AICPA supports Global Accounting Alliance's clarity initiative.

The AICPA is participating in an initiative undertaken by the Global Accounting Alliance, an organization consisting of the world's leading accountancy bodies, to provide recommendations for improving financial reporting worldwide based on research and study. The GAA issued a key report recently, "Getting to the heart of the issue--Can financial reporting be made simpler and more useful?" The report draws on interviews conducted with financial regulators in the U.S., UK, Canada, Australia, China, South Africa, France, the European Commission and international regulators.

The GAA is arranging a number of roundtable events where regulators and other stakeholders in financial reporting around the world can begin discussions on the ideas emerging from the research. This will assist the broader adoption of principles based standards and address the increasing complexity and detail in company financial statements. There have been increasing complaints from companies, investors and lenders about the length and complexity of financial statements, according to the report. Many users say that some of the most important information just isn't there, or isn't easily accessible or understandable. The AICPA will help organize an event this spring in New York City. The GAA report, "Getting to the heart of the issue Can financial reporting be made simpler and more useful?," is available for download from the GAA Web site at www.globalaccountingalliance.com.

SBA Issues Modernized SOP for Lender and Development Company Loan Programs Adding Licensed CPA Following SSVS 1 or ABV as "Qualified Source"

The U.S. Small Business Administration has revised loan processing SOP 50-10 5(A), which becomes effective Mar. 1, 2009. Included in this revision, under "Appraisal and Business Valuation Requirements" of Subpart B, Chapter 4, is a requirement for an "independent business valuation" from a "qualified source" for all loans to finance a change of ownership that are either in excess of $250,000 or if there is a close relationship between the buyer and seller...