchanged, the 1990 law includes provisions affecting preferred stock dividends, debt cancellation income, and corporate equity reduction transactions. The new law also imposes excise taxes on certain “luxury” items.
How Moody's evaluates property/casualty insurers
Authors: White W. Richard
Published: July 2007

Moody's Investors Service currently assigns financial strength ratings to a group of insurance companies comprising over 60 percent of U.S. domestic property/casualty premiums. The value of these ratings derives from Moody's on‐going, in‐depth meetings with the senior managements of the companies rated. Such analyses begin with the information that is readily available in the insurer's annual statutory statement, which Moody's then relates to the financial and legal structure of which the insurer is a part; this context is often provided by both parent company and consolidated financial statements. Moody's also relates the statutory and GAAP data to the regulatory and competitive context in which the insurer operates. Ratings are assigned by a committee, based on the reasoned judgment of several experienced analysts.
Development stage and emerging companies: Accounting, audit and tax issues
Authors: Horvitz Scott M.
Published: July 2007

In order to properly mange a development stage or emerging company, a corporate finance person should be aware of the various accounting, auditing and tax issues that are relevant to these corporate ventures. This article provides an overview of these issues as well as specific analyses of certain transactions that are common to development stage and emerging companies.
Internal control—a question of integrity, ethics, and competence
Authors: Steinberg Richard M. , Faulk Robert J.
Published: July 2007

As an outgrowth of a Treadway Commission recommendation, the Commission's sponsoring organizations initiated a study to provide a common definition of internal control that public companies can use to judge the effectiveness of their internal control systems.

This article provides a brief overview of the study's resulting internal control framework, focusing principally on one particular component—the competence, integrity,and ethical values of a company's people.
Distinguishing between liability and equity instruments
Authors: Levine Marc H. , Fitzsimons Adrian P.
Published: July 2007

This article discusses the issues enumerated by the Financial Accounting Standards Board (FASB) in its Discussion Memorandum, “Distinguishing Between Liability and Equity Instruments and Accounting for Instruments with Characteristics of Both.” The salient issues relating to the classification of instruments as being either liabilities or equities are discussed, as are new alternatives of distinguishing between liability and equity items as a means of improving financial statement disclosure.
How to evaluate accounting and reporting by insurance companies
Authors: Ratcliffe Thomas A. , Munter Paul
Published: July 2007

There has been increased interest in the financial performance and financial accounting principles applicable to insurance companies. As a result, the FASB has found it necessary to establish accounting principles for insurance providers to ensure a greater degree of comparability in financial reporting among such entities. This article provides an overview of the insurance accounting requirements established by the FASB.
ESOP accounting: The critical issues
Authors: Thomas Paula B.
Published: July 2007

This article deals with the accounting aspects of ESOPs. Though the primary authoritative guidance on accounting for ESOPs is still SOP76‐3, “Accounting Practices for Certain Employee Stock Ownership Plans,” ESOPs have mushroomed in complexity since its issuance. Accordingly, many issues have arisen in practice that were not addressed by this SOP. Some of these areas have been addressed by the FASB's Emerging Issues Task Force; the AICPA also is in the process of re‐examining its position. Specific controversial accounting areas explored in this article include the sponsoring company's ESOP debt recognition, expense recognition, treatment of dividends, and EPS considerations. A particular point of controversy appears to be whether companies should use historical cost or current value in calculating compensation expense.
An accounting software selection checklist
Authors: Hodgson David , Ponte Ramon E.
Published: July 2007

Selection of an appropriate accounting software package can be complicated by the need to take into account various accounting, technical, management information, and control requirements. This article outlines a framework for evaluating accounting packages and discusses relevant considerations that are involved in choosing the “right one.” Also included is information on some of the more popular packages on the market.
Perspective: International accounting standards in the post‐cold war era
Authors: Cherry Paul G.
Published: July 2007

To remain competitive in the post—Cold War era, enterprises will need to have quick and easy access to international markets. They will have to adapt their systems and procedures so that they can produce the financial information required in each market. At present, this means, in effect, keeping several sets of records so that financial results can be reconciled using the host market's accounting practices. This can be costly and time‐consuming. In conjunction with securities regulators, the International Accounting Standards Committee has undertaken a major initiative to develop the single set of internationally acceptable standards of financial reporting needed in today's international markets. These efforts are summarized in this article.
1991 SEC form 10‐K checklist–income statement, cash flows, footnotes, and other miscellaneous topics—part 2
Authors: Cole Cathy
Published: July 2007

Because of the many and varied reporting requirements that are imposed on public companies, a checklist is a useful tool in complying with applicable rules and regulations. Frequently, companies will use a financial statement checklist to cover the generally accepted accounting principles (GAAP) but will need an additional checklist for SEC reporting requirements The following checklist is a continuation of the 1991 SEC Form 10‐K Checklist that was presented in the Summer 1991 issue of Journal of Corporate Accounting and Finance. It includes SEC rules for the income statement, statement of cash flows, footnotes, and other miscellaneous special topics in the Form 10‐K. Although it generally covers only the codified SEC rules, certain common reporting problems cited recently by the SEC staff are also addressed.
A corporate investor's guide to REMICs and CMOs
Authors: Siegel Robert S. , Baskin Dorsey L.
Published: July 2007

Increasing numbers of investors have been getting involved in the secondary mortgage market by purchasing asset‐backed securities, including investments in real estate mortgage investment conduits and collateralized mortgage obligations. Although securitization is an evolving area, pledging expected asset cash flow to raise funds has become standard practice. Several factors have led to the popularity of securitization, namely, an ability to quantify and minimize the risk, assignment of independent credit ratings, and enhanced after‐tax rates of return when compared to comparable credit‐risk investments. This article discusses the economics of these investments, as well as the appropriate accounting and tax treatments.
How to plan and implement an executive information system
Authors: Hauser Bonnie , Weiss David H.
Published: July 2007

The goals and benefits that executive information systems (EIS) offer to modern organizations are examined in this article, which also debunks some of the common myths and unrealistic expectations surrounding their application. The authors provide a general analysis of current EIS technology, discuss project planning issues, and offer guidelines for successfully developing, implementing, and maintaining systems that will afford lasting value to management users.
How to deal with the earnings adjustment to the AMT
Authors: Knight Ray A. , Knight Lee G. , Phebus Debra C.
Published: July 2007

The 1986 Tax Reform Act significantly altered the corporate tax structure by replacing the add‐on minimum tax with an alternative minimum tax similar to the AMT for individual taxpayers. This article (1) explains the adjustments and tax preference items used in computing alternative minimum taxable income for corporate taxpayers, (2) compares and contrasts the adjusted net book income calculation and the adjusted current earnings calculation used in determining AMT liability, (3) examines the record‐keeping requirements necessitated by the AMT, and (4) explores ways in which corporations can minimize their AMT liability by controlling the timing of tax preference items.
Accounting for executive stock options: Valuation alternatives for change
Authors: Scoones Eric , Eichen Susan
Published: July 2007

The use of stock options in executive compensation is encouraged by current accounting treatment, which in most cases does not result in compensation expense. Amid increasing public concern about executive compensation levels, FASB is returning its attention to proposals to revise the accounting rules for stock options. At the same time, the SEC is reconsidering its requirements for disclosing the value of executive stock options. In addition to reviewing the status of these projects, this article analyzes the option valuation models that might be used if new accounting or disclosure rules are adopted.
A hedge or not a hedge? EITF 91‐4 tried to answer the question
Authors: Rane David A.
Published: July 2007

The hedge accounting debate continues to rage as new, complex hedging instruments exacerbate the inconsistencies of FAS 52 and FAS 80. The Emerging Issues Task Force tried to define when to apply FAS 52 and FAS 80 in EITF 91‐4. After lengthy debate, the Task Force agreed to require disclosure while they further discuss the issue. The disclosure requirements are effective for fiscal years ending on or after December 31, 1991.
Retiree medical benefits: Making the fund or finance decision
Authors: Kra Ethan E. , Bader William A.
Published: July 2007

This article discusses the differences between funding and financing of retiree medical benefits. It also describes various employer‐provided arrangements that are used for funding or financing retiree medical benefits, and the types of employers for which each vehicle might be appropriate. Several issues will be discussed with respect to each vehicle, including: the ability of the employer to take a tax deduction; the applicability of any nondiscrimination rules; and the applicability of income tax on investment income and on receipt of benefits. The criteria for making a decision on whether to utilize a funding or financing vehicle will also be addressed.
Writing off impaired long‐lived assets: Discussion memorandum outlines options
Authors: Sylvestre Anne Jeannette , Strobel Caroline D.
Published: July 2007

In recent years, the selective write‐downs of impaired long‐lived assets has reduced the credibility, comparability, and consistency of financial reporting. In December 1990, the Financial Accounting Standards Board (FASB, or the Board) issued a Discussion Memorandum (DM) to solicit comments on related issues and to develop a consensus on the standards to be used in determining when and how the value of impaired assets should be written down. It is expected that the Board's project on the impairment of long‐lived assets will ultimately result in one or more Statements of Financial Accounting Standards. This article provides a brief discussion of prior and current accounting practices regarding the impairment of long‐lived assets and explores each of the issues identified in the Discussion Memorandum.
How to get workers' compensation costs in line
Authors: Swalboski Jon , Mohrman David
Published: July 2007

Nationwide, direct workers' compensation costs exceeded $60 billion in 1990, and the figure is expected to double by 1995. Indirect costs (e.g., for lost productivity) may add another 200 percent to the direct cost of job‐related injuries and illnesses. Soaring health care costs and excessive attorney involvement account for part of the cost escalation. To gain control over workers' compensation costs, employers should consider alternative financing and cost‐allocation arrangements. They should also take a “holistic” approach to cost management. By adopting aggressive loss prevention and cost‐containment practices, employers can rein in spiraling workers' compensation expenses.
MD&A disclosure, “through the eyes of management”—in the matter of caterpillar, Inc.
Authors: Strauss Emanuel D.
Published: July 2007

The SEC has long stressed the importance of disclosure pursuant to Item 303 of Regulation S‐K, Management's Discussion and Analysis of Financial Condition and Results of Operations. The Commission recently issued a significant Order and Opinion regarding Caterpillar's failure to comply with the MD&A requirements. This article analyzes the SEC's enforcement action, provides a historical perspective, and offers some practical considerations for this type of disclosure.
Increasingly active shareholders: What management needs to know—and do
Authors: Hoff Jonathan M. , Reina Lawrence J.
Published: July 2007

Institutional investors, especially pension funds, have become a new breed of active shareholder, challenging the classical concept of shareholders being essentially passive. The sponsorship of increasing numbers of annual shareholder resolutions on a variety of corporate governance topics is one visible measure of this increased activity. The effect of these measures can be seen in several areas: in efforts to change federal regulations relevant to shareholder proposals both at the Securities and Exchange Commission and in Congress, including recent proposals to increase shareholder consideration of executive compensation levels; in proposals for increased dialogue between management and shareholders; and in studies that question basic assumptions about the roles and relationships of management and shareholders. This article examines these important developments—all of which are indicative of positive trends in the evolution of the management‐shareholder relationship.
FAS 109: More complex judgment required for accounting for income taxes
Authors: Byington J. Ralph
Published: July 2007

FAS 109, “Accounting for Income Taxes,” is the result of a significant effort by the Financial Accounting Standards Board to address the concerns of preparers and users of financial statements. The new standard recognizes the likelihood of recognition of deferred taxes and in particular of the benefit of deferred tax assets. More guidance is provided for the recognition of deferred tax assets in the form of negative and positive evidence. Examples are presented that illustrate the application of the new standard to various typical problems of accounting for income taxes.
Looking to the assumptions behind the numbers on retiree health benefits for FAS 106
Authors: Bell Dwight S.
Published: July 2007

The FAS 106 expense for retiree health benefits can have a significant impact on your company's financial results. Are you really sure about this expense? Do you know where the numbers came from and what assumptions were used to do the valuation? This article explains the different assumptions that comprise the initial part of the valuation and how variations in those assumptions can impact FAS 106 expense. The article also discusses issues that are related to attribution of future benefits to periods of service. Finally, the article suggests steps plan sponsors can take to understand the impact of the valuation assumptions.
How pooling of interests affects stock buybacks and restructuring
Authors: Birdzell Luther E.
Published: July 2007

Some transactions may bar a company from taking part in a business combination for at least two years—even if the transaction seems unrelated to business combinations.
Applying FAS 109 to acquisitions
Authors: McDade Mark F.
Published: July 2007

FAS 109 can have a profound effect on accounting for both past and future acquisitions. Do you know how to apply it? The author shows how in this step‐by‐step guide.
Avoiding the dangers of the pay/performance gap
Authors: Raiborn Cecily , Payne Dinah
Published: July 2007

Despite lower profits, massive layoffs, and erratic stock prices, many executive compensation packages are fatter than ever. Critics say there's a big gap between pay and performance. Poor performance is often lavishly rewarded, while the company's fortunes decline.

Bowing to public pressure, the SEC proposed fuller disclosure in corporate proxy statements. But that leaves dangerous pitfalls for firms trying to comply. If compensation is tied to performance, how should firms measure performance? What duties are involved? And should top managers of an ailing firm allow the board of directors to pay out inflated compensation packages?

The authors survey the current situation and offer some practical advice on handling these tough problems.
What the new SEC proxy disclosure rules mean to your executive compensation practices
Authors: Freher Edward
Published: July 2007

The new SEC proxy disclosure rules have important implications for executive compensation practices. How can companies prepare for the new rules? The author includes solid advice, and a handy proxy compliance checklist.
Declines in market value of investment securities: Recent SEC enforcement actions cast a wide net
Authors: Zuckerman Jeffrey R.
Published: July 2007

In the wake of the savings and loan crisis, the Securities and Exchange Commission turned its attention to accounting and reporting for other than temporary declines in the market value of bank and thrift equity securities held by financial institutions. Recently, for the first time, the SEC has shifted the focus to junk bonds. The failure to account for investment securities in accordance with GAAP can result in material overstatements of assets or income and trigger enforcement action by the SEC. This article analyzes several recent cases and discusses their implications for future accounting and reporting by public companies.
Asset‐backed securities: Solutions to accounting and reporting problems
Authors: Arnold Vicky , Byington J. Ralph , McKenzie Phyllis
Published: July 2007

Bundling assets to form tradable securities was one of the more innovative strategies of the 1980s. But there has been continuing controversy about how to report asset‐backed financial transactions. The authors take a comprehensive look at the issues and show how to handle the problems you may encounter.
Controlled party transactions: Intangible and tangible property transfers—at arm's length
Authors: Knight Ray A. , Knight Lee G. , Sutton Barbara J.
Published: July 2007

Intercompany transfer pricing has long been a bone of contention between taxpayers and the IRS. But proposed regulations now define the arm's‐length standard used as a benchmark. The authors show how to apply it to determining income in intercompany transactions for tangible and intangible property transfers.
Electronic commerce: How to ensure control and auditability
Authors: Slesinger Gay
Published: July 2007

More and more firms are doing business electronically—computer to computer. It offers a new opportunity to ensure and control auditability of business transactions. The author offers a comprehensive guide for doing that.
Stock compensation: Thirty questions, twenty‐nine answers
Authors: Pacter Paul , Willis Diana W.
Published: July 2007

Stock compensation is the most emotionally charged issue the FASB has ever faced. The authors answer tough questions about current practices, their shortcomings, the major issues, and what the FASB is likely to do next.
Why you should make voluntary disclosures under FAS 107—and how to do it
Authors: Sullivan John B. , Newman‐Limata Nancy
Published: July 2007

There are some advantages to making voluntary disclosures of asset fair values. But if you do that, you must create a fair value balance sheet under FAS 107. The authors show how to do it.
How to account for income tax uncertainties related to business combinations
Authors: Petzing Lawrence N.
Published: July 2007

The Emerging Issues Task Force reached a consensus on accounting for income tax uncertainties in business combinations. The result: some postacquisition adjustments will have a significant and even surprising impact.
Employers' guide to FAS 112, postemployment benefit accounting
Authors: Akresh Murray S. , Latta Judith E.
Published: July 2007

By the first quarter of fiscal 1994, employers will be required to adopt accrual accounting for benefits such as disability and severance pay and salary and health care benefit continuations that are provided to former or inactive employees. This article discusses how to approach and comply with the new requirements.
How to hone internal controls in the era of restructuring
Authors: Fogarty John A. , Schneider Beth A.
Published: July 2007

The trend toward increased attention to internal control is growing stronger. Management should take a proactive approach to see how well financial reporting internal controls work. The authors review the topic and lay out a project plan to help you do that.
Three key methods for valuing profitable closely held companies
Authors: Knight Ray A. , Knight Lee G.
Published: July 2007

Valuing profitable, closely held corporations can be a formidable challenge. And it's not just important to the company's owners. The authors show how to use three key valuing methods.
The FASB's new exposure draft on accounting for the impairment of long‐lived assets
Authors: Rohan Paul , Williams Jeffrey B.
Published: July 2007

The Financial Accounting Standards Board's proposed statement of financial accounting standards “Accounting for the Impairment of Long‐Lived Assets” would provide guidance in the recognition, measurement, and reporting of impairment losses for long‐lived assets, identifiable intangibles, and related goodwill. It also would provide guidance for disposing of assets. This article discusses the background of the proposed statement and its content.
Proactive environmental accounting and world‐class annual reports
Authors: Skalak Steven L. , Russell William G. , Robinson Maeve , Miller Gail , Casey Donal
Published: July 2007

With all the complexities of environmental reporting, many companies take the easy way out. They do only the minimum required. That's not really smart. Shortcuts can come back to haunt yòu later. We believe there's only one good way to prepare environmental reports: Make each one a world‐class document.
Above or below the line?–Current issues in accounting for discontinued operations
Authors: Rader M. Elizabeth , O'Donnell P. Timothy
Published: July 2007

Once the decision has been made to sell or close down an operation, management typically desires to segregate, for financial reporting purposes, the operations to be sold from continuing operations. Accounting Principles Board Opinion 30 (APB 30) provides guidance for such situations and allows companies to show the results of discontinued operations and any related gain or loss on disposal separately, below income from continuing operations. However, APB 30 contains several stringent eligibility requirements and requires a variety of judgments and estimates.

As with any area of accounting that requires significant judgment, the decisions made may be subject to challenge and reevaluation, often with the benefit of hindsight. To minimize the likelihood of future challenge, there should be complete and contemporaneous written documentation of the decisions made and the supporting facts, particularly as to the eligibility to use discontinued operations accounting and the ability to measure the future gain or loss.

Among other factors, the decision should explicitly consider positions taken by the SEC staff. If unusual questions exist, preclearance with the SEC staff should be considered, since it can avoid the possibility of a lengthy delay in the staffs review of a future registration statement or, worse, a future restatement.
CFO's guide to real estate appraisals
Authors: Konikoff Paula K.
Published: July 2007

Like it or not, real estate is something we all have to contend with. Even those companies that are not in the real estate business make decisions about land and buildings that affect the bottom line. Whether it is leased or owned, used for office or warehouse space or for manufacturing, real estate ownership or lease positions appear on financial statements. Often, the only way to measure the effect of real estate on corporate performance is by use of appraisals. Therefore, whether your firm deals in real estate, or just leases space for its own use, it is likely that an event will occur that will require the use of an appraisal. Since these appraisals are generally based on financial analysis, when a company does not employ real estate professionals, management of the appraisal process often resides in the office of the CFO. This comprehensive guide can help CFOs make the right decisions.
Deferred compensation in an era of rising taxes
Authors: Kunkel J. Gregory
Published: July 2007

The Revenue Reconciliation Act of 1993 is already having a major impact on the tax planning of individual tax payers as well as on the design of company sponsored qualified and nonqualified retirement plans. This article reviews recent developments in the design, reporting, and securing of deferred compensation plans.
Hedge accounting, derivatives, and synthetics: The FASB starts rethinking the rules
Authors: Herz Robert H.
Published: July 2007

Accounting rule makers have been hard pressed to keep pace with the rapid development of new hedging products and techniques. As a result, the current accounting rules covering hedging and derivatives are piecemeal, often internally inconsistent and at times act as a deterrent to implementing sound economic management of these risks. This article summarizes the current rules and discusses current FASB deliberations on possible changes.
Accounting, auditing, and reporting issues associated with environmental contingencies
Authors: Kolins Wayne A , Jones G. Thomas
Published: July 2007

Environmental contingencies continue to receive considerable attention in the business press, from investors and lenders, and from the various standards‐setting bodies. For example, the Securities and Exchange Commission has warned repeatedly of impending enforcement actions against companies that have not adequately disclosed these contingencies.

This article provides a brief overview of significant environmental statutes and regulations, a summary of the applicable accounting and disclosure rules, and points independent auditors should consider to comply with generally accepted auditing standards.
How AcSEC's new SOP tightens accounting and reporting on advertising costs
Authors: Strauss Norman N. , Harris Bradley W.
Published: July 2007

Currently, there is diversitys in practice related to the accounting for advertising costs. Many companies expense the costs for advertising as incurred, but others capitalize these costs and amortize them in current and subsequent periods. While certain FASB statements provide guidance on the reporting of such costs for a few specific activies (such as leasing, loan origination, motion picture film promotion) and industries (such as cable television, insurance, real estate), there has been no broad guidance that specifies the accounting for adverting costs in general. Then new AICPA statement of Position 93‐7, “Reporting on Advertising Costs,” provides that guidance. This article details its demands.
FAS 107: Changes occurring slowly in banks' fair value accounting
Authors: Smith Edward F.
Published: July 2007

FAS 107, the accounting standard that took effect with 1992 annual reports, requires all entities to calculate and disclose the fair value of financial instruments. But its issuance was prompted largely by concern about the financial strength of banks and other financial institutions, and thus, the progress of fair value accounting among banks has been ofparticular interest to both opponents and proponents of fair value accounting concepts.

The banks' 1992 annual reports presented data that was later judged to be of little or no value either to the banks or the industry analysts who follow banks. But a more careful study of the 1993 reports should indicate the beginning of an increasing use of fair value concepts and techniques in financial reports, leading to a mixed attribute accounting model that includes both historical cost and fair value measurements. While the progress in this direction is slow, it is discernible.

This article draws on extensive studies of FAS 107 conducted by KPMG Peat Marwick among government agencies, bank holding companies, and analysts and investors. The studies were conducted both before the standard took effect and after the first round of annual reports appeared. While these studies demonstrate the large gap between analysts' expectations for new information and the banks' reluctance to provide it, they also provide pertinent clues to the areas in which change is likely to occur.
Report on the AICPA's SEC national conference
Authors: Weirich Thomas R. , Rouse Robert W.
Published: July 2007

At the AICPA's Twenty‐first National Conference on Current SEC Developments, numerous speakers from the Securities and Exchange Commission (SEC), the Financial Accounting Standards Board (FASB), the American Institute of CPAs, and others presented an overview of important current accounting and disclosure issues, as well as regulatory and legislative concerns that affect SEC registrants and audit practitioners. This article reports a summary of the major issues discussed at the conference.
A closer look at recognition and measurement in impairment of long‐lived assets
Authors: Rohan Paul , Williams Jeffrey B.
Published: July 2007

This article is a follow‐up to an earlier article which appeared in the Winter 1993/94 issue of the Journal of Corporate Accounting and Finance. That article detailed the general provisions of the proposed Statement of Financial Accounting Standards. The intent of this article is to take a closer look at the recognition and measurement provisions of the proposed Statement and to examine the basis for the Board's tentative conclusions on recognition and measurement. The first two sections of the article detail the recognition and measurement standards. The third section examines the Board's basis for the recognition criteria chosen. The fourth section reviews the measurement alternatives considered by the Board, and explains the basis for the Board's tentative conclusions.
P. S. more on the application of the FASB stock compensation exposure draft
Authors: Neuhausen Benjamin S. , Burlone Stephen J.
Published: July 2007

The authors of an article about the application of the stock compensation exposure draft published in our Autumn 1993 issue raise two follow‐up points.
Accounting for restructurings—what is all the controversy?
Authors: Book Jan R. , Dodyk Lawrence N.
Published: July 2007

As companies released their 1993 earnings, reports of restructurings and cost‐cutting measures were disclosed almost daily.

January 19, 1994–“Eli Lilly & Co. said it will take a $1.2 billion pretax fourth‐quarter charge, mostly to streamline foreign operations and fund previously announced early retirements of some 2,600 workers.”

January 25, 1994–“Nynex Corp. said it will slash its work force by 16,800, or more than 20% over the next three years, and take a $1.6 billion charge…” “ Separately, BellSouth Corp. reported a loss of $276 million for the quarter, reflecting its previously announced plans to cut 10,200 jobs by the end of 1996 and restructure certain operations.”

January 27, 1994–“Bail Corp. had a loss of $58.7 million, or $2.02 a share, for the fourth quarter, reflecting a $58 million charge for certain restructuring actions.”

February 1, 1994–“Xerox Corp. posted a fourth quarter loss of $577 million after taking a big restructuring charge…”

February 4, 1994–“Owens‐Illinois Inc. said it is slahsing its U.S. work force by 10%, or 2,000, and taking a charge of $355 million…. The restructuring grew out of a 'comprehensive re‐engineering study'in the fourth quarter and it designed to reduce costs, improve efficiency and enhanve customer service…”.
Accounting for emissions trading programs
Authors: Hopp Rachel M.
Published: July 2007

Emissions trading programs offer opportunities for tremendous cost savings and operating flexibility, but they raise a host of financial and tax accounting problems. This article describes how these new programs work and the issues they raise.
Postretirement health benefits: What were early FAS 106 adopters' disclosures and assumptions?
Authors: Langsam Sheldon A. , Kreuze Jerry G. , Newell Gale E.
Published: July 2007

Prior to FAS 106, most firms didn't recognize postretirement benefits as a liability on their financial statements. The authors found significant effects on early adopters' financial statements in a prior study. But have companies changed their disclosures and assumptions since then?
Are executive stock option grants a cost to the firm?
Authors: Koogler Paul R. , Moffeit Katherine S. , Schmitz Paula
Published: July 2007

Accounting for stock options has raised heated controversy. The FASB's proposed rules may violate guidelines in the professional accounting literature. The authors examine the conceptual arguments behind the FASB's exposure draft.
Environmental cleanup: Accounting for future costs can be a messy problem
Authors: Jordan William F. , Hillison William
Published: July 2007

Accounting for future cleanup costs affects more than just utility companies. Other companies have similar accounting practices and should be concerned about any precedents that are established. This article discusses the problems in accounting for future remediation costs, compares the pros and cons of different treatments, and looks at the funding versus accounting issue.
The four FASB consolidation concepts: How would each affect financial statements?
Authors: Bline Dennis , Marchick David , Pincince Diane , Kosewski Linda
Published: July 2007

The FASB has proposed four consolidation concepts—each with its own advantages and disadvantages. The authors show how each would affect company financial statements.
The future of U.S. GAAP: Evolutionary or revolutionary changes?
Authors: Munter Paul , Robinson Thomas R.
Published: July 2007

The AICPA Special Committee on Financial Reporting may determine the future of GAAP for decades to come. The question is: How wide‐ranging should the changes be?.
FAS 114 and 118: Implementation of new loan impairment standards
Authors: Dale Kitchens H.
Published: July 2007

The FASB's new standards for loan impairment will bring more consistency to creditor accounting for and disclosure of impaired loans. These new standards also significantly change impaired loan disclosure requirements. Very little time remains before the new standards must be implemented. In this article, the author analyzes the requirements of the new standards and the implementation issues involved and provides useful suggestions on how to implement them.
IRS scrutinizes tax treatment of software development costs
Authors: Shanahan James R.
Published: July 2007

The IRS is making financial managers defend company tax treatment of software development costs. But the author says the IRS is inappropriately applying financial accounting concepts.
Investments in securities: Unraveling the complexities of transfers
Authors: Phillips Thomas J. , Wampler Bruce M.
Published: July 2007

This article details the accounting procedures necessary for transfers between investment categories mandated by Statement 115.
AICPA assurance services committee: What is the future of auditing?
Authors: Jacobson Peter D. , Elliott Robert K.
Published: July 2007

CFOs are consumers of auditing services. A variety of pressures have been moving those services in a dangerous direction, but still other forces are pressing to expand the role of auditing to non‐financial corporate data. So what is the future of auditing? Robert Elliott heads up the AICPA Special Committee tackling this problem. He and his co‐author discuss the thorny issues that this committee will be handling.
How to report on internal control under COSO
Authors: Colbert Janet L. , Aldridge C. Richard
Published: July 2007

Internal controls are critical to a company's success in today's complex business environment. This article provides practical guidance for reporting on internal controls under COSO.
Using cost accounting in a service company
Authors: Martinson Otto B.
Published: July 2007

In the past when you heard the term cost accounting, it was synonymous with manufacturing accounting—but that is not true anymore. Today cost accounting is emerging in the service industry.

A recent survey showed that 65 percent of service industry companies studied did not have cost accounting systems that measure cost of output—which is vital for boosting productivity. The author shows how such a system was developed for one large service firm.
Liability recognition for restructuring costs
Authors: Bailey Carmen L.
Published: July 2007

Although the accounting for some costs that have been included in restructuring charges, such as employee severance and termination costs, is addressed in existing accounting pronouncements, it is not always clear when those costs should be recognized if they arise in connection with a restructuring. The existing accounting pronouncements also do not directly address the accounting for other costs that may be incurred as part of a formally adopted restructuring plan. This article discusses some tests and definitions being considered by the FASB's Emerging Issues Task Force and the disclosures for restructuring charges required by the SEC.
Corporate restructurings: Financial reporting of employee terminations under EITF 94‐3
Authors: Rouse Robert W. , Daniels Roger B.
Published: July 2007

Corporate restructurings are reported frequently in the financial press. These cost‐cutting measures, aimed at enhancing the profitability of U.S. corporations in a competitive global economy, have resulted in the termination ofthousands of U.S. workers. Financial reporting for restructuring costs has varied widely in practice. This article discusses the definitive guidance of EITF 94‐3 in financial reporting for employee severance as part of corporate restructurings.
Put options written on an enterprise's own stock: Accounting for a popular derivative
Authors: Schneider Douglas K. , Schneider Douglas K. , McCarthy Mark G.
Published: July 2007

In recent years, approximately two dozen U.S. firms have issued put options written on an enterprise's own stock (POWEOS). The motive for their issuance is to help subsidize stock buy backs or treasury stock. Traditionally, firms were precluded from issuing such a security. But a 1992 letter ruling by the Securities and Exchange Commission (SEC) opened the door for firms to begin issuing POWEOS. The appeal of this security is the tax‐free status of the premium and the limited risk to the issuing firm. There appears to be the potential for a large increase in the number of firms using POWEOS because the financial instrument has thus far provided positive benefits to issuers. Current tax rules favor the use of POWEOS even though current accounting rules impose a reporting penalty by removing total potential repurchase cost from equity. However, just as POWEOS are poised to increase in popularity, new accounting rules for POWEOS are being considered and suggested. Although one suggested accounting change would be beneficial from a reporting standpoint, it could raise uncertainties about the tax status of POWEOS' premiums. While the benefits of using POWEOS should continue to outweigh the costs, firms interested in using POWEOS should be alert to possible changes in accounting rules and possible tax implications.
Report from the national conference on current SEC developments
Authors: Weirich Thomas R. , Rouse Robert W.
Published: July 2007

This article summarizes the presentations made during the recent National Conference on Current SEC Developments, including discussions of OCA issues, enforcement division issues, corporate finance division issues, and concerns about financial derivatives.
Foreign currency translation information reported by Fortune 500 companies
Authors: Tang Roger Y. W.
Published: July 2007

Since the early 1980s, we have witnessed continuing expansion in U.S. foreign trade and international investment. During the same period, we also observed substantial changes in the exchange rates between U.S. dollars and other major foreign currencies. This article summarizes foreign currency translation information reported by 113 sample firms of the Fortune 500 companies in 1993. The areas covered include functional currencies, exchange gains and losses, and forward exchange contracts. The quality of corporate reporting in foreign currency translation has improved gradually since SFAS No. 52 became effective in 1982. However, many firms are still not providing disclosures that extend beyond the minimum requirements of the current standards.
The jenkins committee report: What if they're right?
Authors: Jacobson Peter D. , Elliott Robert K.
Published: July 2007

Many CFOs worry about the potential costs of implementing the Jenkins Committee recommendations. But that may not be an issue right now. The important question is what can be learned from it.
Study finds companies stressing pay for performance in executive compensation
Authors: Freher Edward W.
Published: July 2007

This article reports on KPMG research contrasting pay levels in high‐ versus low‐performing companies, in the context of a regulatory update on FASB's stock compensation project and corporate policy with respect to the 1 million cap on compensation deductions.