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| OPEN
LETTER TO INDUSTRY MEMBERS |
| March
2008
Dear Valued
Members in Industry:
As we begin the second year of operations of the “CPAs in
Industry Newsletter,” we hope to expand the items of interest
to you along with the newsletter’s subscriber base in order
to provide a useful service to our valued Members in Industry and
other interested parties.
We welcome readers’
attention, input and referrals to other members within your company
and to your colleagues. Enjoy this service by reading our quarterly
installments or by writing to us or for us, and
by spreading the word that this is your forum for items of interest
in your field of study and work. Submissions for publication articles,
comments, suggestions, and industry-specific news items—are
welcomed always. Please send all correspondence to klazarus@nysscpa.org.
This year, we plan to continue providing the information you need
in this newsletter, and to cover a wide array of topics.
Please, remember
that this newsletter is also your source of information on industry
specific continuing professional education offerings from the Society’s
Foundation for Accounting Education (FAE). In this matter, too,
we want to hear from you. Is there a subject of interest that you
would like to see developed into a CPE session? The FAE and the
Society committee structure are poised to develop conferences, seminars
and technical sessions on subjects that are important to you.
In this issue
of “CPAs in Industry Newsletter,” we further examine
FASB Statement of Financial Accounting Standards No. 157, Fair
Value Measurements, by delving more specifically into its disclosure
requirements. The Statement is effective for financial statements
issued for fiscal years beginning after November 15, 2007.
Also in this
issue, we have identified various articles of interest to those
of you in specific industries. [This will vary from issue to issue,
based upon legislative, regulatory and professional actions during
the quarter.]
Listed for your
convenience, please find the upcoming industry committee meeting
dates. Active committee members know that committee service is a
great way to stay current on issues affecting their work, to network
with colleagues and exchange ideas and to give something back to
the Profession. We join them in welcoming members from their practice
and other interested members to attend a committee meeting on a
“no obligation” basis to see that committee service
is a good choice for them.
Lastly, this
is the place for Members in Industry to find the CPE courses they
need to stay abreast of major developments in their field and, for
some, to comply with NYS CPE requirements.
We wish you
success throughout the year,
The Editors
Ernest J.
Markezin, Director, Quality Enhancement
Nereida
Gomez, Senior Manager, Committee Services
William R. Lalli, CPA, Tax Policy Manager
Keith Lazarus, Committee Services Coordinator
|
| FEATURED
ARTICLE |
A
Closer Look at FAS 157 Disclosures
FAS 157
Fair
Value Measurements
|
FASB Statement
of Financial Accounting Standards No. 157, Fair Value Measurements,
(FAS 157) defines fair value, establishes a framework for measuring
it in accordance with GAAP and expands disclosures about fair value
measurements.
This article
summarizes and explores the disclosure elements of the Statement.
It is important to note that FAS 157 does not create any new fair
value measurements (although for some entities, its application
will change current practice) but does create disclosure requirements
that are entirely new.
FAS
157 at a Glance
The Statement
was issued in September of 2006, because there were varying definitions
of fair value and only a limited amount of guidance to apply the
concept to comport with GAAP.
The existing
guidance was found among various older accounting pronouncements
that require fair value measurements. In FASB’s opinion, differences
in existing guidance were creating inconsistencies and complexity
that were undesirable for GAAP purposes. FASB’s goal in issuing
this Statement was to engender increased consistency and comparability
in fair value measurements and to expand disclosures about fair
value measurements. (Click
here to read article).
|
| NEWS
ITEMS |
FASB
Launches Verification Phase for the FASB Accounting Standards
CodificationTM
Norwalk,
CT, January 15, 2008 - The Financial Accounting Standards Board
(FASB) today officially launched the one-year verification phase
of the FASB Accounting Standards CodificationTM
(Codification). During the verification period, constituents are
encouraged to use the online Codification Research System free of
charge to research accounting issues and provide feedback on whether
the Codification content accurately reflects existing U.S. generally
accepted accounting principles (GAAP) for nongovernmental entities.
Users are advised that the Codification content is not yet approved
as authoritative and, therefore, they must verify research results
using their existing resources for the currently effective literature,
as reported by FASB, January 15, 2008.
After addressing
the issues raised during the constituent feedback process, the FASB
is expected to formally approve the Codification as the single source
of authoritative U.S. GAAP, other than guidance issued by the Securities
and Exchange Commission (SEC). To
improve usability, the Codification will include authoritative content
issued by the SEC, as well as selected SEC staff interpretations.
Upon approval by the FASB, all accounting standards (other than
the SEC guidance) used to populate the Codification will be superseded.
At that time, with the exception of any SEC or grandfathered guidance,
all other accounting literature not included in the Codification
will become nonauthoritative, as reported by FASB, January 15, 2008.
Users who register
at http://asc.fasb.org
are able to review the Codification free of charge and provide specific
content-related feedback at the individual paragraph level as well
as general system-related feedback. During
the verification period, Codification content will be updated for
changes resulting from constituent feedback and new standards, as
reported by FASB, January 15, 2008.
The Codification
includes all accounting standards issued by a standard-setter within
levels A through
D of the current U.S. GAAP hierarchy, including FASB, American Institute
of Certified Public Accountants (AICPA), Emerging Issues Task Force
(EITF), and related literature, as reported by FASB, January 15,
2008.
To read more
about this item, please go to http://www.fasb.org.
FASB
Issues Proposed FASB Staff Position
FAS
117-a, Endowments of Not-for-Profit Organizations: Net Asset
Classification of Funds Subject to an Enacted Version of the Uniform
Prudent Management of Institutional Funds Act, and Enhanced Disclosures
Norwalk, CT,
February 22, 2008 - The Financial Accounting Standards Board (FASB)
today issued proposed FASB Staff Position (FSP) FAS 117-a, Endowments
of Not-for-Profit Organizations: Net Asset Classification of Funds
Subject to an Enacted Version of the Uniform Prudent Management
of Institutional Funds Act, and Enhanced Disclosures. This
FSP seeks feedback from constituents on proposed guidance intended
to improve the quality and consistency of financial reporting of
endowments held by not-for-profit organizations, as reported by
FASB, February 22, 2008.
"The issues
addressed by this FSP have widespread importance to the not-for-profit
sector, especially organizations with sizeable endowments, and the
users of their financial statements, such as donors, credit rating
agencies, and regulators," states Jeffrey Mechanick, FASB project
manager. "The adoption of the Uniform Prudent Management of
Institutional Funds Act of 2006 (UPMIFA) has raised significant
questions about the reporting of donor-restricted endowment funds.
Organizations across the country now find themselves subject to
increased public scrutiny on how they manage and use their endowments,
which in many instances have seen tremendous growth over the past
decade," as reported by FASB, February 22, 2008.
This FSP would
provide guidance on classifying the net assets (equity) associated
with donor-restricted endowment funds held by organizations that
are subject to an enacted version of UPMIFA, which serves as a model
act for states to modernize their laws governing donor-restricted
endowment funds. A number of states have already done so, and many
more are expected to do so over the next few years, as reported
by FASB, February 22, 2008.
To read more about this
item, please go to
www.fasb.org.
Rep.
Peterson More Optimistic on Farm Bill
Contrary
to what you may read on other information services that things are
quiet on the farm bill front, things are progressing toward
a farm bill deal as evidenced by comments from House Ag Committee
Chairman Collin Peterson (D-Minn.). In an interview with Jim Wiesemeyer,
Peterson said he was the most optimistic on the farm bill that he
has been for "a year and two months!," as reported by
AgWeb.com on Feb. 25, 2008.
This also runs
counter to comments by Senate Ag Committee Chairman Tom Harkin (D-Iowa)
that he now views an extension of the 2002 Farm Bill as the most
likely outcome, as reported by AgWeb.com on Feb. 25, 2008.
To read
more about this item, please go to www.AgWeb.com.
Farm
Income and Costs: 2008 Farm Sector Income Forecast
2008 Net Farm Income
Is Forecast To Be At Record Level
In 2007, net farm income
was at a record level and ended the year strong with many key economic
indicators at very favorable levels. Commodity prices were above
recent levels and in some cases (wheat, soybeans, corn, milk) continued
to rise. Exports were strong as the weak dollar made U.S. commodities
more competitive in international markets, and ending-year stocks
of many commodities were low. Consequently, the outlook for the
farm economy as a whole is for another very good year in 2008, driven
by strong demand for feed crops, oilseeds, and food grains, as reported
by the USDA, as of March 7, 2008.
There are a lot of unknowns
when forecasting farm income in the first quarter of the year, but
based on the best information available on production and market
conditions, the farm sector's net value added to the national economy
is forecast to be up 4.7 percent in 2008. Its projected value of
$144.1 billion would be $6.5 billion over 2007 and 38 percent over
its 1998-2007 average, as reported by the USDA, as of March 7, 2008.
Net
farm income is forecast to be $92.3 billion, up 4.1 percent
above the $88.7 billion farmers are estimated to have earned in
2007 and 51 percent above the 10-year average of $61.1 billion,
as reported by the USDA, as of March 7, 2008.
Net
cash income at $96.6 billion is forecast to be $9 billion above
2007, which was the previous record for net cash income. Net cash
income is projected to rise more than net farm income because of
the large carryover of crops harvested in the prior year, which
will be sold in 2008, as reported by the USDA, as of March 7, 2008.
To read more about this
item, please go to http://www.ers.usda.gov/Briefing/FarmIncome/nationalestimates.htm
(as of March 7, 2008).
|
| HR
BRIEFS |
| Salary,
Benefits Draw Talent
A recent survey suggests that successfully wooing
job candidates requires competitive salaries and benefits.
Thirty-seven percent of chief financial officers
interviewed in a Robert Half International survey said offering
higher compensation than competitors is the most effective incentive
for attracting accounting professionals. Nearly as many (33 percent)
felt the benefits package had the greatest influence, up from just
2 percent five years ago, as reported by SmartPros.com, Feb. 11,
2008.
The findings
also suggest traditional incentives are a higher priority today:
While the popularity of benefits surged, the number of financial
executives who feel telecommuting and flexible work schedules are
the top draw fell 20 points, from 33 percent in 2003 to 13 percent
in 2008, as reported by SmartPros.com, Feb. 11, 2008.
The survey of
1,400 CFOs further suggests that rising medical costs have increased
the value workers place on healthcare benefits options, and employers
need to respond accordingly, as reported by SmartPros.com, Feb.
11, 2008.
"Companies
that do not provide comprehensive employment packages, including
competitive compensation and insurance programs, risk losing top
job candidates to other opportunities," said Max Messmer, chairman
and CEO of Robert Half International, as reported by SmartPros.com,
Feb. 11, 2008.
Messmer added,
"Whether it's higher salaries and enhanced healthcare coverage
or accelerated career-advancement opportunities, employers should
determine and effectively communicate what makes their company a
great place to work when speaking with prospective employees,"
as reported by SmartPros.com, Feb. 11, 2008.
Manpower
Employment Outlook Survey Foreshadows Hiring Slowdown
Employers Plan to Remain Vigilant in Quarter 2 2008
MILWAUKEE
(March 11, 2008) – U.S. employers anticipate a decline
in hiring for Quarter 2 2008, according to the seasonally adjusted
results of the latest Manpower Employment Outlook Survey conducted
quarterly by Manpower Inc., as reported by Manpower.com, March 11,
2008.
“A slowing
in hiring intentions reflects a widespread wait-and-see approach
among employers,” said Jeffrey A. Joerres, Chairman &
CEO of Manpower Inc. “However, the survey data points to a
gradual and measured downshift, not a sudden and overwhelming change.
Interestingly, this data does not look like previous recessionary
periods where we experienced much more accelerated declines,”
as reported by Manpower.com, March 11, 2008.
To read more
about this item, please go to http://www.manpower.com/.
|
| TECHNOLOGY
|
|
Who's
Where, When (and How Much)?
Cost savings on meetings can be found more easily
with a new generation of online meetings management programs, as
reported by CFO.com, March 1, 2008.
To read more
about this item, please visit www.cfo.com.
For additional
information regarding technology, please visit http://www.nystar.state.ny.us/.
The New York State Foundation for Science, Technology and Innovation
(NYSTAR) funds world-class university/industry partnerships and
promotes outstanding high-technology research and commercialization
efforts that contribute to New York's economy.
For additional
news items, please click on the links below:
Agri-Business:
http://www.agweb.com/
http://www.inboxrobot.com/
Apparel
and Textile:
http://www.just-style.com/
http://www.bharattextile.com/
Banking:
http://www.banktech.com/
http://www.americanbanker.com/
Chief
Financial Officers:
http://www.cfo.com
Construction
Contractors:
http://www.forconstructionpros.com
http://enr.com/
Health
Care:
http://www.healthcareitnews.com/
Hospitality:
http://www.ehotelier.com
http://www.hotel-online.com
Investment
Management:
http://www.hedgeweek.com/
Publishing
& Printing:
http://www.bookbusinessmag.com
http://www.publishing-industry.net/
Real
Estate:
http://realtytimes.com/
http://www.realtor.org
Small
Business Outreach:
http://www.smallbusinessnewz.com/
|
|
COMMITTEE CORNER |
| Expand
Your Horizons with Committee Service
 The
New York State Society of CPAs sponsors a comprehensive structure
of technical and administrative committees. The committee volunteers
serve Society members while maintaining and improving their own
skills. The Society’s committees study technical issues, develop
continuing professional education and lend the professional guidance
that the Society needs to operate on behalf of its membership.
When you join
the roster of a technical or administrative committee, you help
to promote a favorable impression of the Profession to the general
public and have an opportunity to participate in a forum in which
you can interact with peers.
The
Society leadership and staff encourage all members to participate
in some way. If you are interested in obtaining more information
or in serving on a Society committee, please contact Nereida Gomez,
Sr. Committee Services Manager, at 212-719-8358, or ngomez@nysscpa.org.
Please, visit our Web site at http://www.nysscpa.org/leadership/main.cfm?App=146
to view a full listing and description of our various committees,
schedules, and meeting minutes.
|
| UPCOMING
INDUSTRY DIVISION COMMITTEE MEETINGS |
| Agri
Business Committee |
Wednesday, May 21, 2008
|
| Apparel
and Textile Committee |
Tuesday,
April 22, 2008
|
| Banking
Committee |
Thursday,
April 17, 2008
Thursday, June 12, 2008
|
| Chief
Financial Officers Committee |
Friday,
April 25, 2008
Thursday, May 29, 2008
|
| Construction
Contractors Committee |
Thursday,
April 17, 2008
Thursday, May 15, 2008
Thursday, June 19, 2008
|
| Entertainment
and Sports Committee |
Tuesday,
March 25, 2008
Thursday, April 24, 2008
Tuesday, May 13, 2008
|
| Health
Care Committee |
Wednesday,
May 14, 2008
Wednesday, June 11, 2008
|
| Hospitality
Industry Committee |
To be announced
|
| Investment
Management Committee |
Tuesday,
May 6, 2008
Tuesday, June 3, 2008
|
| Not-for-Profit
Organizations Committee |
Tuesday,
May 13, 2008
|
| Public
Schools Committee |
Thursday,
April 17, 2008
Thursday, May 8, 2008
|
| Publishing
and Printing Committee |
To be announced
|
| Real
Estate Committee |
Tuesday,
May 6, 2008
|
| Relations
with the Legal Community Committee |
Wednesday,
April 23, 2008
Wednesday, May 28, 2008
|
| Small
Business Outreach Committee |
Tuesday,
March 25, 2008
|
| Stock
Brokerage Committee |
Wednesday,
May 7, 2008
Wednesday, June 11, 2008
|
This is a partial
listing, which is subject to change. For a complete and updated
listing of committee meetings, please visit http://www.nysscpa.org/leadership/main.cfm?App=146
Two NYSSCPA chapters
have established active Industry committees and welcome participation.
The Nassau Chapter Committee is called the CFO
and Financial Executives Committee. The Westchester Chapter
committee is called the CFO
and Senior Financial Officers.
|
| UPCOMING
CPE |
| To
register, please call 1-800-537-3635 or visit our Web site at http://www.nysscpa.org/continuingeducationa.htm.
 March
2008 | April 2008 |
May 2008 | June 2008
March
2008
03/28
How to Save Millions with Computer Tools
AU/1, 20267814, FAE
April
2008
04/30
NYS Attorney General Registration and Reporting Requirements for
Charitable Trusts and Estates
TX/1, 20608810, FAE
04/30
Socially Responsible Investing
SK/2, 29155809, FAE Conference Center
May
2008
05/02
Westchester Chapter Annual Tax, Estate and Financial Planning
Conference
TX/8, 28611833, Citigroup Executive Planning Center
05/03
Nassau Chapter All-Day Estate and Personal Financial Planning
Conference
TX/8, 28603822, Melville Marriott Long Island, NY
05/08
Government Accounting and Auditing Conference
AU, AC, AD/8, 25144811, FAE Conference Center
05/13
Government Accounting and Auditing Conference
AU,AC,AD/8, 25144841, Albany Marriott
05/13
IFRS and U.S. GAAP Convergence
AC/2, 29151810, New York Life Insurance Company, NYC
05/13
Tailored Innovation: Inside the Structured Investment Process
SK/2, 27530810, FAE Conference Center
05/13
Tailored Innovation: Inside the Structured Investment Process-Webinar
SK/2, 27530811, FAE Conference Center
|
FEATURED
EVENT: 2008 CPA BUSINESS TECH EXPO, MAY 14 & 15
At the
2008
CPA Business Tech Expo on Wednesday, May 14,
and Thursday, May 15, 2008, at the Hilton New York, CPAs and
other attendees can get needed information on products and
services that may enable them to improve their practice. They
may learn of newly available software programs that have the
capability to save them time and money. Also available at
the Expo, are accounting and auditing updates: high-quality
continuing professional education at an affordable price.
Over a dozen courses are scheduled that span a wide array
of areas of specialized knowledge in the Profession, as well
as accounting, auditing and taxations staples.
Admission
to the Expo is free. The investment for attending the 8 CPE
credits presented on May 14 is only $150 and only $100 for
6 credits provided on May 15. (Each individual course is worth
two hours of CPE credit. You may purchase admission to both
days for only $200. For more information, please visit the
CPE page or call 1 (800) 537-3635. |
05/14
Broker/Dealer Conference
SK/8, 25558811, Marriott New York Marquis
05/15
Information Technology & SAS 70 Reports
AU/1, 20267815, FAE
05/19--5/20
Business Valuation Conference
SK/16, 25278812, Marriott New York Marquis
05/21
Estate Administration Conference
TX/8, 25608811, FAE Conference Center
05/28
Employee Benefits Conference
TX, AU, SK/8, 25621811, FAE Conference Center
June
2008
06/05
Anti-Fraud Conference
AU/8, 25175911, Marriott New York Marquis
06/06
Forensic Auditing and White Collar Crime
SK/1, 29051801, Irondequoit Country Club
06/12
CFOs, Controllers, and Financial Executives Conference
AD/8, 25269911, The Princeton Club, NYC
06/17
Accounting & Auditing in the Nonpublic Environment Conference
AU, AC/8, 25137911, Marriott New York Marquis
06/19
Personal Financial Planning and Eldercare Joint Conference
AD/8, 25275911, To Be Announced
06/25
Fin 48-Uncertainty in Income Taxes: A Must Know for Tax CPAs and
Accountants
AC/4, 32136921, (AICPA) To Be Announced
06/25
IRS Practice & Procedures Conference
TX/8, 25609911, New York Helmsley Hotel
06/25
Preparing Tax Basis Financial Statements
AC/4, 32148921, (AICPA) To Be Announced
06/26
Analyzing Costs, Productivity and Efficiency
SK/4, 32347921, (AICPA) To Be Announced
06/26
Doing More with Less: Lean Accounting and Management
SK/4, 32344921, (AICPA) To Be Announced
06/27
Avoiding Circular 320 Malpractice Traps and Common Abusive Business
Practices
TX/4, 32641921, (AICPA) To Be Announced
06/27
Sid Kess' Alternatives to Commonly Misused Tax Strategies
TX/4, 32645921, (AICPA) To Be Announced
06/30
Advanced Critical Tax Issues for S Corporations
TX/8, 33602911, (Surgent McCoy CPE LLC) FAE Conference
Center
06/30
Comparing and Contrasting the Tax Aspects of S Corps., Partnerships,
Corporations, Sole Proprietorships, and Limited Liability
Companies
TX/8, 23699921, (Surgent McCoy CPE LLC) To Be Announced
06/30
Construction Contractors: Special Tax and Accounting Considerations
TX, AC/8, 23521941, To Be Announced
06/30
Detecting Misstatements: Integrating SAS 99 and the Risk Assessment
AU/8, 32149921, (AICPA) To Be Announced
06/30
FAE's Accounting Update 2008
AC/8, 21111931, To Be Announced
06/30
Fin 48: Uncertainty in Income Taxes: A Must Know for Tax CPAs
and Accountants
AC/4, 32136931, (AICPA) To Be Announced
06/30
Preparing Tax Basis Financial Statements
AC/4, 32148931, (AICPA) To Be Announced
06/30
Thirty-Plus Practical Tools and Techniques for Making Your Key
Financial Decisions
SK/8, 32353971, (AICPA) To Be Announced
|
| FEATURED
EVENT: 2008 CPA BUSINESS TECH EXPO, MAY 14 & 15 |
|
FEATURED
EVENT: 2008 CPA BUSINESS TECH EXPO, MAY 14 & 15
 Day
One: Wednesday, May 14
1. SET Tax:
What Is It? (2 CPE hours: Taxation)
2. Is Technology
Sinking Your Practice? (2 CPE hours: Specialized Knowledge and
Applications)
3. Accounting
and Auditing Update (2 CPE hours: 1 hour Accounting and 1 hour
Auditing)
4. 2008 Individual
and Corporate Tax Update (2 CPE hours: Taxation)
5. Accounting
Software Shootout Panel (2 CPE hours: Specialized Knowledge and
Applications)
6. The CPA’s
Role in Charitable Planning (2 CPE hours: Taxation)
7. FIN 48
(2 CPE hours: Accounting)
8. Multi-State
Return Essentials and More: Lacerte (2 CPE hours: Specialized
Knowledge and Applications)
9. Ethics
Update: Part 1 (2 CPE hours: Ethics)
Day
Two: Thursday, May 15
1. Taxation
of Doing Business in New York (2 CPE hours: Taxation)
2. Nonprofit
Organizations: A&A Update (2 CPE hours: 1 hour Accounting
and 1 hour Auditing)
3. Using Recognition
to Drive Employee Retention and Productivity (2 CPE hours: Specialized
Knowledge and Applications)
4. A Detailed
Look at Excel and Access (2 CPE hours: Specialized Knowledge and
Applications)
5. Tax Return
Preparation: What Does It Mean Going Forward? (2 CPE hours: Specialized
Knowledge and Applications)
6. General
Risk Management: Protecting Your Practice (2 CPE hours: Specialized
Knowledge and Applications)
7. Ethics:
Part II (2 CPE hours: Ethics)
Disclaimer:
The materials
and data provided through this Newsletter are intended for general
informational purposes only, and are NOT intended to provide specific
investment, tax, business, or legal or any other advice to any individual
or entity. The NYSSCPA neither guarantees the accuracy of the information
available through its Newsletter, nor does it guarantee the accuracy,
timeliness or continued availability of any information on non-affiliated
Newsletter accessed via hyperlinks to or via this Web site. The
NYSSCPA has not independently verified the information available
through its Web sites, including information on non-affiliated Web
sites accessed via hyperlinks to or via this Web site. Moreover,
providing such hyperlinks does not imply sponsorship or approval
of those Web sites by The NYSSCPA. Readers of CPAs in Industry
Newsletter are urged to consult with their own advisors before
taking action based on any information appearing on this website
or any website to which it may be linked.
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