Home > e-News > Industry Buzz Archive > Oct. 9, 2007: Timing and Disclosure Issues Related to Restatements

Oct. 9, 2007: Timing and Disclosure Issues Related to Restatements

In this issue:

1. Timing and Disclosure Issues Related to Restatements
2. DOL Proposal: Selecting Annuity Providers
3. Audit Committee Attributes
4. Financing Risk With Captive Insurance
5. Assembly of Experts: Financial Reporting Conference

Plus: Online Resources


1. Timing and Disclosure Issues Related to Restatements
Recent findings in a Huron Consulting study regarding restatements found:

• The most prevalent accounting issues encountered by registrants who filed restated financial statements were related to equity and debt; capitalization and expense of assets; reserves/accruals/contingencies; revenue recognition; or taxes.
• Approximately one-third of the restatements were filed within two weeks of the initial Form 8-K filing.
• Approximately 20 percent of the companies surveyed took more than four months to complete the restatement process.

Check out more survey findings, as well as suggested best practices

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2. DOL Proposal: Selecting Annuity Providers
The Department of Labor recently issued proposed rules that provide guidance for the selection of annuity providers by fiduciaries for benefit distributions from individual account plans, such as 401(k) plans.

The proposal calls for fiduciaries to conduct an objective, thorough and analytical search to identify and select providers and consider the need to engage an expert to assist in the evaluation of providers.

The comment deadline is Nov. 13 and can be submitted through the federal e-rulemaking portal or e-mailed.

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3. Audit Committee Attributes
Audit committee activities are a collaborative effort, and as such require processes that involve everything from committee member experience to educational qualifications to integrity to independence. If you’re planning an evaluation of your audit committee, CalCPA member David Tate offers some guidance in terms of what attributes to look for in committee members.

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4. Financing Risk With Captive Insurance
Captive insurance companies are established to finance risks emanating from their parent group(s) and usually carry commercial, economic and tax advantages.

Join us noon–1 p.m., Tuesday, Oct. 23, as James P. Landis JD, MBA, managing partner of Intuitive Captive Solutions, discusses the use of captive insurance companies for closely held businesses and financial planning opportunities using captives, among other topics.

Register online or e-mail Sharon Mumford.

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5. Assembly of Experts: Financial Reporting Conference
Internationally renowned experts, including SEC Chief Accountant Conrad Hewitt and representatives from FASB and the IASB, as well as Microsoft and Intel, will convene for the CalCPA-sponsored 18th Annual Conference on Financial Reporting, hosted by the Center for Financial Reporting and Management at UC Berkeley.

The day-long conference features accounting standard setters, enforcement officials and corporate financial executives discussing technical updates, emerging issues in financial reporting, fair value measurement and more.

Learn from the experts. Register today.

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Online Resources

Become a CalCPA Officer or AICPA Council Member
IRS Launches Online EIN Application
How to Handle an IRS Audit
Small-Business Tax Workshops and Phone Forums
Taxpayers Showing Losses on Schedule C in the Spotlight [PDF]
CalCPA on YouTube
CPE Geared Toward Business and Industry Professionals
EDD Launches e-Services
More Time for 409A Compliance
COSO Draft Guidance on Monitoring Internal Control