Assessing the risks in off-balance-sheet banking activities
Article Abstract:
The Financial Accounting Standards Board (FASB) has investigated off-balance sheet (OBS) financing in accordance with a Congressional mandate in order to propose disclosure requirements within the framework of an accounting standard. There are three types of OBS activities: guarantees and commitments, including letters of credit, lines of credit, and loan commitments; market related transactions, including futures and forwards contracts, options, swaps, and foreign exchange trading; and advisory, financial, and management services, including loan sales, trust services, and correspondent banking services. The proposed accounting standard from the FASB would require disclosure of information to allow a firm's financial statement users to evaluate the interest rate risk, credit risk, market risk, and liquidity risk of OBS activities.
Publication Name: Business
Subject: Business
ISSN: 0163-531X
Year: 1990
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How to choose CPA services for the growing company
Article Abstract:
Growing companies should devote the same care and judgment to the selection of a CPA firm as they do to other major business decisions because it is an important, long-term commitment. A comprehensive request for proposal (RFP) should be developed that contains a complete description of the company and the level of services it is looking for. The RFP should also generate information from CPA firms regarding their professional qualifications and fees. Audit proposals should be carefully evaluated, and only when quality CPA firms have been selected for final consideration should audit fees be addressed. Companies should also develop comprehensive contracts with their CPA firms that encompass such extended services as: providing tax assistance; advising on cash management; or evaluating purchase of EDP equipment and software.
Publication Name: Business
Subject: Business
ISSN: 0163-531X
Year: 1988
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CPA/financial planners and the question of commissions
Article Abstract:
An agreement between the Federal Trade Commission (FTC) and the American Institute of Certified Public Accountants (AICPA) gives CPAs the ability to sell financial products. In an effort to maintain fiduciary responsibility, freedom of choice, and cost-effective services, CPAs must maintain objectivity when providing financial products. They cannot perform audits, reviews or examinations for clients to whom they also sell financial products. CPAs who want to begin selling financial products are advised to become familiar with proposed revisions to the AICPA Code of Professional Conduct, and statutes regarding the sale of securities at the federal and state levels.
Publication Name: Business
Subject: Business
ISSN: 0163-531X
Year: 1989
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