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Online coupon purveyor Groupon got a rude awakening early in its public-company life: The Internet darling was forced to drastically revise down earnings and to admit to several internal control weaknesses. Shareholders quickly filed lawsuits. Such suits are likely to become more common now that the JOBS Act makes it easier for companies to go public without proper control systems. More inside.

A Review of the Post-Implementation Review Process

Robert Herz April 24, 2012

A recent development in financial reporting that may have gone overlooked by some amid the flurry of activity is the Financial Accounting Foundation's new post-implementation review process for accounting standards. Inside, Columnist Robert Herz takes a close look at the new review process, including a pilot review of the accounting standard for uncertainty in income taxes.

Companies Laboring to Make Sense of New Fair-Value Rules

Tammy Whitehouse March 20, 2012

With the first-quarter close approaching, companies and their auditors are still trying to determine how they will comply with a new rule that adjusts the method for measuring fair value and requires new disclosures. "Companies are still ... trying to figure out what this really means and what it is going to look like," says Manish Choudhary, a principal at Deloitte. Details inside.

FASB, IFRS Foundation Unveil Latest Taxonomies

Tammy Whitehouse January 19, 2012

It's not official yet, but the 2012 U.S. GAAP taxonomy is available for public consumption, reflecting changes that occurred as a result of the draft and comment process. The SEC still needs to give its final blessing to the new taxonomy; no date has been set for that. A draft of the XBRL taxonomy for IFRS standards is also available.

Accounting: 2012 Could Bring More Questions Than Answers

Tammy Whitehouse January 03, 2012

With many of the projects to converge U.S. Generally Accepted Accounting Principles and International Financial Accounting Standards nearing completion, several big questions remain, including what path the SEC will take on whether and how to adopt IFRS. "It doesn't appear those will be resolved or any changes will be effective in 2012," says Bob Dohrer, national director of assurance services for McGladrey & Pullen.

SEC Delays IFRS Plans, While Companies Grow Impatient

Tammy Whitehouse December 20, 2011

The SEC will miss its long-promised deadline of deciding sometime this year whether to adopt international accounting standards here in the United States—and financial reporting executives at U.S. corporations are starting to show their exasperation. "The lack of certainty is very costly," said Susan Callahan, manager of accounting policy and special studies at Ford Motor Co. All the details are inside.

Bracing for XBRL Liability

Tammy Whitehouse November 01, 2011

Companies with market caps of more than $5 billion began submitting their financial statements in the interactive data format known as XBRL two years ago. Now the transitional period is ending, opening these companies up to litigation and additional regulatory scrutiny. Worse, there is no audit standard for XBRL to assure the accuracy of their filings. More details inside.

Economic Uncertainty Forces a Review of Accounting Assumptions

Tammy Whitehouse October 11, 2011

Uncertainty—in the form of downgrades to government debt, market volatility, and more—is forcing companies to rethink numerous accounting estimates and forecasts that affect impairments, valuation, receivables, and hedges, to name only a few. "It could have accounting implications for an ineffective hedge, or there could have been transaction costs for a hedge you didn't need," says Chris Wright of consulting firm Protiviti. More inside.

Slow Going on the Road to Convergence

Tammy Whitehouse September 13, 2011

A compromise appears to be emerging on whether U.S. companies should adopt international accounting standards sometime in the future. The basic concept: a long, gradual transition period (which the SEC has been promising anyway), with a fast-track option for companies that want to make the switch sooner. One problem—investors generally hate the idea. All the latest developments in accounting convergence are inside.

Don't Create 'Little GAAP' for the Wrong Reasons

Scott Taub July 26, 2011

Accounting rulemakers are considering the creation of a new board to weigh separate accounting standards for private companies and create them as necessary. Inside, Columnist Scott Taub argues that end users, not costs, should be the focus of the effort, and that the Financial Accounting Foundation is not the right group to lead it.

U.S. Companies Prepare for IFRS Even as They Oppose It

Tammy Whitehouse June 01, 2011

Are U.S. executives beginning to sour on the idea of adopting international accounting standards in the United States? At the Compliance Week 2011 conference in Washington last week, top accountants at Microsoft and Xerox said the costs might outweigh the benefits. Regardless, they say companies must prepare for the possibility of adopting international standards. More details inside.

Delays and Difficulties Mar the Path to IFRS Adoption

Karen Kroll May 03, 2011

A series of delays on accounting convergence projects will complicate the SEC's vow to decide this year whether to adopt International Financial Reporting Standards for U.S. companies. Indications of the SEC's thinking are hard to come by, but prognosticators say adoption won't happen anytime soon—if at all. More details inside.

Pace of Accounting Change Remains Fast and Furious

Robert Herz February 23, 2011

Compliance Week is proud to announce the newest edition to our team of expert columnists: Robert Herz, former chairman of the Financial Accounting Standards Board. In his first column, Herz takes us behind the scenes of the standard-setting process and provides valuable insights on the state of convergence and other big accounting issues.

Top Ten Reasons Why Convergence Will Not and Should Not Happen

Paul B. W. Miller February 01, 2011

Many accountants take for granted the idea that U.S. and international accounting standards will eventually be converged into identical rules. In a special guest column, Paul B.W. Miller, a former FASB staffer, provides 10 reasons why convergence will not, and should not, happen.

Panel Prepares Proposal for Private Company GAAP

Tammy Whitehouse October 13, 2010

The notion of different accounting rules for private vs. public companies is starting to gain some traction as a “blue ribbon” panel studying the issue is developing a recommendation for exceptions for private companies.The Financial Accounting Foundation, which oversees the development of accounting rules by the Financial Accounting Standards Board,...

Panel to Forge Path for Private Company GAAP

Tammy Whitehouse December 30, 2009

Accounting leaders are forming a panel to explore whether there’s a case to be made for having separate accounting standards for public companies compared with private entities.The Financial Accounting Foundation, the American Institute of Certified Public Accountants, and the National Association of State Boards of Accountancy have formed a “blue...

FASB Moves to Make Codification Sole Authority on GAAP

Tammy Whitehouse April 07, 2009

The clock is ticking for accountants and preparers of financial statements to get up to speed on a whole new method for conducting research and referencing accounting rules. The Financial Accounting Standards Board is putting the finishing touches on its “Accounting Standards Codification” with a launch date scheduled for July...

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Survey of the Week

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