Regulatory actions and programs

Prosecutors unsealed indictments against former Broadcom CEO Henry T. Nicholas III and CFO William J. Ruehle on charges of stock options backdating, along with allegations that Nicholas spiked the drinks of technology executives with ecstasy and organized a lavish drug party at a warehouse.

The Financial Accounting Standards Board issued an exposure draft of a proposed standard on accounting for hedging activities.

Financial Executives International, a 15,000-member group of CFOs and senior-level financial executives, has formed the Corporate Roundtable on International Financial Reporting, a forum where companies can address issues related to implementing International Financial Reporting Standards.

The Committee of Sponsoring Organizations of the Treadway Commission has released an exposure draft document offering guidance on monitoring internal control systems.

The Financial Accounting Standards Board has issued an exposure draft of a proposed standard for expanding the required disclosures of certain loss contingencies.

The International Accounting Standards Board has formed an advisory panel to deal with the controversial topic of determining the value of financial instruments in inactive markets.

The Government Accountability Office has issued a report containing dozens of recommendations for ways the Internal Revenue Service should improve its internal controls.

Private sector employment grew modestly last month by 40,000 jobs, according to a report by payroll giant ADP.

Sage Software has launched a program to put its Peachtree accounting program in more family-owned businesses by giving away free copies and support.

The Senate Finance Committee held hearings on small business tax issues as part of a series of hearings on tax reform.

The American Institute of CPAs has issued a new standard that tightens ethics requirements for members on indemnification and limitation of liability.

The Public Company Accounting Oversight Board plans to meet to discuss rules on reporting by registered public accounting firms and succeeding to a predecessor firm's registration status.

An international accounting standard-setter has issued a revised set of proposals designed to strengthen the independence requirements for accountants.

I am constantly amazed and intrigued by what is being done via the Internet. In Practical Accountant, we report on how creative some firms are incorporating the Internet into their operations and going way beyond the proverbial virtual firm brochure. My guess is that creativity is stimulated by how others are using the Internet.

A new accounting standard is giving executives second thoughts about plans for mergers and acquisitions.

The number of financial restatements finally began to decline last year after a decade-long increase and will probably continue to fall as the Securities and Exchange Commission makes it easier for companies to avoid restatements that aren't likely to greatly affect investors.

Payroll processor ADP has launched an online portal aimed at accountants who service small businesses, giving them free access to some information from BNA and CCH.

KPMG SETS UP IFRS INSTITUTENew York — KPMG has established the IFRS Institute to address the needs of companies, investors and academics affected by the transition to International Financial Reporting Standards.

The Institute of International Finance, a global association of financial institutions, has moved to clarify its position on fair value accounting after word leaked out that it wanted to loosen the standards, provoking an outcry.

While late-year legislative changes again delayed filing for some taxpayers, the season proceeded relatively smoothly, according to veteran practitioners.“It was one of the smoothest ones I’ve had, and my colleagues say the same. In part it’s because the software is getting better,” said Holliston, Mass.-based preparer Larry Novick. “I did notice that a lot fewer of my clients claimed non-cash contributions, and the amount of collection plate contributions decreased substantially. Most of them had heard of the stricter substantiation rules.”