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FEI CEO's top challenges for financial executives in 2008

  • FEI (Financial Executives International) (lt green) Image

29 Dec 2007

FEI CEO and President Michael P. Cangemi has compiled a list of the Top Challenges for 2008 – in no particular order.

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.

FEI CEO's Top Challenges for Financial Executives for 2008

 

  1. Fair value, the subprime market crisis, and derivatives. Does FAS 157 help? What else is needed friom a financial reporting perspective?
  2. Global convergence of US GAAP and IFRSs. Are the US markets ready for principles-based standards?
  3. 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.
  4. 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?
  5. XBRL. Expect even more momentum in this direction in 2008 in advance of potential leadership changes at the SEC in an election year.
  6. Business combinations. FASB has revised FAS 141 and issued FAS 160.
  7. Internal controls. 2007 marks the first year that AS5 and related SEC management guidance will be applied by all public companies.
  8. Health care. Expanded coverage? What should the benefits be, and how should they be paid for? How such costs can be better managed.
  9. Corporate taxation. Potential for 'anti-business' tax proposals in Congress.
  10. Rating agency regulation. Do rating agencies have conflicts of interest? Is more regulation needed?
  11. 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?

Click to view Top Challenges for 2008 (PDF 45k).

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