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<br /> www.cpaj.com November 2009<br /> Socially<br /> Responsible<br /> Accounting<br /> Protecting the<br /> Public Interest<br />  Derivative Reporting for Governments<br />  Trust Fund Taxes and Board Volunteers<br />  International Policies on Engagement Letters<br /> <br /> <br /> C ONTENTS<br /> november 2009<br /> 24 Accounting & Auditing<br /> ❙ Government Accounting<br /> Derivative Measurement and Reporting for<br /> Governments<br /> By Lawrence M. Metzger<br /> ❙ International Accounting<br /> The IASB's Narrative Reporting Project: Exposure<br /> Draft on Management Commentary<br /> By Martin E. Taylor<br /> 36 Taxation<br /> <a title="The CPA Journal - November 09 page 1" href="http://viewer.zmags.com/publication/2c3728e6?page=1"> www.cpaj.com November 2009 Socially Responsibl</a> <a title="The CPA Journal - November 09 page 2" href="http://viewer.zmags.com/publication/2c3728e6?page=2"> </a> <a title="The CPA Journal - November 09 page 3" href="http://viewer.zmags.com/publication/2c3728e6?page=3"> </a> <a title="The CPA Journal - November 09 page 4" href="http://viewer.zmags.com/publication/2c3728e6?page=4"> C ONTENTS november 2009 </a> <a title="The CPA Journal - November 09 page 5" href="http://viewer.zmags.com/publication/2c3728e6?page=5"> vol. LXXIX/no.11 6PERSPEC</a> <a title="The CPA Journal - November 09 page 6" href="http://viewer.zmags.com/publication/2c3728e6?page=6"> Publisher LOUIS GRUMET Associate Pu</a> <a title="The CPA Journal - November 09 page 7" href="http://viewer.zmags.com/publication/2c3728e6?page=7"> </a> <a title="The CPA Journal - November 09 page 8" href="http://viewer.zmags.com/publication/2c3728e6?page=8"> P ERSPECTIVES ethics The Fine Art of Whistl</a> <a title="The CPA Journal - November 09 page 9" href="http://viewer.zmags.com/publication/2c3728e6?page=9"> publisher's column Time to Require a Master</a> <a title="The CPA Journal - November 09 page 10" href="http://viewer.zmags.com/publication/2c3728e6?page=10"> (Continued from page 6) advisor or attorney befor</a> <a title="The CPA Journal - November 09 page 11" href="http://viewer.zmags.com/publication/2c3728e6?page=11"> </a> <a title="The CPA Journal - November 09 page 12" href="http://viewer.zmags.com/publication/2c3728e6?page=12"> Responding to Subpoenas Although CPAs should i</a> <a title="The CPA Journal - November 09 page 13" href="http://viewer.zmags.com/publication/2c3728e6?page=13"> of the policies and practices prescribed for that</a> <a title="The CPA Journal - November 09 page 14" href="http://viewer.zmags.com/publication/2c3728e6?page=14"> uncertainty-avoidance culture than in a weak unce</a> <a title="The CPA Journal - November 09 page 15" href="http://viewer.zmags.com/publication/2c3728e6?page=15"> The Executive's Guide to Depositions: A Practical</a> <a title="The CPA Journal - November 09 page 16" href="http://viewer.zmags.com/publication/2c3728e6?page=16"> types of questions that might be asked about docu</a> <a title="The CPA Journal - November 09 page 17" href="http://viewer.zmags.com/publication/2c3728e6?page=17"> inbox: letters to the editor The Real Eth</a> <a title="The CPA Journal - November 09 page 18" href="http://viewer.zmags.com/publication/2c3728e6?page=18"> In Focus </a> <a title="The CPA Journal - November 09 page 19" href="http://viewer.zmags.com/publication/2c3728e6?page=19"> Socially Responsible Accounting A Call for Reform</a> <a title="The CPA Journal - November 09 page 20" href="http://viewer.zmags.com/publication/2c3728e6?page=20"> sible accounting, with its societal focus. As Roy</a> <a title="The CPA Journal - November 09 page 21" href="http://viewer.zmags.com/publication/2c3728e6?page=21"> QSPEs and fought against disclosure of the instru</a> <a title="The CPA Journal - November 09 page 22" href="http://viewer.zmags.com/publication/2c3728e6?page=22"> suitability as a safe investment. Detailed explan</a> <a title="The CPA Journal - November 09 page 23" href="http://viewer.zmags.com/publication/2c3728e6?page=23"> Economic Council—consisting of trade- unio</a> <a title="The CPA Journal - November 09 page 24" href="http://viewer.zmags.com/publication/2c3728e6?page=24"> This simple principle—or accounting treatment</a> <a title="The CPA Journal - November 09 page 25" href="http://viewer.zmags.com/publication/2c3728e6?page=25"> </a> <a title="The CPA Journal - November 09 page 26" href="http://viewer.zmags.com/publication/2c3728e6?page=26"> A CCOUNTING & AUDITING government accountin</a> <a title="The CPA Journal - November 09 page 27" href="http://viewer.zmags.com/publication/2c3728e6?page=27"> Statement 53 Overview The requirements of Stat</a> <a title="The CPA Journal - November 09 page 28" href="http://viewer.zmags.com/publication/2c3728e6?page=28"> floating payment, the pay-floating party makes a </a> <a title="The CPA Journal - November 09 page 29" href="http://viewer.zmags.com/publication/2c3728e6?page=29"> hedging activity and at the end of each reporting</a> <a title="The CPA Journal - November 09 page 30" href="http://viewer.zmags.com/publication/2c3728e6?page=30"> December 31, 2009 DR Interest expense $1,500,0</a> <a title="The CPA Journal - November 09 page 31" href="http://viewer.zmags.com/publication/2c3728e6?page=31"> year of the swap agreement. The calcula- tion is </a> <a title="The CPA Journal - November 09 page 32" href="http://viewer.zmags.com/publication/2c3728e6?page=32"> A CCOUNTING & AUDITING international accoun</a> <a title="The CPA Journal - November 09 page 33" href="http://viewer.zmags.com/publication/2c3728e6?page=33"> verge IFRS and U.S. GAAP. In September 2002, the </a> <a title="The CPA Journal - November 09 page 34" href="http://viewer.zmags.com/publication/2c3728e6?page=34"> EXHIBIT 1 IAS</a> <a title="The CPA Journal - November 09 page 35" href="http://viewer.zmags.com/publication/2c3728e6?page=35"> ■ Purpose of management commentary; ■ Princip</a> <a title="The CPA Journal - November 09 page 36" href="http://viewer.zmags.com/publication/2c3728e6?page=36"> team working on the MC prepare a draft agenda pro</a> <a title="The CPA Journal - November 09 page 37" href="http://viewer.zmags.com/publication/2c3728e6?page=37"> Question 2: Do you agree that the con- tent</a> <a title="The CPA Journal - November 09 page 38" href="http://viewer.zmags.com/publication/2c3728e6?page=38"> T AXATION not-for-profit organizations </a> <a title="The CPA Journal - November 09 page 39" href="http://viewer.zmags.com/publication/2c3728e6?page=39"> 6672 imposes a trust fund recovery penal- ty (TFR</a> <a title="The CPA Journal - November 09 page 40" href="http://viewer.zmags.com/publication/2c3728e6?page=40"> quarters of 2001), the IRS determined that a tax-</a> <a title="The CPA Journal - November 09 page 41" href="http://viewer.zmags.com/publication/2c3728e6?page=41"> individual listed as signatory on all three accou</a> <a title="The CPA Journal - November 09 page 42" href="http://viewer.zmags.com/publication/2c3728e6?page=42"> sible party who acted willfully in failing to acc</a> <a title="The CPA Journal - November 09 page 43" href="http://viewer.zmags.com/publication/2c3728e6?page=43"> paid is a key step in managing risk for prospecti</a> <a title="The CPA Journal - November 09 page 44" href="http://viewer.zmags.com/publication/2c3728e6?page=44"> T AXATION state & local taxation Taxatio</a> <a title="The CPA Journal - November 09 page 45" href="http://viewer.zmags.com/publication/2c3728e6?page=45"> 208.9(a)(1), therefore eliminating the addi- tion</a> <a title="The CPA Journal - November 09 page 46" href="http://viewer.zmags.com/publication/2c3728e6?page=46"> intercorporate stockholdings shall be elim- inate</a> <a title="The CPA Journal - November 09 page 47" href="http://viewer.zmags.com/publication/2c3728e6?page=47"> </a> <a title="The CPA Journal - November 09 page 48" href="http://viewer.zmags.com/publication/2c3728e6?page=48"> F INANCE employee benefit plans </a> <a title="The CPA Journal - November 09 page 49" href="http://viewer.zmags.com/publication/2c3728e6?page=49"> Plans, requiring employers to recognize the overf</a> <a title="The CPA Journal - November 09 page 50" href="http://viewer.zmags.com/publication/2c3728e6?page=50"> notes. In addition, the FASB hoped to improve the</a> <a title="The CPA Journal - November 09 page 51" href="http://viewer.zmags.com/publication/2c3728e6?page=51"> EXHIBIT 2 Fair Value Measurements Fai</a> <a title="The CPA Journal - November 09 page 52" href="http://viewer.zmags.com/publication/2c3728e6?page=52"> 19% used the same rate and 26% used a lower rate.</a> <a title="The CPA Journal - November 09 page 53" href="http://viewer.zmags.com/publication/2c3728e6?page=53"> </a> <a title="The CPA Journal - November 09 page 54" href="http://viewer.zmags.com/publication/2c3728e6?page=54"> M ANAGEMENT accountants' liability </a> <a title="The CPA Journal - November 09 page 55" href="http://viewer.zmags.com/publication/2c3728e6?page=55"> fied CPAs' ability to limit or minimize their lia</a> <a title="The CPA Journal - November 09 page 56" href="http://viewer.zmags.com/publication/2c3728e6?page=56"> third-party lawsuits. A general indemnifica- tion</a> <a title="The CPA Journal - November 09 page 57" href="http://viewer.zmags.com/publication/2c3728e6?page=57"> Five to create captive insurance companies that p</a> <a title="The CPA Journal - November 09 page 58" href="http://viewer.zmags.com/publication/2c3728e6?page=58"> company size, a cap based on audit fees, or propo</a> <a title="The CPA Journal - November 09 page 59" href="http://viewer.zmags.com/publication/2c3728e6?page=59"> Supervisor: `Sherlock Holmes and Doctor Watson?'”</a> <a title="The CPA Journal - November 09 page 60" href="http://viewer.zmags.com/publication/2c3728e6?page=60"> M ANAGEMENT practice management D</a> <a title="The CPA Journal - November 09 page 61" href="http://viewer.zmags.com/publication/2c3728e6?page=61"> </a> <a title="The CPA Journal - November 09 page 62" href="http://viewer.zmags.com/publication/2c3728e6?page=62"> Tax consequences. Tax consequences are a vital</a> <a title="The CPA Journal - November 09 page 63" href="http://viewer.zmags.com/publication/2c3728e6?page=63"> $ FAE’ SPECIAL POP PASS! </a> <a title="The CPA Journal - November 09 page 64" href="http://viewer.zmags.com/publication/2c3728e6?page=64"> R ESPONSIBILITIES & LEADERSHIP perceptions </a> <a title="The CPA Journal - November 09 page 65" href="http://viewer.zmags.com/publication/2c3728e6?page=65"> ety to promote the public interest. Numerous auth</a> <a title="The CPA Journal - November 09 page 66" href="http://viewer.zmags.com/publication/2c3728e6?page=66"> vidual accountants and accounting firms to compro</a> <a title="The CPA Journal - November 09 page 67" href="http://viewer.zmags.com/publication/2c3728e6?page=67"> to raise the level of monitoring and control of t</a> <a title="The CPA Journal - November 09 page 68" href="http://viewer.zmags.com/publication/2c3728e6?page=68"> fer as to what constitutes ethics research, the l</a> <a title="The CPA Journal - November 09 page 69" href="http://viewer.zmags.com/publication/2c3728e6?page=69"> Don’t let the JANUARY TEMPERATURES keep you from </a> <a title="The CPA Journal - November 09 page 70" href="http://viewer.zmags.com/publication/2c3728e6?page=70"> R ESPONSIBILITIES & LEADERSHIP corporate go</a> <a title="The CPA Journal - November 09 page 71" href="http://viewer.zmags.com/publication/2c3728e6?page=71"> Excellence: A Commonsense Perspective on Corporat</a> <a title="The CPA Journal - November 09 page 72" href="http://viewer.zmags.com/publication/2c3728e6?page=72"> WaMu employees saw the same thing, and they kn</a> <a title="The CPA Journal - November 09 page 73" href="http://viewer.zmags.com/publication/2c3728e6?page=73"> those espoused in the company handbook or set for</a> <a title="The CPA Journal - November 09 page 74" href="http://viewer.zmags.com/publication/2c3728e6?page=74"> kind of gap analysis so critical to the dis- char</a> <a title="The CPA Journal - November 09 page 75" href="http://viewer.zmags.com/publication/2c3728e6?page=75"> T ECHNOLOGY what to bookmark Website of </a> <a title="The CPA Journal - November 09 page 76" href="http://viewer.zmags.com/publication/2c3728e6?page=76"> Classified PROFESSIONAL OPPORTUNITY l BUSINESS l</a> <a title="The CPA Journal - November 09 page 77" href="http://viewer.zmags.com/publication/2c3728e6?page=77"> NYC Downtown retirement minded CPA looking for CP</a> <a title="The CPA Journal - November 09 page 78" href="http://viewer.zmags.com/publication/2c3728e6?page=78"> INNOVATIVE STRATEGIES for sales and use tax compl</a> <a title="The CPA Journal - November 09 page 79" href="http://viewer.zmags.com/publication/2c3728e6?page=79"> BUSINESS SERVICES Business Valuation Software St</a> <a title="The CPA Journal - November 09 page 80" href="http://viewer.zmags.com/publication/2c3728e6?page=80"> </a> <a title="The CPA Journal - November 09 page 81" href="http://viewer.zmags.com/publication/2c3728e6?page=81"> E CONOMIC & MARKET D ATA monthly update</a> <a title="The CPA Journal - November 09 page 82" href="http://viewer.zmags.com/publication/2c3728e6?page=82"> E DITORIAL a message from the editor-in-chie</a> <a title="The CPA Journal - November 09 page 83" href="http://viewer.zmags.com/publication/2c3728e6?page=83"> </a> <a title="The CPA Journal - November 09 page 84" href="http://viewer.zmags.com/publication/2c3728e6?page=84"> </a>