Regulatory actions and programs

New guidance aims to help organizations better monitor the effectiveness of their internal control systems.

Even with the current downturn in the real estate market, like-kind exchanges continue to be a popular way to dispose of property while deferring the taxable gain.

Accounting firm Wiss & Co. has created an economic advisory group to help business owners and executives deal with the recession.

A new board that includes the Securities and Exchange Commission and other regulatory bodies will now oversee the trustees who oversee the International Accounting Standards Board.

The Securities and Exchange Commission has posted the final version of its rule mandating Extensible Business Reporting Language for public companies.

The Financial Accounting Standards Board has issued a proposed standard that would require disclosures about the fair value of financial instruments in interim financial statements as well as annual statements.

The Financial Accounting Standards Board wants to bring more clarity to some of the complex credit derivatives that contributed to the financial crisis.

New York Governor David Paterson has signed a bill expanding the regulation of CPAs throughout the state.

A New York federal court judge has ruled that Deloitte & Touche must stand trial in a class-action suit over its Italian affiliate's audits of collapsed dairy processor Parmalat.

The Tax & Accounting business of Thomson Reuters has released new Checkpoint Tools to help accountants handle specialized engagements, risk assessments and internal controls.

The Public Company Accounting Oversight Board has published guidance to help auditors apply Auditing Standard No. 5 to audits of internal controls at smaller public companies.

Newly approved Treasury Secretary Timothy Geithner moved to provide more transparency in the controversial Troubled Assets Relief Program by posting investment contracts on the Internet.

The incoming chair of the Securities and Exchange Commission, Mary Schapiro, criticized the International Accounting Standards Board and expressed reluctance to move to International Financial Reporting Standards.

With the election over, we now must focus on what real changes will advance the markets.

Often, the monotony of punching a clock as someone else's employee leads to daydreams of starting a business and being your own boss. In rough economic times, those daydreams may never pass beyond imagination. "Times are tough; how could I start my own small business now?" one thinks. That's rational thinking, but, counterintuitively, a down economy can actually create great opportunity for budding entrepreneurs.There are a variety of benefits to starting a small business during poor economic conditions. For starters, office rents could be lower and suppliers may cut better deals. Downturns are a great time to sign new accounts. Customers are examining every expense for ways to save, including asking eager entrepreneurs for price bids in order to replace current and expensive vendors.

The Securities and Exchange Commission has released its congressionally mandated report on mark-to-market accounting, calling for improvements in the standards, but not their suspension. The 211-page report's recommended improvements include reconsidering the accounting for impairments and the development of more guidance for determining the fair value of investments in situations where market prices are not readily available.The report noted that investors generally believe that fair value accounting increases reporting transparency and facilitates better investment decision-making. It also indicates that fair value accounting did not appear to play a meaningful role in the bank failures in 2008.

Though the Governmental Accounting Standards Board expects to issue only one new standard in 2009, the year should be productive enough to position the board for significant advances over the subsequent two years.You could call it a year of research and deliberation - some of it conducted in-house by staff, and some by requests for comments and ideas from the field of state and local governments and the users of government financial information.

On Dec. 16, 2008, the Internal Revenue Service released the long-awaited final tax return preparer regulations. Although they had been expected to be issued in November, they were further delayed by the changes to Code Sec. 6694 included in the Emergency Economic Stabilization Act of 2008. In addition to the final regulations, the agency also promulgated Notice 2009-5, providing some interim guidance for the 2008 tax filing season, and Revenue Procedure 2009-11, updating the list of IRS forms that are subject to the preparer penalties.The final regulations do not differ significantly from the proposed regulations, but make several changes in response to comments received. The interim guidance responds to the statutory changes made by the Emergency Economic Stabilization Act and can be relied on by tax return preparers until final guidance is issued. Tax return preparers will want to make sure that they are familiar with these new requirements to avoid penalties as the 2008 tax return season gets underway.

The Senate has approved Mary Schapiro by a unanimous vote as the next Securities and Exchange Commission chairman.

Accounting firm Wipfli has created a task force to help companies cope with the financial crisis.