bluuebunny/crossref_metadata_2025 huggingface dataset:
Savings plan investments—how far does the employer's responsibility go?
Authors: Holleman Linda P. , Canfield John C.
Published: July 2007

Many 401(k) plan sponsors as well as sponsors of other types of defined contribution plans have chosen to provide several alternatives for employees to direct the investment of their accounts in these plans. By providing alternatives to employees, plan sponsors feel that they have transferred responsibility for the investment returns from themselves to the individual employees. The Department of Labor's (DOL) revised proposed regulations under Section 404(c) of the Employee Retirement Income Security Act of 1974 (ERISA) raise the question of where the employer's responsibility ends in this situation and where the employees' begins. This article summarizes the fiduciary responsibilities involved and the relief from those responsibilities that is provided by compliance with the DOL's proposed regulations.
Some responses to the International Accounting Standards committee's exposure draft on “comparability of financial statements”
Authors: Miller Gary A. , Donnelly William
Published: July 2007

The International Accounting Standards Committee (IASC) has proposed major changes that would require like transactions to be accounted for in the same way, regardless of an entity's reporting country. Subjects covered in the proposal include reducing reporting costs, capital acquisition costs, required reconciliation of reported net income to net income as per IASC standards, appropriate inventory valuation methods, construction accounting methods, appropriate exchange rates for translation purposes, and acceptable business combination methods. This article reports on the results of a survey of members of the American Accounting Association's International Section regarding the IASC proposal.
FASB Proposes Relief for Sufferers of FAS 96
Authors: Bline Dennis M. , Skekel Ted D.
Published: July 2007

FASB has reconsidered its position on accuounting for income taxes and issued an exposure draft for a proposed standard that would replace FAS 96. The proposed standard offers relief for many firms that would be unable to recognize deferred tax assets under the provisions of FAS 96. In addition, companies with positive financial outlooks will get relief from such complexities of FAS 96 as (1) scheduling every future year's reversals and deferrals individually, (2) creating hypothetical tax planning strategies to maximize each year's projected deferred tax position, and (3) considering alternative tax systems such as the AMT in developing basic tax rates for each year. Financially strong companies, in particular, should find the exposure draft an appealing alternative to FAS 96.
Market value accounting‐salvation or apocalypse?
Authors: Sullivan Robert P.
Published: July 2007

The move to market value accounting is underway. This article summarizes the status of projects at the Financial Accounting Standards Board and the views of proponents and opponents of the potential changes to market value accounting.
Special section: Market value accounting. Con: Market value accounting boils down to “trust me” values
Authors: Fisher Donna J.
Published: July 2007

What is the proposed move to market value accounting (MVA) designed to accomplish? If it is a new accounting model, then so be it—let's all get into the ring. But, if its purpose is to effect a change in behavior for financial institutions, then let's not overhaul the existing accounting model. MVA does not represent an improvement over the historical cost model and will likely create more problems than it will solve.
What is the real value of those assets? Practical applications of current valuation
Authors: King Alfred M.
Published: July 2007

Although there is increased interest in the use of current value information in published financial statements, particularly in the case of financial instruments and impaired assets, the basic problems of current value and replacement cost accounting have not been solved. FAS 33 and ASR 190 were noble experiments that failed, primarily because they asked for “what if” information and did not focus on cash flows. This article describes the various definitions of “value” that are used by appraisers in their work for clients, and recommends a useful approach for financial executives to develop useful value information.
How to apply FAS 5, “accounting for contingencies,” to environmental liabilities
Authors: Rosell Debra A.
Published: July 2007

With environmental issues being on the “front burner,” the issue of how to account for environmental liabilities is receiving increased attention from the corporate community as well as from the Securities and Exchange Commission. This article reviews the basic application of Statement of Financial Accounting Standards No. 5, “Accounting for Contingencies,” as it relates to environmental liabilities and highlights some of the accounting problems associated with environmental issues.
All benefits are not equal: Looking for low‐cost alternatives
Authors: Kasper George J.
Published: July 2007

Most employers are examining ways to cope with today's rising costs of employee benefits. Upon closer analysis, employers may find that they can provide better fringe benefit packages at lower cost for both the employer and the employee. This article provides an overview of several types of benefits and the alternative methods of delivering them more economically—e.g., using cafeteria plans to let employees choose more useful benefits and using more effective and less costly benefits in place of expensive ones. Other techniques include the use of no‐additional‐cost benefits and the use of overfunded pension plans to pay for certain fringe benefits. By using the methods discussed in this article, companies can continue to offer fringe benefit packages that retain and motivate their personnel during times of economic difficulty.
Disclosure of information about financial instruments: The requirements of FAS 105 and 107
Authors: Munter Paul
Published: July 2007

FAS 105 and 107 require companies to disclose more about their financial instruments. But the way the FASB has defined “financial instruments,” almost no company is exempt.
Curbing health plan costs: A ten‐point strategy that really works
Authors: Duncan Ian
Published: July 2007

Financial officers have stepped in to control the alarming growth of health benefit costs. But a surprising number of companies lack an organized approach based on solid data. The author reveals an effective ten‐point strategy for curbing company health plan costs—using data you may already have in house.
How to write financial reports that really make a difference
Authors: Gray Patrick M. , Dubois Richard R.
Published: July 2007

Do your financial reports really make a difference in managing the business? Good ones do. But many have only indecipherable numbers and statistics of doubtful use. The authors offer a concise guide to writing reports that top management can act on.
Accounting for joint ventures: Is change coming?
Authors: Rowden Keith
Published: July 2007

Accounting for joint ventures is an area long overdue for change. But what changes are likely? Here is an overview of current practice and a discussion of new standards on the horizon.
Understanding and applying FAS 109
Authors: Collins William A. , Mautz R. David
Published: July 2007

New procedures for financial reporting of income taxes will take effect for many companies this year. These procedures are spelled out in Statement of Financial Accounting Standards 109 and represent a sharp departure from Accounting Principles Board Opinion 11. This article breaks down the new procedures into seven steps and introduces readers to the practical implementation of the asset and liability approach to accounting for income taxes. The article also highlights differences between FAS 109 and its predecessors, focusing on some of the difficult judgments that must be made to apply the new rules.
How the SEC cracked down on false financial statements in 1992
Authors: Cole Cathy
Published: July 2007

During 1992, the Securities and Exchange Commission issued eighty Accounting and Auditing Enforcement Releases (AAER) involving false or misleading financial information. The underlying accounting violations include issues of manipulation of accounting records, ownership and valuation of assets, revenue recognition, cost deferral, loss recognition, and the adequacy of disclosures. The AAERs shed light on the conditions that lead to financial misstatements and provide guidance on the SEC's interpretations of generally accepted accounting principles, generally accepted auditing standards, and its own disclosure rules.
FASB reexamines disaggregated disclosures: Defining the issues and alternative directions
Authors: Pacter Paul
Published: July 2007

There's been a growing demand for companies to report financial information by each industry, geographical area, and other segments. But how are companies dealing with it? What are its costs? The author of the new FASB report on the topic tells us what he found after giving a comprehensive briefer on the critical issues involved.
Postretirement health benefits: How have early FAS 106 adopters handled them?
Authors: Newell Gale E. , Langsam Sheldon A. , Kreuze Jerry G.
Published: July 2007

Despite efforts to contain corporate health care costs, they continue to rise—notably for retirees. How have early adopters of FAS 106 accounted for postretirement health benefits? A study by the authors shows wide variations in assumptions and economic effects.
How to curb liabilities by prefunding postretirement plans
Authors: Akresh Murray S. , Rudin Debra A.
Published: July 2007

Anticipating new financial statement changes under FAS 106, savvy employers are moving now to prefund nonpension postretirement benefit liabilities. Here's how to do it.
FAS 107: How to avoid the pitfalls of fair value accounting
Authors: Smith Edward F.
Published: July 2007

FAS 107 requires all companies to disclose the fair value of financial instruments. But, the author warns, you should tread very carefully here. Fair value estimates can be very subjective. How can you implement FAS 107 without getting into trouble?.
Restructurings: How do they affect impairment of assets?
Authors: Munter Paul
Published: July 2007

Accounting for impaired assets has been hindered by a lack of standards for measuring value. There's also the question of when to recognize asset impairments. Both problems often pop up as a result of restructurings. But what's the best way to handle them?.
Purchase accounting: Will an acquisition come back to haunt you?
Authors: Birdzell Luther E.
Published: July 2007

Purchase accounting can affect a firm's position—and yours—years after it completes an acquisition. How do you account for information you learn about the acquired company after the acquisition date? The author takes a close look at this and other current sticky issues in purchase accounting.
A borrower's guide to lowering corporate environmental liability
Authors: Monaghan Sean
Published: July 2007

Companies trying to borrow money today face increasing scrutiny of corporate environmental liabilities. This article has some useful insider advice on how to deal with it.
Stock option practicalities: What will companies do now?
Authors: McKinney James E.
Published: July 2007

Companies are taking author look at stock option compensations because of new SEC disclousre rules and a proposed change in accounting for options. Will corporations use options less—or more?.
Accounting for environmental insurance products: What you need to know
Authors: Russell William G. , Robinson Maeve C. , Harris Laurie L.
Published: July 2007

The cost of performing environmental cleanups will be enormous. New environmental insurance products can help, but they raise other accounting problems. The authors give an overview of current trends and the accounting issues involved.
Understanding and applying the new ESOP reporting requirements
Authors: Anderson Susan E. , Brackney Kennard S.
Published: July 2007

A proposed statement of positions (SOP) by the Accounting Standards Executive Committee may substantially change accounting for ESOPs. The authors discuss the history of ESOPs, the proposed SOP, and its implications.
What constitutes a hedge is still debatable
Authors: Munter Paul
Published: July 2007

There is little authoritative guidance on hedge accounting, and most of what does exist is confusing. To make matters worse, the types of transactions hedged are constantly changing. Here's an update of the latest state of affairs and some suggestions for coping with them.
Foreign currency transactions: When do you recognize gain or loss?
Authors: Knight Ray A. , Knight Lee G.
Published: July 2007

Accounting for fluctuations in foreign currency value impacts how gains or losses are taxed. The authors discuss the three key issues involved.
What's wrong with FASB's exposure draft on stock compensation?
Authors: Fuersich Janet , Lukach David
Published: July 2007

There has been a lot of controversy about accounting for stock‐based executive compensation plans. But the authors feel there are too many problems with the FASB 's proposal on the topic. They discuss the problems, the probable impact, and what you should do about it.
FASB's controversial stock compensation exposure draft: How would you actually apply it?
Authors: Neuhausen Benjamin S. , Burlone Stephen J.
Published: July 2007

The FASB recently issued an exposure draft on accounting for stock‐based compensation. There has been significant controversy over the FASB's conclusions. Controversy aside, this article demonstrates how the provisions of the exposure draft would be applied in practice.
A flowchart approach to implementing SFAS 115
Authors: Rouse Robert W. , Weirich Thomas , Daniels Roger B.
Published: July 2007

The authors examine the critical issues leading up to the FASB's issuing of the controversial SFAS 115 and present an easy‐to‐follow flowchart approach to implementing it.
Shareholder proposals: Distinguishing policy issues from routine business matters for inclusion in a company's proxy materials
Authors: Zuckerman Jeffrey R. , O'Donnell John J.
Published: July 2007

When a shareholder proposal concerns the conduct of ordinary business operations, a corporation can decline to include it in the proxy materials distributed to shareholders prior to a shareholder meeting. But it can be difficult to distinguish between matters that fall under this exclusion and matters relating to significant corporate policy— which must be included in the proxy materials. This article discusses the SEC's and the court's varying positions on such distinctions in a variety of cases.
Study details prevalence of goodwill on corporate balance sheets
Authors: Schneider Douglas K. , McCarthy Mark G.
Published: July 2007

SEC, the FASB, Congress, and others are taking a critical look at accounting and reporting for goodwill. But how is goodwill actually affecting corporate balance sheets? The authors studied goodwill reporting and its impact for a large number of firms, to find out.
Accounting for real estate joint ventures
Authors: Goldbers Irwin , Wolfe Rose M.
Published: July 2007

Finding the critical component in a joint venture agreement is often the key to accounting for it. Unfortunately, that's often easier said than done. The authors briefly review the literature and then guide you through this complex area.
Accounting for derivatives: What is the group of thirty study and how does it affect you?
Authors: Bullen Halsey G.
Published: July 2007

In July 1993, the Global Derivatives Study Group of the Group of Thirty published Derivatives: Practices and Principles. The study explains derivatives and their uses and makes recommendations about the management of a derivatives portfolio. The study also defines a set of recommended risk management practices for dealers and end‐users, based on the best current practice.

A broad conclusion of the study is that derivatives do not introduce risks that are fundamentally different from the risks that already are present in the financial markets. Therefore, the risks can be addressed within the present regulatory framework. Some areas of concern are in clarifying legal uncertainties and resolving legal inconsistencies among countries. The study also makes recommendations to accounting standards setters and tax authorities but does not attempt to define appropriate levels of regulatory capital for financial institutions.
Environmental MD&A and financial reporting: What every corporate officer should know
Authors: Rouse Robert W. , Daniels Roger B. , Weirich Thomas
Published: July 2007

A lot of companies are confues about financial reporing of environmental problems. In such an uncertain area, what would the SEC consider an idal MD&A and financial report? The authors reveal the SEC view of these issues.
SEC focuses on declining interest rates: Selecting appropriate assumptions in pensions and postretirement benefits accounting
Authors: Akresh Murray S. , Bald Barbara S.
Published: July 2007

Due to the decline in interest rates in 1993, the SEC staff is focusing on the discount rates being used for pension and postretirement benefit accounting under FASB Statement of Financial Accounting Standards (FAS) 87, “Employers' Accounting for Pensions,” and FAS 106, “Employers' Accounting for Postretirement Benefits Other Than Pensions.”Employers will need to assess their discount rates and, for some, reduce those rates significantly.

This article highlights the SEC staffs concerns and the important financial statement implications of reducing discount rates. We also provide employers with an effective action plan to deal with this issue.
Bringing segment reporting up‐to‐date: Criticisms and suggested solutions
Authors: Pacter Paul , Danaher Mitchell A
Published: July 2007

This past May, the Financial Accounting Standards Board published an invitation to comment on. Reporting Disaggregated Information by Business Enterprises. That document, issued jointly with the FASB's counterpart in Canada (the Accounting Standards Board of the Canadian Institute of Chartered Accountants), asks for public comment on ways to resolve the key issues in reconsidering the current standards for preparing and reporting financial data by industry segment, geographic area, export sales, and major customers. The standards in the United States and Canada are quite similar.
The POB tackles internal control reporting: Boundaries, thresholds, and auditor involvement
Authors: Sullivan Jerry D.
Published: July 2007

The Public Oversight Board has issued a special report on critical issues confronting the accounting profession. The report includes recommendations covering the profession's liability crisis, the reliability of financial reporting, and auditor performance. But one recommendation has aroused a lot of controversy: the call for management reports on internal controls and auditor attestation of those reports.
The POB report on internal control reporting needs a close look by financial statement preparers
Authors: Healey James E.
Published: July 2007

On March 5, 1993, the Public Oversight Board (POB) of the SEC Practice Section of the Division of CPA Firms of the AICPA issued a special report, “In the Public Interest.” This article addresses certain of the points raised in that report from the viewpoint of preparers of financial statements, who need to ensure that only appropriate changes are made to current practices.
The AICPA tackles ESOP accounting: What you need to examine
Authors: Thomas Paula B. , Sutton Barbara
Published: July 2007

Despite growth in both the number and complexity of employee stock ownership plans (ESOPs), no substantive changes in accounting and reporting for these plans had occurred since SOP 76‐3 was issued in 1976. However, a new AICPA pronouncement expected in December will have significant ramifications for firms with ESOPs.

Employers considering ESOPs must look at ESOP benefits and limitations, as well as the impact on their financial statements. This article provides background information on ESOP accounting, addresses advantages and disadvantages of ESOPs, and discusses the accounting changes firms should anticipate from the new pronouncement.
How tax and financial reporting for intangible assets changes under new law
Authors: Dennis‐Escoffier Shirley , Munter Paul
Published: July 2007

Historically, there has been a significant divergence in the accounting for intangible assets—particularly acquired goodwill— for tax purposes from that used for financial reporting purposes. While a company that acquires implied goodwill in a purchase combination will reflect that in the consolidated balance sheet and amortize the acquired goodwill through subsequent earnings, for tax purposes, the goodwill amount, generally, has not been deductible. This has led companies to look to assign a portion of the acquisition price to alternative asset items such as customer lists and other identifiable intangible assets. The Revenue Reconciliation Act of 1993 radically changed the tax treatment of goodwill and other intangible assets. This article explores the implications of this change.
FASB moves forward on financial instruments: Derivatives and securitizations
Authors: Munter Paul
Published: July 2007

The FASB is now focusing its attention on issues pertaining to accounting and reporting of derivative securities and securitization transactions. This article discusses the FASB's proposed disclosure requirements for derivative securities.
Earnings per share should be simplified
Authors: Pacter Paul , Petrone Kimberley Ryan
Published: July 2007

Although earnings per share is the most widely used financial statistic, procedures for computing it remain complex, arbitrary, and inconsistent. The authors say we need a fresh look at the issue, and explore current change proposals by the ISASC and the FASB.
The common stock equivalency of liquid yield option notes: Some surprising results
Authors: Schneider Douglas K. , Wertheim Paul
Published: July 2007

Surprisingly, few liquid yield option notes (LYONs) meet the SFAS 85 definition of a common stock equivalent. That has important reporting implications on primary earnings per share. Current accounting standards may not do an adequate job of identifying the common stock equivalency status of LYONs.
Cash flow impact of tax amortization of goodwill smiles on acquisitions
Authors: Schisler Dan , McCarthy Mark G. , Schneider Douglas K.
Published: July 2007

The recent Clinton tax law directly affects tax liability and cash flow in many organizations. The authors found that cash flow could significantly increase for many firms, making corporate acquisitions easier in the future.
What's new in derivative regulation
Authors: Turner Lynn E. , Weirich Thomas R.
Published: July 2007

The increasing use of derivative transactions has raised serious questions about their risks. This article highlights current regulatory developments and includes a model disclosure and some useful management checklists for meeting the new requirements.
The new reits: Issues associated with IPOS
Authors: Keller Corinne G. , D'Angela Vincent A. , Millstein David L.
Published: July 2007

The volume of real estate investment trusts (REIT) exploded last year, raising more than $11 billion in new and secondary offerings. This article explores the history of this 1960 investment vehicle, the fundamentals of a successful REIT offering, some reasons for its recent renewed popularity and the advantages and disadvantages of this real estate format. It summarizes tax issues as they currently affect the formation of REITs and discusses the accounting issues associated with IPOs.
Accounting for special plan events under FAS 106
Authors: Bald Barbara S. , Akresh Murray S.
Published: July 2007

More and more companies are downsizing and restructuring. That also means making changes to retiree healthcare benefit plans, but accounting for these changes can be complicated. The authors guide the reader through FES 106's complex maze of rules and discuss a survey showing how companies have been affected.
Through the eyes of management: MD&A since Caterpillar
Authors: Weirich Thomas , Daniels Roger B. , Rouse Robert W.
Published: July 2007

The Caterpillar case was the first SEC crackdown on inadequate MD&A. Since Caterpillar, the SEC has stepped up enforcement of MD&A. rules. The authors examine the latest SEC actions which provides insight into what lies ahead.
SEC form 10‐K checklist—income statement, cash flows, footnotes, and other miscellaneous topics—part 2
Authors: Munter Paul
Published: July 2007

The following checklist is a continuation of the 1994 SEC Form 10‐K Checklist that was presented in the Summer 1994 issue of The Journal of Corporate Accounting and Finance. It includes SEC rules for the income statement, additional income and expense disclosures, statement of cash flows, accounting changes presentation and disclosure, other financial statement disclosures, financial statement schedules, 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. It does not include GAAP or GAAS rules except as they are codified in SEC rules or have been identified in Staff Accounting Bulletins or Financial Reporting Releases. Therefore, this checklist should be used in conjunction with a general GAAP checklist. Also, it does not cover specialized industries, foreign company requirements, or unusual or unique accounting and reporting issues. Other reference materials should be consulted for such items. It does include certain common reporting problems cited by SEC staff members at various recent conferences. In this regard, only problems that are likely to be applicable to the average company with reasonable frequency are included.
FAS 119 and beyond: An update on FASB's financial instruments project
Authors: Siurek Ryan H. , Clark John M.
Published: July 2007

The rapid evolution and increasing use of derivatives and other financial instruments have dramatically affected global financial markets. Significant losses suffered by many users of these complex instruments have sparked concern from the SEC, Congress, and others. As part of its long‐standing financial instruments project, the Financial Accounting Standards Board (FASB) addressed those concerns in its recently‐issued FASB Statement No. 119, Disclosure about Derivative Financial Instruments and Fair Value of Financial Instruments. Statement 119 requires entities to provide improved disclosures about derivatives and other financial instruments in 1994 year‐end financial statements. The FASB continues to direct its efforts toward the recognition and measurement of these financial instruments. The deliberations on hedging and hedge accounting are intended to answer some of the underlying questions regarding recognition and measurement.
Mark‐to‐model: The external auditor's amazing journey in auditing highly structured derivatives
Authors: Guyader Louis Le , Casella Mark
Published: July 2007

The recent use of derivatives has been explosive. Various measures for derivatives' use, depending on the definition applied, place the outstanding global notional amount of such instruments as high as $16 trillion at the end of 1993. But the actual valuation is a function of each derivative's architecture. This article explores how to ascertain the value of highly structured derivatives.
Accounting for software
Authors: Pacter Paul , Sonnelitter Robert J.
Published: July 2007

Computers are everywhere. Corporations not only are purchasing software, they are often developing their own. Accounting for software has become a topic of broad interest.

Unfortunately, the CFO must navigate through a maze of rules in this area. This article's purpose is to make that task easier. This article looks at accounting issues relating to computer software from two perspectives: accounting for software costs incurred by the developer or purchaser and accounting for software revenue earned by the vendor or licensor, recognizing, of course, that the developer or purchaser of software might also be its vendor or licensor.
Accounting for leveraged ESOPs: Summary of statement of position 93‐6
Authors: Rees W. Christopher , Strauss Norman N. , Towers Richard H.
Published: July 2007

The accounting rules have changed for leveraged Employee Stock Option Plans. This article describes the requirements pertaining to leveraged ESOPs of SOP 93‐6, effective in 1994 for ESOPs formed after January 1, 1993 and. for shares acquired by other ESOPs after that date.
SFAS 121: The FASB's new standard for impairment of long‐lived assets
Authors: Baskin Dorsey L.
Published: July 2007

The FASB has before addressed the issue of asset impairment in many different standards but perhaps none so broadly as in Statement No. 121. When should long‐lived assets and intangibles be written down and by how much? How should assets to be disposed of be accounted for until disposition and should they continue to be depreciated? These are issues addressed by the FASB in this new standard, soon to become effective for all enterprises, including not‐for‐profit enterprises, and most long‐lived assets.
EITF addresses recognition of discretionary costs in a purchase business combination
Authors: Scheuerell Francis E.
Published: July 2007

FASB's EITF has been taking a new look at accounting in business combinations. The author explains the issues involved, and shows how each of three competing views would affect accounting procedures.
Insight on SEC staff's views regarding certain business combination issues
Authors: Lenz Jeffrey W. , Graul Leland E.
Published: July 2007

The way the SEC staff interprets generally accepted accounting principles regarding business combinations may differ from the way in which such accounting standards have been applied in the past. This article examines some current thinking of SEC Division of Corporation Finance staff members about goodwill, contingent consideration, and purchased research and development in business combinations.
How to restructure the accounting system to stay competitive
Authors: Hillison William , Hollander Anita Sawyer
Published: July 2007

In this age of computerized, databased accounting, traditional accounting information systems are no longer adequate for the needs of an organization's information customers. This article discusses how a system needs to be developed to add value to organizations by meeting the changing needs for information in today's competitive business environment.
Postretirement health benefits: Are corporations accurately estimating future cost trend rates?
Authors: Langsam Sheldon A. , Newell Gale E. , Kreuze Jerry G.
Published: July 2007

Much attention has been paid to the FAS 106 requirement to change the accounting for retiree health care benefits from a cash to an accrual basis. But less noted was another disclosure requirement: health care cost trend rate assumptions, which have a significant effect on the expense and liability reported on the firm's financial statements. The authors report on their study to determine if the assumed trend rates have been reliable estimates of actual health care cost increases, and if the assumed trend rates have been consistent among corporations.
Segment reporting: IASC works to meet user needs worldwide
Authors: Pacter Paul
Published: July 2007

Segment reporting improves the ability of financial statement users to assess a company. The author explains current segment reporting proposals and requirements, which have taken on an international flavor. And he explores how proposals from the IASC compare with those from the joint FASB‐Canadian Accounting Standards Board project.
SFAS 115: Some questions and responses on accounting for investments in securities
Authors: Elmy Frederick J. , Murray Ronald J.
Published: July 2007

Although FAS 115 was issued more than two years ago, it still generates questions from perplexed preparers and users of financial statements. In a straightforward Q&A format, the authors answer some frequently asked questions to clear up the confusion.
EDGAR: Has it lived up to expectations?
Authors: Greer Kimberly S. , Maischoss Walter F.
Published: July 2007

SEC's EDGAR (Electronic Data Gathering, Analysis, and Retrieval) system is now more than two years old. The authors examine how it has measured up against a set of demanding expectations on the part of registrants, investors, analysts, secondary information markets, and the SEC itself.
ISO 9000: Should your company seek certification?
Authors: Byington J. Ralph , Marsh Treba
Published: July 2007

The European Community requires suppliers of products that have health, safety, or environmental impact to have a special certification: ISO 9000. The authors review its advantages and disadvantages, how to tell if you need it, and how to obtain it.
Setting up environmental management systems under ISO 14001
Authors: Uzumeri Mustafa V. , Tabor Richard H. , Stanwick Sarah D.
Published: July 2007

As business continues to become more multinational, more and more U. S. companies will be affected by international environmental accounting standards. Now the International Standards Organization (ISO) is on the verge of issuing a new series of rules, ISO 14001, for environmental management systems. The authors explain what the CFO must know about ISO 14001, and they show how one company has actually implemented the new standard.
Accounting for costs in a purchase business combination under eitf issue no. 95‐3
Authors: Scheuerell Francis E.
Published: July 2007

Many believe that EITF Issue No. 95‐3 will prevent misleading “creative” accounting in mergers and acquisitions. Here's a comprehensive overview of how it will work, and what companies must do to comply.
Understanding foreign currency derivative measurements as FASB moves toward fair value reporting
Authors: Tritschler Charles A. , Godwin Joseph H. , Goldberg Stephen R.
Published: July 2007

The authors explain foreign currency derivatives in light of the recent FASB moves toward reporting derivatives at fair value. They also reveal the results of a survey on how large companies have been reporting their foreign exchange derivatives contracts.
Intraperiod tax allocation issues
Authors: Munter Paul
Published: July 2007

FAS 109 required that the provision for tax for a period be allocated among several income components. The author reviews how to do this, but he warns that the cumulative effects of accounting changes, prior period adjustments, and error corrections can make that task ever more complex.
FASB derivatives disclosure survey: How complete are annual reports?
Authors: Kawamura Yoshinori
Published: July 2007

The FASB staff has conducted a detailed review of derivatives disclosures in 1994 annual reports. And while most disclosures seemed adequate, there were some problems. Some disclosures may have been incomplete, or less detailed than required.
Understanding FAS 123's new disclosure requirements for stock‐based compensation
Authors: Akresh Murray S.
Published: July 2007

Even if you continue to record stock compensation expense under APB 25, you still must measure the fair value of stock compensation awards, and determine pro forma net income and earnings per share just as if you had applied the new fair value rules. The author reveals what you need to know about the new disclosure requirement, and shows what other companies have done with FAS 123 disclosures in their annual reports.
Reporting comprehensive income
Authors: Munter Paul
Published: July 2007

At last, CFOs have solid guidance on accounting for comprehensive income.
FASB's derivatives ED: Some concerns about applying the proposed standard
Authors: Smith Pamela A. , Cazolas Carrie , Norton Curtis
Published: July 2007

There is no doubt that the sophistication of transactions and needs of financial statement users have outpaced accounting rules. The authors discuss the latest FASB exposure draft on derivatives, but also air some concerns about applying it.
MD&A: When and how to report trends
Authors: Iannaconi Teresa E. , Rouse Robert W.
Published: July 2007

SEC sanctions for inadequate disclosure can damage a financial officer's career. But when and how do you report trends? Can the CFO protect sensitive competitive information and satisfy disclosure requirements at the same time? The authors review the guidance on MD&A and give practical advice.
Outsourcing the internal audit function
Authors: Rouse Robert W.
Published: July 2007

Outsourcing internal auditing presents problems that do not arise with other services. The author discusses those unique problems— and how to handle them.
Comparison between pension benefit guaranty corporation and financial statement disclosures of pension plan underfunding
Authors: Langsam Sheldon A. , Kreuze Jerry G. , Newell Gale E.
Published: July 2007

The authors update their recent study of underfunded pension plans, focusing on financial statement disclosures.
Is joint venture reporting “broken?”
Authors: Lott Ronald W.
Published: July 2007

APB Opinion No. 18, on reporting interests in joint ventures, is frequently criticized and seldom defended. But are the current rules really “broken?”
The CFO's guide to using the internet
Authors: Wright Harry R. , Mooney J. Lowell
Published: July 2007

Despite all the hype, the Internet really can be a useful tool for CFOs. After a brief overview, the authors show how a CFO can use the Internet during a typical day, suggest solutions to some Internet problems, and give a valuable list of Internet sites tailored to a CFO's needs.
Update: The move toward international accounting standards
Authors: Rouse Robert W.
Published: July 2007

Past efforts to internationalize accounting have failed. But there is still a strong move to “harmonize” accounting standards, so U.S. CFOs had better pay attention. The author summarizes recent developments.
International differences in financial reporting: What U.S. CFOs need to know
Authors: Goldberg Stephen R. , Godwin Joseph H.
Published: July 2007

There are many reasons for international differences in financial reporting. U.S. CFOs need to know what they are in order to understand global competitors, acquisition targets, and even non‐U.S. accounting personnel.
Self‐insurance: Should corporations make disclosures?
Authors: Kreuze Jerry G. , Newell Gale E. , Langsam Sheldon A.
Published: July 2007

More companies are self‐insuring to cut costs. But what are the advantages and disadvantages? And should corporations make disclosures for self‐insurance?
Accounting for goodwill in an age of mergers
Authors: Heckler Brian L.
Published: July 2007

This is a period of intense merger activity and renewed interest in accounting for business combinations. Although many companies may prefer to use the pooling‐of‐interest method, few transactions can qualify. It's time to take another look at an alternative: recognizing goodwill under the purchase method.
Enhancing the effectiveness of financial reporting for the twenty‐first century
Authors: Urbancic Frank R. , Sylvestre Jeanne
Published: July 2007

There are grave concerns about the growing complexity of notes accompanying financial statements. This article reviews the initiatives taken by the FASB, the SEC, and others to simplify things. Those responsible for preparing financial statements need to pay close attention to these trends.
Asset transfer: Q&A on how to implement FAS 125
Authors: Herz Robert H. , Elmy Frederick J. , Wallace P. Woodbridge
Published: July 2007

FAS 125 is a very broad and complex standard. The authors answer a wide variety of important questions about implementing it.
SEC conference tackles standards, “dangerous ideas,” and more
Authors: Weirich Thomas R. , Rouse Robert W.
Published: July 2007

The authors discuss the highlights of AICPA's SEC conference— which covered everything from standard‐setting disputes to “dangerous ideas” in accounting.
Accounting reform in China and its implications for U.S. business
Authors: Tang Roger Y. W. , Liu Sandra S.
Published: July 2007

Chinese accounting reform should benefit many U.S. companies doing business in China. The authors discuss recent developments in detail, and offer U.S. firms some practical tips on protecting their business with China.
Derivatives: An update
Authors: Goldberg Stephen R. , Godwin Joseph H.
Published: July 2007

There has been an explosion of derivatives use in the past few years, and evolving products. But changing disclosure and accounting requirements make this a difficult area for CFOs. The authors give a useful update of current trends and requirements.
Preventing financial software disaster and liability: The CFO's year 2000 checklist
Authors: Mooney J. Lowell , Wright Harry R. , Rogers Camille F.
Published: July 2007

A widespread software “bug” could play havoc with many accounting and information systems on January 1 of the year 2000. But CFOs cannot just leave this huge problem to computer experts, say the authors. They explain how the problem will affect CFOs, and specific steps you can take to protect your company.
Stock compensation accounting under FAS 123: What we've learned
Authors: Akresh Murray S. , Hassan Kevin P.
Published: July 2007

The authors reviewed over 250 annual reports, comparing FAS No. 123's impacts and assumptions on mature versus emerging high‐technology companies.
Outsourcing of internal audit: Concerns and opportunities
Authors: Bostwick William J. , Byington J. Ralph
Published: July 2007

Outsourcing the internal audit function has been a controversial issue. But both internal auditors and public accounting firms can benefit if outsourcing is used properly. The authors provide useful guidelines for deciding whether to maintain an internal audit staff, or to outsource this function.
FASB issues new standard on reporting comprehensive income
Authors: Reither Cheri L. , Brauchle Gary J.
Published: July 2007

Statement No. 130 permits a choice in how comprehensive income is displayed, and eliminates a proposed requirement to show per‐share amount.
Segment disclosures: A how‐to guide for the new standard
Authors: Fender Elizabeth A. , Keay Jeff , Merriett Steve
Published: July 2007

The authors walk you through the new accounting standard and help you determine how it will affect your company's segment disclosures.
SEC form 10‐K checklist—financial information
Authors: Munter Paul
Published: July 2007

The financial reporting requirements imposed on public companies are a constantly evolving maze of rules and regulations. This checklist will help CFOs with the financial reporting issues.
Reviewing restructurings: Why EITF consensus 94‐3 strands financial statement users
Authors: Ciesielski Jack T.
Published: July 2007

Excessive “conservatism” in financial statements can create investor distrust, argues the author, a financial analyst. His suggestion: ban restructuring charges.
Present values: A proposed concepts statement
Authors: Brown Victor H.
Published: July 2007

Financial accounting standards have dealt with the concept of present value for at least three decades. Yet, present value has been applied in an ad hoc, inconsistent way in financial accounting. Recently, the FASB issued a proposed statement to reconcile these problems. The author analyzes the statement and discusses its implications for CFOs.
Recent developments create serious concerns for financial reporting
Authors: Burton E. James , Hamm Jeffrey L.
Published: July 2007

The authors argue that recent changes at the top of the standards setting hierarchy—along with other events—signal some major changes that CFOs must prepare for.
More lessons in revenue recognition—review of recent SEC enforcement actions
Authors: Plunkett Linda M. , Rouse Robert W. , Herring Rebecca B.
Published: July 2007

Generally accepted accounting principles (GAAP) advise that revenue should not be recognized until an exchange has occurred, the earnings process is complete, and the collection of the sale is reasonably assured. These conditions are normally satisfied when products are exchanged for cash (or claims to cash) and when the entity has substantially satisfied its obligations in order to be entitled to the benefits. Generally, a transfer of risks and rewards has to occur in order to effect an exchange for the revenue recognition.
Dealing with an independent auditor: What does he look for, and what are his own risks?
Authors: Byington J. Ralph , Christensen Jo Ann
Published: July 2007

To deal effectively with an independent auditor, CFOs must understand the auditor's viewpoint and concerns. That is especially true when it comes to white collar crime. What red flags does the auditor look for? And how does auditing for these illegal activities put the auditor and his firm at risk?
Update: How COSO is changing corporate controls and auditor responsibilities
Authors: Munter Paul
Published: July 2007

Fraudulent reporting is dimult to detect. But several recent changes described in the professional literature are helping to more directly address the problem. The author's update includes lists of risk factors that the careful CFO must avoid.
Understanding the FASB's new pension and postretirement benefit disclosures
Authors: Akresh Murray S. , Wilson Raymond L. , Hassan Kevin P.
Published: July 2007

FAS 132 significantly changes financial statement disclosure requirements.
Comprehensive income: Handling the implementation issues
Authors: Strauss Norman N. , Sardo Al
Published: July 2007

FAS No. 130 represents a significant change in financial reporting of comprehensive income. The authors present a detailed guide to dealing with the new standard, with many useful examples.
Auditing update: How recent changes may affect your firm
Authors: Fennema M. G. , Hillison William
Published: July 2007

How do recent changes in auditing standards affect corporations that will be audited? And what do those changes mean for those who prepare financial information'?
Accounting for stock‐based awards to nonemployees
Authors: Akresh Murray S. , Dakdduk Kenneth E.
Published: July 2007

The expense related to stock‐based awards to nonemployees must be recognized in the income statement—even if a company continues to apply APB 25 to its employee awards.
Accounting for start‐up activities
Authors: Munter Paul
Published: July 2007

A forthcoming SOP will require many companies to change the accounting for start‐up costs.
SEC conference grapples with auditor independence and other issues
Authors: Weirich Thomas R. , Rouse Robert W.
Published: July 2007

The authors report on the recent Twenty‐Fifth Annual SEC Developments Conference, which provides some important clues about the thinking and future actions of SEC, FASB, and other standards setters.
ISO 14000: Environmental auditing for the manufacturing sector
Authors: Campbell Sharon , Byington J. Ralph
Published: July 2007

A new set of environmental management and auditing standards will impact manufacturing companies. The authors explain the new standards, and then discuss what measures manufacturing firms are actually taking based on a survey. They also review the applicability of the new standards to publicly‐held manufacturers.
Auditor independence and the new independence standards board
Authors: Rouse Robert W. , Previts Gary
Published: July 2007

In search of additional fees, big accounting firms now offer “extended” audit services to corporate clients, including both external and internal audit functions. But there have been no new guidelines to keep auditors independent and truly impartial. However, that may soon change.
Is your auditor protecting your confidential data?
Authors: Parham Abbie Gail , Fletcher Leslie B. , Gurley A. Lee
Published: July 2007

Independent auditors are required to maintain the confidentiality of client‐related information. But a published study suggests that accounting firms may not be providing adequate protection for confidential client electronic data on PCs or laptops. The authors detail some key steps CFOs should take to make sure that auditors safeguard sensitive company information.
A review of initial filings under the SEC's new market risk disclosure rules
Authors: Elmy Frederick J. , LeGuyader Louis P. , Linsmeier Thomas J.
Published: July 2007

Reviewing initial filings under the SEC's new market risk disclosure rules, the authors found that disclosures were not satisfactory. Where did companies fail?