Regulatory actions and programs

Deloitte Financial Advisory Services has acquired certain assets of Barrasso Consulting, a firm that specializes in data collection and document review for litigation discovery programs.

As a reporter, I come across the results of many, many surveys and I have learned over the years that no matter how interesting they are at first glance, they must be put in their proper perspective, and that requires a little analysis. Take for example the results of AICPA’s 19th Annual Top Technology Initiatives survey. The top 10 most important technology initiatives for 2008 were:

A key outside advisory committee wants the Securities and Exchange Commission to be more open to accepting an accountant's judgment in interpreting standards.

A new report finds the cost of compliance with Sarbanes-Oxley Section 404 internal control audit requirements for smaller public companies is actually about 14 percent lower than the Securities and Exchange Commission's original estimates.

The Tax Governance Institute plans to host a video Webcast on the new tax preparer standards on Jan. 15 from 1 pm to 2:30 pm EST.

The audit market for large public companies has become more concentrated among the Big Four firms, but not enough to require corrective action, according to a government report.

The International Accounting Standards Board has issued a revised version of its standards for accounting for business combinations such as mergers and acquisitions, in coordination with the Financial Accounting Standards Board, in a move that will highlight the expenses of business combinations that used to be considered assets.

The Mortgage Bankers Association has written to the Financial Accounting Standards Board asking for more flexibility in accounting for troubled mortgages to help prevent foreclosures.

This free, new webinar details how practitioners are implementing the new audit standards that change how non-public company, not-for-profit and governmental audits are performed.

The Internal Revenue Service has established rules for substantiating lump-sum charitable contributions made through the Combined Federal Campaign or similar programs such as a United Way campaign.

Catapult Communications has decided to replace Deloitte & Touche as its outside accounting firm to reduce accounting expenses.

This free, new webinar details how practitioners are implementing the new audit standards that change how non-public company, not-for-profit and governmental audits are performed.

Thomson Tax & Accounting's PPC brand has issued a guide to help auditors cope with Statement on Auditing Standards No. 112, "Communicating Internal Control Related Matters Identified in an Audit."

SUN HEALTHCARE JETTISONS E&YSun Healthcare Group, an Irvine, Calif.-based provider of specialty health services primarily to seniors, has dismissed its auditor, Big Four firm Ernst & Young, and named PricewaterhouseCoopers as its new independent accountant.

FedEx said it is preparing to meet with an audit team from the Internal Revenue Service to discuss the IRS's tentative conclusion that FedEx should reclassify its delivery drivers as employees rather than independent contractors.

In partial deference to corporate appeals, the Financial Accounting Standards Board has agreed to allow a one-year deferral for part of the implementation of Financial Accounting Statement 157, Fair Value Measurements.Investors have long called for financial statements that report market values - observable or calculated - and FASB constituents in the corporate sector have generally supported the concept. But after a year of preparing to implement FAS 157, corporations went to the board to complain that implementation had turned out to be prohibitively difficult.

The alternative minimum tax isn't the only tax that will continue to surprise taxpayers if Congress fails to act on its repeal. The estate tax, currently set to expire in 2010, will return with a vengeance to a full 55 percent in 2011 if Congress does nothing.The Joint Committee on Taxation estimated that in 2009 there will be 9,600 estates subject to the estate tax. While that number falls to zero in 2010, it will jump to nearly 62,000 in 2011, with increases every year thereafter.

Since this is our first column of the New Year, it may be particularly appropriate to look back into 2007 to try to predict some of what will happen in 2008. The history of important tax developments that took place in 2007 is rich and varied. Shakespeare's "What is past is prologue" was never so apt.In that spirit, we have selected 10 developments as standouts in terms of their impact on the future, and especially on 2008 tax strategies. We explain each of these top 10 below. And, of course, respecting the difficulty of prioritizing just 10 2007 tax developments as most significant, we conclude by listing several more as runners up!

The Institute of Management Accountants has joined a widespread call for the Securities and Exchange Commission to accept financial reports prepared under international accounting standards without reconciliation with U.S. generally accepted accounting principles.The IMA's main concern is not so much that filings by foreign companies might be easier, but that convergence with international standards would effectively replace the U.S. set of standards - which the institute believes are onerous, if not downright crushing.

The Financial Accounting Standards Board is heading into a year in which the ball of due process will spend a lot of time in the court of the board's constituents.Between New Year's Day and early spring, the board may have as many as 11 documents issued for public comment, with a couple more out by summer. Three final documents may be issued in the first quarter, but they're the only pronouncements expected before 2009.