AICPA Economic Crisis and Recovery Center

Tough Conversations on Going Concern

Ernst & Young partner Dave Simko discusses how the firm responded to the past year’s surge in difficult talks related to going concern evaluations.

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Controlling the Real-World Risks of Mark-to-Market Valuation

Accounting Today, June 1, 2009

This article features a real-life, eye-opening example of the possibly irreparable damage mark-to-market accounting can have on a business. It explains problems that can arise from mark-to-market valuations and specific actions businesses can take to thwart disaster. In the process, the article brings an interesting perspective to one of the industry’s most hotly debated issues.

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World Turned Upside Down

CFO Magazine, May 2009

There is no doubt that today’s economy has dealt a critical blow to many businesses. Yet, it has reinvigorated a once-marginalized group – creditors – that is now presenting new challenges to CFOs at companies that may not be down for the count, but are fighting to stay in the game. However, the right guidance can help CFOs and their companies know when they have entered the zone of insolvency, and respond to the often competing obligations and demands of creditors and shareholders.

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Pension Audits & Going Concern Issues

The Asset, Missouri Society of CPAs, May 2009

The problems of many companies that are now fighting for survival are being compounded by their struggle to keep their pension plans solvent.  Negative rates of return, the sponsor’s inability to make required contributions and the plan’s inability to meet beneficiary obligations have made going-concern issues for pension plans an important agenda item for auditors.  However, there are guidelines, red flags and response measures that can help auditors address this issue, which continues to grow in importance.

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Video: Looking for Signs of Recovery

Accounting professor Mark H. Lang of the University of North Carolina's Kenan-Flagler Business School analyzes trends seen in the most recent AICPA/UNC Kenan-Flagler Business and Industry Economic Outlook Survey, which drew responses from more than 1,100 CPA financial executives.

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FASB Approves New Mark-to-Market Guidance

Exactly three weeks after FASB Chairman Robert Herz’s March 12 testimony before a rancorous House Financial Services subcommittee, the independent standard-setting board voted Thursday, April 2, to release three new pieces of guidance to address concerns over the application of fair value accounting standards in current market conditions.

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Navigating the Current Economic Crisis: What It Means for Business

In recent months, economic turmoil has affected nearly everyone from Wall Street to Main Street. Regulations are bringing increasing complexity into a CPA’s daily work. How do you convey to boards of directors and audit committees the level at which the various issues presented by the economic crisis affect your business?

The AICPA has created a Microsoft PowerPoint presentation entitled “Navigating the Current Economic Crisis: What It Means for Businesses.” The notes and their corresponding slides provide a concise and effective way for you to communicate to stakeholders the issues that companies are facing.

Get the Notes (Part A) | View the PowerPoint (Part B)

Audit Committee Best Practices: Questions for Executive Sessions

Executive sessions are one of the Audit Committee’s best practices. These sessions offer the Audit Committee an opportunity to ask open-ended questions of the CEO, the CFO, Internal Audit, the Independent Auditors and others on sensitive issues and have a candid discussion.

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Current Economic Crisis: Going Concern Considerations—2009

The consideration of an entity’s ability to continue as a going concern is required in every audit performed under generally accepted auditing standards, and is an especially important consideration in the current state of the economy. An entity’s ability to continue as a going concern is affected by many factors related to the current uncertain economy—the industry and geographic area in which it operates, the financial health of its customers, suppliers, and financing sources.

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Current Economic Crisis: Accounting and Auditing Considerations

In today’s economic environment, which affects all types of businesses and industries, it is crucial to remain alert to current events and evaluate how they affect the audits you perform. There are a number of critical accounting and financial reporting issues that auditors should consider, such as: fair value, including fair value measurements in illiquid markets, impairment, and liquidity restrictions.

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