Regulatory actions and programs

All eyes are on the Securities and Exchange Commission as it prepares to issue a detailed roadmap this summer for the transition to International Financial Reporting Standards, but some representatives gave hints about what might be in that roadmap at a conference held by the Financial Accounting Standards Board in New York.

The Internal Revenue Service has recently published an online guide to help its examiners assess the validity of businesses' claims for the research credit.

The Treasury Department's Advisory Committee on the Auditing Profession convened an open meeting to hear testimony on its draft report on recommendations for improving the profession, as well as to discuss an addendum with additional recommendations.

Let’s face it: The next 15 years are going to be hard for small firms to compete and survive. The external environment and demographic facts speak clearly:* 8,000 Baby Boomers are retiring each day.

International work assignments — both inbound and outbound, short-term and long-term — have become more common as the world gets “smaller” and “flatter.”While on foreign soil, most employees feel that they deserve additional compensation and that they should be at least somewhat released from the growing number of domestic tax rules that restrict compensation packages. Some of the more irksome rules restricting compensation arrangements lately are contained in the final regs under Code Sec. 409A on nonqualified deferred compensation.

In a long-awaited shift in purview, the Auditing Standards Board has eliminated its standard on the hierarchy of generally accepted auditing standards just as the Financial Accounting Standards Board issued a new standard establishing the same hierarchy.Chuck Landes, the American Institute of CPAs’ director of auditing and attestation, said that the ASB fully approved of the shift in a vote at its quarterly meeting in May.

With all the recent brouhaha over the subprime controversy and claims that mark-to-market accounting contributed to or even caused problems for investors in collateralized debt obligations, lots of people have been commenting on the relative usefulness of original cost and estimated market/fair value.One of the recurring themes raised by the chorus of critics (who shall remain nameless) is that original cost is preferable because it’s more reliable than estimated value.

In 1994, the Governmental Accounting Standards Board established standards for public employee pension plans. Government and public employers have to report and account for pension benefits costs.However, until recent years, there was no such standard in place for other post-employment benefits for state and local government workers.

The Certified Financial Planner Board of Standards has established a Jan. 1, 2009 enforcement date for its revised "Standards of Professional Conduct," allowing members more leeway before enforcement takes effect.

The American Institute of CPAs has introduced a new service called Financial Reporting Alerts to help financial managers and audit committees identify current accounting and regulatory developments that affect financial reporting.

The Internal Revenue Service is falling short on inspecting the international tax transactions of small businesses for compliance problems, according to a new report.

The American Institute of CPAs has published the second edition of "Audit Committee Toolkit: Public Companies," a guidebook to help audit committees carry out their corporate governance responsibilities.

Presidential hopefuls Sen. Barack Obama, D-Ill., and Sen. John McCain, R-Ariz., clashed over their tax plans, trading accusations of hikes in capital gains and Social Security taxes.

The Small Business Administration has created an online tax savings resource center to help small businesses understand the benefits of the economic stimulus package.

The American Institute of CPAs has chosen Paychex as its preferred provider for administering 401(k) plans for members who participate in the AICPA's firm retirement program.

The Securities and Exchange Commission has voted to propose a series of reforms to credit-rating agencies to curb practices that led to trouble in the credit markets.

Payroll-processing service Paychex has added an auto-enrollment feature that allows employers to automatically sign up employees to participate in a 401(k) plan.

The Public Company Accounting Oversight Board has adopted rules requiring public accounting firms to submit reports at least once a year on fees, disciplinary actions and other information that will be posted on the PCAOB Web site.

The timeline for adoption of International Financial Reporting Standards in the United States faces several hurdles, including the long-delayed appointment of several SEC commissioners.

Sage Software introduced new versions of three products in its MAS line, adding environmentally friendly enhancements and new business intelligence features.