Audit & Accounting

Here's a smart idea for all you financial planners out there. Target the children of your Baby Boomer clients. Read more on the Accounting Tomorrow blog.

The incoming chair of the Securities and Exchange Commission, Mary Schapiro, criticized the International Accounting Standards Board and expressed reluctance to move to International Financial Reporting Standards.

With the election over, we now must focus on what real changes will advance the markets.

Southeast super-regional CPA firm Dixon Hughes plans to integrate the practice of Orlando-based Rosenfield Co., effective Feb. 1.

Steve Tait, president of H&R Block's accounting subsidiary RSM McGladrey, plans to resign, effective April 30.

Investors of all ages, and especially Baby Boomers, are increasingly turning to their CPAs to help them grapple with the financial planning challenges they will face leading up to and during retirement.CPAs are often the first financial advisor that investors experience, and with whom they build trust. Since the CPA firm also understands important aspects of their clients' financial picture, a solid foundation already exists for offering the goal-planning and investment advice that today's investors are increasingly seeking.

The Securities and Exchange Commission has released its congressionally mandated report on mark-to-market accounting, calling for improvements in the standards, but not their suspension. The 211-page report's recommended improvements include reconsidering the accounting for impairments and the development of more guidance for determining the fair value of investments in situations where market prices are not readily available.The report noted that investors generally believe that fair value accounting increases reporting transparency and facilitates better investment decision-making. It also indicates that fair value accounting did not appear to play a meaningful role in the bank failures in 2008.

Though the Governmental Accounting Standards Board expects to issue only one new standard in 2009, the year should be productive enough to position the board for significant advances over the subsequent two years.You could call it a year of research and deliberation - some of it conducted in-house by staff, and some by requests for comments and ideas from the field of state and local governments and the users of government financial information.

On Dec. 16, 2008, the Internal Revenue Service released the long-awaited final tax return preparer regulations. Although they had been expected to be issued in November, they were further delayed by the changes to Code Sec. 6694 included in the Emergency Economic Stabilization Act of 2008. In addition to the final regulations, the agency also promulgated Notice 2009-5, providing some interim guidance for the 2008 tax filing season, and Revenue Procedure 2009-11, updating the list of IRS forms that are subject to the preparer penalties.The final regulations do not differ significantly from the proposed regulations, but make several changes in response to comments received. The interim guidance responds to the statutory changes made by the Emergency Economic Stabilization Act and can be relied on by tax return preparers until final guidance is issued. Tax return preparers will want to make sure that they are familiar with these new requirements to avoid penalties as the 2008 tax return season gets underway.

The Senate has approved Mary Schapiro by a unanimous vote as the next Securities and Exchange Commission chairman.