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FASB issues Statement no. 148, Accounting for Stock-Based Compensation—Transition and Disclosure (www.fasb.org/news/nr123102.shtml), amending Statement no. 123, Accounting for Stock-Based Compensation. The new guidance offers two additional methods of transition for companies voluntarily planning to use the fair value method of accounting for options-related expenses. Statement no. 123 had required such entities to recognize expense for the fair value of only the options they awarded after adopting that method. But this caused those companies’ recognized compensation expenses to vary widely from the levels they had disclosed previously. Statement no. 148 enables companies to avoid such fluctuations by recognizing expense for the fair value of their past and present stock-based compensation awards as soon as those entities convert to the fair-value method. The statement also requires companies not using that method to improve the clarity and prominence of their footnote disclosures about the pro forma effect using the fair-value method would produce. In addition, businesses now must include this information in their interim, as well as annual, reports. The statement’s transition guidance and annual disclosure provisions are effective for fiscal years ending after December 15, 2002, with earlier application permitted in certain circumstances. Its interim disclosure requirements are effective for financial reports containing financial statements for interim periods beginning after December 15, 2002. (See Official Releases, page 86.) Statement no. 148 is available from FASB at 800-748-0659 or at http://store.yahoo.com/fasbpubs/s148.html.

The ASB issues Statement on Auditing Standards no. 101, Auditing Fair Value Measurements and Disclosures. It addresses audit considerations relating to the measurement and disclosure of assets, liabilities and specific components of equity presented or disclosed at fair value in financial statements. The SAS is effective for audits of financial statements for periods beginning on or after June 15, 2003, although the board permits earlier application. Copies of the SAS (product no. 060703) can be ordered from the AICPA at 888-777-7077.

The Institute’s audit and attest standards team releases nonauthoritative guidance in the form of a free tool kit, Auditing Fair Value Measurements and Disclosures. It includes practical recommendations, illustrative audit programs and disclosure checklists to help auditors understand and apply statements on auditing standards when auditing fair value measurements and disclosures relating to business combinations, goodwill and certain impairment situations. The tool kit can be downloaded from the AICPA Web site at www.aicpa.org/download/auditstd/finaltoolkit.pdf.

The Federal Reserve Board issues as final a rule amending its international lending regulations (www.federalreserve.gov/boarddocs/press/bcreg/2003/20030106/attachment.pdf). To simplify matters and thus reduce banks’ regulatory burden, the board’s action eliminates from subpart D of Regulation K the requirement they use a particular method to account for fees on international loans. Instead, the new provision, which took effect February 10, instructs banks to follow GAAP in accounting for such fees.

The International Federation of Accountants now offers free access to all documents it and the international auditing and assurance standards board post on the IFAC Web site (www.ifac.org/store).

The Department of Labor’s Pension and Welfare Benefits Administration (PWBA) releases revised Form 5500, Annual Return/Report, for plan year 2002 filings by employee benefit administrators (www.efast.dol.gov/). The PWBA modified forms 5500 and 5500-EZ slightly to reflect changes in ERISA, the Internal Revenue Code and related regulations; to clarify instructions for completing the report; and to improve forms processing.

The SEC appoints Charles D. Niemeier, CPA, acting chairman of the Public Company Accounting Oversight Board to serve until the commission fills the post permanently. Previously, he was chief accountant in the SEC’s division of enforcement.

The Fdration des Experts Comptables Europens (European Federation of Accountants) (FEE) appoints as its president David Devlin, formerly Ireland’s representative to the FEE council, who says the key to restoring confidence in global capital markets is U.S. regulators’ recognition of the equivalence of American and European corporate governance principles. The FEE comprises 41 professional bodies from 29 countries.

The Pension Benefit Guaranty Corporation names Robert L. Emmons, CPA, its inspector general. He held similar positions in the U.S. Postal Service and the U.S. Army Audit Agency.