Financial reporting

"There have been nine pieces of tax legislation passed this year," he noted. "The primary responsibility for accountants is to adequately and accurately reflect things that happen to the taxpayer in a way that gives the taxpayer the greatest benefit allowed by the legal system. Tax planning helps the preparer to meet this responsibility."

A new career in income tax preparation could be a safety net for some of the thousands of bank and financial services employees who are losing their jobs due to the current economic crisis. Many of those being laid off are older employees who would not be able to find another comparable full-time job, but are not ready to retire.Tax professionals need many of the same qualifications that bankers and financial professionals possess. A tax preparer must be able to conduct a thorough interview to extract financial and personal information from their client and hold that information in complete confidence. Preparing income tax returns requires similar skills as completing banking, mortgage or investment documents.

When was the last time you or your clients took a hard look at your 401(k) plans?If you're like many small and midsized business owners, chances are that you haven't spent much time reviewing the plan since the day it was set up three, five and perhaps even 10 years ago. Most employers implement a plan and simply assume that even years later it will continue to do what is best for themselves, their company and their employees.

Change is scary. There's no doubt about it. I often tell my clients that whenever I am facing a major change, I feel like I am at the edge of a diving board and just can't jump into the water.I guess I'm no different than any of you when it comes to change. Sometimes I have been forced into it, and other times I have led it.

The Securities and Exchange Commission was somewhat ambivalent last August when it approved a "roadmap" towards accepting International Financial Reporting Standards for U.S. publicly held companies.Indeed, several months after agreeing on the framework for its ultimate mandate of IFRS accounting beginning in 2014, the regulator still hadn't published an official document outlining its decision. But that apparently isn't dampening accounting firms' commitment to gearing up for IFRS, or to alerting clients to IFRS's sweeping ramifications.

The Financial Accounting Standards Board has provided new flexibility to allow banks and other financial institutions to reprice their assets during the credit crisis by amending its standard on fair value measurements.The FASB Staff Position clarifies the application of FASB Statement No. 157 in an inactive market and provides an illustrative example to demonstrate how the fair value of a financial asset is determined when the market for that asset is inactive.

The Private Company Financial Reporting Committee discussed FIN 48, fair value and other matters at its latest meeting.

The Financial Accounting Foundation advised President Bush and other U.S. and world leaders attending the G-20 summit to safeguard fair value accounting and the independent standard-setting process in a strongly worded letter.

When it comes to personal finances and investing, affluent women are hard working, smart, and self-driven, according to Women & Co., Citigroup’s resource program dedicated to helping women achieve their financial goals. The survey, Women and Affluence 2008: A Generational Study, reveals that affluent women are knowledgeable about investing, confident about their retirement, often the primary decision maker, and influencing the next generation of women to do the same. Lisa Caputo, founder and CEO of Women & Co. says that the study is part of the ongoing dialogue with women. “This survey is the latest example of how we listen to women and continue to learn about their distinct financial needs, attitudes, and perspectives. The results indicate that today’s affluent women have far surpassed their mothers in financial acumen, and decision making responsibility. Despite a lack of female financial role models, affluent women empowered themselves and are committed to being a positive financial role model for their daughters.” In fact, according to the survey, women stated they talk to their daughters more about money than any other topic. Why? The research shows that women are embracing their role as CFO (Chief Financial Officer) of the household and encouraging their daughters to do the same. Some key findings from the study include:

The financial crisis will make it more difficult for businesses to comply with sales and use tax payments, according to a new survey.

The Center for Audit Quality defended the use of fair value accounting in a letter to the Securities and Exchange Commission as the standard comes under attack from banking interests.

Treasury Secretary Henry Paulson said the department's Troubled Asset Relief Program would begin to focus more on relieving tight consumer credit markets and shift away from the original plans to buy mortgage-backed securities.

The House Committee on Oversight and Government Reform held hearings on the role of hedge funds in the financial crisis and whether they should be more strictly regulated.

International Accounting Standards Board Chairman Sir David Tweedie said he nearly resigned before giving in to pressure from European regulators to modify fair value accounting standards to allow banks to reclassify their assets.

H.D. Vest Financial Services is offering remote check scanning and depositing services to its network of financial planning advisors.

The International Accounting Standards Committee Foundation has written a letter to President Bush asking him and other world leaders to respect fair value accounting and the standards-setting process.

The American Institute of CPAs has written to the Securities and Exchange Commission urging it to allow the Financial Accounting Standards Board to continue to set standards for mark-to-market accounting.

I haven’t known a month’s financial confidence in my whole adult life.

“The best defense in these interesting economic times is to do nothing out of panic.” So says Brent Neiser, a certified financial planner and director with the National Endowment for Financial Education. “People react emotionally without information about situations that apply to them.” Neiser believes that with the financial markets looking like a roller coaster, many investors are now considering cutting their losses and racing to the sidelines. And then they will wait until the market hits bottom and starts to go in the other direction. I have heard the same tactic being employed by many of my friends. Of course, the reply from me usually is, when will you know when you hit bottom?” Neiser warns that unless you actually must have the money for a child’s college tuition or to purchase a “must do” big ticket item like replacing a car that has died on you, he feels the best bet is to continue investing in your 401(k) plan, at least up to the company match threshold. “That’s free money. Take it unless you absolutely can’t afford to.” Neiser also advises that keeping about three to six months of ready cash to cover expected circumstances is a good idea. “You don’t want to be selling investments as the market is going down just to pay the mortgage or put food on the table.” That’s why he recommends putting cash in a money market to even a checking account to keep the cushion safe from market swings. In other words, keeping yourself liquid, and not to make any major changes in your portfolio. As to credit card debt, Neiser believes that while it may be important to pay yourself first, as the old adage goes, why would you continue paying 18 percent interest rates on unsecured debt while you earn just two percent on your savings? “Pay off your plastic and get rid of them.” He also feels that this is the perfect time to check how you are protecting your assets through automobile, home, life, disability, and health insurance policies. He points out that it might be better taking higher deductibles and putting the savings from lower insurance premiums into a dedicated “insurance deductibles” savings account. Even if nothing happens, you at least have an account with money in it. And should something unforeseen happen, you have money to help cover the increased deductible. For more tips, you might want to visit www.smartaboutmoney.org. Also, to learn more about the National Endowment for Financial Education and how they can help people acquire the knowledge and skills necessary to take control of their financial destiny, visit www.nefe.org.

A tax attorney predicts that small businesses and high-net-worth individuals will need tax-planning advice to help protect their assets from anticipated changes in tax law.