Jim Ulvog

Time to start paying attention to privacy issues?

(duplicate copy of post from my other blog, Nonprofit Update.)

Might be time for all of us to pay more attention to privacy issues on the technology we use. This has not been a good week in terms of privacy developments.

Using an iPhone or phone in the Android family? Did you know your location is being tracked regularly and reported back to Apple and Google?

Late last week or early this week (didn’t keep a link to the first article I saw) the first reports surfaced of the Michigan State police extracting everything from people’s cell phone during routine traffic stops for analysis on the spot.  Obviously the data could be stored and thus subject to later perusal. One of many articles here.

Okay, that’s not so good, but it gets worse.

Early this week, reports surfaced that iPhones constantly record the user’s location in an unencrypted file that is transmitted back to Apple. That file is also available to anyone who might gain physical access to your phone (see previous comment re: Michigan State police), hack your phone, or hack the Apple site. 

Cross-reference that file to a map and you can see a visual of every location you have been during the time the tracking has been running, perhaps a year. See article by Brian X. Chen, iPhone Tracks Your Every Move, and There’s a Map for That.  His article has a map that he created from his phone.

Next step in the bad news.

Today’s article from the Wall Street Journal, Apple, Google Collect User Data,  claims that both Apple and Google phones are reporting that tracking data back to them. The purpose is to accumulate data on hotspots so they can draw better maps for location-based services.  Since each phone has a unique ID, the data that comes in clearly can link you to the locations.

Glenn Reynolds has a great article discussing why all of this is troubling from a legal and practical perspective:  Smartphone Searches Not So Smart—Analysis.

He is quite concerned that what the Michigan State police are doing, and just about any other police agency could easily do, looks like a fishing expedition –  just looking around to see if there is something that might be illegal.  Few people can stand up to that kind of unlimited legal browsing.

My friend John Bredehoft has a post providing some background and asking the perceptive question Which do you fear more – business Big Brother, or government Big Brother?

“But I’m not committing any felonies or misdemeanors” I hear you say.

“I have nothing to hide” is the next thought you have. 

I’ll throw out a few ideas on why you should care in my next post.

Certificates of deposit are not ‘investments’ so they are not subject to the accounting and disclosures of Topic 320–Investments

Sometimes I’m late to the party.  Just read an AICPA TIS saying that certificates of deposit are not investments subject to the accounting and disclosure requirements of topic 320 – investments.  The reason?  Because CDs do not meet the definition of an investment.

A glimpse of IFRS and the really big players in the accounting world from the world of really small players

Today I’ll provide a brief glance at the huge end of the accounting world. I’m intentionally a one-person firm providing attestation services. My market is small nonprofits. I perceive most of the visitors to my blogs are from small CPA firms and small NPOs. As a result, all the readers here and I have a view of the small end of the accounting world.

Today’s questions: will US GAAP ever converge with IFRS, and what do financial statements look like for a really big company.

Will convergence with IFRS ever happened?

Repeal of expanded 1099 reporting

(duplicate of post from Nonprofit Update)

Previously mentioned the expanded 1099 reporting that would have gone into effect in 2012.  This would have required all businesses and ministries to report on 1099s the payments to any vendor over $600.  The major change in the rules is the exception for incorporated businesses would have gone away.

On 3-14-11 the President signed legislation that repeals the expanded reporting requirement.

Looks like FASB is NOT backing off on lease accounting (Topic 840)

Uh, oh.  In part four of the Journal of Accountancy’s interview with FASB chair Leslie Seidman, she made it clear that the comments at the FASB’s website about their meeting in February do not mean they are changing the direction they’re going on leases.

They still intend to bring most material leases on to the balance sheet.

What about inconsequential fraud or illegal acts under SSARS 19?

SSARS 19 says that an accountant does not need to report inconsequential instances of illegal acts to management – – doesn’t apply to fraud, just illegal acts.

At first glance that appears rather odd.  As long as you are breaking the law in little ways it’s okay?  When you think about it, the answer to the question is: yes, don’t worry about it.

What is the framework for audits under the new SASs that are being developed?

The ASB has a new SAS that provides the conceptual structure for the audit literature.  If any of the (painfully long) list of redrafted and clarified SASs are something that every CPA should read cover-to-cover, this is the one.

The CPA Accounting and Auditing Update blogging team has a superb recap of the key ideas in that SAS.

Creative visualization – astounding use of a map to show statistical data

A graph of Napoleon’s invasion of Russia shows the devastating losses suffered during the advance on Moscow and retreat.  It is the best illustration I’ve seen of creatively presenting a complex body of information.  Dare I say it is a beautiful graph?  Why is this of interest to us?  It shows a powerful way to communicate statistical data.

You can see the graph here at Cartographia.  Click on the map to enlarge.

One sentence of explanation allows you to interpret the entire view – …

How to handle fraud or illegal acts under SSARS 19 – part one

What should you do if something comes to your attention during a compilation or review that suggests that fraud or an illegal act may have taken place?

SSARS 19 starts this discussion with two intriguing phrases.  First is the comment saying if information comes to your attention.  Second is the comment that this information indicates a fraud or illegal act “may have occurred”. 

Creative visualizations-military history illustration

I’ve been interested lately in creative ways to show data.  We accountants are great at absorbing a lot of numbers and finding the patterns.  Other people who don’t have our mind-set can not see what we see.  We need to find new ways to explain things.

How would you summarize the location and intensity of wars over the last several centuries?  One of my favorite historians would do that verbally over the course of a few books or dozens of columns.  (And I’d love every word of it too!)

Jordi Colomer has done so in a 5 minute video:

Going concern issues in SSARS 19 – part two

Previous post introduced the issue of what to do when something comes to an accountant’s attention during a review or compilation that there is some uncertainty whether the client will be around for a year after the balance sheet date.

What to do if you find yourself in that situation?  Here is a casual translation of the SSARS description: