Regulatory actions and programs

The American Institute of CPAs has appointed four new members of the Auditing Standards Board.

Berkshire Hathaway chairman Warren Buffett said in his annual letter to shareholders that he endorses mark-to-market accounting, even though it helped produce the worst financial results for his company in the 44 years he has been running it.

Although admittedly many people look upon January 1st as the trigger-point for resolutions, an organization known as Savvy Ladies figures that April 15th is really the better date. “Tax time is often the only time of the year when a lot of people sit down and look at how much they’ve earned and how much they’ve been able to save,” says Stacy Francis, founder of Savvy Ladies and a certified financial planner,. “It’s a bit of a shock for many to see how much cash slips through their fingers every month.” Savvy Ladies is dedicated to providing financial education to women in their quest for financial independence. It has free monthly newsletters, seminars, and teleconferences that are pegged at fostering a sense of community and are specifically designed to educate, amuse, and fulfill savvy women who want to take control of their financial future. There are currently 2,100 members and growing rapidly. The founder of this organization is Stacy Francis who is the president of Francis Financial, a New York City-based firm that specializes in helping individuals create more fulfilling lives through financial freedom.

Rep. Paul Kanjorski, D-Pa., has introduced a bill in Congress to close a legal loophole that allowed Bernard Madoff’s tiny auditing firm to avoid scrutiny.

The Public Company Accounting Oversight Board’s chief auditor and director of professional standards, Thomas Ray, has resigned and plans to return to the private sector on March 6.

CaseWare IDEA and Audimation Services plan to introduce the latest version of their IDEA audit software, including a new project overview feature that presents a graphical representation of the entire audit or investigation process.

The next meeting of the Financial Crisis Advisory Group is scheduled for March 5 as accounting leaders and regulators sort out issues related to the recession.

Ric Rosario is stepping into some big shoes at Camico Mutual Insurance Co.

Bankers could start huffing and puffing after a few minutes on the treadmill once Tim Geithner cranks up the dial a few notches.

The American Institute of CPAs’ board of directors has extended Barry Melancon’s term as president and CEO for another five years.

As expected, the Senate approved Mary Schapiro by a unanimous vote as chair of the Securities and Exchange Commission. Schapiro, who has a reputation as a tough-minded regulator, noted during the confirmation process that she planned to ramp up enforcement efforts at the SEC. She also proposed rethinking the current roadmap to U.S. adoption of International Financial Reporting Standards, and expressed concerns about the resources and independence of the International Accounting Standards Board, which sets IFRS.She was formerly chief executive of the Financial Industry Regulatory Authority, the securities industry's self-regulating body.

National Taxpayer Advocate Nina E. Olson urged Congress to simplify the U.S. Tax Code and recommended measures to reduce the burden on taxpayers who are struggling to pay their bills.In the first of this year's two required reports to Congress, she designated the complexity of the Tax Code as the most serious problem facing taxpayers. According to data compiled by her office, U.S. taxpayers and businesses spend about 7.6 billion hours a year complying with tax-filing requirements. "If tax compliance were an industry, it would be one of the largest in the United States," she said in her report. "To consume 7.6 billion hours, the tax industry requires the equivalent of 3.8 million full-time workers."

GUIDANCE ISSUED ON TAX STATSWashington, D.C. - The Internal Revenue Service has issued interim guidance on the ability of a tax return preparer to use statistical compilations of anonymous tax return information to support their business.

From my vantage point on the other side of the Atlantic, I was delighted to see the Securities and Exchange Commission publish its roadmap to adoption of International Financial Reporting Standards. I just hope the U.S. constituents are as pleased as I am and that we can make some real progress towards global accounting standards.With that hope in my heart, I thought it would be worthwhile exploring what the situation might be post-IFRS-adoption for U.S. GAAP, for the Financial Accounting Standards Board and for the International Accounting Standards Board, drawing on my experience of what has happened in the U.K. and Europe.

Page 330 of our 2002 book, Quality Financial Reporting, includes this comment: "No one should accuse accountants of being glacial; after all, glaciers move."Contrary to our jab, the accounting glacier did actually move in May 2008 when FASB issued Staff Position APB 14-1, ponderously titled Accounting for Convertible Debt Instruments That May Be Settled in Cash Upon Conversion (Including Partial Cash Settlement). This FSP is something of a sleeper because no one's said much about it, even though it kicked in for fiscal years and first quarters beginning after Dec. 15, 2008.

As the debate over adoption of International Financial Reporting Standards heats up in the U.S., KPMG has released a survey indicating support for IFRS among investors, analysts and corporate executives who prepare financial statements.

Regional accounting firm Schenck Business Solutions has created a Financial Crisis Response Team to help companies challenged by the recession.

The National Association of State Boards of Accountancy is urging the Securities and Exchange Commission to withdraw its proposed roadmap for transitioning to International Financial Reporting Standards.

The Public Company Accounting Oversight Board has issued guidance on the recent requirement for registration of auditors of privately held broker-dealers.

The Securities and Exchange Commission has appointed former Public Company Accounting Oversight Board member Kayla Gillan as senior advisor to new Securities and Exchange Commission Chair Mary Schapiro, effective immediately.