June 2009

2009 Top Accounting and Reporting Challenges
Tight credit conditions, a broad-based economic slowdown and a heavy dose of new accounting standards create tough challenges for management and directors in 2009. As the events of 2008 and early 2009 unfolded, each one seemed to bring a new set of challenges. Financial markets froze. Global economies slowed. Companies announced layoffs. Bankruptcies spiked. Turbulence became the new norm. And the FASB rushed to adapt its accounting standards accordingly. This article provides an analysis of the greatest challenges for financial reporting in 2009. It highlights areas on which management and directors should focus their attention and offers practical tips to help manage the risks on the following topics (click on each topic for a quick link):

• Areas Affected by the Economic Slowdown

• Liquidity Concerns and Fears of Failures

• Disclosures: The Need for More Transparency

• New Accounting for Noncontrolling (Minority) Interests and Business Combinations

• Fair Value or Mark-to-Market Reporting

• A Tidal Wave of First Quarter Effective Dates

• International Financial Reporting Standards

• Financial Instruments:  Myriad of Challenges

• Accounting Standards Codification and 2009 XBRL Taxonomy

• An Uncertain Regulatory Environment

Recent Accounting Pronouncements
Adding to the challenges of reporting amidst economic and financial crises, a new wave of accounting standards is scheduled to take effect in 2009. This section contains summaries of FASB Statements and Interpretations that: (a) were issued in 2008 or the first quarter of 2009 or (b) were issued before April 1, 2009, and are effective for periods beginning after November 15, 2008, or later. The following topics are included (click on each topic for a quick link):

• FASB Statements

• EITF Issues and Topics

• FASB Staff Positions

• Summaries of Other Technical Resources

We have also provided a summary for reference purposes using excerpts from the pronouncements about their effective dates wherever practicable. It includes pronouncements that were issued or effective after December 15, 2008, and related guidance. Read more...

In Other News...
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Financial Reporting News is provided by Somerset’s Assurance Team for our clients and other interested persons upon request. For additional information on the issues discussed, please contact us. Since technical information is presented in generalized fashion, no final conclusion on these topics should be made without further review. 

These articles were written by and published herein with the permission from professionals of BDO Seidman, LLP.  Somerset is a member of the BDO Seidman Alliance, a nationwide association of independently owned accounting and consulting firms.