Audit & Accounting

When was the last time you or your clients took a hard look at your 401(k) plans?If you're like many small and midsized business owners, chances are that you haven't spent much time reviewing the plan since the day it was set up three, five and perhaps even 10 years ago. Most employers implement a plan and simply assume that even years later it will continue to do what is best for themselves, their company and their employees.

Change is scary. There's no doubt about it. I often tell my clients that whenever I am facing a major change, I feel like I am at the edge of a diving board and just can't jump into the water.I guess I'm no different than any of you when it comes to change. Sometimes I have been forced into it, and other times I have led it.

The Securities and Exchange Commission was somewhat ambivalent last August when it approved a "roadmap" towards accepting International Financial Reporting Standards for U.S. publicly held companies.Indeed, several months after agreeing on the framework for its ultimate mandate of IFRS accounting beginning in 2014, the regulator still hadn't published an official document outlining its decision. But that apparently isn't dampening accounting firms' commitment to gearing up for IFRS, or to alerting clients to IFRS's sweeping ramifications.

The Internal Revenue Service has not developed sufficient processes to ensure that more than 61 million tax refunds were directly deposited last tax season to the correct bank account, according to a new report from the Treasury's inspector general.The Treasury Inspector General for Tax Administration said that the IRS places responsibility for compliance with federal direct deposit regulations on the taxpayer, and indicated that it is the taxpayer's responsibility to ensure that their tax refunds are directly deposited only into their accounts. TIGTA and representatives from the Treasury's Financial Management Service, however, believe that the IRS is responsible for enforcing the requirement.

The Financial Accounting Standards Board has provided new flexibility to allow banks and other financial institutions to reprice their assets during the credit crisis by amending its standard on fair value measurements.The FASB Staff Position clarifies the application of FASB Statement No. 157 in an inactive market and provides an illustrative example to demonstrate how the fair value of a financial asset is determined when the market for that asset is inactive.

One (and possibly the only) positive result of the financial crisis is that market value accounting has been brought to the public's attention.Unfortunately, most discussions of this issue have generated much more heat than light. For instance, we've noted that many who criticize value-based accounting don't begin to understand its advantages over other asset and liability measures. We want to explain the theory behind it, which is how we came to be convinced that all the trouble of switching to values will be worthwhile. This perspective has helped us see that most criticisms of market value are transparent attempts to deflect blame away from managers who made poor investment decisions.

Accounting schools are scrambling to stay ahead of the IFRS curve.

The Private Company Financial Reporting Committee discussed FIN 48, fair value and other matters at its latest meeting.

The Financial Accounting Foundation advised President Bush and other U.S. and world leaders attending the G-20 summit to safeguard fair value accounting and the independent standard-setting process in a strongly worded letter.

The Securities and Exchange Commission charged network security company Blue Coat Systems and its former CFO, Robert P. Verheecke, with allegedly backdating stock option grants and reporting false financial information, and he has settled the charges for $185,000.