CFO Roundtable Webcast Debates the Future of Off-Balance Sheet Financing; Panel Of Experts Weigh Potential Consequences of New Rules From FASB and SEC.

Business Editors

NEW YORK--(BUSINESS WIRE)--Jan. 21, 2003

CFO.com and the American Institute of Certified Public Accountants (AICPA) held the second CFO Roundtable Quarterly Webcast live on January 16th from 1:00 PM - 2:55 PM EST. Participants from almost three hundred organizations took part.

Webcast panelists examined new rules and guidance handed down by the Financial Accounting Standards Board (FASB) and the Securities and Exchange Commission (SEC). The SEC is rewriting its guidance on MD&A disclosure, introducing Regulation G, and rewriting its rules governing Form 8-K. FASB issued new rules addressing consolidation of variable interest entities, or VIEs (until now, better known as special-purpose entities, or SPEs) and loan guarantees.

Panelist Herbert Birman, VP of Finance and Operations at MIS AG North America, said that off-balance sheet financing will remain a viable tool, especially because securitizations, synthetic leases, and project finance structures are useful. According to Birman, "The key to any off-balance sheet transaction is transparent reporting. You have to let the chips fall where they may. The market forgives a screw up, but not deceit."

Leonard S. Hyman, a senior associate with R.J. Rudden Associates, agreed with Birman. The former Merrill Lynch equity analyst and Salomon Brothers advisor noted, "I look at off-balance sheet financing from an investor's point of view. All material liabilities must be front and center." He also believes that using off-balance sheet financing as a strategy to "goose up the stock price" is often dishonest, and will not be used in the future.

"The debacle at Enron has everybody -- regulators, shareholders, and finance executives -- questioning the merits of off-balance sheet financing," said John Goff, editor of CFO.com. "And with new SEC rules governing third-party transaction due out next week, CFOs and finance executives must stay on top of those rule changes."

This CFO Roundtable is part of an ongoing quarterly webcast series designed to address current issues facing the finance community, co-sponsored by CFO.com and the AICPA.

For more information or to sign up for the next webcast in the CFO Roundtable series, visit http://www.cfo.com/cforoundtablereg or www.cpa2biz.com/webcasts. An archived version of the webcast is available at this address as well. Members of the media should email [e-mail] to attend upcoming webcasts free of charge.

About CFO.com

CFO.com was launched in 2000 to address the changing needs of Senior Financial Executives (SFEs) and reaches more than 200,000 financial professionals. CFO.com is the first and only online resource providing the most up-to-date information on trends in corporate finance, strategies and breaking news.

Today's CFOs need a source that goes beyond general information and provides the tools and insights that help them do their jobs better. CFO.com's editorial content and applications are developed in conjunction with financial executives around the world to ensure the most relevant information is accessible instantly anywhere there is a connection to the Internet. www.cfo.com

About AICPA

The American Institute of Certified Public Accountants is the national, professional organization of CPAs, with more than 330,000 members in business and industry, public practice, government, and education. It sets U.S. auditing and professional ethical standards and, with the Financial Accounting Standards Board, U.S. accounting standards. The AICPA, www.aicpa.org, is the first national professional association to be ISO 9001-certified, in recognition of its quality management and assurance practices.