When it comes to convergence of accounting standards between the US and the rest of the world, it's often one step forward, two steps back.

Last week, as part of global convergence, the Financial Accounting Standards Board and the International Accounting Standards Board released a joint proposal to change accounting and reporting of financial instruments and the statement of comprehensive income. It was the first of a series of joint proposals to come from the two boards by the third quarter of 2010, representing an important push toward global accounting convergence.

The International Accounting Standards Board is attempting to change its rule related to accounting for financial liabilities to avoid counter-intuitive results from changes in the credit risk of corporate liabilities.

When a company chooses to value its own debt instruments at fair value, the deterioration of its own credit standing, and therefore the value of its debt, causes gains to be recorded on the income statement. The vast majority of companies that use this rule are banks and the rule exists also in US GAAP.

Submitted by Caleb Newquist, republished from Going Concern, Accounting News for Accountants and CFOs.

Accountemps released the results of a survey today that shows many chief financial officers think that the best place for accounting graduates to start their careers is in a "small to midsize company." The surprising thing about this particular survey is that the numbers aren't even close.

Submitted by Caleb Newquist, republished from Going Concern, Accounting News for Accountants and CFOs.

 It has been well established in these pages and elsewhere that the SEC has had its share of problems. Take your pick: 1) missing the biggest financial fraud in the history of the world 2) hiring an army of porn-addicted accountants and lawyers to protect our markets 3) waffling on IFRS 4) did we mention missing huge frauds?

Is there anyone at Telephone and Data Systems and its United States Cellular unit who can get their financials right the first time around?

Last week the telecom companies announced that they planned to revise prior results dating back to 2007.

At the risk of setting off a corporate war between the sexes, I feel compelled to report the findings of a new study that shows women are more trustworthy than men in reporting companies' financial results.

Come to think of it, the findings are in line with the general impression I've gotten that the distaff sex is better than its counterpart at financial regulation.

So much for the much-anticipated effect of new accounting rules that ended banks' use of off-balance-sheet entities in which to park assets.

The fear, expressed by some at the Federal Reserve Board last year, was that forcing banks to bring assets back onto their balance sheets, as the Financial Accounting Standards Board proposed to do, would curb their lending appetite just when the economy needed more of it.

Are companies become more lax with their accounting practices? It seems so.

According to an analysis of first quarter regulatory filings, Glass, Lewis found a surge in financial-reporting issues, a sharp reversal from recent trends.

Submitted by Francine McKenna, republished from Going Concern, Accounting News for Accountants and CFOs.

I watched all 11 hours yesterday of the Goldman Sachs testimony to the Senate Permanent Committee on Investigations.

I never expected anyone to mention the auditors and I was not disappointed. You may think, given my criticism of the auditors, that I would be cheering on the side of the inquisitors, ready to burn the smarty-pants, smug, supercilious Goldman "banksters" at the stake.

Well... you would be wrong.

Submitted by Caleb Newquist, republished from Going Concern, Accounting News for Accountants and CFOs.

While the IFRS v. U.S. GAAP rages (or stalls), a far simpler (yet no less important) decision with regard to accounting methods is considered by many small businesses every year.

The cash versus accrual decision is one that all businesses have to make, but an especially important one for small businesses. And depending on an entrepreneur's familiarity with the issue, this could be a very simple decision or a "HELP!" moment.