CPA Observation Post

Accountants propose real-time financial reporting for companies

Some accounting professionals would like companies to publish financial information more frequently, to keep investors informed on their performance. New technologies and accounting practices make it possible to produce financial reports as often as every day, they say. "If I'm an investor, why can't I go on the Web and see what the Wal-Mart sales are today?," said Paul Miller, a University of Colorado accounting professor. Read More>>

Survey: Investors Remain Confident in Audited Financial Statements

Despite fluctuating markets over the past year, individual investors remain confident in investing in publicly traded U.S. companies and in their audited financial information, according to the fourth annual “Main Street Investor Survey,” released last Thursday by the Center for Audit Quality (CAQ). Read More>>

Private Investment Funds Face a Fair-Value Issue

Under new accounting proposals being circulated, managers would face tougher rules on explaining how they arrived at an asset's value and the methods used to value assets. Fair-value accounting took effect in 2007 in the form of Financial Accounting Statement 157. Now the question of  how fair value should be applied — especially in a distressed environment — has become a hot topic in the industry, and the new proposals are a concern Read More>>

SEC Takes Harder Line in Penalties for Dell Executives

Michael Dell and two other executives at Dell Inc have received multi-million dollar fines that will have to be paid from their personal fortunes. Opinion on the settlement and link to settlement details here.

Four Facts Every Parent Should Know About Their Child’s Investment Income

The IRS wants parents to be aware of the tax rules that affect their children’s investment income. The following four facts will help parents determine whether their child’s investment income will be taxed at the parents’ rate or the child’s rate.  Read More>>

Q&A: James A. Lawrence opens the Tax Mailbag for The Record

James Lawrence of Traphagen and Traphagen in Oradell answers a reader's question about what to do with stock that is worth less that it would cost to sell it. Read More>>

AICPA Survey: CPA financial planners report loss of confidence in stock market, greater risk aversion

Nearly a year and a half since the 2008 economic meltdown, more than half of high net-worth Americans still lack faith in the stock market, according to a survey of CPA financial planners conducted by the American Institute of Certified Public Accountants. Read More>>

IRS Issues Proposed Regulations on New Basis Reporting Requirement

The Internal Revenue Service yesterday issued proposed regulations under a new law that will require reporting of basis and other information by stock brokers and mutual fund companies for most stock purchased in 2011 and all stock purchased in 2012 and later years. Read More>>

Will Reductions in Internal Audit Staff Increase Opportunities for Fraud?

A new poll by Deloitte Financial Advisory Services show 27 percent of financial executives reporting reductions in internal audit and compliance staff.  This trend may have worrisome implications. Read More>>

SEC considers changes to give companies more information about shareholders

Practices related to shareholder anonymity mean companies may not have much information about their stockholders. Company officials say they would like to be able to contact shareholders more easily. The SEC is looking into possible changes that would help them. Read More>>