Audit

A long-awaited overhaul of accounting for business combinations and consolidations was recently completed by the Financial Accounting Standards Board.FASB issued a revised version of FAS 141, Business Combinations (FAS 141(R)) and the new FAS 160, Noncontrolling Interests in Consolidated Financial Statements, which is an amendment of ARB No. 51.

The Public Company Accounting Oversight Board along with regulators, audit firms and investor oversight groups are hailing a decision by an appeals court that upheld the constitutionality of the audit firm overseer.Ending a two-year legal battle, the U.S. Court of Appeals for the District of Columbia Circuit held that the manner in which the organization's board members are appointed and overseen under the Sarbanes-Oxley Act is constitutional. The decision was split 2-1 among the judges.

Before the SEC published its roadmap for the switch to International Financial Reporting Standards, we asked a large group of industry leaders if they thought the accounting profession was ready for the shift - and if not, what it needs to do to get ready.

KPMG plans to host a 48-hour worldwide recruiting fair over the Internet next week.

Nonprofit software provider Blackbaud Inc. said it has completed the integration of its flagship product Raiser's Edge with Sphere, the online marketing and fundraising application from its Kintera division, which it acquired in July.

In response to the aging of this country’s workforce and the most serious economic downturn in years, AARP says that it is broadening its online career services for 50+ workers through a new collaboration with RetirementJobs.com. The new service, it adds, will provide mature workers the opportunity to search for full time, part time, and flexible jobs from age-friendly employers, This new online venture (www.aarp.org/jobs) will allow AARP’s some 40 million members to have direct access to RetirementJobs.com’s search tools. Accordingly, as part of this new collaboration, both entities will identify employers that maintain policies, practices, and programs consistent with employment of those 50 and older based solely on their proficiency, qualifications, and contribution. Deborah Russell, AARP’s director of workforce programs, points out that the new collaboration will add “great breadth to AARP’s career site by proving our members opportunities to find job openings and transition into new jobs.” This new collaboration comes on the heels of an AARP economic survey done this past May in which it found that 81 percent of all Americans ages 45 and over say that the economy is in fairly bad, or very bad, condition. It also shows that more than one in four older workers say they postponed plans to retire because of the recent economic downturn and eight in 10 Boomers note that they plan to work into their retirement years. In fact, the survey unearths the fact that those planning to work into their retirement years are primarily doing so to earn needed, additional income, maintain health benefits, or in some cases to remain active and gain personal enrichment. Keep in mind that this all comes at a time when 50+ workers are playing an increasingly important role in the labor force. Actually, 50 and over workers already represent 28 percent of the workforce and projections show that by the year 2016 that figure will jump to 33.5 percent--more than one in three in the labor force. You can get a copy of the survey, “The Economic Slowdown’s Impact on Middle-Aged and Older Americans,” by going to http://assets.aarp.org/rgcenter/econ/economy_survey.pdf.

The Securities and Exchange Commission has issued an addendum to an earlier letter it has sent to the CFOs of some public companies asking them to provide additional information about their fair value measurements, including credit risks and broker quotes.

Cougar Mountain Software has released CMS Professional 2009 for its accounting, fund and point-of-sale software lineup, providing extra inventory, security and customer management features.

The Securities and Exchange Commission issued a statement clarifying the accounting treatment for money market mutual funds amid the growing turmoil in the financial markets.

KPMG was on the losing side of a $17.6 million verdict in a case involving an investor who claimed the firm gave him bad tax advice.

Tax preparers in Oregon may set a standard for future regulation of tax preparers nationwide, according to a new report from the Government Accountability Office.

The Financial Accounting Standards Board has issued three exposure drafts of proposed financial standards and amendments relating to accounting for transfers of financial assets.

"Have you heard of this group?" asks Howard, my editor, handing me a printout.

The Internal Revenue Service has reached a settlement with the law firm Arnold & Porter, which has paid an undisclosed penalty for promoting tax shelters.

The American Institute of CPAs has issued a proposed update to its audit guide for the gambling industry that takes into account some recent issues faced by casinos.

The Financial Accounting Standards Board has issued a staff position aimed at improving disclosures about credit derivatives.

I just received my quarterly report from Fidelity Investments which has a pretty good article by Nate Hardcastle on ways to avoid risk and the steps to help manage it. Fidelity has a superb research unit and its report, “Beyond Conventional Wisdom: New Strategies for Lifetime Income,” is quite important when you are advising retirees, especially about the area of risk management. Retirees, as you already know, pretty much draw from their various savings and retirement accounts a certain amount each year to meet their expenses, which, as you also know, keeps rising so that there is left a rather small amount in which to generate any income. Then, you have to add to that the increasing life expectancy so that many financial planners today when talking to a 65-year old aimed at retiring now spins life out for another 30 years.

A federal appeals court upheld a $182.9 million jury award that PricewaterhouseCoopers will have to pay to policyholders of a defunct insurance company audited by its predecessor Coopers & Lybrand.

The International Accounting Standards Board and the Financial Accounting Standards Board have updated their 2006 memorandum of understanding and set a goal of completing their major joint projects on convergence of International Financial Reporting Standards with U.S. generally accepted accounting principles by 2011.

Deloitte has taken over an anti-money laundering group and plans to expand its mission.