U.S. to Revamp Credit Rules,

The Wall Street Journal reports, "The nation's top economic policy makers plan to release today their broadest blueprint yet for avoiding a recurrence of the credit crunch now threatening the economy. "

"Their recommendations extend to nearly every niche in the credit markets -- from mortgage brokers to the Wall Street firms that package home loans into securities, to the credit-rating firms that assess the risk of those securities, to the regulators who police the system."

"Amid the housing market's deepening slump, mounting defaults by cash-strapped homeowners and an upswing in foreclosures have made investors wary of mortgage-linked securities and have made those securities increasingly difficult to value and trade. That's led to turmoil in global financial markets."

"In some areas, regulators intend to become more assertive immediately. The recommendations call on bank supervisors to give much more scrutiny to the due diligence, risk management, and risk awareness policies at banks. Regulators will be pushed to work more closely with the Financial Accounting Standards Board to revisit accounting issues and make sure that exposures at financial companies are properly measured 'across business lines.'"

FASB to propose increased disclosure of pension plan asset classes and value assumptions

CCH reports, "The Financial Accounting Standards Board (FASB) has instructed its staff to issue an FASB Staff Position (FSP) paper that proposes to improve disclosures about postretirement benefit plan assets now required by Financial Accounting Statement (FAS) No. 132(R), Employers’ Disclosures about Pensions and Other Postretirement Benefits."

"The FASB proposal, discussed at its February 13, 2008 meeting, would make the following three changes in current rules:"

"First, the proposal would require the disclosure of more asset categories than currently are required. A FASB staff review of 2006 annual reports of many companies in the Standard & Poor’s 500 found that most companies primarily disclose the categories of equity, debt, real estate, and 'other.'"

"Second, the proposal would require the disclosure of assumptions used to determine the fair value of plan assets. The FASB notes that FAS No. 132(R) already requires the disclosure of assumptions used to determine plan liabilities. "

"Finally, the proposal would reinstate an earlier requirement that a nonpublic entity 'disclose the annual amount of net periodic benefit cost recognized.'"

Haliburton Accounting Scandal Exposed in Iraq

AICPA Encourage CPA State Mobility

WebCPA reports, "The American Institute of CPAs has ramped up its mobility efforts to allow CPAs to practice in other states, with mobility bills enacted now in 12 states and legislation pending in 22 other states."

"Seven states (Illinois, Indiana, Louisiana, Maine, Rhode Island, Tennessee and Texas) approved mobility legislation in 2007, and New Mexico enacted it this year. Meanwhile, Washington State, Idaho and Utah have passed such legislation and are awaiting the signatures of their governors."

"California may pass mobility legislation in 2008 or 2009, and Florida and the Carolinas in 2009. Legislation is also pending in many other states, including Alabama, Arizona, Colorado, Connecticut, Delaware, Georgia, Iowa, Kentucky, Maryland, Massachusetts, Minnesota, Mississippi, New Jersey Oklahoma, Pennsylvania and West Virginia."