Audit

Under pressure from banks and regulators, the Financial Accounting Standards Board has decided to reverse itself and postpone the effective date of an accounting rule that would have forced financial institutions to move assets and liabilities from special-purpose entities such as mortgage-backed securities onto their balance sheets.

The Securities and Exchange Commission signed a memorandum of understanding with the Labor Department to make permanent the sharing of information to help protect the retirement savings of American workers.

External audit fees are finally beginning to moderate and in some cases decline for big companies for the first time since the Sarbanes-Oxley Act went into effect in 2004.

Accounting firm Amper, Politziner & Mattia has reorganized its leadership team, appointing a new chairman, CEO and COO.

CPA firm Eide Bailly plans to merge with Murrell, Hall, McIntosh & Co., expanding its staff to over 1,000 and providing combined revenue of $123 million.

The Securities and Exchange Commission plans to hold a roundtable discussion on Aug. 4 to compare the performance of International Financial Reporting Standards and U.S. generally accepted accounting principles during the recent period of market turmoil caused by the subprime loan crisis.

The Public Company Accounting Oversight Board has adopted rules and a related form to govern when a firm would be allowed to succeed to the registration status of a predecessor firm following a merger or other change in the registered firm's legal status.

KPMG has released a study that ranks cities with the most favorable tax structures for business.

BDO Seidman reported that its annual revenue increased 11.9 percent to $659 million for the fiscal year ended June 30, 2008 from $589 million the previous fiscal year.

Accounting firm Burr Pilger Mayer has introduced an employee stock ownership plan that it is offering to all of its 325 employees.

Georgia's Court of Appeals upheld a $10 million jury verdict against Big Four firm PricewaterhouseCoopers on behalf of four family trusts. In 2007, a jury in Cobb County found the audit firm liable for negligent misrepresentation in a series of financial audits of a nursing home conglomerate. In 1995, Georgia businessmen and brothers Stiles A. Kellett Jr. and Samuel B. Kellett had merged their Marietta, Ga.-based nursing home, Convalescent Services, with the larger Mariner Health Group. Six years ago, the Kelletts, two of their limited liability partnerships and four Kellett family trusts sued PwC and three former senior executives of Mariner Health, charging that the defendants engaged in fraud that ultimately cost the Kelletts more than $126 million in stock losses. In the suit, the Kelletts sought more than $400 million and to prevent PwC from doing business in the state of Georgia. The litigation charged that Coopers & Lybrand, the precursor firm to PwC, had generated inaccurate financials on Mariner that overstated earnings and understated liabilities. The Kelletts claimed that the misstatements persuaded them that the merger would be a profitable one.

Conrad Hewitt joined the Securities and Exchange Commission as chief accountant in August 2006. Hewitt is charged with establishing and enforcing accounting and auditing policy to enhance the transparency and relevancy of financial reporting at the SEC. His office also aims to improve the professional performance of public company auditors in order to ensure that financial statements used for investment decisions are presented fairly and have credibility. Lately he has been much involved with planning for the transition from U.S. accounting standards to international standards. WebCPA talked with him and his department's chief legal counsel, Jeff Minton, about the convergence of U.S. generally accepted accounting principles and International Financial Reporting Standards.

The Public Company Accounting Oversight Board plans to consider adopting rules on succession to a predecessor's registration status. The PCAOB has scheduled an open meeting for Tuesday, July 29, at 9:30 am in the board's open meeting room at 1666 K St. NW, Washington, D.C. The board will consider adopting rules and a corresponding form that govern when a firm would be allowed to succeed to the registration status of a predecessor firm following a merger or other change in the registered firm's legal form. The meeting will be open to the public and Webcast via a link on the PCAOB's Web site (www.pcaobus.org) that will be made available the day of the meeting. The meeting also will be available via podcast later in the day.

It’s no secret that plenty of the 76 million Baby Boomers are tossing and turning every night, trying to calm down and get to sleep. Why? Clearly, they are concerned about whether they will have enough money to retire. But, add to that is the vital question of what they would like to do with their lives after such retirement. Joan Carter is the co-founder of Life Options Institute, an organization that is devoted to helping people plan for retirement life and she has come up with 10 rather interesting and admittedly, non-financial tips for the Boomers. 1. Life's About More than Money. Carter believes that one has to start thinking seriously about retirement some five years before quitting the workforce. 2. Make Life Plans. It’s important to plan for the non-financial aspect of retirement by considering what will make you happy. Carter gives some fascinating examples such as climbing Mt. Kilimanjaro, dog sledding in Alaska, or even having time to write the next great American novel. And then there is the possibility of working part-time. 3. Find a Purpose. She says that one must find something on an ongoing basis that provides joy and structure. This can involve travel, hobbies, or even new career training. 4. Keep Sharp. Many people say they feel the need to replace the intellectual stimulation of work. If so, remarks Carter, try learning a foreign language or musical instrument, or joining a retirement group that offers ongoing educational courses. 5. Volunteer. Getting involved in the community is, of course, a pretty good way to give back, as well as opening an opportunity to interact and meet new people. 6. Develop New Friendships. Carter firmly believes that a measurement of whether people have a successful retirement is the strength of their social network, and that includes family and friends. 7. Spousal Input. Retirement usually means a shared experience, especially if the spouse has retired, as well. Therefore, notes Carter, make time to share your dreams with your spouse. She says that you might be pleasantly surprised to learn that the spouse may want to join you on that Mt. Kilimanjaro climb. 8. Remain Healthy. There's an old adage: a lean horse for a long race. That means eating well, watching your weight, and remaining active. 9. Financial Stability. If you can't afford to a full-time retirement, consider partial retirement, which can include working part-time in your current job or even finding something new from which you can earn some money. 10. What's Next in Your Life? Go to the following aptly-named Web site, http://www.WhatsNextInYourLife.com to locate non-financial retirement planning tools.

The Financial Accounting Standards Board has decided to defer the development of a new accounting model for lessors, saying the project will now only address lessee accounting.

Deloitte Touche Tohmatsu reported that its aggregate member firm revenue increased by 18.6 percent in U.S. dollars, and 13.0 percent in local currencies, to $27.4 billion in fiscal 2008.

The Howard University School of Business’s Center for Accounting Education recently held a weeklong program to improve the retention and advancement of young African American accountants and increase the numbers passing the CPA Exam early in their career.

John Gimigliano, former senior tax counsel of the House Ways and Means Committee and staff director of the Subcommittee on Select Revenue Measures, has joined KPMG.

The Center for Audit Quality capped a 10-city tour focusing on the modernization of financial information with a stop in the nation’s capital.

The Social Security Administration unveiled a new online calculator to help people plan for their retirement.