The International Public Sector Accounting Standards Board of the International Federation of Accountants has issued IPAS 21, 'Impairment of Non-Cash-Generating Assets', a guideline which prescribes the basis to help a government entity determine whether a non-cash-generating asset is impaired and whether a loss should be recognized. This new standard applies to governments and other public sector entities preparing general purpose financial statements under the accrual basis of accounting and requires that an asset not be carried at an amount in excess of its recoverable service amount. The entity would subsequently have to determine whether there is any indication that a non-cash generating asset may be impaired. IPAS 21 includes: Definitions of cash-generating assets and impairment. Guidance on identifying an asset that may be impaired. Guidance on measuring an asset's recoverable service amount. Guidance on measuring an impairment loss. Requirements for the recognition and reversal of an impairment loss. The standard may be downloaded from the IFAC Web site at www.ifac.org. The IFAC is a global accounting organization comprised of 163 professional accounting bodies in 119 countries.

Two top executives and auditor KPMG are out this week at Fannie Mae, following the Securities and Exchange Commission's decision that the mortgage giant violated accounting rules, leaving it faced with a massive restatement.

The Internal Revenue Service is allowing limited exceptions from coverage of the new deferred compensation rules for certain stock appreciation rights, or SARs, that "do not present potential for abuse or intentional circumvention of the purposes" of Section 409A.

H&R Block Financial Advisors, the investment arm of the tax prep giant, agreed to pay a $500,000 fine and to return $325,000 in clients' mutual fund trading profits to settle charges brought against it by the National Association of Securities Dealers related to the market-timing of mutual fund shares by two of its former financial advisors.

As the renowned Baby Boomer generation inches its way into the retirement years, employers are beginning to consider how this vast purge of experienced workers is going to affect the workplace.

Depreciation would be a joke if it weren't such a disgrace ... but that's precisely what happens when accountants calculate depreciation expense in advance and then report it on future income statements. There is no valid justification for reporting assumed depreciation instead of actual observed amounts (including appreciation)."

Tax reform under the second Bush administration will most likely take the form of piecemeal tax cuts, according to participants in a tax panel sponsored by the Council for Electronic Revenue Communication Advancement, a government-private industry trade association. President Bush has said that he would appoint a panel to recommend changes to the tax code that would make it simpler, fairer and less burdensome.