The CPA Journal Millennium Series

  Under Edmund Jenkins, FASB has placed a premium on the needs of financial report users--analysts, investment bankers, lenders, and investors. This user orientation is reflected in the changes made to SFASs 141 and 142 as they went from exposure draft to statement. The authors analyzed comment letters against the changes made to the exposure drafts and conclude that a user orientation could be the next step in standards setting. (Article)

  By Marc H. Levine and Joel G. Siegel

  AICPA Statement of Position 00-2, Accounting by Producers or Distributors of Films, presented new accounting, reporting, and disclosure requirements for the motion picture industry. The position was codified in SFAS 53, Financial Reporting by Producers and Distributors of Motion Picture Films, which became effective on December 15, 2000. The standard is aimed at codifying the practice of timing revenue recognition, classifying film costs, and estimating future financial performance. (Article)

  The new reporting approach required by GASB 34 has created a number of challenges in its interpretation and implementation. Based on an analysis of more than 200 comprehensive annual financial reports, the authors conclude that GASB should modify the definition of and reporting options for major discretely present component units. They believe a revised approach will not only accord with current practice but also provide more information to users. (Article)

     SAS 82, Consideration of Fraud in a Financial Statement Audit, identifies 25 risk factors that auditors should consider when assessing the risk of management fraud in a financial statement audit. It does not, however, offer any guidance on how much weight to assign to each factor. The authors surveyed fraud experts in order to develop a model that provides guidance on how to weight each of the risk factors. (Article)

  October Departments

  · The corporate AMT in review (Article)

  · Motivating employees during tough times (Article)
  · Controlling the costs of mismanagement and turnover (Article)

  · Security issues on the Internet (Article)

October News & Views

  ·  Global convergence: Two steps forward, but in what direction?
 · A membership at the crossroads of disenfranchisement       
  · A nation united--enduring and resilient
  · The rise and fall of the ISB
  · Website of the month: AccountingWeb
  · MDP update: The empire state strikes back
  · Book Review: Transnational Accounting, Second Edition
  · IMA, AICPA, AAA chiefs on profession's top issues

  Letters to the Editor
  · Yes, CPA review course are useful, but ... 
  · CPE for professors as one bridge across the education gap
  · From the Good Book to web clutter

 Coming Soon

 · November is technology month 
 · Internet security and e-business
 · Choosing accounting software

Accounting 
 · Implementation of SFAS 138
The CPA in Industry  
 · Electronic service disruptions
The CPA Consultant
 · Online privacy