FEATURED ARTICLE: FASB: FSP SOP 90-7-1

NEWS ITEMS

HR BRIEFS

TECHNOLOGY

COMMITTEE CORNER

UPCOMING COMMITTEE MEETINGS

CPE

AFFINITY PROGRAM HIGHLIGHTS

Managed by:
Keith Lazarus
klazarus@
nysscpa.org

LETTER TO INDUSTRY MEMBERS

Dear Valued Members in Industry:

Welcome to the 2008 second quarterly installment of CPAs in Industry Newsletter.

In this issue, you will have an opportunity to get an update on a FASB staff position affecting companies emerging from bankruptcy, read about an industry award-winning colleague, and rediscover the value of Society membership through the eyes of a “Topps” executive.

As always, our aim is to serve your needs. We welcome your input and referrals to other members within your company and to peers. Have an idea important to a specific industry or industry in general? Please, submit an article. Likewise, your comments, suggestions, and industry-specific news items are welcome. Please send all correspondence to Newsletter Manager Keith Lazarus at klazarus@nysscpa.org.

Please, make “CPAs in Industry Newsletter” your clearing house for ideas and home to your thirst for industry-related legislative, regulatory, and professional news. Let it serve as your source for information on industry-specific continuing professional education from the Foundation for Accounting Education (FAE).

Attending a monthly meeting of NYSSCPA standing committees is another great way to “keep your finger on the pulse” of the industry in which you operate.

We wish you success throughout the year,
The Editors

Ernest J. Markezin, Director, Quality Enhancement
William R. Lalli, CPA, Tax Policy Manager
Keith Lazarus, Committee Services Coordinator

FASB PROJECT: Final FSP SOP 90-7-1, “An Amendment of AICPA Statement of Position 90-7”

By William R. Lalli, CPA, NYSSCPA Tax Policy Manager

FSP SOP 90-7-1

In a recently released FASB Financial Staff Position (FSP), the FASB resolved the conflict between guidance that requires early adoption of new accounting standards for entities required to follow “fresh-start” reporting under AICPA Statement of Position 90-7, Financial Reporting by Entities in Reorganization Under the Bankruptcy Code, and other authoritative literature prohibiting early adoption.

Changes at a Glance

1. The guidance in the FASB’s FSP applies to an entity that is required to apply fresh-start reporting under SOP 90-7.
2. The FSP amends SOP 90-7 to nullify the requirement in paragraph .38 of SOP 90-7 regarding changes in accounting principles.
3. Effective Date and Transition: The FSP is effective for financial statements issued subsequent to the date of issuance of this FSP.

(Click here to read the full article).

CFOs Give Mixed Messages on the Economy According to National Survey

Majority (59%) believe economy will worsen; yet only 15% feel their company will worsen

CHICAGO--(BUSINESS WIRE) -- In a national survey of CFOs and senior comptrollers conducted by Grant Thornton LLP, the U.S. member firm of Grant Thornton International Ltd., 59 percent believe that the U.S. economy will worsen over the next six months, while 39 percent believe it will improve or remain the same, as reported by Businesswire.com, April 25, 2008.

To read more about this item, please go to www.businesswire.com.

By Nandini Sukumar

May 6 (Bloomberg) -- Liquidity has replaced regulation as bankers' biggest concern, according to an annual study by PricewaterhouseCoopers LLP and the Centre for the Study of Financial Innovation, as reported by Bloomberg.com, May 5, 2008.

To read more about this item, please go to www.bloomberg.com.

Washington, D.C., April 1, 2008 – As part of a coalition of 11 European and North American trade associations, the Securities Industry and Financial Markets Association (SIFMA) today released a report on improving cross-border financial services regulation, as reported by Sifma.org, April 1, 2008.

To read more about this item, please go to www.sifma.org.

DATE: 2008-04-25

By Karen D. Schwartz

Small businesses piggybacked on large Web enterprises help stimulate the U.S. economy, a U.S. House committee hears

Small businesses, especially entrepreneurial Internet ventures, are crucial to stimulating the economy, said industry heavy-hitters today at the U.S. House of Representatives’ Committee on Small Business hearing, as reported by Midmarket.eweek.com, April 25, 2008.

The hearing, chaired by the committee’s chairwoman, Rep. Nydia Velázquez (D-N.Y.), featured comments from several prominent organizations including Google, Amazon and CompTIA, as reported by Midmarket.eweek.com, April 25, 2008.

To read more about this item, please go to www.midmarket.eweek.com.

HR BRIEFS

Cost of Staff Skyrocketing for Privately Held Businesses

Apr. 17, 2008 (SmartPros)—Globally, 63 percent of privately held businesses are paying significantly more in staff costs than a year ago, according to a report by Grant Thornton International, as reported by SmartPros.com, April 17, 2008.

In addition, the survey found that 59 percent of privately held businesses are more focused on finding and retaining employees than they were a year ago, as reported by SmartPros.com, April 17, 2008.

To read more about this item, please go to www.smartpros.com.

TECHNOLOGY

TryXBRL.org Launched

March 28, 2008 (SmartPros)— A new Web site, TryXBRL.com, allows free access to view and analyze complete XBRL-tagged financial statements for over 12,000 publicly traded corporations, as reported by SmartPros.com, March 28, 2008.

XBRL is the global open standard for preparing, distributing and analyzing financial statement data and is expected to be mandated as the filing format of the Securities and Exchange Commission in the near-term, as reported by SmartPros.com, March 28, 2008.

To read more about this item, please go to www.smartpros.com.

A White House memo directing federal agencies to finalize their rules by Nov. 1 could significantly impact the SEC’s current plans for XBRL and IFRS use in public company filings, as reported by Ohioscpa.com, May 21, 2008.

To read more about this item, please go www.ohioscpa.com

By Melissa Hoffmann Lajara, Associate Editor, The Trusted Professional

NEW YORK -- If you’re the leader of a major company reliant on its information systems, someone like Robert Cioffi is either your best friend or your worst nightmare.

“Put me in your data center and give me five minutes alone, with no passwords,” he said.

“With physical access … I can do a lot of damage.”

Cioffi, director of technology for the information technology consultation firm Progressive Computing, Inc., isn’t just bragging -- he’s an expert at bypassing computer security and wreaking technological havoc.

But he has chosen to use his skills for good, rather than evil. At a CPE session offered during the Society’s Chief Financial Officers Committee February meeting, he shared his insights.

While business owners are very focused on technology, Cioffi said they often don’t realize it’s not running on a good foundation. This is because information technology is not always well understood by the financial experts who are in charge of it.

“As a CFO, your responsibility is not only on the financial side; it’s also on the [information technology] side,” said Michael F. Rosenblatt, chair of the Chief Financial Officers Committee.

To read the rest of this article, please click here.

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/

Hospitality Industry:
http://www.ehotelier.com
http://www.hotel-online.com

Investment Management:
http://www.greenwich.com
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/

By William R. Lalli, CPA, NYSSCPA Tax Policy Manager

A discussion with Leon J. Gutmann, CPA, about the value of Society membership to CPAs in industry.

The NYSSCPA benefits the practice of public accounting by utilizing its volunteer committee structure. A significant number of the volunteer members are CPAs in public practice. But where have all the CPAs in industry gone?

It appears in many instances that CPAs who make the transition from public to private practice think that there is no need to maintain their membership. They mistakenly resign or even worse, let their membership lapse, and are technically expelled for failure to pay dues.

This Newsletter contribution proves that nothing could be further from the truth than thinking that there’s little or nothing at the Society for CPAs in industry.

Leon J. Gutmann, CPA, is a benefits consultant to his former employer, The Topps Company, Inc., known for its collectible sports and entertainment cards (e.g., baseball cards) and its confection products (e.g., Bazooka bubble gum, candy). He recently retired from Topps after 36 years of service as assistant secretary-treasurer.

Mr. Gutmann said, “The staff at the somewhat small privately held company that I had chosen consisted of five individuals (two of whom were CPAs) as opposed to the CPA firm I had started my career with at which most professionals were CPAs or in the process of completing the requirements [to become one]. I needed to join the Society for access to other CPAs in related fields.” (Click here to read the full article).

By William R. Lalli, CPA, NYSSCPA Tax Policy Manager, and Melissa Hoffmann Lajara, Associate Editor, The Trusted Professional

Mark G. Leeds, CFO of Win Properties, Inc., based in Westchester, N.Y., was modest about the honor of winning the 2007-2008 NYSSCPA award for Outstanding CPA in Industry. “I’m surprised and honored, and more than a little bit humbled to receive this, what I consider a very prestigious award,” he said.

Mr. Leeds said his life has been “a love affair with numbers.” “I started out wanting to be an actuary,” he said. When asked about his work at Win Properties, Inc., the privately owned, national real estate company, he said, “I summarize it as ‘anything to do with a number.’” He continued, “It could be collections, budgets, year-end stuff for taxes, reporting responsibilities for all our mortgages, cash management—you name it.”

His participation, service, and endeavors at the Society and the Foundation for Accounting Education (FAE) have benefited fellow committee members, the membership, and the public. The industries he served were enhanced due to his volunteerism and experience that he shared.

Mr. Leeds’s current committee service includes being a member of the Chief Financial Officers Committee and Real Estate Committee, secretary of the Westchester Chapter Officers Committee, and co-chair of the Westchester Chapter CFO and Senior Financial Officers Committee. Since joining the Society in 1975, he also served on the Financial Executives in Closely Held Companies, Apparel & Textile, Hospitality Industry, Publishing & Printing, and Real Estate Committees. (Click here to read the full article).

Our active committee members know that committee service is a great way to stay current on issues affecting their work, to network with colleagues, exchange ideas, and to give something back to the profession. We join them in welcoming members from their firms and other interested members to attend a committee meeting on a “no obligation” basis by contacting Nereida Gomez, Sr. Manager, Committee Services, at 212-719-8358 or ngomez@nysscpa.org.

To find out when a specific industry committee is meeting, please visit the Industry Division. Select the committee, and then click “Meetings” on the left-side toolbar.

CPE

Featured Event: 2008 Banking Conference

By Victor Valdivia, NYSSCPA Banking Committee Chair

The 2008 Banking Conference, organized by the Foundation for Accounting Education (FAE), is the must-attend event for bank auditors, bank management and staff, banking regulators and all accounting professionals with an interest in banking. The program covers a variety of topics including an update on bank accounting and regulations, International Financial Reporting Standards (IFRS) for banks, tax issues, and credit markets.

The speakers are well-known and highly regarded experts from various institutions, including the Financial Accounting Standards Board (FASB), the International Accounting Standards Board (IASB), the Federal Reserve Bank of New York, the New York State Banking Department, the Federal Deposit Insurance Corporation (FDIC), Moody’s, Standard & Poors, and top accounting and consulting firms. The key-note speaker is James J. Leisenring, member of the IASB, the former director of international activities at the FASB, former chairman of the FASB Derivatives Implementation Group, and former chairman of the FASB Financial Instruments Task Force.

To register, please call 1-800-537-3635 or visit our website at http://www.nysscpa.org/continuingeducationa.htm.

The FAE wants to hear from you. Is there a subject 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.

June 2008 | July 2008 | August 2008 | September 2008

June 2008

06/05 Anti-Fraud Conference
AU/8 25175911 Marriott New York Marquis

06/12 CFOs, Controllers, and Financial Executives Conference
AD/8 25269911 New York Helmsley Hotel

06/12 Working Your Network Making Impactful Connections
SK/2 29155811 Foundation for Accounting Education

06/17 Acct. & Auditing in the Non-Public (Non-Issuer) Environment Conference
AU, AC/8 25137911 Marriott New York Marquis

06/19 Personal Financial Planning and Eldercare Joint Conference
AD/8 25275911 New York Helmsley Hotel

06/20 Estate Planning Update in a Declining Economy
TX/3 27403801 FAE Conference Center

06/25 IRS Practice & Procedures Conference
TX/8 25609911 New York Helmsley Hotel

06/25 Preparing Tax Basis Financial Statements
AC/4 32148921 Hilton Long Island/Huntington

06/26 Analyzing Costs, Productivity and Efficiency: Three Ways to Boost Your Bottom Line
SK/4 32347921 Hilton Long Island/Huntington

06/26 Doing More with Less: Lean Accounting and Management
SK/4 32344921 Hilton Long Island/Huntington

06/27 Avoiding Circular 230 Malpractice Traps and Common Abusive Business Hot Spots by Sid Kess

06/27 Sid Kess' Alternatives to Commonly Misused Tax Strategies: Insuring Your Clients Future
TX/4 32645921 Hilton Long Island/Huntington

06/30 Advanced Critical Tax Issues for S Corporations Delve into more complex issues regarding S Corporations
TX/8 33602911 FAE Conference Center

06/30 Construction Contractors: Special Tax and Accounting Considerations
TX, AC/8 23521941 The Desmond Hotel

06/30 FAE's Accounting Update 2008
AC/8 21111931 Courtyard by Marriott Rye

06/30 Fin 48-Uncertainty in Income Taxes: A Must Know for Tax CPAs and Accountants/Auditors
AC/4 32136931 Courtyard by Marriott Rye

06/30 Preparing Tax Basis Financial Statements
AC/4 32148931 Courtyard by Marriott Rye

06/30 S Corporations, Partnerships, C Corp Sole Proprietorships & LLCs
TX/8 23699921 Hilton Long Island/Huntington

July 2008

07/07 Audits of 401(k) Plans
AU/8 22214941 The Desmond Hotel

07/07 Essential Skills for the Beginning Auditor
AU/8 34834921 Hilton Long Island/Huntington

07/09 Auditor Communications: Critical New Requirements
AU/8 32239931 Courtyard by Marriott Rye

07/10 Estate Planning Conference
TX/8 25697911 Marriott New York Marquis

07/10 Excel Beyond the Basics
AC, SK/8 23564911 FAE Conference Center

07/11 Optimizing Business Solutions
AC/8 34150911 FAE Conference Center

07/16 Employee Benefit Plans: Audit and Accounting Essentials
AC, AU/8 32811941 The Desmond Hotel

07/16 Fair Value Accounting: A Critical New Skill for All CPAs
AC/8 32129911 FAE Conference Center

07/17 Employee Benefit Plans: Audit and Accounting Essentials
AC, AU/8 32811981 Millennium Airport Hotel Buffalo

07/18 FAE's Financial Statement Disclosures for Small to Medium-Sized Businesses
AC/8 21123941 The Desmond Hotel

07/23 Closely Held and Flow-Through Entities Conference
TX/8 25602911 FAE Conference Center

07/23 Fin 48-Uncertainty in Income Taxes: A Must Know for Tax CPAs and Accountants/Auditors
AC/4 32136981 Millennium Airport Hotel Buffalo

07/23 How to Buy or Sell a Business
AC, AD/8 34339921 Hilton Long Island/Huntington

07/24 Strategic Planning for Your High Net Worth Clients Conference
TX/8 25620911 FAE Conference Center

07/25 The Best Estate and Financial Planning Topics of 2008
TX/8 34646941 The Desmond Hotel

07/25 FIN 46R Variable Interest Entity Consolidation Rules: Not Just a Big Company Issue!
AC/8 32133941 The Desmond Hotel

07/30 Hedge Funds and Alternative Investments Conference
SK/8 25530911 Marriott New York Marquis

07/30 Real Estate Financing, Taxes, and Management
TX/8 34648941 To Be Announced

07/31 Ethics Conference 2008
ET/8 25901911 New York Helmsley Hotel

August 2008

8/05 International versus U.S. Accounting: What in the World is the Difference?
AC/8 32151911 FAE Conference Center

08/05 Top 50 Bloopers and Blunders and How to Fix Them: Individual Tax and Financial Planning
TX/8 33623911 FAE Conference Center

08/06 Top 50 Tax Bloopers and Blunders in Real Estate Investments and How to Fix Them
TX/8 33625911 FAE Conference Center

08/07 Construction Contractors Accounting, Consulting, and Taxation Conference
SK, AC, AU, TX/8 25540971 Holiday Inn Rochester Airport

08/08 Planning for College Costs
TX/8 34651921 Hilton Long Island/Huntington

08/11 Asset Protection Strategies
TX/8 34645911 FAE Conference Center

08/11 Governmental & Nonprofit Annual Update
AC, AU/8 22163911 FAE Conference Center

08/13 Compiling Personal Financial Statements
AU, AC/4 32846951 To Be Announced

08/13 Federal Income Taxation of Estates, Trusts, & Beneficiaries & 1040 Return
TX/8 23836931 Courtyard by Marriott Rye

08/14 Construction Contractors Accounting, Consulting, and Taxation Conference
SK, TX, AC, AU/8 25540911 FAE Conference Center

08/19 Tax Planning for Individuals Conference
TX/8 25620912 New York Helmsley Hotel

08/20 Mastering Basis, Distributions, and Loss Limitation Issues...
TX/8 33624951 To Be Announced

08/25 Creative Strategies for Buying, Selling, or Gifting a Business
TX/8 34647971 Holiday Inn Rochester Airport

08/25 FAE's Auditing Update 2008
AU/4 21112911 FAE Conference Center

08/25 Make Money for You and Your Clients: Top individual tax planning... Strategies
TX/8 33631951 To Be Announced

08/27 Compiling Forecasts and Projections
AC, AU/4 32840941 The Desmond Hotel

08/28 FAE's Performing Small to Medium-Sized Business Audit Engagements: 2008 and Beyond
AU/8 31202932 Courtyard by Marriott Rye

08/28 Identifying and Communicating Internal Control Deficiencies under SAS 112
AU/4 32243941 The Desmond Hotel

08/28 New York Trusts and Estates: What the Practitioner Must Know
AD/4 23675911 FAE Conference Center

08/29 Audits of HUD-Assisted Projects
AU/8 22105911 FAE Conference Center

September 2008

09/10 SEC / PCAOB Conference
AU, AC/8 25157891 New York Helmsley Hotel

09/16 Bankruptcy Breakfast Conference
AD/3 25247911 FAE Conference Center

09/23 Healthcare Conference
SK/8 25545911 FAE Conference Center

09/25 Banking Conference
AC, AU/8 25538911 FAE Conference Center

To register, please call 1-800-537-3635 or visit our website at http://www.nysscpa.org/continuingeducationa.htm.

AFFINITY PROGRAM HIGHLIGHTS

Looking to head to the beach, mountains, or that historic bed and breakfast you always wanted to try this summer? With your NYSSCPA membership, you’ll save when renting a car or driving your own, or if you need to put your trip on plastic, as well.

Car Rental

Society members can access special rates at some of the country’s top car rental companies: Alamo, Avis, Enterprise, Hertz, and National. The deals and discounts vary for each company.

Log onto http://www.nysscpa.org/membership/rental.htm for more information.

Auto Insurance

Not renting a car, but still want to save? NYSSCPA members can save on their auto insurance thanks to a special deal offered by GEICO.

For more details, visit http://www.geico.com/landingpage/go51.htm?logo=06589.

Credit Cards

Want to save a little more on your summer vacation? Check out the NYSSCPA’s special arrangement with Bank of America. Your membership entitles a no annual fee, low APR credit line. Visit http://www.nysscpa.org/membership/credit_services.htm for more information.

These are just a few of the many benefits of membership in the NYSSCPA. For a complete listing of all of our benefits, please visit http://www.nysscpa.org/membership/benefits.htm.

---- Contributed by Jake Goshert, NYSSCPA Membership Marketing Specialist

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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