Statistics show that more than 50 percent of marriages in the United States end in divorce.The process of a divorce can create tremendous animosity between the parties, and this can lead to difficult financial issues for those affected by the split. There are many complex federal tax issues that need to be planned for, or they will create tremendous pitfalls. The Internal Revenue Code also contains several provisions that provide specific guidance for divorce-related transactions.

Year-end tax planning opportunities abound this year. They do so not only because it has been a particularly active year for tax legislation, but also because of other significant tax developments taking place in 2006, as well as changes from pre-2006 tax legislation that have a particular impact this year and next.Traditional year-end tax strategies should not be abandoned. Income should either be accelerated or postponed between 2006 and 2007, depending upon the anticipated tax brackets for each client. Similarly, deductions and credits should be manipulated to lower income either in the more favorable year or, in some cases, in both years, before midnight, Dec. 31, 2006, has come and gone.

The Financial Accounting Standards Board has set a new standard that establishes a long-needed framework on fair value measurement and expands related information in financial reports - and the investor community, according to FASB board member Leslie F. Seidman, is going to love it.Though Statement 157, Fair Value Measurements, does not require any new or additional fair value measurements, it applies to over 40 existing standards that require or permit the measurement of assets and liabilities at fair value.

The Securities and Exchange Commission's top accountant has added his thoughts on how to properly account for stock options in the historical financial statements of public companies.In a letter sent from his office, SEC Chief Accountant Conrad Hewitt discusses the consequences offered under Accounting Principles Board Opinion No. 25, Accounting for Stock Issued to Employees. The letter, sent to committee chairmen at Financial Executives International and the American Institute of CPAs, discusses dating an option award to predate the actual award date, option grants with administrative delays, the uncertainty as to the validity of prior grants, and other related circumstances.

The Securities and Exchange Commission will consider recommendations for changes to the Sarbanes-Oxley Act at an open meeting on Dec. 13.

Improving the accounting and disclosures for mergers and acquisitions by non-profit organizations is the aim of two exposure drafts released by the Financial Accounting Standards Board.

KPMG International will combine its member firms in the United Kingdom and Germany in an effort to makes its services more consistent and risk-free. The combined firms will operate under the name KPMG Europe LLP and remain a member of KPMG International, which said in a statement that the hope is for other KPMG member firms in Europe to eventually merge into the new entity. Besides giving the combined firm a chance to pool its talent to better serve clients, the business said the KPMG Europe will be able to present a unified voice when it comes to international standards setting. The deal is the first announced by a Big Four firm after the introduction of the European Commission’s Eighth Directive legislation, which will allow cross-border mergers between accounting firms beginning in 2007. Both Germany and Britain are expected to incorporate the directive into national laws some time next year. The Big Four currently operate as networks of national partnerships in Europe because the law in most countries prevents them from being foreign-owned. With combined revenues of more than $2.5 billion in the current fiscal year, a statement from the firm said that KPMG Europe LLP will be the largest professional services firm on the continent. More than 17,000 partners and staff will work in the firm’s 44 offices across the U.K. and Germany. The firm’s head office will be located in Frankfurt and be chaired jointly by KPMG LLP U.K. chairman John Griffith-Jones and the chairman of KPMG Deutsche Treuhand-Gesellschaft AG’s managing board Dr. Rolf Nonnenmacher. Both the German and U.K. boards have already unanimously approved the proposal, but the merger must still be okayed by the firms’ partners in December.