FEI Express Private Company Edition #98

Page Action:

 

FEI Express Private Company Edition #98

6/15/2011

To FEI Members:

 

FEI is making sure that our private company members remain informed during the debates and decision-making process regarding the fiscal future of our country. The Private Company Roundtable met a few weeks ago to discuss tax reform and FEI staff came away from that call with a better understanding of what is on the minds of our members. The Roundtable will hold its quarterly conference call on June 29, when it will hear from Scott McCandless, tax counsel for the Senate Small Business Committee. Contact Tyler Roberts for more information on attending the call.

 

On the accounting side, the Financial Accounting Standards Board will provide an “Update for Nonpublic Entities” webcast this Fri., June 17 from 1 p.m. to 2:40 p.m. EDT. Speakers include FASB Board Members Daryl Buck, Larry Smith and members of the FASB staff. Before joining the FASB board this year, Buck served as CFO of Reasor’s Inc. and as chairman of FEI’s Committee on Private Company Standards. Read more about the webcast here.

 

Marie N. Hollein, CTP

mhollein@financialexecutives.org

 

 

 

 

 

Table of Contents

 

REGULATORY AND LEGISLATIVE UPDATES

·        FASB Update For Nonpublic Cos. This Friday

·        FASB, IASB to Re-expose Revenue Recognition ED

·        FASB Decides To Exempt Private Cos. From Certain Revenue Recognition Disclosures

·        Debt Ceiling Debate Not Going Away

·        President Obama Advocates for the Extension of the Payroll Tax Cut

·        Big Business in Education

·        This Week’s FASB-IASB Joint Board Meetings

·        IFRIC Announces Appointments, Reappointments

·        Update on Status of IASB, ASBJ ‘Tokyo Agreement’ on Convergence

·        Additional FASB, IASB News

 

NEWS TO USE

·        Join FEI’s Committee on Private Company Standards

·        Private Company CFOs Prefer FASB as Standard Setter, GT Survey

·        Do You Work For a ‘Unique or Unusual’ Company?

·        Your Input Wanted: International Survey on Management Control

 

FERF UPDATE

·        2011 Audit Fee Survey

·        Goodwill and Asset Impairments Survey

·        Thank You to FERF Corporate Contributors!

 

WEBCASTS

·        Cloud Computing: Real Advice from Financial Executives in the Trenches

·        SEC Division of Corporate Finance Update on Financial Reporting Matters

·        High Growth Markets Webcast - China’s 12th Five-Year Plan: 2011-15

 

CONFERENCES & EVENTS

·        Executive Enterprise Institute (EEI) Events

·        Gartner Security & Risk Management Summit

·        Enterprise Risk Management in the Banking Industry Conference

·        Washington Policy ConferenceMUST-ATTEND CONFERENCE

·        30th Annual Current Financial Reporting (CFRI) Conference

·        6th Annual Hall of Fame Gala

 

FEI Committee Meetings

June

·        Committee on Taxation (COT)

·        Private Company Roundtable (PCR)

 

August

·        Committee on Government Business (CGB)

·        Committee on Corporate Treasury (CCT)

 

September

·        Private Company Roundtable (PCR)

 

FEI JOB LISTINGS

·        Job ID: 21671 – Director of Finance

 

WELCOME TO OUR NEW MEMBERS!

 

RESOURCES

 

 

REGULATORY AND LEGISLATIVE UPDATES

 

FASB Update For Nonpublic Cos. This Friday

The Financial Accounting Standards Board will provide an “Update for Nonpublic Entities” via a webcast this Fri., June 17 from 1 p.m. to 2:40 p.m. EDT. Speakers include FASB Board Members Daryl Buck, Larry Smith and members of the FASB staff. Before joining the FASB board this year, Buck served as CFO of Reasor’s Inc. and as Chairman of FEI’s Committee on Private Company Standards. Read more about the webcast here.

 

Back To Top

 

FASB, IASB to Re-expose Revenue Recognition ED

Earlier today, FASB and the International Accounting Standards Board announced it will re-expose an Exposure Draft of its proposed Revenue Recognition standard. The re-exposure document will reflect changes agreed to by the boards based on discussions of comment letters received on the original ED.

 

The boards plan to release the updated ED in the third quarter of 2011 for a 120-day comment period. Further details are in the FASB-IASB press release. See also the related item below.

 

Back To Top

 

FASB Decides To Exempt Private Cos. From Certain Revenue Recognition Disclosures

At last week’s FASB meeting, the board decided to exempt private companies from certain disclosure requirements in its upcoming standard on revenue recognition. Other matters discussed at the board meeting included revenue recognition: rate regulated entities, financial instruments and investment companies. Details are in this FEI Summary. See also related item above.

 

Back To Top

 

Debt Ceiling Debate Not Going Away

With the tension of the debt ceiling debate rising, more decision-makers in Washington are making sure their opinions are heard. On Tuesday, Federal Reserve Chairman Ben Bernanke urged Congressional Republicans to support an increase in the debt ceiling before the Aug. 2 deadline. He said, “failing to raise the debt ceiling in a timely way will be self-defeating if the objective is to chart a course for the better fiscal situation of our nation.” However, Senate Majority Leader Mitch McConnell (R-Ky.) insists that the Republicans must use the debt ceiling vote in order to get spending cuts. “It is an opportunity to prevent the fiscal crisis that we all see coming, a crisis that would devastate jobs, trigger a massive foreclosure crisis and delay the economic recovery even more,” McConnell said. Bernanke continued to urge Congress and the Obama administration to reach a deal toward greater responsibility, without tying an increase in the debt to spending cuts. Read here for more on the continued debate.

 

Back To Top

 

President Obama Advocates for the Extension of the Payroll Tax Cut

On Mon., June 13, President Barack Obama stated that an extension of the one-year payroll tax cut for workers should be included in any deficit-cutting plan. Obama held a meeting with his Council on Jobs and Competitiveness -- a group of CEOs from large companies -- to brainstorm ideas that would help with economic growth and recovery. President Obama said that 2 million private sector jobs have been created in the last 15 months, but he acknowledged that more jobs are needed in order to stabilize the economy. He believes that job creation should be a main issue in the deficit debate. For the whole story, click here.

 

Back To Top

 

Big Business in Education

With Congress tied up in the deficit debate and tax reform, public education has been forced to take a back seat on federal issues. Education reform has been delegated to state governments. American companies desire a workforce that is more globally competitive as soon as possible. In order to facilitate this change, businesses have been talking to school boards and superintendents about raising the standards of education, which includes higher proficiency standards for both students and teachers. See what local governments have been doing to improve the public education system.

 

Back To Top

 

This Week’s FASB-IASB Joint Board Meetings

The FASB board met jointly with the International Accounting Standards Board at the IASB’s London headquarters for several days this week. Agenda items for the joint board meetings included: insurance contracts, investment properties, leases, financial instruments classification and measurement, revenue recognition, balance sheet offsetting and financial instruments: impairment. Results of board meetings are generally posted same-day or next-day in FASB’s News Center.

 

Back To Top

 

IFRIC Announces Appointments, Reappointments

FEI member Peggy Smyth, vice president, Finance and CFO, Hamilton Sundstrand - A United Technologies Company, is among those recently reappointed by IFRSF to serve on the IFRS Interpretation Committee.

 

Others reappointed, as noted in the IFRSF press release, include Scott Taub, Joanna Perry, Luca Cencioni and Jean Paré. Additionally, new members appointed to IFRIC include Charlotte Pissaridou, of Goldman Sachs, and Kazuo Yuasa, of Fujitsu Ltd.

 

Back To Top

 

Update on Status of IASB, ASBJ ‘Tokyo Agreement’ on Convergence

Last week, IASB and the Accounting Standards Board of Japan provided an update on the status of their efforts to improve and converge standards under their 2007 Memorandum of Understanding, known as the Tokyo Agreement. Read more in the IASB-ASBJ’s joint press release.

 

Back To Top

 

Additional FASB, IASB News

Read FEI’s FASB, IASB News Roundup for more news.

 

Back To Top

 

 

NEWS TO USE

 

Join FEI’s Committee on Private Company Standards

FEI invites you to become a member of the Committee on Private Company Standards (CPC-S). This committee was established for the purpose of serving FEI members from private companies by providing an avenue by which they may remain knowledgeable about new standards proposed by authoritative bodies and through which they may express their opinions on such standards.

 

The committee mission is to:

·        Monitor accounting and auditing standards related developments, formulate position statements and draft comment letters on issues important to private companies on these matters, as selected by the committee.

 

·        Reach out to the greater FEI membership to help educate on private company accounting standards related issues, and provide necessary resources to private companies to help navigate the current economy and make sense of proposed and final accounting standards as they impact private companies.

 

·        Provide regular communications and networking opportunities to the members of CPC-S.

 

If you are interested in joining CPC-S or have questions, please contact George Beckwith, CPC-S chair, or Lorraine Malonza, FEI staff liaison, at 973.765.1047.

 

Back To Top

 

Private Company CFOs Prefer FASB as Standard Setter, GT Survey

A national survey of private company CFOs found that the majority (59 percent) prefer the Financial Accounting Standards Board as their standard setter. The remainder of CFOs were split between adoption of International Financial Reporting Standards for Small and Medium Entities (IFRS for SMEs) (22 percent) and a separate standard setter for private companies (18 percent). The responses from CFOs from public companies were similar.

 

These are findings from a Grant Thornton survey from March 22 through April 6, 2011, with 318 U.S. CFOs and senior comptrollers participating. Read more details here.

 

Back To Top

 

Do You Work For a ‘Unique or Unusual’ Company?

Does your company have a product or service that is unique or unusual? If so, we want to feature your company – and you as the financial executive – in an upcoming issue of Financial Executive in the new “The Office” column. To be considered, please contact Editor-in-Chief Ellen Heffes at 973.765.1050.

 

Back To Top

 

Your Input Wanted: International Survey on Management Control

FEI is pleased to invite its members to participate in a survey (“observatory”) entitled the International Observatory of Management Control.

 

The aim of this survey, designed by the French Chief Financial Officers and Controllers Association (DFCG) in partnership with University Paris Dauphine and Decision Performance Conseil and being conducted in a dozen countries, is to give a view of the “perimeter,” activities, tools and methodologies of the management controller around the world. The term perimeter has a specific meaning in this survey, pertaining to the business unit or local unit of the person completing the survey.

 

>> Take survey here. - survey deadline extended to June 30.

 

Back To Top

 

 

FERF UPDATE

 

2011 Audit Fee Survey

How do your company’s audit fees compare with those of other companies? The 2011 Audit Fee Survey provides the results of the annual survey of audit fees.  These results summarize the responses of executives from 98 United States publicly-held companies, 124 U.S. privately-held companies, three foreign companies and 21 non-profit organizations.

 

Audit fees paid by the 98 publicly-held companies responding to the survey for fiscal year 2010 averaged $3.3 million. This average represented an increase of 2 percent from the audit fees that these same respondents paid for their prior fiscal year audit.

 

In comparison, the total audit fees paid by the 124 privately-held companies responding to the survey averaged $222,300, essentially the same amount, on average, that they paid for their prior year audit.

 

Here are some of the other key survey results:

·        Public companies responding to the survey were, on average, larger than the private companies responding in terms of annual sales revenues.

 

·        The total number of audit hours required for the responding public companies averaged 12,540. The total required for private companies averaged 3,394.

 

·        The average audit fees of companies with centralized operations were significantly less than those with decentralized operations, for both public and privately held companies.

 

·        A greater percentage of public company respondents (83 percent) used Big 4 audit firms than did private company respondents (34 percent).

 

·        Both public and private companies rated their auditors neutral to good regarding seven different criteria.

 

·        Most large accelerated filers (83 percent) list their shares on the NYSE Euronext Stock Exchange, while most of the smaller publicly-held companies list their shares on NASDAQ.

 

>> Download the full report here

 

Back To Top

 

Goodwill and Asset Impairments Survey

Financial Accounting Standards Board’s (FASB’s) standard for the accounting for goodwill, Accounting Standards Codification (ASC) Topic 350, specifies that goodwill and other intangible assets must be periodically tested for impairment.

 

This is the third annual survey that Financial Executives Research Foundation (FERF) has conducted to examine how FEI member companies have responded to the aftermath of the recession with their recognition of goodwill impairments. We want you to be a part of it!

 

·        Five minutes to complete: The survey should take no more than five minutes and all responses are strictly confidential and anonymous. If a question does not apply to your company, or asks for information that you do not have, please skip it.

 

·        Get exclusive advance access to the results: All FEI members who complete the survey will be invited to a special, complimentary webcast to analyze the results and answer your questions. You will not want to miss this!

 

The FERF Executive Report analyzing the results of this survey will be available at the 30th Annual Current Financial Reporting Issues (CFRI) conference Nov. 14-15 in New York City.

 

If you have any questions about the survey, please feel free to contact Bill Sinnett, director of Research at bsinnett@financialexecutives.org or 973.765.1004.

 

>> Take survey here.

 

Back To Top

 

Thank You to FERF Corporate Contributors!

Our utmost THANKS and APPRECIATION to our corporate donors who generously fund FERF research! FERF Major Gift donors ExxonMobil Corporation and Microsoft Corporation, our President’s Circle Donors, along with our many corporate patrons, provide the much-needed support to produce the cutting-edge research and benchmarking tools available to all FEI members. Thank you for your continued generosity – we couldn’t do it without you!

 

Back To Top

 

 

WEBCASTS

 

Cloud Computing: Real Advice from Financial Executives in the Trenches

Presented by Intacct

June 16 | 1:00 p.m. Eastern | 1 Hour | 1 CPE credit available

Register here.

 

Almost every day you hear more and more about "cloud computing" — but what does it mean to real-world finance executives? Is it just hype or does it deliver real benefits? What are the pitfalls and where are the best places to start?

 

Hear these answers and more, live, from leading finance executives and CPA firm executives. In just an hour, you'll get valuable advice and real-world recommendations, which will more than pay for the hour of your time.

 

Join our experts and discover:

·        Which of your applications are most suitable, and least suitable, for moving to the cloud?

 

·        What specific products these finance executives are using — and which would they recommend and which would they avoid?

 

·        What was the cost/benefit for their business — did they really see ROI from the cloud?

 

·        Would they do it again, what would they do differently and what are they going to do next?

 

·        What does this mean for your IT department — are they resistant to cloud computing?

 

Back To Top

 

SEC Division of Corporate Finance Update on Financial Reporting Matters

Presented by Center for Audit Quality (CAQ)

June 24 | 1:00 p.m. Eastern | 2 Hours | 2 CPE credits available

Register here.

 

Hear directly from the SEC’s Division of Corporation Finance staff regarding the latest information on financial reporting matters. Designed with both public company auditors and preparers of financial statements in mind, this Center for Audit Quality (CAQ) Webcast will provide you with insights, observations and perspectives from SEC staff on a range of important matters from loss contingencies to recent updates in the Financial Reporting Manual to an update on the IFRS work plan.

 

Moderated by the CAQ’s Senior Director of Professional Practice, Brian Wolohan, this webcast will feature various representatives from the SEC’s Division of Corporation Finance, including:

·        Craig Olinger, Deputy Chief Accountant, SEC Division of Corporation Finance

·        Nili Shah, Deputy Chief Accountant, SEC Division of Corporation Finance

·        Mark Shannon, Associate Chief Accountant, SEC Division of Corporation Finance

·        Ryan Milne, Associate Chief Accountant, SEC Division of Corporation Finance

 

Back To Top

 

High Growth Markets Webcast - China’s 12th Five-Year Plan: 2011-2015

Presented by KPMG

June 28 | 11:00 a.m. Eastern | 1 Hour | 1 CPE credit available

Register here.

 

China has recently approved its 12th Five-Year Plan (FYP), a new national development program for the next five years, 2011 to 2015. The FYP will have a broad impact on China’s economy and shape its relationship with the U.S. and other countries, and have implications for business in China and the U.S. The main FYP, together with industry-specific FYPs now under development, will offer insight into how the business landscape is likely to evolve over the next five years in China, the U.S. and other countries around the globe.

 

This informative webcast will be led partners from China and the U.S. who will give their insights regarding:

·        Overview of the 5YP;

·        Key themes and seven strategic investment areas;

·        Insights on key industry sectors; and

·        The road ahead 2011-15.

 

Back To Top

 

 

CONFERENCES & EVENTS

 

Executive Enterprise Institute (EEI) Events

Co-Sponsored by Executive Enterprise Institute (EEI) and FEI

FEI Members save $200 by using discount FEI-PC10 when registering below events.

 

June 16-17

Income Tax Accounting

Chicago, IL

Register here.

June 16-17

Tax Strategies for Mergers and Acquisitions

Chicago, IL

Register here.

June 17

FIN 28

Chicago, IL

Register here.

June 21-22

FASB Update – 1 ½ Days

Chicago, IL

Register here.

June 22

Building Blocks of Derivatives

New York, NY

Register here.

June 22

Consolidations and Valuations Bootcamp

Chicago, IL

Register here.

June 22

IFRS Orientation Bootcamp – ½ Day

Chicago, IL

Register here.

June 23

IFRS Update

Chicago, IL

Register here.

June 23-23

Accounting for Business Combinations

Chicago, IL

Register here.

June 23-24

Accounting for Derivatives

New York, NY

Register here.

June 23-24

Fraud Prevention

New York, NY

Register here.

June 24

Financial Reporting for International Operations

Chicago, IL

Register here.

June 27

Accounting and Reporting for Financial Institutions

New York, NY

Register here.

June 27

SEC Accounting

Chicago, IL

Register here.

June 28-29

Advanced SEC/FASB Reporting & Compliance

Chicago, IL

Register here.

June 28-29

FASB Update – 1 ½ Days

New York, NY

Register here.

June 29

Accounting for Leases

New York, NY

Register here.

June 29-30

Income Tax Accounting

Las Vegas, NV

Register here.

June 30

FIN 28

Las Vegas, NV

Register here.

 

Back To Top

 

Security & Risk Management Summit

Presented by Gartner

June 20-23 | Gaylord National | National Harbor, MD

Register here.

 

Sophisticated new threats, mounting complexity and growing dependence on IT infrastructures are making business-critical security functions that much more challenging. At the same time, next-generation security programs are producing new business intelligence — a valuable new resource for improving business performance. To stay on top of this rapidly evolving discipline, attend the Gartner Security & Risk Management Summit 2011, the premier gathering of senior IT and business executives across IT security and risk management.

 

Hot topics include:

·        Governance risk compliance;

·        Cloud computing and recovery;

·        Security architecture;

·        Mobile applications and security; and

·        Security threats and vulnerabilities.

 

Back To Top

 

Enterprise Risk Management in the Banking Industry Conference

Presented by Marcus Evans

July 14-15 | New York City, NY

Register here.

 

Attending this premiere conference will allow you to focus on the specific needs and challenges of implementing and evolving enterprise risk management strategies. The conference will address critical corporate governance issues, including securing senior management and board of director buy-in for ERM initiatives, developing a company culture that appreciates ERM and setting and articulating the institution’s risk appetite.

This practical, hands-on event will enable delegates to benchmark their ERM strategies against their peers. It’s a “must-attend” conference for any financial executive who wants to stay ahead of the game by developing a comprehensive ERM program.

 

Conference speaker:

Michael Fadil, Senior Vice President, Corporate Risk Management, SunTrust Bank

 

Back To Top

 

MARK YOUR CALENDARS – Upcoming FEI Conferences and Events

 

Washington Policy Conference

Sept. 26-27 | Hotel Monaco | Washington, D.C.

Register here.

 

The 2nd Annual Washington Policy Conference will bring together key business and government leaders who will provide insights into the policy questions facing senior-level financial executives and their companies. Topics include the policy impacts of reigning in the deficit, prospects of fundamental tax reform and the impact of new legislation and regulations currently being debated.

 

KEYNOTE SPEAKERS:

·        Hon. Fred Malek, Founder and Chairman Thayer Capital Partners and former President of Marriott Hotels and Northwest Airlines

 

·        Hon. Michael G. Oxley, of Counsel, Baker Hostetler and former Chairman of the House Financial Services Committee and U.S. Congressman (Ohio)

 

The program will provide an optimal setting for you to hear from Washington’s key decision-makers in Congress and the administration and will also afford an opportunity to share information, ideas and experiences on current regulatory and legislative initiatives with high-ranking government officials and industry experts.

 

Back To Top

 

30th Annual Current Financial Reporting Issues (CFRI) Conference

Nov. 14-15 | New York Marriott Marquis Times Square | New York, NY

Register here.

 

Focused on economic challenges and regulation reform, CFRI will detail the latest accounting and reporting developments from the SEC, FASB and IASB. Key topics include FASB/IASB technical accounting updates, status on key accounting proposals: Financial Instruments, Revenue Recognition, Leasing and Insurance, Controllers’ Roundtable on top-of-mind business issues, Q&A with FASB and the SEC and more.

 

KEYNOTE SPEAKERS:

·        Anirban Basu, Chairman and Chief Executive Officer, Sage Policy Group, Inc.

 

·        Geoff Colvin, Senior Editor-at-Large, FORTUNE Magazine

 

Back To Top

 

6th Annual Hall of Fame Gala

Premier Sponsor: Microsoft

Nov. 14 | Gotham Hall | New York, NY

 

The FEI Hall of Fame provides acknowledgment to senior financial executives who have epitomized the integrity, leadership and performance of the most exemplary financial professionals throughout their careers and in doing so, have made significant contributions to the betterment of their respective organizations and to the financial profession as a whole.

 

Join us to honor and celebrate the 2011 class of inductees in formal, black-tie attire at the Annual Hall of Fame Gala on Nov. 14 at Gotham Hall, in New York City. All proceeds from the 6th Annual Hall of Fame Gala benefit the work of Financial Executives Research Foundation (FERF).

 

Visit for more information about the Gala or if you are interested in becoming a Hall of Fame sponsor, please contact Lorna Raagas at 973.765.1033.

 

Back To Top

 

 

FEI Committee Meetings

 

June

Committee on Taxation (COT)

June 16-17 | Hyatt Regency on Capitol Hill | Washington, D.C.

Register here.

 

Back To Top

 

Private Company Roundtable (PCR)

June 29 | 2:00 p.m. Eastern | Conference Call

Register here.

 

Back To Top

 

August

Committee on Government Business (CGB)

Aug. 11-12 | BAE Systems San Diego Shipyards | San Diego, CA

Register here.

 

Back To Top

 

Committee on Corporate Treasury (CCT)

Aug. 17 | 2:00 p.m. Eastern | Conference Call

Register here.

 

Back To Top

 

September

Private Company Roundtable (PCR)

Sept. 26 | Town Hall Meeting | Washington, D.C.

Register here.

 

Back To Top

 

 

FEI JOB LISTINGS

 

Job ID: 21671 – Director of Finance

Location: Tampa, FL

 

This position is primarily responsible for all accounting, finance and tax activities for the company by performing the following duties.

 

Essential duties and responsibilities include:

·        Core duties and responsibilities include the following. Other duties may be assigned.

·        Completes the implementation and roll out of a new MAS 500 accounting system and time recording system.

·        Establishes budgets at the corporate and profit center level, developing and issuing financial and management reports to responsible executives on a regular and timely basis.

·        Manages and develops a small staff, ensuring accounting principles are understood and applied.

·        Takes a significant role in the development of new profit center managers for the corporation.

·        Manages banking, tax and audit firm relationships.

·        Develops and executes a plan to provide accounting and management support to all areas of the company.

·        Ensures all internal and external reporting requirements are met.

·        Enhances financial processes and infrastructure to enable substantial company growth over the coming years. Through acquired knowledge of the industry, the company and the products and services, be a consistent contributor to the improvement of company performance, processes and infrastructure.

 

For further details about this job opportunity, click here.

To view more jobs, visit FEI’s Career Center.

 

Back To Top

 

 

WELCOME TO OUR NEW MEMBERS!

 

Congratulations to all the new members accepted in the last 30 days. Click here to see a complete list.

 

Back To Top

 

 

RESOURCES AT www.financialexecutives.org

 

 

Back To Top