bluuebunny/crossref_metadata_2025_split huggingface dataset:
Applying FAS no. 105: Financial instruments with off‐balance‐sheet risk
Authors: Allen Jeffrey T. , Lobel Steven H. 
Published: July 2007

AbstractIn connection with preparing their year‐end 1990 financial statements, companies will find themselves grappling with the requirements of Statement of Financial Accounting Standards No. 105, Disclosure of Information about Financial Instruments with Off‐Balance‐Sheet Risk and Financial Instruments with Concentrations of Credit Risk, for the first time. Although SFAS 105's disclosure standards seem relatively simple, implementing them will require management's active involvement, particularly with respect to identifying significant concentrations of credit risk. In addition, as the first Statement issued under the aegis of the FASB's financial instruments project, SFAS 105 contains definitions and concepts whose implications extend beyond its immediate scope.
The limits of required forward‐looking information in MD & A
Authors: Edwards Paul N. 
Published: July 2007

AbstractThe SEC's May 1989 Interpretive Release on disclosure in Management's Discussion and Analysis of Financial Condition and Results of Operations helped spark intense scrutiny of the accounting treatment and disclosure of environmental uncertainties, unrealized market losses on investment securities, and other known matters that may be expected to affect future financial results. Since the Release, MD&A disclosure of forward‐looking information has increased, but the limits of required disclosure of such information remain uncertain and highly controversial, despite the continued emphasis by the SEC on such disclosure.
Savings plan investments—how far does the employer's responsibility go?
Authors: Holleman Linda P. , Canfield John C. 
Published: July 2007

AbstractMany 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

AbstractThe 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

AbstractFASB 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.
Special section: Market value accounting. Con: Market value accounting boils down to “trust me” values
Authors: Fisher Donna J. 
Published: July 2007

AbstractWhat 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

AbstractAlthough 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

AbstractWith 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

AbstractMost 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.
Understanding and applying FAS 109
Authors: Collins William A. , Mautz R. David 
Published: July 2007

AbstractNew 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

AbstractDuring 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

AbstractThere'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

AbstractDespite 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.
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

AbstractWhen 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.
Accounting for derivatives: What is the group of thirty study and how does it affect you?
Authors: Bullen Halsey G. 
Published: July 2007

AbstractIn 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.
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

AbstractDue 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

AbstractThis 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

AbstractThe 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

AbstractOn 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

AbstractDespite 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

AbstractHistorically, 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.
The common stock equivalency of liquid yield option notes: Some surprising results
Authors: Schneider Douglas K. , Wertheim Paul 
Published: July 2007

AbstractSurprisingly, 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.
The new reits: Issues associated with IPOS
Authors: Keller Corinne G. , D'Angela Vincent A. , Millstein David L. 
Published: July 2007

AbstractThe 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.
Through the eyes of management: MD&A since Caterpillar
Authors: Weirich Thomas , Daniels Roger B. , Rouse Robert W. 
Published: July 2007

AbstractThe 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

AbstractThe 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

AbstractThe 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

AbstractThe 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

AbstractComputers 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

AbstractThe 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

AbstractThe 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.
Insight on SEC staff's views regarding certain business combination issues
Authors: Lenz Jeffrey W. , Graul Leland E. 
Published: July 2007

AbstractThe 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.
Postretirement health benefits: Are corporations accurately estimating future cost trend rates?
Authors: Langsam Sheldon A. , Newell Gale E. , Kreuze Jerry G. 
Published: July 2007

AbstractMuch 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.
EDGAR: Has it lived up to expectations?
Authors: Greer Kimberly S. , Maischoss Walter F. 
Published: July 2007

AbstractSEC'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.