Audit & Accounting

With all the recent brouhaha over the subprime controversy and claims that mark-to-market accounting contributed to or even caused problems for investors in collateralized debt obligations, lots of people have been commenting on the relative usefulness of original cost and estimated market/fair value.One of the recurring themes raised by the chorus of critics (who shall remain nameless) is that original cost is preferable because it’s more reliable than estimated value.

In 1994, the Governmental Accounting Standards Board established standards for public employee pension plans. Government and public employers have to report and account for pension benefits costs.However, until recent years, there was no such standard in place for other post-employment benefits for state and local government workers.

The Certified Financial Planner Board of Standards has established a Jan. 1, 2009 enforcement date for its revised "Standards of Professional Conduct," allowing members more leeway before enforcement takes effect.

The American Institute of CPAs has introduced a new service called Financial Reporting Alerts to help financial managers and audit committees identify current accounting and regulatory developments that affect financial reporting.

BKD said it is combining forces with the Hanke Group, allowing the Springfield, Mo.-based accounting firm to expand to Hanke's San Antonio and south Texas markets.

The American Institute of CPAs has published the second edition of "Audit Committee Toolkit: Public Companies," a guidebook to help audit committees carry out their corporate governance responsibilities.

The Treasury Department has introduced a prepaid debit card for Social Security payments and other federal benefits.

The American Institute of CPAs has chosen Paychex as its preferred provider for administering 401(k) plans for members who participate in the AICPA's firm retirement program.

The Securities and Exchange Commission has voted to propose a series of reforms to credit-rating agencies to curb practices that led to trouble in the credit markets.

Payroll-processing service Paychex has added an auto-enrollment feature that allows employers to automatically sign up employees to participate in a 401(k) plan.