Accounting Year In Review: 2004

BDO USA, LLP prepared this Financial Reporting letter to help our clients anticipate and respond to questions that may arise in connection with financial statements for 2004.

Executive Summary

Before it was over, 2004 brought four new FASB statements, including a major revision to the standard on accounting for stock-based compensation. It also brought more consistent reporting of earnings from continuing operations, more precise calculations of earnings per share, and dozens of other technical interpretations and clarifications. But the accounting pronouncements don't tell the full story this year. Most of all, 2004 was a year of promise and improvements made possible by a series of mini-breakthroughs in financial reporting.

The breakthroughs didn't come from individual standards or isolated bits of knowledge. They came from putting together the pieces of the financial reporting puzzle in new and innovative ways. The myriad pieces, events and trends that have shown the way to better reporting this year ranged from new tax laws and reporting requirements on internal controls to tougher enforcement of state laws, a reenergized SEC and continuing technological advances.

Throughout this Financial Reporting letter, you will find comments on the breakthroughs and how your company can benefit from them. We hope you will find these suggestions useful in preparing your 2004 financial statements and in the months to come.

Continue Reading - Accounting for the American Jobs Creation Act of 2004

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