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SEC Edge

Revenue Gets the Recognition it Deserves

Recently, the Financial Accounting Standards Board (FASB) finalized two new revenue recognition rules that affect companies. The rules are part of a broader effort by FASB and the International Accounting Standards Board (IASB) to clarify principles for recognizing revenue and...

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Merger Mysteries

Accounting for business combinationsA weak economy has caused merger and acquisition activity to slow over the past two years, but business combinations may be on the verge of a comeback. If your company is contemplating M&A activity in the near...

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Writing Off Goodwill

A weak economy makes unscheduled testing necessary. In today’s volatile economy, companies must pay close attention to goodwill impairment. Under current accounting rules, companies are required to test acquired goodwill for impairment annually. But unscheduled impairment tests may be necessary...

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How Subsequent Events Affect Your Financial Statements

Financial statements provide a snapshot of your company’s financial condition on the balance sheet date. But in the real world, a company’s assets, liabilities and net worth are in a constant state of flux. What happens when, after your financial...

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Recession Relief: Rounding Up Recent Tax Developments

In today’s difficult economic environment, managing cash flow and liquidity are keys to survival for many companies. Fortunately, the IRS and lawmakers have provided some assistance in the form of tax breaks. Some recent legislative and regulatory changes may provide...

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Required Reading: How the SEC Proposes to Change Proxy Disclosure

The Securities and Exchange Commission (SEC) recently finalized new rules for proxy disclosure and solicitation enhancements that demand the attention of all public companies. These rules are intended to improve disclosures to shareholders in annual reports, proxy and information statements,...

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ERM Helps Companies Strike the Right Risk/Reward Balance

Enterprise risk management (ERM) has been talked about for years, but hasn’t received a lot of attention outside the financial service sector. However, it now appears to be more than a passing fad. Last year, Standard & Poor’s announced it...

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Uncertain Times Demand Flexible Forecasts

The credit crisis, volatile markets and uncertain prices for supplies and raw materials are making it extremely difficult for companies to forecast financials. In a recent CFO magazine survey, 70% of respondents said they couldn’t forecast more than one quarter...

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Beyond the Financial Statement

Most companies focus their Sarbanes-Oxley Act (SOX) compliance efforts on Section 302, which requires CEOs and CFOs to certify the accuracy of financial statements, and Section 404, which requires management to annually evaluate the effectiveness of internal controls over financial...

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Get Ready—Here Comes IFRS

In November 2008, the SEC published its proposed “road map” for the transition to International Financial Reporting Standards (IFRS), with the goal of moving accounting principles generally accepted in the United States (GAAP) to IFRS over the next six to...

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Is Your Company Getting the Research Credit It Deserves?

Last October’s Emergency Economic Stabilization Act (EESA) extended the federal research tax credit for the 13th time since the credit was originally enacted in 1981. It expired at the end of 2007, but EESA revived it for 2008 and 2009....

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Watch Out for Transfer Pricing Tax Rules

Does your company do business with an international parent, subsidiary or other related company? Then pay close attention to transfer pricing. Failing to comply with regulations, including new transfer pricing rules on intercompany services, may put your company at risk...

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Prepare Now for the Implementation of International Accounting Standards

For years, participants in the international capital markets have been pushing for a single set of high-quality, globally accepted accounting standards. Their efforts have panned out as International Financial Reporting Standards (IFRS), issued by the London-based International Accounting Standards Board...

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Principles-Based Standards: Substance Over Form

As U.S. companies gear up to comply with International Financial Reporting Standards (IFRS), both the U.S. Securities and Exchange Commission (SEC) and Financial Accounting Standards Board (FASB) recognize the need to move toward principles-based standards. These standards address many of...

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Your Audit Committee’s Changing Role

In the last few years, the role of the audit committee has changed dramatically. Traditionally, committees have overseen the financial reporting process including advising management and external auditors and reporting to the board of directors.In the wake of this decade's...

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New and Timely Guidance on FAS 157

Few pronouncements from the Financial Accounting Standards Board (FASB) have been as controversial as Statement of Financial Accounting Standards No. 157 (FAS 157), "Fair Value Measurements." Some critics blame FAS 157, at least in part, for the country's current financial...

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The Foreign Language of Fraud: U.S. Companies Are Especially Vulnerable in China

If your company has Chinese operations or plans to start doing business in China, you face many challenges—not the least of which is fraud. Language and cultural barriers, geographic distance and rudimentary government regulations mean that Western companies often fall...

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This publication is part of Blackman Kallick’s marketing of professional services, and is not written tax advice directed at the specific facts and circumstances of any person and/or entity. Contents of this publication are of a general nature, and you should not act on this information without obtaining professional advice from your business advisor that is appropriately tailored to your individual needs and circumstances. This written advice is not intended or written to be used, and cannot be used by any taxpayer, for the purpose of avoiding penalties that may be imposed under the Internal Revenue Code.