Adopting IFRS Key to global financial success

According to the Associated Press, federal regulators stated Monday that it's critical for the United States along with other countries to adopt one international accounting standard. By all countries having the same policies, we would better avoid another economic crisis. Both those on Wall Street and in the Accounting industry agree with this statement. US companies have the option to begin adopting the new accounting standards next year. Read the full article here.

Name Change for FAS 157

The Wall Street Journal Blog recently wrote about the name change for FAS 157. It will now be known as Topic 820. This rule currently requires companies mark their assets to market every quarter. With the old rule, the assets were held at cost. Read more about the name and rule change here.

Indiana Government converting to centralized accounting system

According to Fox 28 of South Bend, Indiana, the Hoosier government will be converting to one single accounting system. The complete transition will take place by September 16. This has been in the works for years, and over 3,000 state employees have been trained on the new system. Read the full article here.

Controlling your risk when converting to IFRS

The Journal Of Accountancy recently published a post that looks at how companies can take precautions when it comes to converting from GAAP to IFRS. One of the key areas that will be affected during the conversion will be IT, as many of the systems will be changing due to the new accounting methods. Read the full article here.

FASB's changes on disclosing private information

According to CFO, there is debate as to how companies are handling lawsuits and their accounting rules and disclosures. Under the new rules of FASB, companies would not have to disclose any information that they feel is prejudicial or confidential. This would include not disclosing any information about the money they pay to investors to settle disagreements.

Last September, when the board decided companies would have at least another year before having to comply with the new rules, it agreed to collect more feedback by asking companies to do sample runs of its first proposal and the alternative version currently being crafted. However, only a few companies have shown interest in participating.

Read the full article here.

Adopting IFRS slowing

In an article recently at Reuters India, they look at how the current global economy is just one of the latest factors holding up the adoption of IFRS globally. Due to the credit crisis, many countries have seen the need to adopt a more consistent and transparent accounting system. However, with the US failing to provide a date as to when they'll be adopting the system. The G20 Finance ministers are meeting in London next month, which many hope will be the key to getting the adoptoin of IFRS on track. Read the full article here.

Fair market value rules may expand

According to Bloomberg, last week, FASB decided to consider expanding fair market value rules. Accountants could end up expanding mark-to-market across all financial assets. Read the full article here.

Former AIG Executive settling accounting charge

Maurice "Hank" Greenberg, Former American International Group Chief Executive, will pay $15 million to settle an accounting charge.

According to the article,

Greenberg and Smith were responsible for "material misstatements" that helped AIG create the false impression that the insurer had consistently met or exceeded key earnings and growth targets, the SEC claimed.

Read the full article here.

Number of accounting degrees is up

According to an article at The Journal of Accountancy, 66,000 Masters or Bachelors degrees were awarded to accounting graduates in the 2007-2008 school year. This is up 3.5% from the 2006-2007 academic year. Read some of the other findings in the AICPA 2009 Trends Report here.

Current financial crisis not caused by change in accounting rules

According to the AP, The Financial Crisis Advisory Group has stated that changes in accounting rules did not cause the most recent credit crisis. They did state that there are weaknesses in the application rules that may reduce the credibility in the financial reporting. To see all of their current views, please read the article here.

Mark to market accounting

The Economist has a very interesting article looking some accounting rules that have different views from different sides. On one side, some believe that loans, securities, and frauds should be accounted for at market prices. On the other side, managers believe that assets should be accounted for at cost and only be written down when losses are likely to occur. The IASB has stepped in and set some new rules on this topic, and they want a system that is not going to change when the economic cycle travels up and down. Read the full article here.

Businesses won't be taxed on personal use of cellphones

According to Yahoo!, the IRS would like to repeal the law that states businesses or employees must pay taxes on the personal use of business cell phones. IRS Commissioner Doug Shulman told Congress that advances in technology have made this tax obsolete. Read the full article here.

IFRS and the IT world

In a new article at Computer World, they look at the upcoming decision on converting the United States' accounting system to IFRS, which is regarded globally as the universal accounting standards. This will: help provide transparency information to investors, make it easier to understand financial statements, and help companies make more efficient investment decisions. The decision will be made in 2011 as to whether to adopt the process, and all conversions to the system will have to take place by 2014. The article looks at how CIOs will have to change their current practices. Read it here.

Vermont to Drug Companies, Document Pay to Docs

The Vermont state government is looking to signing requiring drug and device makers to make public all of the money they give to doctors and others in health care. According to the New York Times, each drug and device maker must document the names and amounts given to medical practitioners. Sarah Rubenstein reports that, the state has already been out front when it comes to disclosure of drug-company pay to doctors, publishing an annual report on compensation such as consulting and speaker fees, travel expenses, gifts and food. The law being pushed by Vermont's government not only includes device makers; but it bans all free meals and will require specifics on contributions to individual doctors, the paper says. An exception: Pay for clinical research on products under FDA review does not have to be disclosed.