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					                                   DECEMBER 2007 ISSUE


                                            DISTRICT OF COLUMBIA
                                                          Newsletter
           MESSAGE FROM THE PRESIDENT
                                                                                                     PRESIDENT
To My Fellow FEI Members:                                                                            JAMES THOLEN
                                                                                                     BROADSOFT, INC.
Thanks for taking a moment to read our December chapter newsletter. We appreciate your
continued interest and the support of our sponsors.                                                  VICE PRESIDENT
                                                                                                     DEBBIE LANSFORD
                                                                                                     CORT BUSINESS SERVICES
October – Bill Lyons – AES Corporation
                                                                                                     SECRETARY
The October 16th dinner meeting featured Bill Lyons, VP of AES Corporation, and Vice President       W. VERNON MCHARGUE, JR.
of AES’s climate change group. Bill gave a very interesting presentation on what climate change      THE HERITAGE FOUNDATION
means for business. Bill presented an overview of global climate change issues and the impact
that they have on businesses around the world. He described a number of the projects that he         TREASURER
has been involved with, including the steps that power companies are taking to reduce                WILLIAM LOOMIS
emissions. Everyone had an opportunity to learn the fundamentals of trading emissions credits        FILETEK, INC
and received an update on the cost benefits of renewable energy initiatives such as wind and
solar power.                                                                                         CAREER SERVICES
                                                                                                     LEMOYNE ZACHERL
The presentation certainly brought home the point that this is a global issue that has made the
world a much smaller more interrelated place. Climate change initiatives both large and small        MEMBERSHIP
will be impacting every business to some degree and finance executives will have a role to play      MICHAEL MALESARDI
in determining when and how their companies will deal with the issue of global warming.              THE AES CORPORATION

December Social                                                                                      SPONSORSHIP CHAIR
                                                                                                     RICHELLE BURNETT
Please join us Tuesday December 18 at the Ritz Carlton - Tysons Galleria for our annual Holiday      MARSH
Social event. We hope to see you, and if possible your spouse or other guest, for this fun, annual
event.                                                                                               PROGRAM CHAIR
                                                                                                     DEBBIE LANSFORD
January Meeting – January 15, 2008 - Tower Club, Tysons Corner                                       CORT BUSINESS SERVICES

                                                                                                     BOARD OF DIRECTORS
Given the excitement of the 2008 elections, we decided that for our January meeting we’d offer
an unbiased and unvarnished look at the national and local political races. We are pleased to be     TERM EXPIRES 2008
hosting Mark Plotkin from WTOP Radio. Mr. Plotkin, an extremely entertaining speaker who does        LEMOYNE ZACHERL
political news and commentary on WTOP and is the host of the very popular Politics Program           RICHELLE BURNETT
each Friday, will be able to give us a very timely handicapping of the races. Please join us for     TONY JAY
what is sure to be an exciting and enlightening evening.
                                                                                                     TERM EXPIRES 2009
I hope to see you at our upcoming meetings!                                                          RICHARD KLEIN
                                                                                                     MICHAEL MALESARDI
Best regards,                                                                                        TONY LAU

                                                                                                     TERM EXPIRES 2010
                                                                                                     JULIA PULZONE
                                                                                                     ALAN STEWART
                                                                                                     JORGE FORGUES
                                                                                                     KATHIE POWERS

                                                                                                     CHAPTER ADMINISTRATOR
Jim Tholen, Chapter President
                                                                                                     JASON BAUM
CFO, Broadsoft, Inc.                                                                                 973.765.1019
                                                                                                     washdc@financialexecutives.org
                            2007-2008 PROGRAM
TUESDAY, DECEMBER 18, 2007 7:00PM


    DECEMBER CHAPTER SOCIAL EVENT
                              LOCATION:
                 THE RITZ-CARLTON AT T YSON’S CORNER

                                   Please Register Early – We Are Expecting a Large Turnout!!

                                            A Night of Socializing & Networking
                      We will be serving cocktails and heavy hors d’oeuvres with some holiday cheer!

                                                          Location:
                      The Ritz Carlton at Tyson’s Corner, 1700 Tysons Boulevard, McLean, VA 22102

                                                          Time:
                                                    7:00 PM – 10:00 PM

                                                         Cost:
                            $45 for members | $45 for spouses & dates | $70 for Non-Members

                                                    Guest Policy:
                             We encourage you to bring your spouse or significant other!
                Guests must be registered and accompanied by a District of Columbia Chapter member.
                 Please contact Jason (dc@financialexeucitves.org) to register a guest or non member.
                                                                                                       REGISTER NOW>>>



TUES, JAN 15, 2007—6:00 PM                  TUES, FEB 19, 2008—6:00 PM                     TUES, MAR 18, 2008—6:00 PM

        MARK PLOTKIN                                     PAUL ATKINS                                   GRACE HINCHMAN
        Political Analyst                                Commissioner
         WTOP Radio                                         SEC                             SVP, Public Affairs & Technical Activities
                                                                                              Financial Executives International

       REGISTER NOW>>>                                  REGISTER NOW>>>                                 REGISTER NOW>>>



                    TUES, APR 15, 2008—6:00 PM                             TUES, MAY 20, 2008—6:00 PM

                                      TBD                                              YEAR-END SOCIAL

                                 Details Pending

                                REGISTER NOW>>>




             FOR FURTHER INFORMATION ABOUT ANY PROGRAMS LISTED
           VISIT US ON THE WEB AT HTTP://DC.FINANCIALEXECUTIVES.ORG
                         —CLICK ON MEETINGS AND EVENTS
                 Looking Into the FASB’S Crystal Ball:
                    What’s on the Horizon for Phase Two of
                     Postretirement Accounting Reform?


Last year, the Financial Accounting Standards Board (FASB) issued Statement of Financial Accounting Standards (SFAS) 158, which
concluded the first phase of the FASB’s accounting reforms for pensions and other postretirement benefits. Phase One, sometimes called
the “quick fix,” moved market-based measures of funded status from the footnotes of financial statements to the balance sheet. Many
important issues were left for Phase Two to resolve. Work on Phase Two began with the FASB’s August, 29, 2007 board meeting.

Phase Two Overview
During Phase Two, the FASB will review everything about postretirement benefit accounting. Although the FASB will likely coordinate its
efforts with those of the International Accounting Standards Board (IASB), the outcome will not necessarily look like the IASB’s current
postretirement benefit accounting requirements. In fact, the future accounting requirements may not look like anything we’ve seen before.

While we can’t predict the FASB’s final decisions, we understand the broad issues the Board intends to tackle. This article focuses on issues
related to the Income statement. The FASB is also expected to examine liability measurement and balance sheet consolidation.

Income Statement Recognition
Income statement recognition is the issue keeping plan sponsors up at night. Simply put, Phase Two will decide which costs sponsors must
recognize on their income statements. The current requirements allow sponsors to significantly smooth (average) and/or defer the
recognition of some costs. We expect the FASB to debate both the optimal level and the appropriate mechanisms for smoothing and
deferred cost recognition.

Appropriately recognizing true plan costs is at the heart of the income recognition issue. Too much smoothing may create a disconnect
between when costs are incurred and when they are recognized. But too little smoothing may increase volatility to the point of distorting plan
costs, as well as overall corporate financials. The FASB will seek an appropriate balance.

Income Statement Classification
Cost classification may offer the biggest upside potential for plan sponsors, while also being the least well-understood issue. Today’s income
classification system is very simple. All components of expense are considered operating costs, similar to other forms of employee
compensation. Many believe this classification oversimplifies the cost picture.
− Although some pension costs are similar to deferred salaries, others are not. In Phase Two, the FASB might assign pension costs to
     different buckets, such as including some costs in the P&L items that affect earnings per share and others in comprehensive income or
     another “below the line” item. A similar approach is used in other accounting standards for pensions and other postretirement benefits
     outside the U.S.
− Costs could be assigned to multiple buckets, such as operating cost, financing cost and investing cost. Operating cost could include
     deferred salaries (service cost and possibly costs attributable to plan amendments). Financing costs could include costs similar to
     interest on long-term debt (interest cost). Investing cost could include costs similar to other corporate investments — primarily those
     attributable to asset returns.
It would be hard to overstate the importance of P&L classification. For example, what earnings will an equity analyst use to value a publicly
traded company? If analysts use only the operating earnings, as many consider that to be the best indication of future earnings potential,
plan sponsors could be somewhat insulated from excessive volatility as long as the costs were properly classified.

Implications and Conclusions
While the FASB’s Phase Two reforms may make the income statement more volatile, that volatility may well be confined to a separate, more
benign place. This would clarify that many pension gains and losses are non-core, non-operating costs, while other elements of pension cost,
such as service cost, are true operating costs.

FASB chair Bob Herz recently commented on concerns about income statement recognition: “I think that [the concern] assumes a little bit
the way the income statement is constructed today,” he said. “[The FASB’s project on financial statement presentation looks] at different
ways of constructing the income statement — different sections — and it may change the way people look at things or think about things. It is
very important.” Herz appears to be suggesting that many plan sponsors may be in for a welcome surprise when they better understand the
changes being considered for Phase Two.

More appropriately bucketing pension expense as operating and non-operating costs could moderate the accounting risks posed by defined
benefit plans by reducing the volatility of operating pension costs. The reforms would also increase the advantages of asset/liability
modeling (ALM) and enterprise risk management (ERM) strategies, since their impacts could have immediate effects on the income
statement.




     FOR FURTHER INFORMATION ABOUT THE FEI DISTRICT OF COLUMBIA CHAPTER
           VISIT US ON THE WEB AT HTTP://DC.FINANCIALEXECUTIVES.ORG
                         DECEMBER SPOTLIGHT
                                                                Career Advice
                                                     Information from FEI’s Career Center
Getting the Most Out of Networking
It is estimated that between 70 and 80 percent of all jobs get filled by people who heard about them through word of mouth. Getting as
much mileage as you can out of the professional connections you make is the key to successful networking. The larger your personal
network, the more likely it is you'll find out about positions when they become available.

Successful Networking Tips:
−    Tell friends, colleagues, business associates and peers that you're seeking a new position or consulting project. Be specific describing
your ideal position.
− Develop a 15-second sales pitch to tell people you meet who you are, what you're looking for and how they can help you.
− Attend professional association meetings, civic, social or alumni events, and bring plenty of business cards.
− Always let the people you call or write know early in the conversation or networking letter that you're looking for help.
− If you're calling someone for the first time that you have no personal connection with and receive voice mail, call back later instead of
leaving a message.
− If you accomplish nothing else from a networking source, try to obtain at least one or two additional names of people to contact, and
permission from your source to use his or her name as a reference.
− Always send a short thank you note or e-mail to everyone who gives you time in person or on the phone.

Things to Avoid in your Networking Campaign:
− Calling people you don't know at home -- unless you have been instructed to do so.
− Putting people you are talking to on hold for more than a few seconds.
− Using the name of someone you don't know or you haven't received permission from as a way of making a connection to someone.
− Getting surly when people don't give you the help you asked for.
− Placing pressure on the people who work for the person you want to speak to.

For More Information or helpful advice—Check out Financial Executive International’s Career Center by clicking HERE.




     Upcoming Webcast
 Towards a Global Reporting System:
         Where are We and
       Where are We Going?
            January 8, 2008 | 10:30AM EST

Panelists Robert Herz, Peter Bridgman, Greg Jonas, and
Sam Ranzilla will discuss the implications of moving the
U.S. toward adoption of International Financial Reporting
Standards (IFRS).

Moderated by Wall Street Journal reporter David Reilly,
the panel will cover topics that include steps necessary to
ensure a successful transition to IFRS; how this transition
will provide better information to investors; and progress
made by the FASB and the International Accounting Stan-
dards Board (IASB) to create a common set of high-quality global accounting standards. Robert Herz is Chairman of the FASB; Peter Bridg-
man is Senior Vice President and Controller of PepsiCo, Greg Jonas is Managing Director of Moody’s Investors Service, and Sam Ranzilla is a
Partner at KPMG LLC.
                                                               Register Now


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