India plans to bring its accounting standards in line with International Financial Reporting Standards by April 1, 2011.

DREAMS INC. ENGAGES FRIEDMAN COHENSports memorabilia and licensing concern Dreams Inc. has named Friedman, Cohen, Taubman & Co. as its auditor.

With the exploding interest in and acceptance for market-value-based information in financial statements, we thought we would rerun a couple of columns from several years back as part of our summer tradition.This one was published in spring 2001, and talks about the hole in generally accepted accounting principles, even value-based GAAP, that continues to insist that there is a difference between unrealized and realized gains and losses. At the heart of this anachronistic practice is confusion between income and cash flows, which are two different things best described in two different financial statements.

Put a dozen managers and executives from financial planning firms in the same room, and before too long the conversation is likely to turn to the business issue that concerns them all: profitability. Whether they represent a one-person shop or are part of a large corporate structure, planners are almost universally challenged to serve the needs of their clients at a profit.To achieve that profitability, you must first address two other challenges - those presented by staffing and compensation. Getting the right people in place, giving them the tools to excel, and rewarding them for performance are all critical steps in achieving profitable growth.

PRUDENTIAL FINANCIAL TO SHUTTER STOCK RESEARCH UNITLife insurance and money management conglomerate Prudential Financial Inc. said that it would shut down its institutional stock research and trading business - Prudential Equity Group - after 26 years of operation. Prudential will close its offices and trading operations in nine U.S. cities, as well as in London, Zurich, Paris and Tokyo. Some 400 employees will be terminated.

In a major step toward an eventual convergence of accounting standards, the Securities and Exchange Commission put out a proposal to allow non-U.S. companies that list on U.S. exchanges to reconcile their financials using International Financial Reporting Standards, instead of U.S. generally accepted accounting principles.The measure, according to SEC Chairman Christopher Cox, is a movement to have all companies "speak the same language," while serving to attract more international companies to U.S. markets. Business leaders have complained that investors are bypassing the U.S. in favor of London and Hong Kong as a result of over-regulation and the costs of having to file in two sets of accounting rules.

The new discussion draft Form 990, dubbed "the biggest thing the Exempt Organizations Division at the IRS has done in the last quarter century," by division director Lois Lerner, could be both a boon and a burden for preparers.The Internal Revenue Service hopes that the form, already released for comment, will be ready for use for tax year 2008.

Have you heard the joke about the sales tax audit? No one has.There is nothing funny about a sales tax audit.

Summertime brings with it the "high season" for clients who are seriously considering purchasing vacation homes, or switching from one vacation home to another.The majority are looking to take advantage of certain tax breaks to help them carry the property. For others, tax savings are an added bonus to validate their decision. In either case, tax advisors often get a hurried call to explain the options.

At the request of Connecticut State Comptroller Nancy S. Wyman, the state's General Assembly has voted to allow the comptroller to set generally accepted accounting principles for the state, starting in 2009.Wyman, however, said that she has no intention of modifying GAAP, as set by the Governmental Accounting Standards Board, for external reporting.

The European reaction as to how a proposed standard on fair value needs to be revised in order to be suitable for International Financial Reporting Standards is starting to emerge as a more of a "back to basics" cry.Among other things, regulatory experts within the EU are requesting a more principles-based approach and shorter documents than the 12 pages on FAS 157 and the 20-plus pages of guidance. They also maintain that any debate on the subject should not begin with the assumption that fair value needs to be reflected on the balance sheet. Others have forwarded suggestions on clarifying the language of the standard.

The Securities and Exchange Commission has settled charges with four former finance executives of SmartForce related to the software company's overstatement of revenue and income.

The Securities and Exchange Commission announced Thursday that Chester Spatt, Chief Economist and Director of the Office of Economic Analysis (OEA), will leave the agency to return to academia at the end of July, according to an SEC press release.

Bob Levy of New York City-based Levy & Associates called to tell me about a CPA Career Day and The Singing CPA. I thought the idea a superb one. You see, students from the Academy of Finance schools in New York City had the opportunity to get a firsthand look inside the world of accounting at this year’s CPA Career Day, an event that featured speakers from Goldman Sachs as well as music from “The Singing CPA,” who played songs spiced with accounting-related lyrics. Sponsored by the Academy of Finance and the New York Society of CPAs, it was attended by high school students, many of whom are considering the field of accounting in their future. According to Joshelyn Vivas, a junior at John Dewey High School, the event was not only informative but motivating, as well. “After listening to the speakers it makes me want to be a CPA and take the exam. An accounting firm is where I want to be.” Julie Levin, a Goldman Sachs vice president in their tax department, notes that putting in the hours is one of the most surprising things for students. “I kind of tell people that you’re likely to start out working about 55 hours and that doesn’t include email time, coffee, or lunch breaks.” Regina Flannery, Director of the Academy of Finance, points out, “The fact that the students have the opportunity to gain access to successful professionals in the accounting field will prove extremely beneficial. What we’re really trying to do is give the students a three-dimensional look at a potential career choice. While many of these students may not choose accounting as their profession, they’ll at least have had the chance to see what the field has to offer.” This is extremely important says Levin because in the end she feels that it’s really the students who have to decide what they want to do with their future. “No one can make that decision for them. It’s all about taking your career in your own hands. If you want to do international travel, you really have to let people know.” Providing much of the entertainment was Steven Zelin, also known as “The Singing CPA.” He currently works at Societe Generale, a large corporate investment bank, in addition to having his own consulting CPA practice. “I enjoy sharing my experience as a CPA with young people,” says Zelin. “A lot of the students think first off that being a CPA is all about the numbers, but it’s really being able to work well with other people as well as understanding business and accounting concepts.” He adds that becoming a CPA provides a strong foundation for many types of careers in business. “I think that the training you get from studying accounting provides a terrific foundation for developing a good financial perspective on life.” He also stresses that becoming a member of the NYS Society of CPAs would be a sound financial investment to students looking to go into the field. The Academy of Finance is a partnership of the New York City Department of Education, the National Academy Foundation, and the New York business community. The Academy introduces students to a variety of career opportunities in the financial services industry while equipping them with the conceptual and practical tools they need to choose their future profession. The National Academy Foundation creates partnerships between business leaders and education through an innovative educational model. Its small public school-based learning communities empower high school students to successfully go on to higher education and professions of their choosing. Thanks, Bob.

The Public Company Accounting Oversight Board said it plans to hold a meeting to consider a new ethics and independence rule concerning communication with audit committees.

Stephen Cooper, a managing director and head of valuation and accounting research at UBS Investment Bank, has been appointed to the International Accounting Standards Board.

Securities and Exchange Commission Chairman Christopher Cox told a Town Hall Los Angeles meeting that he wants Congress to give more power to the Governmental Accounting Standards Board so GASB can police accounting practices at the state and local government level and better regulate the municipal bond market.He would like the SEC to be able to enforce GASB accounting rules when it sees a violation by a state or local government, similar to the way the SEC can take action against companies that flout Financial Accounting Standards Board rules. Texas and Connecticut have both passed bills recently allowing alternative accounting rules, although Connecticut Governor Jodi Rell has vetoed that state’s bill.

A group of companies and organizations in the United Kingdom has responded to the Financial Reporting Council's report on constraints in the audit market that have forced most large public companies to rely on one of the Big Four accounting firms for audit services.

Louisiana accounting firms LaPorte Sehrt Romig Hand CPAs and the Gautreau Group plan to merge on October 1.

The Public Company Accounting Oversight Board is forging closer ties with Australian regulators.The PCAOB has signed a statement of protocol with the Australian Securities and Investments Commission to improve cooperation in their oversight of auditors and public accounting firms that practice in the United States and Australia.