<br />
www.cpaj.com February 2011<br />
An Interview with<br />
ROBERT<br />
HERZ<br />
Former FASB<br />
Chairman<br />
PLUS<br />
Going Concern in GAAP<br />
Corporate Social Responsibility Reporting<br />
Mark-to-Market's Role in the Financial Crisis<br />
<br />
<br />
CONTENTS<br />
february 2011<br />
26 Accounting & Auditing<br />
❙ Accounting<br />
The Going-Concern Assumption: Its Journey into GAAP<br />
By William Hahn<br />
❙ Financial Reporting<br />
Detecting Cosmetic Earnings Management<br />
Using Benford's Law<br />
By Charles E. Jordan and Stanley J. Clark<br />
❙ Auditing<br />
Goodwill Non-Impairments<a title="The CPA Journal - February 2011 page 1" href="http://viewer.zmags.com/publication/205d12e6?page=1"> www.cpaj.com February 2011 </a>
<a title="The CPA Journal - February 2011 page 2" href="http://viewer.zmags.com/publication/205d12e6?page=2"> </a>
<a title="The CPA Journal - February 2011 page 3" href="http://viewer.zmags.com/publication/205d12e6?page=3"> </a>
<a title="The CPA Journal - February 2011 page 4" href="http://viewer.zmags.com/publication/205d12e6?page=4"> CONTENTS february 2011 </a>
<a title="The CPA Journal - February 2011 page 5" href="http://viewer.zmags.com/publication/205d12e6?page=5"> vol. LXXXI/no. 2 6PERSPECTIVES 20IN FOCUS </a>
<a title="The CPA Journal - February 2011 page 6" href="http://viewer.zmags.com/publication/205d12e6?page=6"> Publisher JOANNE S. BARRY Ar</a>
<a title="The CPA Journal - February 2011 page 7" href="http://viewer.zmags.com/publication/205d12e6?page=7"> Mark Your Calendar for FAE's May and June Confere</a>
<a title="The CPA Journal - February 2011 page 8" href="http://viewer.zmags.com/publication/205d12e6?page=8"> PERSPECTIVES standards setting Accounting</a>
<a title="The CPA Journal - February 2011 page 9" href="http://viewer.zmags.com/publication/205d12e6?page=9"> publisher's column Trouble Bre</a>
<a title="The CPA Journal - February 2011 page 10" href="http://viewer.zmags.com/publication/205d12e6?page=10"> (Continued from page 6) variable-interest entitie</a>
<a title="The CPA Journal - February 2011 page 11" href="http://viewer.zmags.com/publication/205d12e6?page=11"> dards, especially those also identified above, an</a>
<a title="The CPA Journal - February 2011 page 12" href="http://viewer.zmags.com/publication/205d12e6?page=12"> pended. The report concluded that fair value acco</a>
<a title="The CPA Journal - February 2011 page 13" href="http://viewer.zmags.com/publication/205d12e6?page=13"> ment of FASB Statement No. 140, (ASC 860-10) and </a>
<a title="The CPA Journal - February 2011 page 14" href="http://viewer.zmags.com/publication/205d12e6?page=14"> successfully. Up until the May 2010 expo- sure dr</a>
<a title="The CPA Journal - February 2011 page 15" href="http://viewer.zmags.com/publication/205d12e6?page=15"> IFRS in the General Business Curriculum: Why Sh</a>
<a title="The CPA Journal - February 2011 page 16" href="http://viewer.zmags.com/publication/205d12e6?page=16"> ics, approximately 60% of respondents said they h</a>
<a title="The CPA Journal - February 2011 page 17" href="http://viewer.zmags.com/publication/205d12e6?page=17"> become tomorrow's investors, and they will not be</a>
<a title="The CPA Journal - February 2011 page 18" href="http://viewer.zmags.com/publication/205d12e6?page=18"> Private Company Accounting: A Concept W</a>
<a title="The CPA Journal - February 2011 page 19" href="http://viewer.zmags.com/publication/205d12e6?page=19"> istic sought, especially when it comes with a muc</a>
<a title="The CPA Journal - February 2011 page 20" href="http://viewer.zmags.com/publication/205d12e6?page=20"> financial instruments but also to exponentially g</a>
<a title="The CPA Journal - February 2011 page 21" href="http://viewer.zmags.com/publication/205d12e6?page=21"> practice management Use Newsletters to</a>
<a title="The CPA Journal - February 2011 page 22" href="http://viewer.zmags.com/publication/205d12e6?page=22"> In Focus </a>
<a title="The CPA Journal - February 2011 page 23" href="http://viewer.zmags.com/publication/205d12e6?page=23"> Recollections on Standards Setting, Convergence, </a>
<a title="The CPA Journal - February 2011 page 24" href="http://viewer.zmags.com/publication/205d12e6?page=24"> The movement toward IFRS is still going forward</a>
<a title="The CPA Journal - February 2011 page 25" href="http://viewer.zmags.com/publication/205d12e6?page=25"> and credit impairments of debt securities—a signi</a>
<a title="The CPA Journal - February 2011 page 26" href="http://viewer.zmags.com/publication/205d12e6?page=26"> I think a decision will have to be made about</a>
<a title="The CPA Journal - February 2011 page 27" href="http://viewer.zmags.com/publication/205d12e6?page=27"> I believe that, over time, continuing geoecono</a>
<a title="The CPA Journal - February 2011 page 28" href="http://viewer.zmags.com/publication/205d12e6?page=28"> ACCOUNTING & AUDITING standards setting</a>
<a title="The CPA Journal - February 2011 page 29" href="http://viewer.zmags.com/publication/205d12e6?page=29"> all audit opinion letters included a going- conce</a>
<a title="The CPA Journal - February 2011 page 30" href="http://viewer.zmags.com/publication/205d12e6?page=30"> EXHIBIT 1 Chronolog</a>
<a title="The CPA Journal - February 2011 page 31" href="http://viewer.zmags.com/publication/205d12e6?page=31"> of replacement financing” as aspects of a compreh</a>
<a title="The CPA Journal - February 2011 page 32" href="http://viewer.zmags.com/publication/205d12e6?page=32"> Critics argued that the time horizon is too long </a>
<a title="The CPA Journal - February 2011 page 33" href="http://viewer.zmags.com/publication/205d12e6?page=33"> ended time frame in the U.S. legal envi- ronment </a>
<a title="The CPA Journal - February 2011 page 34" href="http://viewer.zmags.com/publication/205d12e6?page=34"> ACCOUNTING & AUDITING financial reporti</a>
<a title="The CPA Journal - February 2011 page 35" href="http://viewer.zmags.com/publication/205d12e6?page=35"> statement users are deceived if the current repor</a>
<a title="The CPA Journal - February 2011 page 36" href="http://viewer.zmags.com/publication/205d12e6?page=36"> Testing for CEM Testing for the presence of CEM</a>
<a title="The CPA Journal - February 2011 page 37" href="http://viewer.zmags.com/publication/205d12e6?page=37"> Numerous articles document the over- all usefu</a>
<a title="The CPA Journal - February 2011 page 38" href="http://viewer.zmags.com/publication/205d12e6?page=38"> law, the expected frequency of zeros occur- s</a>
<a title="The CPA Journal - February 2011 page 39" href="http://viewer.zmags.com/publication/205d12e6?page=39"> Once the earnings figures have been entered int</a>
<a title="The CPA Journal - February 2011 page 40" href="http://viewer.zmags.com/publication/205d12e6?page=40"> ACCOUNTING & AUDITING auditing Goo</a>
<a title="The CPA Journal - February 2011 page 41" href="http://viewer.zmags.com/publication/205d12e6?page=41"> Under the purchase method, the purchas- er compar</a>
<a title="The CPA Journal - February 2011 page 42" href="http://viewer.zmags.com/publication/205d12e6?page=42"> Management by Avoiding or Reducing Goodwill Impai</a>
<a title="The CPA Journal - February 2011 page 43" href="http://viewer.zmags.com/publication/205d12e6?page=43"> whether goodwill non-impairment is associated wit</a>
<a title="The CPA Journal - February 2011 page 44" href="http://viewer.zmags.com/publication/205d12e6?page=44"> TAXATION state & local taxation 2010 St</a>
<a title="The CPA Journal - February 2011 page 45" href="http://viewer.zmags.com/publication/205d12e6?page=45"> loss can be claimed in addition to the stan- dard</a>
<a title="The CPA Journal - February 2011 page 46" href="http://viewer.zmags.com/publication/205d12e6?page=46"> TAXATION federal taxation The Anatomy of </a>
<a title="The CPA Journal - February 2011 page 47" href="http://viewer.zmags.com/publication/205d12e6?page=47"> eyewear from the price of the indoor tan- ning se</a>
<a title="The CPA Journal - February 2011 page 48" href="http://viewer.zmags.com/publication/205d12e6?page=48"> FINANCE markets & investments Mark-to-Ma</a>
<a title="The CPA Journal - February 2011 page 49" href="http://viewer.zmags.com/publication/205d12e6?page=49"> financial metrics have become functions of mark-t</a>
<a title="The CPA Journal - February 2011 page 50" href="http://viewer.zmags.com/publication/205d12e6?page=50"> Because the value of Level 2 derivative gains is </a>
<a title="The CPA Journal - February 2011 page 51" href="http://viewer.zmags.com/publication/205d12e6?page=51"> done with available–for-sale securities) was unne</a>
<a title="The CPA Journal - February 2011 page 52" href="http://viewer.zmags.com/publication/205d12e6?page=52"> What's Different After SFAS 133 and SFAS 140? </a>
<a title="The CPA Journal - February 2011 page 53" href="http://viewer.zmags.com/publication/205d12e6?page=53"> out more and more money in their quest for yield,</a>
<a title="The CPA Journal - February 2011 page 54" href="http://viewer.zmags.com/publication/205d12e6?page=54"> In other words, maintaining leverage in the pr</a>
<a title="The CPA Journal - February 2011 page 55" href="http://viewer.zmags.com/publication/205d12e6?page=55"> ■ A 5% decline in asset value leads to a 50% de</a>
<a title="The CPA Journal - February 2011 page 56" href="http://viewer.zmags.com/publication/205d12e6?page=56"> We do not operate in frictionless mar- kets wh</a>
<a title="The CPA Journal - February 2011 page 57" href="http://viewer.zmags.com/publication/205d12e6?page=57"> Heisenberg principle. The analogy men- tioned by </a>
<a title="The CPA Journal - February 2011 page 58" href="http://viewer.zmags.com/publication/205d12e6?page=58"> MANAGEMENT corporate finance </a>
<a title="The CPA Journal - February 2011 page 59" href="http://viewer.zmags.com/publication/205d12e6?page=59"> from the significant liabilities that states are </a>
<a title="The CPA Journal - February 2011 page 60" href="http://viewer.zmags.com/publication/205d12e6?page=60"> Because states are becoming more aggressive in th</a>
<a title="The CPA Journal - February 2011 page 61" href="http://viewer.zmags.com/publication/205d12e6?page=61"> also run afoul of unclaimed property laws. A demu</a>
<a title="The CPA Journal - February 2011 page 62" href="http://viewer.zmags.com/publication/205d12e6?page=62"> MANAGEMENT corporate finance Captive Insu</a>
<a title="The CPA Journal - February 2011 page 63" href="http://viewer.zmags.com/publication/205d12e6?page=63"> ance company or that are presently self- insured </a>
<a title="The CPA Journal - February 2011 page 64" href="http://viewer.zmags.com/publication/205d12e6?page=64"> investment income of the captive will be subject </a>
<a title="The CPA Journal - February 2011 page 65" href="http://viewer.zmags.com/publication/205d12e6?page=65"> ■ Revenue Ruling 2002-90 discusses the payment </a>
<a title="The CPA Journal - February 2011 page 66" href="http://viewer.zmags.com/publication/205d12e6?page=66"> example of how this arrangement would work. In Ex</a>
<a title="The CPA Journal - February 2011 page 67" href="http://viewer.zmags.com/publication/205d12e6?page=67"> RESPONSIBILITIES & LEADERSHIP corporate </a>
<a title="The CPA Journal - February 2011 page 68" href="http://viewer.zmags.com/publication/205d12e6?page=68"> needs of current generations without com- promisi</a>
<a title="The CPA Journal - February 2011 page 69" href="http://viewer.zmags.com/publication/205d12e6?page=69"> cial way. The sustainability philosophy weighs sh</a>
<a title="The CPA Journal - February 2011 page 70" href="http://viewer.zmags.com/publication/205d12e6?page=70"> ties and needs of each group to make it less like</a>
<a title="The CPA Journal - February 2011 page 71" href="http://viewer.zmags.com/publication/205d12e6?page=71"> The latest version of the GRI Sustainabilit</a>
<a title="The CPA Journal - February 2011 page 72" href="http://viewer.zmags.com/publication/205d12e6?page=72"> the company that they may not have heard before a</a>
<a title="The CPA Journal - February 2011 page 73" href="http://viewer.zmags.com/publication/205d12e6?page=73"> or reviews of historical financial statements. Th</a>
<a title="The CPA Journal - February 2011 page 74" href="http://viewer.zmags.com/publication/205d12e6?page=74"> TECHNOLOGY what to bookmark Website of t</a>
<a title="The CPA Journal - February 2011 page 75" href="http://viewer.zmags.com/publication/205d12e6?page=75"> nects problems with the current tax system to a V</a>
<a title="The CPA Journal - February 2011 page 76" href="http://viewer.zmags.com/publication/205d12e6?page=76"> ClassifiedPROFESSIONAL OPPORTUNITY l BUSINESS l T</a>
<a title="The CPA Journal - February 2011 page 77" href="http://viewer.zmags.com/publication/205d12e6?page=77"> PROFESSIONAL CONDUCT EXPERT PROFESSIONAL CONDUC</a>
<a title="The CPA Journal - February 2011 page 78" href="http://viewer.zmags.com/publication/205d12e6?page=78"> SITUATIONS WANTED A & A Technical Review Servic</a>
<a title="The CPA Journal - February 2011 page 79" href="http://viewer.zmags.com/publication/205d12e6?page=79"> Classified Rates Rates & Word Count: B</a>
<a title="The CPA Journal - February 2011 page 80" href="http://viewer.zmags.com/publication/205d12e6?page=80"> </a>
<a title="The CPA Journal - February 2011 page 81" href="http://viewer.zmags.com/publication/205d12e6?page=81"> ECONOMIC & MARKET DATA monthly upd</a>
<a title="The CPA Journal - February 2011 page 82" href="http://viewer.zmags.com/publication/205d12e6?page=82"> EDITORIAL a message from the editor-in-c</a>
<a title="The CPA Journal - February 2011 page 83" href="http://viewer.zmags.com/publication/205d12e6?page=83"> </a>
<a title="The CPA Journal - February 2011 page 84" href="http://viewer.zmags.com/publication/205d12e6?page=84"> </a>