Audit

Members of the Financial Accounting Standards Board came under pressure to relax fair value accounting rules when banking regulators would not change their capitalization requirements. FASB decided to loosen rules that kept banks from accounting for the cash flows they expected from mortgage-backed securities and other assets during impairment tests when they are categorized as available for sale, rather than just as held to maturity.

Cheshire Software has added estate planning features to its wealth management product.

The Financial Accounting Standards Board has issued the first of two proposed standards intended to simplify the accounting for financial instruments in response to the financial crisis.

The International Accounting Standards Board has proposed requiring companies to provide additional disclosures on all their investments in debt instruments, other than those classified in the fair value through profit or loss category.

The Financial Accounting Standards Board and the International Accounting Standards Board have published a discussion paper that takes a joint approach to solving some perplexing questions about the recognition of revenue.

The American Institute of CPAs has begun investigating the accounting firm listed as the auditor of Bernard Madoff's investment management business after the firm told the institute for 15 years that it did not perform any audit work.

Accounting firm BDO Seidman has been sued in connection with the $50 billion Ponzi scheme run by Bernard Madoff's investment securities business, even though it wasn't Madoff's auditor.

Three of the remaining four defendants in the KPMG tax shelter case were convicted of tax evasion charges.

Tax executives in both the United States and other countries said they are spending more time than ever on risk management, according to a new survey.

CBIZ is acquiring Tofias in a deal estimated at $55 million as the accounting provider expands its reach across the Northeast to the New England area.

KPMG saw its member firms' combined revenues around the world grow by 14.5 percent to $22.69 billion in the fiscal year ending Sept. 30, 2008.

The Securities and Exchange Commission has officially adopted a rule requiring public companies to begin filing their financial statements in an interactive data format, starting next year.

The Financial Accounting Standards Board has issued a proposed standard to address the controversial issue of applying fair value accounting to assets and liabilities acquired from a business combination.

The SEC, a tiny auditing firm, and some of the most sophisticated financial companies and hedge funds are just some of the players who missed the warning signs in the Bernard Madoff scandal.

Nearly 70 percent of the companies singled out by the Securities and Exchange Commission for financial fraud between 2000-2007 experienced a decline in stock prices, while more than half of that number suffered a 50 percent or higher drop in share prices, according to a new study released by the Deloitte Forensics Center.

The European Union has formalized its waiver allowing companies to file financial statements in European markets using U.S. generally accepted accounting principles -- as well as the accounting standards of five other countries -- without reconciling them to International Financial Reporting Standards. The measures declare U.S. GAAP, as well as accounting standards from Canada, China, Japan, South Korea and India, to be "equivalent" to IFRS as adopted in the European Union. An earlier transitional waiver was due to expire at the end of this year. European Internal Market and Services Commissioner Charlie McCreevy welcomed the measures: "Today's adoption by the commission is a momentous step. It marks the culmination of important work spanning several years." Standard-setters in the U.S. and at the International Accounting Standards Board, which sets IFRS, have been working to converge the two sets of standards. Earlier this year, the U.S. announced that it would allow companies to file here in IFRS without reconciling their accounts to GAAP. The European Commission said that it would review the situation of standards in Canada, China, South Korea and India by 2011 at the latest.

I received some interesting information from Brian Meehan of Celtic, Inc. regarding a little practical advice on how to weather a volatile market when it comes to college savings. He notes that if you are like most people, the current market conditions can cause concern when you see your long-term investment accounts, including college savings and retirement plans, losing their value. He points out that the College Savings Plans Network, a non-profit association representing states who administer 529 college savings and prepaid plans, and an affiliate of the National Association of State Treasurers, encourages people to keep the following principles in mind when making decisions about their college savings accounts during tough economic times: Stay Focused on Long-Term Objectives: As the market moves in up and down cycles, it is vital that one keep emotions out of affecting financial decisions. Look at the performance of your college savings account since inception as well as shorter-term performance. Diversify Your Investments: You need a mix of stocks, bonds, and cash investment options or in an age-based option which typically provides this sort of mix. Make Changes, if at all, Gradually: Invest any new funds into more conservative options and reallocate equity options to more conservative ones. Move funds gradually so as to not lock in, or realize, all of your losses and to be able to take advantage of a market recovery. Limit Reallocations: All 529 plans have a one-time-per-calendar-year rule on making reallocations between investment options. If you have already made a reallocation of your account this year, you cannot make another change until next year. However, you can always redirect new contributions at any time. Make Regular Investments: Often referred to as “dollar-cost averaging,” this approach lessens the risk of investing a large amount in a single investment at the wrong time. Invite Family to Help: Ask your family and friends to help build the college savings by contributing to your account as a holiday or birthday gift. Many plans offer gift certificate forms or contribution slips to facilitate making a contribution as a gift. Talk to your Plan Provider: If you have specific questions abut your 529 savings or prepaid plan, call your plan provider. To learn more about the College Savings Plan Network and 529 college savings plan across the country, visit collegesavings.org.

The Internal Revenue Service has given schools and tax-exempt organizations more time to finish writing their retirement plans.

The Securities and Exchange Commission has scheduled a vote for next Wednesday on whether to begin requiring companies to file financial statements in an interactive data format.

The Financial Accounting Standards Board has issued new standards that increase the disclosure requirements that public companies need to make about their financial asset transfers and variable-interest entities.