As launch of FASB's new codification system approaches, many CFOs remain unaware
On July 1st, the FASB will cut the ribbon on the Accounting Standards Codification, a system that significantly changes how GAAP is structured and organized. Despite the looming shift, awareness in the accounting community is surprisingly low. According to Grant Thornton's Spring 2009 Survey of Financial Executives, fewer than half (46%) of respondents knew about the project, despite the fact that it will become the single source of authoritative U.S. accounting and reporting standards. The codification will supersede all existing pronouncements of the FASB, the Emerging Issues Task Force, the AICPA and others.
Lack of familiarity with the project may translate into reluctance to convert to the new system. Only 16 percent of survey respondents agreed transition to the codification should happen this year. About one in five (19%) agreed the codification should become the sole source of GAAP, but only after a longer transition period. Read the press release.
The Spring 2009 survey explores a wide range of topics critical to financial executives, from the state of the economy to corporate governance and the latest tax and accounting issues. For more on the survey, visit www.GrantThornton.com/CFOsurvey.
U.S. Treasury begins accepting grant applications for alternative energy investments in July
The grants can be taken in lieu of federal income tax credits that would otherwise be available for property placed in service in 2009 and 2010. They are worth up to 30% of qualifying investments.
Not all earnings are created equal: Applying the Menard case to executive comp
The Seventh Circuit’s reversal of an unfavorable Tax Court opinion on reasonable compensation could provide an opportunity to re-examine pay practices with an eye on compensation risk analysis.
Kicking the tires on not-for-profit investment portfolios
Many not-for-profit organizations have been shocked and dismayed by the impact the downturn has had on their investment portfolios. They have responded by revamping their investment policies.
