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isting statuto ry autho rity and takenmajor regulatory steps to addressthese problems."Additional hearings by the sub-commitee are anticipated bu t not yetscheduled.REGULATION S-X AMEN DEDTO REQUIREREPO DISCLOSURESAs a result of an action taken at anopen meeting held in late January,the Securities and Exchange Com-mission has announced th at the dis-closure requirements of regulationS-X have been amended to requiredisclosure regarding the nature andextent of registrants ' repurchaseand reverse repurchase agreementsand the degree of risk involved inthose transactions.

Specifically, the amendments re-quire that where the higher of carry-ing or mark et value of asse ts sold un-der repurchase agreements or thecarrying value of reverse repur-chase agreements exceeds 10 per-cent of total assets, the amounts in-

volved should be disclosed as aseparate line item in the balancesheet.Where the higher of the carryingvalue or mark et value of assets soldunder repurchase agreements ex-ceeds 10 percent of total a ssets , foot-note disclosures are required re-garding the asse ts so ld and theterms of the agreements. Repur-chase agreements that involve thesale of securities or other ass ets forwhich unrealized changes in m arketvalue are reported in current in-come, or which were obtained pur-suant to reverse repurchase agree-ments, need not be considered forpurposes of this requirem ent.

Where the carrying value of re-verse repurchase agreements ex-ceeds 10 percen t of total ass ets, foot-n o t e d i s c l o s u r e s a r e r e q u i r e dregarding the registrant's policieswith resp ect to taking possession ofthe underlying assets and the exist-ence and na tur e of provisions, if any,to ensure that the market value ofthe underlying assets remains suf-

ficient to protect the registrant inthe event of default by the counter-party. Where the risk of loss (as de-fined) under repurchase or reverserepurchase agreem ents with an indi-vidual counterparty or group of re-lated counterparties exceeds 10 per-cent of shareholders' equity (or, inthe case of managem ent investme ntcompanies, net asset value), foot-note disclosure of certain infor-mation regarding the agreements,including the identity of the counter-party, is required.

This action by the SEC also high-lights what it describes as recent de-velopments in the government secu-rities ma rket. Among other groups,it mentioned th e repo rt of the A mer-ican Insti tute of CPAs audit ingstandards board special task forceand the AICPA savings and loanassociations committee's publicationof an exposure draft of a statementof position concerning disclosure is-sues related to certain repurchaseand reve rse repurchase ag ree -ments.

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The bottom line is that your clients will be able to run their businesses better.One-Write Plus starts with check writing, income and cash receipts, and related(ieneral I-edger, Modular options inciude Accounts Payable. Accounts Receivable,and Payroll.One-Write Plus, The one accounting system you can confidently recommendto your own clients. Ask your software dealer for a demonstration. Or callGreat American Software, 1- 800- 528-5010. As k fo r S u s a n .

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OM TH Emost effective study aid.A Exam ination Q uestions andAnswers Indexed

to ContentS I N G L E V O L U M E -AT A REDUCED S p e c i f i c a t i o n^^'''^' ^ Outlines 1981-1985new stu dy aid offers toda y's CPA can did ate s an extrem ely effectiveto prepar e for the CPA exam ination. It includes virtua lly all of the

The questions were selected by the staff of the AICPA Examinations Divi-on the basis of current value and pertinence.The unofficial answers w ere prepared by the staff and reviewed by theBoard of Examiners.To help you focus on specific subject areas, the questions and answersnized into four sections which cor respo nd to the four pai tsthe CPA exa m inatio n itselfA ccounting P ractice...A ccou nting Theoryg...and Business Law.To facilitate study and review, the material in each section has besnand indexed by area and group in accordance with its con tentBcation o utline.This area and content approach will enable you to study more effec-FEATUREThe November 1985 CPA examination is presentedgiven ...and see how well you fare.

CPA Examination Questions and Answers Indexedto Content Specification Outlines 1981-1985Order Dep artment, Am erican Institute of CPAsP.O.Box 1003. New York, NY 10108-1003Great! Please rush me a copy of the above title (07920 5).n Regu lar price $37.50n AICPA m em ber price $30.00 (provide m em bersh ip num ber)D Stud ent p rice $22.50 (provide copy of studen t ID or teacher's letter)

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The effective date of these amend-ments, according to the SEC, ap-plies to financial statements cover-ing fiscal years ending on or afterFebruary 28,1986.SHORTTAKESEdward H. Eleischman was swornin on Januar y 6 as a com missioner ofthe SEC, s ucceed ing J ames C .Treadway, Jr. During his confirma-t ion hear ing before the SenateBanking, Housing and Urban Af-fairs Committee last fall, Fleisch-man acknowledged the existence ofproblems created by the civil treble -damage suits under the RacketeerInfluenced and Corrupt Organiza-tions Act (RICO). He said it hasbeen the experience of the financialservice indus t ry tha t RICO hasbeen used to circumvent other secu-rities laws Er nes t Davenp ort,CPA, said recently in testimony be-fore the House Judiciary Commit-tee's Criminal Justice Subcommit-tee that the civil provisions of RICOare "unfair and inappropriate weap-ons used increasingly in ordinarycommercial litigation against legiti-mate bu sinesses and p rofessionals."The financial threat of civil RICO,he added, is more likely to dispro-portionately affect small businesses."Even the mere filing of a treble-damage RICO action would haveposed a grave thre at to the survival"of the small, 25-employeefirm n De-tro it of which hewas managing p art-ner The IR S disallowed mostbusiness energy investment creditsclaimed on tax ret urn s, according toa recent GAO study. The findings re -late to returns fi led from 1978through 1982, and most of the disal-lowed amounts related to creditclaimed for investments that theIRS viewed as abusive tax sh elters.The credit exp ired at th e end of 1985,but Congress may enact a retroac-tive extension The IRS , in an-nouncement 86-4, said recently thatit is modifying regulations to makeclaiming charitable deductions forcontributions of nonpublicly tradedsecurities easier for taxpayers. Inthe announcement, the IRS estab-lishes a five-part test to permit char-itable deductions for securities nottraded on public exchanges and nothaving any published q uotations.Stepheyi H. Collins

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