From the editor.

Psychologists and others often talk about the difference between action based on thought, versus that stemming from feeling--head vs. heart. In our cover story, David L. Dotlich, president of the Mercer Delta Executive Learning Center, adds another dimension, which he calls "guts," to a leadership skills troika.

Directing his message to CFOs, Dotlich uses a terrific illustration of two highly accomplished finance chiefs (they're real, but their names aren't used). One has difficulty relating to other viewpoints or sensing that he can learn new skills; he is essentially at a dead end. The other, who opens himself to new experiences and new relationships, has set himself on a course for further promotion, possibly to CEO.

Technology has been one of the greatest sources of change and growth in the finance function in recent decades, which have been marked by the emergence of such now-basic tools as personal computers and Excel spreadsheets. In this issue's FEI@75 feature, management consultant and author Peter Cohan looks at the broad sweep of technological change in finance and how it has altered key processes, and FEI member Malcolm Schwartz adds a reminiscence related to the tension between information management and information technology.

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FEI has been blessed with a long history of thoughtful and accomplished volunteer leaders. Our annual profiles of incoming chairs looks at the new U.S. Chair, Richard R. Schrader, and new FEI Canada Chair Kathleen Stevenson.

Anyone reading the financial headlines these days has seen a huge jump in the number of deals collared by private equity firms, including names like Toys R Us and Hertz. Writer Paul Sweeney spoke with a host of equity specialists, attorneys and others to find out what has been driving the phenomenon, which shows no signs of slowing down.

If you're a CFO who has been waiting by the phone, hoping for a call to serve on a corporate board, you may need to be mighty patient. Executive Editor Ellen Heffes found in talking to several high-level recruiters that they are often the people determining who is in the hunt for board seats, especially the "financial expert" slots.

As writer Glenn Cheney puts it, in wry historical terms, revenue recognition used to be about trading goats for wool, and counting the results when you got home. Obviously, things are way more complicated these days; in fact, revenue recognition is the primary reason for earnings restatements. More than 200 accounting pronouncements on the subject are still on the books, putting easy answers out of reach. Financial Accounting Standards Board (FASB) officials tell Cheney that a reconciliation and streamlining project is in the works--but it isn't expected to be circulated until 2007.

Facing major lawsuits is a test for any company. Attorney David Dolkas offers some thoughtful suggestions on how companies can keep their costs down, primarily through prudent planning and budgeting. He also recommends that legal expenses be reserved for each financial quarter, and that special attention to paid to "discovery" issues that could prompt a settlement.

Do you know about TIPRA? It's the Tax Increase Prevention and Reconciliation Act of 2005, recently signed into law. Cheryl Graziano of Financial Executives Research Foundation (FERF) details the key provisions, noting that what may be the most salient feature of the law is what was not addressed--which, after all, is indicative of a lot that happens in Congress.