Audit & Accounting

A board within the International Federation of Accountants has released a standard identifying disclosures to be made by governments and other public sector entities that make their budgets publicly available.According to the International Public Sector Accounting Standards Board, such disclosures will contribute greatly to improving accountability. The new standard, IPSAS 24, “Presentation of Budget Information in Financial Statements,” applies to entities that adopt the accrual basis of financial reporting. Additionally, the cash basis standard, “Financial Reporting under the Cash Basis of Accounting,” has been updated to include both required and encouraged disclosures that apply to entities that adopt the cash basis of financial reporting.

So, what makes a top-notch advisor? It looks as though MainStay Investments may have given us the answer.

Deloitte & Touche LLP announced the formation of its Center for Banking Solutions, which will address new ways to solve issues affecting the competitiveness of banks operating in the United States.

The Financial Accounting Standards Board has unanimously voted to move forward in implementing new rules that require public companies to take a more structured approach in reporting uncertain tax positions on their financial statements.

The U.S. Supreme Court will allow a lower court ruling to stand -- finding that International Business Machines Corp. did not commit age discrimination when it changed its pension coverage in the late 1990s.While the ruling paves the final legal road for IBM’s switch to a cash-balance pension plan from a defined-benefit pension, regardless, the company announced a year ago that it would eliminate the cash-balance plan as of Jan. 1, 2008, making enhancements to its 401(k) plan instead.

Deloitte & Touche SpA, the Italian arm of the Big Four firm, will pay Parmalat $149 million to settle investor claims accusing the firm of contributing to the Italian dairy company's collapse in December 2003.

At times, taxing authorities give out surprising beneficial rulings. The only problem is, you must ask for the ruling. For example, there was my October 24, 2006, WebCPA column about an advisory opinion issued by the New York State Department of Taxation and Finance.It answered the following question: Are you taxed as a New York resident if you move into a New York nursing home for care because you are incompetent and in need of constant medical supervision? According to the opinion, the individual, lacking intent to move, remained a resident of Florida despite the move to a New York nursing home for care.

In a series of deals effective Jan. 1, LarsonAllen LLP acquired four firms, expanding its presence in Wisconsin, Minnesota and Arizona.

Two accountants have entered guilty pleas in connection with the sale of legally-questionable tax shelters.

Sounding a familiar warning, the Public Company Accounting Oversight Board criticized Ernst & Young and KPMG for failing to follow accounting rules or gather sufficient evidence for judgments in a number of audits.