The AICPA requests nominations for two awards recognizing the pro bono achievements of individual CPAs and firms. Beginning this year a Public Service Award for Firms joins its preexisting counterpart, the Public Service Award, which acknowledges individual contributions. Institute members, state societies and CPA firm associations can nominate candidates for either award by downloading forms at www.aicpa.org/members/ and submitting them to the postal or e-mail addresses indicated therein. Submissions are due August 31.

For news from the AICPA and state societies, visit www.cpa2biz.com , which also offers online CPE, AICPA professional literature, practice management aids and links to state society Web sites.

FASB issues Statement no. 150, Accounting for Certain Financial Instruments with Characteristics of both Liabilities and Equity (available for download at www.fasb.org/FAS150.shtml ), to improve the accuracy of securities issuers’ accounting for such financial instruments. Earlier guidance allowed companies to classify as equity instruments possessing debt-like attributes. But the new statement—effective for financial instruments entered into or modified after May 31—establishes standards requiring financial reports to present such items as liabilities. For earlier transactions, it takes effect at the start of the first interim period beginning after June 15. Nonpublic entities’ mandatorily redeemable financial instruments, however, are subject to the new provisions in the fiscal period beginning after December 15. Printed copies of the statement are available for $14.50 each from FASB at 800-748-0659.

The Securities and Exchange Commission releases Staff Accounting Bulletin (SAB) no. 103, Update of Codification of Staff Accounting Bulletins, after comprehensively removing obsolete material for the first time in more than 20 years ( www.sec.gov/news/press/2003-61.htm ). In doing so, the commission laid the groundwork for its plan to eventually make the entire collection of SABs available on the SEC Web site.

The AICPA launches its “audit committee matching system” (ACMS) to foster better communication between Institute members and companies (both public and privately held), not-for-profit entities and other organizations in need of candidates qualified to serve on their boards of directors and audit committees. The ACMS, part of a comprehensive Institute program to support audit committee effectiveness in corporate governance, responds to the increased responsibilities—for example, to have financial expertise—the Sarbanes-Oxley Act of 2002 and related SEC rules placed on such committees. Members willing to contribute to this effort their knowledge of finance, commitment to the profession’s code of ethics and business processes proficiency can provide information on their background and qualifications by registering with the ACMS at http://acms.aicpa.org/login.asp . As part of its effort to assist audit committees in fulfilling their role, the AICPA also is developing a practical tool kit for members serving on such committees and a competency model for assessing the necessary related skills and knowledge.

The Public Company Accounting Oversight Board (PCAOB) approves a registration system for use by public accounting firms ( www.pcaobus.org/rules/Release2003-007.pdf ). Section 102 of the Sarbanes-Oxley Act prohibits accounting firms not registered with the board from preparing or issuing audit reports on U.S. public companies and from participating in such audits. To perform these functions, all U.S. public accounting firms must register by October 22, 2003. In recognition of special considerations—such as registration-required disclosure that would violate foreign confidentiality and privacy laws—the board is giving nondomestic firms until April 19, 2004, to register if they wish to render such services to U.S. public companies. Before the registration system can take effect, however, the SEC must approve it. The board’s action follows a public comment period during which the AICPA SEC practice section ( www.aicpa.org/download/sarbanes/AICPA ) and others responded.

According to a tentative FASB decision in April, goods and services received in exchange for all forms of stock-based compensation result in a cost companies should recognize as an expense if they consume such goods and services ( www.fasb.org/opening_statement.pdf ; www.fasb.org/full_text.pdf ). The board’s determination comes as it begins a project to improve accounting for such transactions, whose value it says is properly measured on the basis of their fair value. FASB will deliberate this topic at upcoming public meetings and plans to issue, by the end of the year, an exposure draft that could become final in 2004.

The AICPA publishes a series of actual case studies involving poor judgment or illegal accounting practices. In them, managers face a variety of ethical dilemmas. The cases cover accounting and auditing, as well as professional ethics, corporate leadership and regulatory, legal and financial analysis. The series, which the AICPA developed to teach and inspire businesspeople to identify and prevent fraud, is available free at http://antifraud.aicpa.org/Resources/Tools+and+Aids/Case+Studies/
Ethics+and+Fraud+in+Business+Cases+and+Commentary.htm .

The Federal Accounting Standards Advisory Board (FASAB) issues an exposure draft, Accounting for Fiduciary Activities ( www.fasab.gov/pdf/trustf1.pdf ). The proposed standard shows how to distinguish, in a federal context, fiduciary activity from program activity that, in many cases, is called “trust fund” activity but actually represents taxes or other resources dedicated to specific federal programs. Comments are due July 31.

FASAB issues Statement of Federal Financial Accounting Standards (SFFAS) no. 23, Eliminating the Category National Defense Property, Plant and Equipment. In addition to rescinding the category, the statement’s standards classify as general PP&E all items previously considered ND PP&E and apply the provisions for general PP&E and associated cleanup costs contained in SFFAS no. 6, Accounting for Property, Plant, and Equipment. The standards also permit continued use of the composite or group depreciation methodology and are effective for periods beginning after September 30, 2002. Copies of SFFAS no. 23 are available from FASAB on the Web ( www.fasab.gov/concepts.htm ) or by phone (202-512-7350).

The AICPA issues an exposure draft of the privacy framework it developed with the Canadian Institute of Chartered Accountants. The framework includes privacy standards designed to help organizations better manage their clients’ and customers’ personal information and mitigate associated risks. The ED is available at www.aicpa.org . Comments are due August 31 to Karyn Waller, senior technical manager, trust services, at kwaller@aicpa.org . More information on privacy practices is available at www.cpa2biz.com/ResourceCenters/Information+Security/Privacy/default.htm .

The AICPA, the National Association of State Boards of Accountancy and Prometric, a developer of electronic testing systems, present an online tutorial for the computerized uniform CPA examination ( www.cpa-exam.org/lrc/exam_tutorial.html ). Its purpose is to familiarize accounting students and exam candidates with the test’s design and operation. The tutorial reviews the types of questions that appear in the electronic version and enables users to simulate certain functions, such as answering a question. The first computer-based exam will be administered on April 5, 2004, and the final paper-based examination will be given on November 5–6, 2003.

Beginning July 1, accountants and other professionals who had registered a trademark or service mark before September 30, 2002, can secure a .pro domain name, or Internet address suffix, that exactly matches their registered mark. For example, a firm with a trademark such as Smith & Jones, CPAs, would qualify for a Web address of www.smith&jonescpas.pro. Through the use of digital certificates—information packets that confirm the identity of participants in online transactions—such Web addresses will provide greater security and confidentiality for electronic commerce and communications. The Internet Corporation for Assigned Names and Numbers (ICANN, www.icann.org ) added .pro to the existing list of approved domain names, such as .com, .org, .gov and .edu, and designated RegistryPro ( www.registrypro.com ) as the operator for the registry. ICANN is the nonprofit corporation responsible for Internet address allocation and domain name system management.

The Public Company Accounting Oversight Board appoints two veteran practitioners to direct its audit oversight and rule-making activities. One, Douglas R. Carmichael, CPA, will serve as chief auditor and director of professional standards ( www.pcaobus.org/pcaob_news_4-17-03_b.htm ). Until 1983, he was the AICPA’s vice-president of auditing. The other, Thomas Ray, CPA, will be deputy chief auditor ( www.pcaobus.org/pcaob_news_5-08-03_a.htm ). Until 2000, he was the AICPA’s director of audit and attest standards.

The Financial Accounting Foundation (FAF), which funds, oversees and selects the members of the Financial Accounting Standards Board (FASB) and the Governmental Accounting Standards Board (GASB), in April appointed Leslie F. Seidman, CPA, to a three-year term on the board beginning July 1 ( www.fasb.org/news/nr042903.shtml ). Currently managing member of her own firm, she is a former vice-president of accounting policy at J.P. Morgan & Co. At the same time, FAF reappointed Gary S. Schieneman to the FASB, also to a three-year term beginning July 1. He has been a board member since July 2001 and is a former director of comparative global equity analysis at Merrill Lynch & Co.

The AICPA and the Foundation for Fiduciary Studies release Prudent Investment Practices: A Handbook for Investment Fiduciaries as an advanced reference work for CPA financial planners as well as for practitioners in business and industry serving as trustees and/or members of investment committees. The guide explains in detail more than two dozen best practices from federal and state legislation, regulatory opinion letters and relevant case law. It is available from the foundation’s Web site ( www.ffstudies.org ) for $30—$20 to AICPA members—plus shipping and handling.