bluuebunny/crossref_metadata_2025_split huggingface dataset:
FAS 109: More complex judgment required for accounting for income taxes
Authors: Byington J. Ralph 
Published: July 2007

AbstractFAS 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

AbstractThe 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.
Avoiding the dangers of the pay/performance gap
Authors: Raiborn Cecily , Payne Dinah 
Published: July 2007

AbstractDespite 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.
Declines in market value of investment securities: Recent SEC enforcement actions cast a wide net
Authors: Zuckerman Jeffrey R. 
Published: July 2007

AbstractIn 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

AbstractBundling 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

AbstractIntercompany 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.
Employers' guide to FAS 112, postemployment benefit accounting
Authors: Akresh Murray S. , Latta Judith E. 
Published: July 2007

AbstractBy 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.
The FASB's new exposure draft on accounting for the impairment of long‐lived assets
Authors: Rohan Paul , Williams Jeffrey B. 
Published: July 2007

AbstractThe 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

AbstractWith 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

AbstractOnce 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

AbstractLike 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.
Hedge accounting, derivatives, and synthetics: The FASB starts rethinking the rules
Authors: Herz Robert H. 
Published: July 2007

AbstractAccounting 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

AbstractEnvironmental 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

AbstractCurrently, 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

AbstractFAS 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

AbstractAt 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

AbstractThis 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.
Accounting for restructurings—what is all the controversy?
Authors: Book Jan R. , Dodyk Lawrence N. 
Published: July 2007

AbstractAs 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…”.
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

AbstractPrior 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?
FAS 114 and 118: Implementation of new loan impairment standards
Authors: Dale Kitchens H. 
Published: July 2007

AbstractThe 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.
AICPA assurance services committee: What is the future of auditing?
Authors: Jacobson Peter D. , Elliott Robert K. 
Published: July 2007

AbstractCFOs 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.
Using cost accounting in a service company
Authors: Martinson Otto B. 
Published: July 2007

AbstractIn 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

AbstractAlthough 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

AbstractCorporate 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

AbstractIn 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.
Foreign currency translation information reported by Fortune 500 companies
Authors: Tang Roger Y. W. 
Published: July 2007

AbstractSince 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.
FASB's nuclear decommissioning costs project may well have broad implications
Authors: Enoch Reginald , Pacter Paul 
Published: July 2007

AbstractIn mid‐1994, the Financial Accounting Standards Board (FASB) embarked on a project to determine the appropriate accounting for the costs and obligations related to decommissioning nuclear power plants. The key question is whether a liability for nuclear decommissioning should be recognized and, if so, when.Executives of electric utility companies have an obvious interest in this project. Understandably, however, a financial executive in another industry might say “It's not my issue”. But that's not necessarily so. The cost of decommissioning a nuclear power plant is one example of significant “exit” or “removal” costs that are incurred at the completion of long‐term projects or long‐lived facilities in numerous other industries. Any new FASB accounting and disclosure standards for decommissioning costs may well be extrapolated to the similar types of costs in other industries, either by the board itself or in practice.Therefore, this article has two objectives: The first is to identify the issues and alternatives specifically related to companies'obligations for decommissioning nuclear facilities. The second objective is to identify analogous types of obligations for site restoration, removal, and similar exit costs in other industries to which new decommissioning accounting standards might be relevant.
New AcSEC requirements for disclosure of certain significant risks and uncertainties
Authors: Levine Marc H. , Fitzsimons Adrian P. 
Published: July 2007

AbstractA new Statement of Position from the Accounting Standards Executive Committee of the AICPA requires some very specific additional disclosures. This article details what these disclosures are, and how to make them. [See also Nusbaum's and Weiss's discussion on page 133].
Accounting for derivatives—the FASB begins to move from disclosures to recognition and measurement
Authors: Munter Paul 
Published: July 2007

AbstractIn October 1994, the Financial Accounting Standards Board (FASB) issued SFAS No. 119, Disclosure about Derivative Financial Instruments and Fair Value of Financial Instruments, as a part of its ongoing financial instruments deliberations. SFAS No. 119 draws on the disclosure requirements in SFAS No. 105, Disclosure of Information about Financial Instruments with Off‐Balance‐Sheet Risk and Financial Instruments with Concentrations of Credit Risk, and SFAS No. 107, Disclosures about Fair Value of Financial Instrumenta SFAS Nos. 105 and 107 established disclosure requirements for financial instruments.1 SFAS No. 119 expands these requirements to apply to derivative financial instruments as well.The FASB is now in the process of developing recognition and measurement criteria for derivatives. One scenario would call for the recognition and measurement provisions to be based on the disclosure requirements found in SFAS No. 119. Thus, in this article, we first examine the provisions of SFAS No. 119 and then discuss the accounting provisions currently being debated by the FASB.