Reporting how’s and why’s of derivatives a must
Issues associated with reporting entities that are involved in derivative arrangements have recently generated a heightened degree of awareness across the United States and internationally. In March 2008, the Financial Accounting Standards Board issued Statement of Financial Accounting Standards No. 161, Disclosures about Derivative Instruments and Hedging Activities. The enhanced disclosure requirements in Statement No. 161 were developed in response to concerns about existing disclosure requirements in Statement No. 133, Accounting for Derivative Instruments and Hedging Activities (as amended).

It’s good to know when control deficiencies exist
Control deficiencies can have a detrimental effect on your company and the accuracy of its financial statements. Statement on Auditing Standards No. 112, Communicating Internal Control Related Matters Identified in an Audit, establishes standards and provides guidance to auditors for communicating matters relating to internal control over financial reporting.

Financial statement consistency: Can we all agree?
The beginning of the year brought users of financial statements some potential help in understanding businesses’ financial statements, pending approval by the Securities and Exchange Commission. The Public Company Accounting Oversight Board (PCAOB) adopted Auditing Standard No. 6, Evaluating Consistency of Financial Statements, and amendments to its interim auditing standards. The ball is now in the SEC’s court. There are two reasons for implementing AS No. 6.

Why one auditing standard is in and one is out
Auditing Standard No. 5 has come to the rescue of company budgets by replacing Auditing Standard No. 2, and it is expected to save “a fistful of dollars.”

Do you report business combinations based on fair value?
The guidance within Statement of Financial Accounting Standards No. 141R changes the landscape related to accounting and reporting for business combinations.

Are you clearly stating ‘noncontrolling interests’?
Improving information reflected in the financial statements related to noncontrolling interests is the primary objective associated with the Statement of Financial or Accounting Standards No. 160.

Updates: Private company financial reporting
When compared to the accounting standards used by public companies, should certain elements of differentiation be incorporated into the standards for private companies? This is the question the Private Company Financial Reporting Committee, within the Financial Accounting Standards Board (FASB), began to wrestle with in 2007.

Why internal controls – and reviews – are needed
Every day, during the normal course of our lives, we encounter numerous controls or safeguards. Whether your place of work requires an identification badge or a key fob, a password to log onto your computer or an access code to use a copier, controls are a way of life.

Delay granted to private companies to implement rule
Has FIN 48 implementation been weighing heavily on your mind? You may have some relief. On Nov. 7, 2007, the Financial Accounting Standards Board (FASB) voted to delay for one year the implementation of Interpretation No. 48 (FIN 48), Accounting for Uncertainty in Income Taxes, for private companies. FIN 48, which the FASB issued in June 2006, is an interpretation of FASB Standard No. 109, Accounting for Income Taxes.