They will be published in the January-February 2008 issue of
Financial Executive magazine. We have posted Mr Cangemi's article with the kind permission of Financial Executives International. A summary is presented below. Note that global convergence of US GAAP and IFRSs is high on the list.
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FEI CEO's Top Challenges for Financial Executives for 2008
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- Fair value, the subprime market crisis, and derivatives. Does FAS 157 help? What else is needed friom a financial reporting perspective?
- Global convergence of US GAAP and IFRSs. Are the US markets ready for principles-based standards?
- Complexity in financial reporting. The SEC Advisory Committee on Improvements to Financial Reporting (CIFR) expects to finalise recommendations that are practical, doable, and workable that intend to: make financial information more useful, reduce restatements, clarify the process for providing guidance on accounting standards, reduce complexity and promote US GAAP and IFRS convergence.
- Audit profession. Treasury Department's ACAP is considering, among other things, the auditing profession's ability to cultivate, attract and retain talent; ensure audit quality for investors; audit market competition and concentration and the impact of the independence and other professional standards on the US market. But how will the findings impact preparers and audit fees?
- XBRL. Expect even more momentum in this direction in 2008 in advance of potential leadership changes at the SEC in an election year.
- Business combinations. FASB has revised FAS 141 and issued FAS 160.
- Internal controls. 2007 marks the first year that AS5 and related SEC management guidance will be applied by all public companies.
- Health care. Expanded coverage? What should the benefits be, and how should they be paid for? How such costs can be better managed.
- Corporate taxation. Potential for 'anti-business' tax proposals in Congress.
- Rating agency regulation. Do rating agencies have conflicts of interest? Is more regulation needed?
- IRS policy restraint and privilege. Will IRS reconsider its 'policy of restraint' towards requesting companies' tax accrual workpapers? Do the tax reserve disclosures mandated by FIN 48 harm companies?
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Click to view Top Challenges for 2008 (PDF 45k).
