Leslie Seidman Reappointed to FASB

IMA member Leslie F. Seidman, CPA, has been reappointed to a five-year term as a member of the Financial

Before joining the Board in 2003, she managed a financial reporting consulting firm that served global corporations and other concerns. In the late 1990s, she was an industry fellow, a project manager, and assistant director of research for the FASB. She also held executive positions at J.P. Morgan & Company from 1987 to 1996, including vice president of accounting policy. Seidman started her career in accounting at the former public accounting firm of Arthur Young & Company in New York City after graduating from Colgate University with a B.A. degree in English. She later earned an M.S. degree in accounting from New York University.

FASB, IASB Reaffirm Commitment to High-Quality Common Accounting Standards

The FASB and the International Accounting Standards Board (IASB) published a memorandum of understanding in late February that reaffirms their shared commitment to developing a common set of high-quality accounting standards to use in the world's capital markets. Both Boards said that such standards would "enhance the consistency, comparability, and efficiency of financial statements, enabling global markets to move with less friction."

The groups noted that the MOU is a further elaboration of the objectives and principles described in their Norwalk Agreement, which was published in October 2002. Titled "A Roadmap for Convergence between IFRSs and U.S. GAAP-2006-2008," the MOU describes the goals and objectives of the work the two groups are doing together and gives possible dates for completing some of the projects. For example, by 2008, they want to be able to reach a conclusion about whether major differences in a few focused areas should be eliminated through one or more short-term standards-setting projects and to complete the work if that's the case. And they want to have made significant progress on joint projects where current accounting practices of U.S. GAAP and International Financial Reporting Standards (IFRS) need to be improved.

As far as short-term projects, the FASB will examine the topics of fair value option, investment properties, research and development, and subsequent events. The IASB will examine borrowing costs, government grants, joint ventures, and segment reporting. Joint projects will examine impairment and income tax. For more information and a copy of the MOU, visit the FASB at www.fasb. org and the IASB at www.iasb.org.

Managing Fraud Risks

In its Global Economic Crime Survey 2005, PricewaterhouseCoopers found that the threat of economic crime-from simple cases of asset misappropriation to complex accounting manipulation-is plaguing transportation and logistics companies in particular. To help such companies combat fraud, PWC has published a whitepaper titled "Predicting the Unpredictable: Protecting Transportation & Logistics Companies Against Fraud, Reputation and Misconduct Risk."

The whitepaper provides a stepby-step guide on how to develop an effective antifraud program that addresses financial statement, reputation, operational, legal, and strategic risks:

1. Establish a baseline to assess existing antifraud programs and controls and to develop a remediation plan.

2. Conduct a fraud risk assessment.

3. Evaluate, design, and validate operating effectiveness.

4. Address residual financial reporting fraud risks.

5. Standardize process for incident investigation and remediation.

It also details fraud schemes common to that industry, such as

* Financial statement manipulation,

* Misappropriation of assets,

* Unauthorized receipts or expenditures,

* Aiding and abetting fraud,

* Fraud by senior management, and

* Disclosure fraud.

For more information and to obtain a copy of the whitepaper, visit www.pwc.com/transport, and look under the heading "Of further interest."