Tammy Whitehouse

While U.S. financial executives are buried in Sarbanes-Oxley compliance, their counterparts in Europe are racing against a deadline to overhaul entire accounting methods—a shift Ernst & Young called “the biggest change in financial reporting in a generation and on a global basis.” The European Union has set Jan. 1, 2005, as the date by which […]

Before breaking for the Thanksgiving holiday last week, the Financial Accounting Standards Board issued FASB Statement No. 151, Inventory Costs, to specify that companies should report abnormal inventory amounts as charges against earnings in the current period. Abnormal inventory includes idle facility expense, freight, handling costs and wasted materials. FASB issued the statement to make […]

Despite the recent flurry of new accounting standards, companies discovering accounting problems still have significant leeway and equal margin for error in disclosure. That’s according to Mary Ann Jorgenson, an attorney with Squire, Sanders & Dempsey, who recently delivered a presentation on the topic at the Practicing Law Institute’s conference on securities regulation. Jorgenson echoed […]

The Financial Accounting Standards Board said recently it would issue staff positions to offer guidance on how companies should account for certain tax benefits recently extended to U.S. manufacturers in the latest tax law. The American Jobs Creation Act of 2004 provides domestic manufacturers a tax deduction of up to 9 percent on certain portions […]

In recent weeks, several prominent companies have announced or engaged in stock repurchase plans, including PG&E, Gap, Comcast, IAC/InterActiveCorp, and others. Stock repurchases can raise “earnings per share” by reducing the number of shares outstanding. But experts note that the move can also produce more stable EPS figures for companies that are facing significant hits […]

The Public Company Accounting Oversight Board will increase its staffing by 50 percent next year, from 300 to 450, following the approval of a $152.8 million budget for calendar year 2005. The board expects to spend nearly two-thirds of the total budget on staffing, including salary, benefits and hiring expenses. The majority of those new […]

In the interest of global consistency, the International Accounting Standards Board has agreed to adopt U.S. tax rules that overlook the prospective tax liability associated with foreign-invested earnings—at least for now. The issue involves foreign earnings that are invested outside a parent company’s home tax jurisdiction. International and U.S. rules (International Accounting Standard No. 12, […]

Last week, the Financial Accounting Standards Board delayed the effective date of its intended stock option expensing requirements by six months, giving compliance-weary companies and auditors more time to digest and implement new standards. At the same time, FASB members also reviewed and rejected a proposal issued by a handful of technology companies regarding how […]

Last week, the International Auditing and Assurance Standards Board approved two new exposure drafts to stiffen audit documentation requirements and to clarify the language that sets forth professional requirements. The IAASB is the independent standard-setting body for the International Federation of Accountants, charged with establishing professional standards to make the accounting practice more uniform globally. […]