January 2012
Hannis T. Bourgeois, LLP, Certified Public Accountants, recently announced the following promotions. Jay A. Montalbano, CPA, has been named a partner in the Audit Division. He was previously a Senior Manager and has 12 years of public accounting experience. Montalbano’s areas of specialization include auditing in the construction industry as well as business valuations. In addition, Gregory H. Brenan, II, CPA, has been promoted from Manager to Senior Manager in the Audit Division. Brenan has 11 years of experience in public accounting and specializes in providing audit services to the construction industry as well as financial institutions. Read more»
January 2012
Even though only a small number of new accounting standards will take effect this year, several major changes are close to being ready for comment.
Standards under development include new approaches for recognizing revenue and accounting for leases. The Financial Accounting Standards Board is also
modifying the other comprehensive income presentation, and is expected to defer a requirement regarding how to present reclassifications of OCI. Read more»
Several rules and regulations that will affect a wide range of business operations are expected to take effect in 2012. Among the most significant are
a new standard on fair-value measurement that goes into effect for U.S. companies in the first quarter, the Securities and Exchange Commission’s
expected decision on the adoption of International Financial Reporting Standards, and new reporting requirements for health care plans. Read more»
The International Accounting Standards Board and the Financial Accounting Standards Board agreed on how to require banks to book losses on loans earlier than they do now. The deal calls for all loans to start in a first category,
when a bank books losses on cash flows it thinks it may not receive over the next 12 months. Lifetime losses would be booked only if there has been a
significant deterioration in credit quality, and default is likely. The boards will release the revised joint proposal on impairment in 2012, with the
standard likely to be effective in 2015. Read more»
The Financial Accounting Standards Board and the International Accounting Standards Board announced progress in their ongoing, high-profile
convergence project on leases. Although an exposure draft hasn’t been released, the boards met this week and reached tentative decisions regarding cancelable leases, and revenue recognition and disclosure for lessors with leases of investment property. Read more»
Kurtzman Carson Consultants says that in 2012, banks are likely to be more selective about extending credit, ending the “amend and extend”
approach. “Amend and extend deals were done based on expectations of economic improvement that have not happened,” said Benjamin Schrag, vice
president of business development at Kurtzman Carson. “It can’t go on forever. The economic situation hasn’t improved.” Read more»
The proposed changes to lease accounting standards could add $2 trillionto U.S. companies’ balance sheets, reduce earnings at affected companies by
2.4%, and increase debt by 11%, according to a study by IHS Global Insight for the Equipment Leasing & Finance Foundation. A new exposure draft by the by the Financial Accounting Standards Board and International Accounting Standards Board is expected by April. Read more»
Governmental Accounting Standards Board officials said states and municipalities should include five-year budget projections in financial
statements. The change would give investors a fuller picture of the issues confronting local government, including revenue, expenses, debt, and
obligations to retirees. Read more»
The Financial Accounting Standards Board is taking up work on fair-value disclosure rules for private companies at the same time that many in the
profession are calling for a separate independent standard-setter for private companies. FASB’s parent organization, the Financial Accounting Foundation, has received more than 4,300 letters urging it to reform its proposal for a new private-company council whose decisions would require ratification by the FASB. The AICPA is leading a push for an independent standard-setting body. Read more»
Financial institutions, retailers and airlines are pushing the International Accounting Standards Board and the Financial Accounting Standards
Board to change a proposal to use front-loading to record leases on balance sheets. Companies have accepted that centerpiece of the proposed lease
accounting standard change, which treats leases as a new kind of asset, is unlikely to change, but they say the front-loading issue is particularly
sensitive to their operations. Read more»
