Michael P. Cangemi
President and CEO
Financial Executives International
Financial Executives Research Foundation
April 11, 2007
To FEI Members:
FEI continues to take leadership roles in professional issues. We are actively participating on COSO's Project Task force, developing guidance on what makes "effective" monitoring of internal control. Rick Brounstein brings perspectives from FEI's ad hoc Task Force on Monitoring and from our technical committee staff, and will be working toward making the draft guidance practicable and useful for our members. We are also seeking to ensure that the guidance supports the SEC's and PCAOB's recent proposals to increase the efficiency and effectiveness of the internal control audit.
In addition, we released an issues paper late last month on FEI's recommendations to address complexity in financial reporting. This paper expands upon comments we've provided in the past and includes such recommendations as asking regulators and other financial reporting stakeholders to agree to a "stable platform" during which no new accounting standards will be issued. This will allow FASB to focus on ongoing projects like the conceptual framework and to address the development of an accounting and disclosure model. FEI also recommended that Congress should consider meaningful securities class-action reform. The complete list of recommendations is available here.
Michael P. Cangemi
6 Steps for Linking Corporate Strategy to the Budget
Budgeting is part of a larger closed-loop process called "performance management" which is an approach to the way organizations direct and manage resources to achieve objectives. In the context of performance management, budgeting's central role is to support execution through the allocation of resources to the activities that drive value. This paper will show you how to link these related management processes and strengthen your business performance management capabilities. Download 6 Steps for Linking Corporate Strategy to the Budget now.
n FASB Update n
Lawrence W. Smith Named FASB Board Member
Earlier this week, the Financial Accounting Foundation (FAF), parent of the FASB, announced the appointment of Lawrence W. Smith as a FASB board member for a five-year term beginning July 1. Smith currently serves as FASB's Director of Technical Application and Implementation Activities, and chairs FASB's Emerging Issues Task Force (EITF). Prior to joining the FASB staff in 2002, Smith was a partner at KPMG LLP. He replaces FASB board member Ed Trott, who is retiring as of June 30.
FASB Moves Toward Finalizing Guidance on Meaning of "Settlement" in FIN 48; Changes "Highly Unlikely" to "Remote"
At its board meeting earlier today, FASB discussed comments received on proposed FSP FIN 48-a, "Definition of Settlement in FIN 48 (Accounting for Uncertainty in Income Taxes) and instructed its staff to proceed to a ballot draft of the final FSP. In response to a majority of comment letters, the board voted to change the term "highly unlikely" in the FSP to "remote."
Staff indicated there will be additional wording changes in the ballot draft to better reflect FASB's intent; specifics were not discussed. In addition to the alternative view provided by one board member in the proposed FSP, another member (Don Young) said today he plans to dissent from the final FSP on grounds that some of the disclosures required in FIN 48 could trigger action by taxing authorities that may reopen tax years; this could cause a "circular" effect in determining if the FSP's definition of "settlement" is met. Young characterized this circular effect as not being fair to preparers. Comment letters filed on the proposed FSP, including the letter filed by FEI's Committee on Corporate Reporting (CCR), can be found here.
FASB Postpones Further Work on 'Claims' Approach, Pending Liability-Equity Prelim Views
Also at today's board meeting, FASB voted not to further pursue the "claims" approach to liability-equity at this time. Instead of dedicating staff resources to the topic, the board and staff will seek comments on the claims approach as part of FASB's forthcoming Preliminary Views (PV) document on Liability-Equity. Further information is available in the board handout.
n IASB Update n
IASB-FASB Joint Meeting Agenda Posted
The IASB has posted the agenda for its April 23-24 joint meeting with the FASB in London. The agenda includes business combinations, conceptual framework, intangible assets, leases and liability-equity. Some of the agenda papers have also been posted, and others are being added.
n SEC Update n
SEC to Solicit Public Comment on Competing Proposals on Ticker Symbols
On April 5, the SEC announced it intends to issue for public comment two competing proposals of various stock exchanges regarding ticker symbols, including the right to retain existing ticker symbols when a company transfers to Nasdaq from another stock exchange. Nasdaq's portability proposal is open for comment until April 25, after which SEC will consider that proposal.
n PCAOB Update n
PCAOB Deputy Chief Auditor Laura Phillips to Leave
Earlier today, the PCAOB announced that Deputy Chief Auditor Laura Phillips is leaving the agency later this year. Most recently, Phillips led the PCAOB's efforts to facilitate implementation of the internal control reporting requirements of the Sarbanes-Oxley Act. She was also responsible for communicating guidance to auditors and other interested parties, and has been a regular speaker at FEI's Current Financial Reporting Issues (CFRI) Conference.
Agenda for Houston Small Business Audit Forum Posted
The PCAOB recently posted the agenda for its April 23 Forum on Auditing in the Small Business Environment to be held in Houston. Advance registration is required, and further information is available here.
n COSO Update n
COSO Proceeding to Develop Guidance on Monitoring Internal Control
COSO's Project Task Force, consisting of representatives of COSO's five sponsoring organizations, including FEI, will next meet in Dallas on May 10 to discuss a revised draft of its white paper, which will describe what constitutes effective monitoring of internal control. The white paper will be part of an exposure draft issued for public comment, along with proposed application guidance. A draft of the white paper is expected to be circulated later in May, and will be shared with FEI's Task Force on Monitoring and technical committees.
n Resources and Surveys n
Talk About a Deal!
Want to talk about a deal that you've completed at your company -- say, within the last two years -- that was challenging, exciting, difficult, tricky, etc.? Financial Executive is seeking financial executives who want to talk about details of a deal they've completed for an article on "Deals and Dealmakers" to appear in the June issue of the magazine. Please contact Executive Editor Ellen Heffes ASAP by email: eheffes@FinancialExecutives.org or telephone 973.765.1050.
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n FERF Update n
New FERF Research Reports Available
Download your copies of these new research reports from the FERF bookstore.
A Top-Down Approach to Risk Management and Internal Control: Issue #4: Relying on Ongoing Monitoring to Test Controls Performance, to Reduce the Scope of Separate Testing --This four-part report presents a business-centric and cost-effective approach to internal control and risk management using systems thinking and systems. This approach provides business benefits and helps enable compliance with the Sarbanes-Oxley Act of 2002, and other laws and regulations. This document is the fourth of the series, and it explores the use of monitoring to test the performance of controls. This FERF research series is being sponsored by BWise B.V.
Financial Reporting and Regulatory Update for the Quarter Ended March 31 --This summary includes proposed and final actions by the following U.S. and international standard-setting and regulatory bodies for the period Dec. 19, 2006, through March 31, 2007:
- Financial Accounting Standards Board (FASB)
- Emerging Issues Task Force (EITF)
- International Accounting Standards Board (IASB)
- American Institute of Certified Public Accountants (AICPA)
- Securities and Exchange Commission (SEC)
- Public Company Accounting Oversight Board (PCAOB)
- Department of the Treasury (Treasury)
- Internal Revenue Service (IRS)
- Committee of Sponsoring Organizations of the Treadway Commission (COSO).
n Webcasts n
Getting The Gatekeepers To Open The Door
April 19, 2 PM
Free to Members; $50 to Non-members
Qualifies for 1 CPE credit
In this insightful session, Debra Feldman, the Job Whiz, offers guaranteed tips that you can use to increase your personal odds that gatekeepers will grant you access to the boss.
For more information or to register, go here.
Reduce Operating Costs with Early Payment Discount Management
April 26, 2 pm EDT, 11 am PDT
Free to Members and Non-Members
1 CPE credit
Learn how Liz Claiborne realized a dramatic ROI with the implementation of an Opt-In Early Payment Discount Management program as part of its procurement process. In this webcast Joe Monahan, VP at Liz Claiborne, will share how its program realized a ROI in excess of Return on Invested Capital (ROIC).
n Conferences n
Summit 2007 - May 20-22
Hynes Convention Center, Boston
The Summit will address emerging issues and best practices, focusing on topics of critical concern such as technology, leadership, corporate governance, financial reporting and corporate espionage.
Keynote speakers include:
- Frank Abagnale, Con Man Turned FBI Instructor
- Sharon L. Allen, Chairman of the Board, Deloitte & Touche USA
- Doris Kearns Goodwin, Presidential Historian
For more information or to register, click here.
New OECD Initiatives in the International Taxation Area - Save the Date! June 4-5
The Ronald Reagan Building and International Trade Center, Washington, D.C.
This tax conference offers an opportunity for the U.S. business community to interact with key representatives from the OECD Centre for Tax Policy and Administration, including Jeffrey Owens, head of the OECD CTPA, and tax officials from the U.S. and other OECD countries.
For more information, please contact Debbie Siu at 212.703.5062 or firstname.lastname@example.org. Information will also be made available online.
n Job Listing n
Job 12176 - CFO
Internet corporation located on the West Coast is looking for a CFO. He/She will be responsible for all financial and accounting management aspects of company operations, including organizational and compliance initiatives customary with a venture-backed start-up. Provide leadership and coordination in the administrative, business planning, accounting and budgeting efforts of the company. Interact directly with other executives and board members.
CFO will create, coordinate, and evaluate the financial programs and supporting information systems of the company to include purchasing, budgeting, revenue planning and general accounting. Approve and coordinate changes and improvements in financial and management information systems for the company. Ensure compliance with local, state and federal budgetary reporting requirements, as well as reporting requirements of external funding sources, including venture capital providers. Oversee the approval and processing of revenue, expenditure and position-control documents, department budgets, salary updates, ledger and account maintenance and data entry. Coordinate the preparation of financial statements, financial reports, special analyses and information reports. Develop and implement finance, accounting, billing and auditing procedures.
Degree in Finance or Accounting, 10 years of experience in a senior-level finance or accounting position required. Entrepreneurial experience, MBA or CPA a plus.
For further details about this job opportunity and to view more jobs, visit the FEI Job Center
n New Member Welcome n
Congratulations to all the new members accepted in the last 30 days. See a complete list.
n Resources at www.FinancialExecutives.org n
Copyright © 2007 by Financial Executives International (FEI).
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