The CPA Journal

The CPA Journal is a monthly refereed accounting journal. It has been published by the New York State Society of CPAs since 1930.Subjects for The CPA Journal inlcude accountants and accounting. Carolyn Morrisroe is the managing editor and Anthony H. Sarmiento is a contributing editor.

Articles from Vol. 63, No. 5, May

Accounting Trends: A Short Quiz
The AICPA recently published the 1992 edition of Accounting Trends & Techniques, edited by Jack Shohet, CPA, and Richard Rikert. Based on a survey of 600 annual reports, the publication a) identifies predominant financial reporting practices and...
Avoiding the Treasury Stigma of a Hobby
With many people losing their jobs due to stagnant growth, some ambitious individuals start their own businesses rather than pursue the few available jobs in the marketplace. Others luck enough to remain employed seek to supplement their income by becoming...
Changes to the Estates Powers and Trusts Law
On July 24, 1992, New York Governor Mario Cuomo signed into law a bill which made major changes to the NYS Estates, Powers, and Trusts Law ("EPTL"). The changes reflect the work of a legislative advisory committee that set out to review and update the...
Community Property Step-Up in Basis
Currently, there are eight community-property states: Arizona, California, Idaho, Louisiana, New Mexico, Nevada, Texas, and Washington. In 1984, Wisconsin enacted the Marital Property Reform Act, which incorporates many community-property principles...
Differences between a 401(k) Plan and a SEP
The table beginning on page 62 illustrates the basic differences between a 401(k) plan and a simplified employee pension plan (SEP).DIFFERENCES BETWEEN A 401(K) PLAN AND A SIMPLIFIED EMPLOYEE PENSION PLAN (SEP)401(k) PLANDESCRIPTION1. A 401(k) cash or...
Fiduciary Responsibilities and Guaranteed Investment Contracts
The Department of Labor recently issued final regulations under ERISA Sec. 404(c), which provides special rules for participant-directed plans. These special rules exempt plan sponsors, from certain fiduciary responsibilities for participant investment...
FileMaker Pro for Windows 2.0 - A Database for the Non-Programmer
With FileMaker Pro for Windows, Claris introduces user-oriented data management on the Windows platform. Most data management products are developer's tools. FileMaker Pro for Windows is for the end-user.Database Power Without Programming: FileMaker...
Financial Reporting in the 1990s and Beyond
The Association for Investment Management and Research (AIMR), a professional organization of financial analysts and investment managers, has published a position paper on its view of the role of financial reporting in the 1990s. The document comments...
IRS Seizure of the Qualified Plan Assets
The IRS has the authority to levy on pension account balances or periodic benefit income to enforce its collection of taxes. One of the most significant assets a taxpayer may have is his or her right to a pension benefit. Tax advisers have justifiably...
New Jersey and New York City at Odds over Nexus
In order for a state or municipality to tax the multistate income of a nondomiciliary corporation, a minimal connection must exist between the corporation's interstate activities and the taxing state. Allied-Signal. Inc. recently challenged both New...
New Product Costing, Japanese Style
Clearly there are shortcomings with traditional cost-accounting approaches due to the changing nature of today's manufacturing environment. Traditional cost accounting has served manufacturers well for a long time. But as factories change, its conventions...
Proposed Regulations Simplify IRC Sec. 338 Rules
One of the most important considerations in contemplating the acquisition of a target company is whether to structure the acquisition as a stock or asset acquisition. The affect of the business advantages and disadvantages of each structure should be...
Quality Review - What's New
It has been three full years since the AICPA's mandatory practice monitoring program commenced, and many firms will be undergoing a second review during 1993. This is an appropriate time for firms enrolled in the Quality Review Program to consider what...
Sales Tax Compliance Study Released
New York State Tax Commissioner James W. Wetzler released a mandated study on improving sales tax compliance. Legislation enacted with the 1991-92 State Budget had directed the Tax Department to "concentrate on topics which will include the problems...
Single Audit Draft Study Released
Earlier this year, the Single Audit Task Force, working under the authority of The President's Council on Integrity and Efficiency (PCIE) released a draft study titled Improving the Single Audit Process.The Task Force consisted of members Terry Livingston...
The 50% Excise Tax on Qualified Plan Reversions
During the early 1980s, certain employers who were sponsors of qualified defined benefit plans decided to terminate these plans. Their motives were not entirely altruistic.When an overfunded defined benefit plan was terminated, the result provided a...
The Final S Corporation Single-Class-of-Stock Regulations
On May 28, 1992, final regulations were adopted in connection with the single-class-of-stock (SCOS) requirement of IRC Sec. 1361(b)(1)(D). These regulations are the IRS's third attempt at promulgating rules in an area that unexpectedly became quite controversial....
The Fundamental Financial Instruments Approach: The Company
The Financial Accounting Standards Board (FASB) issued a Discussion Memorandum (DM), Recognition and Measurement of Financial Instruments, in November 1991. The DM is a neutral document that raises the recognition and measurement issues created by financial...
The Fundamental Financial Instruments Approach: The Company X Story
The Financial Accounting Standards Board (FASB) issued a Discussion Memorandum (DM), Recognition and Measurement of Financial Instruments, in November 1991. The DM is a neutral document that raises the recognition and measurement issues created by financial...
The Outlook for Jobs
The economic recovery, which with hindsight "officially" began in March 1991, is going to slow-paced and spotty. We are seeing a very mixed picture with many confusing and conflicting images. A major reason for this lies in the unemployment outlook....
The Profession Debates Non-CPA Ownership and Specialization
Two issues are heating up and gaining momentum in the profession: non-CPA ownership of CPA firms and specialization. The issues were debated at AICPA regional council meetings earlier this year, and it is expected the debate will continue at the full...
The Value of CPA Firms, Firm Multiples, and Owner Compensation
One of the issues that continues to trouble owners of CPA firms is the value of their firm. Many owners view the increasing value of their firm as the primary source for their retirement benefits. But the moment of truth arrives when the time comes to...