CalCPA Buzz

Sustaining Public Company Auditing

denglish — Tue, 07 Oct 2008 21:16:10 +0000

The U.S. Treasury Department’s Advisory Committee on the Auditing Profession Final Report contains more than 30 recommendations to improve the sustainability of the public company auditing profession. Recommendations focused on three areas: improving accounting education and strengthening human capital; enhancing auditing firm governance, transparency, responsibility, communications, and audit quality; and increasing audit market competition and auditor choice.

International Credit Crisis Regulatory Reactions

denglish — Tue, 07 Oct 2008 21:15:20 +0000

The International Accounting Standards Board has responded to the credit crisis by focusing on the recommendations of the Financial Stability Forum, which included:
• Improving the accounting and disclosure standards for off balance sheet vehicles on an accelerated basis and working with other standard-setters toward international convergence.
• Enhancing guidance on valuing financial instruments when markets are no longer active. To this end, the IASB established an expert advisory panel in 2008.
• Strengthening IASB standards to achieve better disclosures about valuations, methodologies and the uncertainty associated with valuations.

The IASB expects to issue an exposure draft during the next two weeks that proposes enhancements to disclosure about fair value measurement and about liquidity risks.

Congressionally Mandated Study on Accounting Standards

denglish — Tue, 07 Oct 2008 21:14:32 +0000

The SEC announced additional details on the process and initial steps being undertaken to conduct a study on “mark-to-market” accounting as authorized by Sec. 133 of the Emergency Economic Stabilization Act of 2008. Among other areas, the study will focus on the effects of such standards on a financial institution’s balance sheet, on bank failures in 2008 and on the quality of financial information available to investors.

The report is scheduled to be completed by Jan. 2, 2009.

Executive Education

denglish — Tue, 07 Oct 2008 21:13:51 +0000

Now more than ever, making informed capital investment decisions is critical to a business’ success. Join us for the following executive education programs developed especially for California CPAs by CalCPA’s Financial Leadership Forum and the UCLA Anderson School of Management.
• Financial Leadership Forum Executive Education: Making Informed Capital Investment Decisions, Oct. 30
• Financial Leadership Forum Executive Education: Acting Ethically and Detecting and Preventing Accounting Fraud, Nov. 14

More Conferences and Webcasts

denglish — Tue, 07 Oct 2008 21:12:47 +0000

• Construction Industry Conference, Oct. 21 and Oct. 22
• Accounting and Auditing Conference webcast, Oct. 17
• Fraud: Essential Audit Tools and Techniques webcast, Oct. 20
• Fraud: Exposures and Solutions in the Non-Audit Environment webcast, Oct. 21

Correction: CalCPA Institute Donor List

denglish — Tue, 07 Oct 2008 21:08:46 +0000

Due to a sorting error, the thank you list of CalCPA Institute donors in the October issue of California CPA was incorrect. A corrected version is available online.

Celebrating Women CPAs

denglish — Tue, 16 Sep 2008 16:34:57 +0000

Join CalCPA Dec. 3 for a day of leadership development, professional growth and recognition at the 2008 Women’s Leadership Forum. From tips and strategies for attaining leadership positions within the profession to handling difficult situations, mentoring and public speaking, this event designed by women CPA leaders will feature top speakers dedicated to helping women advance their careers. Register today!

Plus, a lunchtime celebration will feature winners of CalCPA’s first Women to Watch Awards presented in cooperation with the AICPA. Learn more or download a nominations form.

CalCPA Leaders Wanted

denglish — Tue, 16 Sep 2008 16:21:06 +0000

California CPAs are the driving force behind one of the world’s largest economies. Isn’t it time you put your leadership skills to use for the betterment of the CPA profession?

The CalCPA Nominations Committee is accepting nominations for 2009–10 CalCPA officers and council members at large. Officer positions include chair, first vice chair, treasurer and two vice chairs.

Three council members at-large will be elected and nominees also are being sought for AICPA Council positions.

If you are interested, please download and complete the nomination form and submit it by Dec. 1.

For more information, contact John Angelo or Nominations Committee Chair Christopher T. Yahng.

Disclosures About Credit Derivatives and Certain Guarantees

denglish — Tue, 16 Sep 2008 16:18:06 +0000

FASB has issued Staff Position (FSP) No. 133-1 and FIN 45-4, Disclosures about Credit Derivatives and Certain Guarantees: An Amendment of FASB Statement No. 133 and FASB Interpretation No. 45.

The FSP is intended to improve disclosures about credit derivatives by requiring more information about the potential adverse effects of changes in credit risk on the financial position, financial performance and cash flows of the sellers of credit derivatives. It amends FASB Statement No. 133, Accounting for Derivative Instruments and Hedging Activities, to require disclosures by sellers of credit derivatives, including credit derivatives embedded in hybrid instruments. The FSP addresses the concerns that the disclosure requirements in Statement 133 do not adequately address the potential adverse effects of changes in credit risk on the financial statements of the sellers of credit derivatives.

The provisions of the FSP that amend Statement 133 and Interpretation 45 are effective for reporting periods (annual or interim) ending after Nov. 15. Learn more.

California’s NEST Penalty

denglish — Tue, 16 Sep 2008 16:16:41 +0000

California’s noneconomic substance transaction understatement (NEST) penalty imposes a 20 percent penalty for understatements attributable to noneconomic substance transactions (CA Rev. & Tax Code Sec. 19774). The penalty increases to 40 percent for transactions that are not adequately disclosed.

A transaction lacks economic substance either because it lacks an economic benefit or there is no bona fide, non-tax California business purpose for entering into the transaction.

In cases where your client has received a final federal audit report, the FTB may assess the NEST penalty in lieu of the accuracy-related penalty assessed on the audit report if:
• The federal adjustment was from a transaction lacking economic substance; and
• Tax benefits from this same transaction were reported on the California tax return.

Unlike California, the IRS does not have a NEST penalty. Learn more.