GLG News by Tax Professionals (US)

With the 20th anniversary of the October 19, 1987 "Black-Monday" 22% single-day stock-market drop lessons learned apply much the same today. Since Sept. 18, 2007, the day the Federal Reserve cut interest rates by 50 basis points, a group of big banks have combined to create structured investment vehicles,...

The cost to US companies, their auditors, and users of financial statements, of switching from GAAP to IFRS would be high, while the benefits are unclear.  Arguments in favor of convergence have to do with comparability, not with improving financial reporting. While not perfect, GAAP provides the...

FIN 48 potentially throws firms' tax positions into sharp relief.  Relatively modest preemptive actions and changes in internal control can significantly blunt the extent to which firms are subject to undesired disclosure with respect to their tax positions.

The fate of the ethanol industry is closely linked to technological breakthroughs in the feedstock supply, the use of ethanol as a supplement of traditional fuels and the end result of the race to economically and permanently supplement the use of fossil fuels.

The FASB received over 400 letters representing more than 1,000 companies’ concerns about implementation issues related to FASB Interpretation #48 (FIN 48).  The vast majority of the letters requested a deferral of the effective date of the new Interpretation; fiscal years beginning after December...

FASB Interpretation No. 48 ("FIN 48"), Accounting for Uncertainty in Income Taxes, is scheduled to become effective for a company's first quarter beginning after December 15, 2006 (i.e., the quarter ended 3/31/07 for calendar year companies).  The FASB announced today that it will...

FASB Interpretation No. 48 ("FIN 48"), Accounting for Uncertainty in Income Taxes, becomes effective in a company's first quarter beginning after December 15, 2006 (i.e., the quarter ended 3/31/07 for calendar year companies).  Adoption of the new interpretation will have an immediate impact...

Restatement charges for option backdating were initially perceived to be a largely noncash adjustment to earnings.  However, it is becoming apparent that the backdating may result in very significant tax liabilities, with a material impact on a company's cash flows.

1. It is important for shareholders to fully understand the implications of management's decisions in the price of their shares.2. Buybacks and special dividends do not represent additional value in the long run and may fuel short term speculation and share price volatility.

What to be ready for given that publicly traded firms will have to adjust their balance sheets for underfunded / overfunded pension plans ending for years after 12/15/06?  Look into the footnotes of the 05 financial statements.  For some companies, the adjustment will be big and net equity...