IN MY OPINION
The Role of Fair Value Accounting in the Subprime Mortgage Meltdown
by Michael R. Young, Paul B.W. Miller and Eugene H. Flegm
Is fair value accounting a culprit in the frozen credit markets, failure of Bear Stearns and increased stock market volatility? Or did new disclosure rules reveal underlying problems before things got even worse? The JofA asked three experts to give us their views.
For all CPAs

FINANCIAL REPORTING
Framing the Future: A First Look at FASB’s GAAP Codification
by Bruce Pounder
FASB’s Accounting Standards Codification will affect the day-to-day work of nearly every CPA who practices, teaches or researches accounting in accordance with U.S. GAAP. The project reorganizes authoritative pronouncements into 90 accounting topics in a consistent, searchable structure. Find out what you need to know about the changes ahead.
For all CPAs

ARTICLES

AUDITING / ETHICS
A Global Standard for Professional Ethics
by Catherine Allen and Robert Bunting
Governments, professional bodies and standard-setting organizations in more than 100 countries have adopted the International Federation of Accountants’ Code of Ethics for Professional Accountants, while others, including the AICPA, are in the process of converging with the code. When attest work will be relied upon in another country, users of the audited financial statements may require CPA firms to confirm compliance with global standards.
For auditors

FINANCIAL REPORTING
Securitized Profits
by Kenneth F. Fick
In the wake of the subprime meltdown, investors and finance professionals alike have been asking themselves how these companies could have recorded such huge profits on the sales of bad loans. A forensic accounting specialist explains the accounting behind these controversial transactions and takes a look at how FASB may respond with new guidance.
For all CPAs

HEADLINER Q&A
Lending a Hand
SBA Administrator Steve Preston speaks to the JofA about the SBA’s partnership with the AICPA and programs designed to assist small businesses.
For CPAs who advise small businesses

TAX / BUSINESS & INDUSTRY
Post-Transaction Adjustments
by Alan Shapiro, Luis Coronado and Axel Nientimp
Global companies can save on taxes when they perform year-end adjustments to transfer pricing. Wise choices in making such adjustments can help your company chart a smooth course through sometimes turbulent international waters.
For CPAs who advise multinational companies

TAX / EMPLOYEE BENEFITS
Now’s the Time to Comply With NQDC Regs
IRC § 409A and a torrent of related regulations prescribe new rules for nonqualified deferred compensation plans that, if not followed, can cause deferred amounts to be included in current-year income, along with hefty penalties and interest. Help your clients observe the law’s many nuances.
For CPAs advising clients on employee benefits

HIGHLIGHTS
Recent developments in the accounting profession

NEWS DIGEST
Auditing
Banking
Financial Reporting
Fraud
Government
International
XBRL

AT A GLANCE: CHARTS AND GRAPHICS
Bank, Thrift Earnings Tumble
Mortgage Loan Fraud Continues to Rise
Collection Costs Decline
IRS Updates "Dirty Dozen"

LETTERS
Deepening Insolvency Not an Emerging Threat
Smarter Than a Fifth-Grader?
Tax Software Survey To-Dos

TOP LINE
News, people, trends and other noteworthy items

CHECKLIST
Obtaining Quality Employee Benefit Plan Audit Services—The Request for Proposal

TECHNOLOGY
Smart Stops on the Web

DIVERSITY DIALOGUE
Taking a Systemic Approach

INTERNATIONAL ISSUES
Interest Capitalization: One Small Step Toward Convergence
Adopting IFRS: One Nation’s Experience

TAX PRACTICE CORNER
When "Happily Ever After" Ends—Get It in Writing

TAX MATTERS
A Not-So-Speedy Recovery
Contested Buyout Doesn’t Bar Gain
Third Circuit Silences National Muffler, Pumps Chevron Deference
All in the Family?
New Split-Interest Return Form
UBTI Subject to Excise, Not Income Tax
Line Items

FROM THE TAX ADVISER
A Healthy Deduction for 2% Shareholders

TECHNOLOGY Q&A
by Stanley Zarowin
Help! I’m Running Out of Disk Space
DVD stuck in computer? A paper clip to the rescue
Is it unwise to use low-cost or free software?
Stamp out the annoying macro warning
How to check when a Web site was last updated
A better idea
Shortcuts

THE LAST WORD
A closer look at some of the intriguing, inspiring and imaginative folks who are the heart of the AICPA