Journal of Accountancy

A monthly publication of the American Institute of Certified Public Accountants focusing on the latest news and developments related to the field of accounting, and written for CPAs and other accounting professionals.

Articles from Vol. 183, No. 6, June

Are You Ready for New Assurance Services?
The growth opportunities for CPAs are much larger than anyone imagined. The profession's current accounting and auditing income--about $7 billion annually--could double or triple through the introduction of new assurance services. And the opportunities...
Ball, FASB Staffer, Retires
JT Ball, who has been with the FASB as long as there's been a FASB, announced his retirement effective June 30. Currently assistant director of research and technical activities, he started at the Financial Accounting Standards Board in 1973 as senior...
CBO Issues Policy Options on Balancing the Budget
The Congressional Budget Office (CBO) issued its annual analysis of options for balancing the federal budget. Reducing the Deficit: Spending and Revenue Options, prepared for Senate and House budget committees, outlines tax options that could help...
CPAs Head for Wall Street
Young CPAs are doing more than looking at other peoples' income statements; they're trying to increase their own. A large New York-based financial recruitment firm, A-L Associates, is getting an increasing number of calls from Wall Street firms for...
Electronic Records Storage
Record retention bedevils many businesses because they must maintain sufficient records to substantiate virtually every item reported on tax and information returns. Some companies have defined and even limited the documentation they must maintain...
Heavy-Duty Marketing
Firm Profile Name: Herman Yula Schwartz & Lagomarsino, PA. Personnel: 35. Location: Parsippany, New Jersey. Type of clients: Mostly closely held businesses. Client services: Tax, many consulting services, accounting/auditing. Web site:...
How to Find It on the Net
True or false: (1) The Internet is an incredible research resource overflowing with valuable information. (2) The Internet has become a labyrinth of hard-to-find data and dead-end home pages replete with redundant, often useless information. If...
IFAC Proposes Ethics Upgrade
The International Federation of Accountants issued for exposure modifications to its Code of Ethics for Professional Accountants. The revised code includes more guidance on the disclosure of confidential information and the employment of nonaccountants...
Monitoring a Small Firm
Small Firm Profile Of the 44,565 public practice units, 42,203, or nearly 95%, have 10 or fewer professionals and thus are considered to be small firms. Just over 23,000, or about 52%, are sole practitioners. Source: AICPA membership database,...
New Accounting Proposals
The Governmental Accounting Standards Board issued a proposal on the accounting and financial reporting for nonexchange transactions. Such transactions occur when governments give or receive something of value and do not directly receive or give something...
New Bill Would Freeze Internet Taxation
Senator Ron Wyden (D-Ore.) and Congressman Christopher Cox (R-Cal.) introduced legislation that would impose an indefinite moratorium on state and local taxes on the Internet. The Internet Tax Freedom Act (HR 1054; S 442) also recommends that President...
Practicing before the IRS
CPAs play an important role in the U.S. tax system, providing a variety of tax services to their clients. In addition to advice on the proper treatment of the tax laws and tax return preparation and review, one of a CPA's major roles is representing...
Proposal to Expense Start-Up Costs
Many CPAs have searched for broad authoritative guidance on the financial accounting of start-up costs. Except for those in a few specialized industries, noted below, most have been unable to find such guidance because there is none. The American...
SEC Adopts New Audit Requirements
The Securities and Exchange Commission adopted revisions to its rules--imposed under the Private Securities Litigation Reform Act of 1995--that, as of April 17, require auditors to report a client's uncorrected illegal acts to the client's board of...
SEC Highlights Resources for Small Companies
The Securities and Exchange Commission issued a policy statement outlining its informal guidance program (which includes publications, responses to inquiries by telephone and computer and interpretive letters) for small entities. The Small Business...
Sizing Up Office Suites
Office suites are the hot new computer software application products. If you don't already use a suite, this article tells you why you should. If you do use or plan to buy one, this article will help you decide which is best for your needs. What's...
Spanning the Globe
Firm Profile Name: John E. Allis, CPA. Year opened: 1992. Location: Houston. Total personnel: Four. Number of partners: One. Number of CPAs: Two. Areas of concentration: Tax and tax consulting. Percentage of fees in International tax...
Taking an Insurer into the Future
Company Profile Name: The St. Paul Companies, Inc. Locations: United States, England, Ireland, Argentina, Mexico, South Africa, Holland, Germany, France. Date founded: 1853. Sales: $5.7 billion. Number of employees: 10,200. Form of ownership:...
The New and Improved S Corporation
In calendar year 1994, 2,036,700 S corporation returns were filed with the Internal Revenue Service. The IRS examined only 18,839, or fewer than 1%, of these returns. Source: Internal Revenue Service 1995 Data Book, Publication 55b. The Small...
Treasury Has Its Own Solution to IRS Problems
There have been plenty of public statements on how to improve the way the Internal Revenue Service collects taxes. Some members of Congress have said they want to abolish the IRS altogether and institute a single, postcard-size flat tax form for all...
Worker Classification: How Do You Spell Relief?
THE 20-FACTOR TEST is so vague that it often gives the Internal Revenue Service more trouble than it gives taxpayers. In a study of 202 court decisions on worker classification disputes, only 41% were rules in favor of the IRS. Source: Determination...