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. 68, No. 2, February

Accreditation Special Committee Reaches Preliminary Conclusions
AICPA immediate past chair obert Mednick asked Robert Israeloff, also a past AICPA chairman, to head an AICPA special committee on specialization and accreditation. The purpose of the committee was to consider the whole nature and purpose of specialties...
Attestation Services: Opportunity for Practice Growth
Attestation Standards The attestation standards provide guidance to the auditor when providing varying levels of assurance on a written assertion made by a client or a third party. Similar to traditional audits of historical financial statements and...
CPA Vision Website Provides Virtual Trip to the Future
According to Executive Director Jeanne Patton, an integral Apart of the CPA Vision Project is the companion website, www.cpavision.org. The site offers resources, information, and interactive exchanges for CPAs who want to stay abreast of not only the...
Hacking Your Way through the Interpersonal Jungle
The analysis of interpersonal styles is an integral part of many courses designed to improve communication with people in our business life- clients, prospects, direct reports, peers, and the executives to whom we report. I don't deny they have their...
Interest Expense of the Divorcing Taxpayer
In Brief One Question Answered But... The tax code has become unnecessarily complex, primarily as a result of trying to be fair. A good example is IRC section 1041 that provides that no gain or loss is recognized on property transfers between spouses...
Morehouse Business Dept Gets Accredited with Help from Kellogg and KMPG Foundations
The Morehouse College Department of Economics and Business Administration recently achieved the much-sought-after accreditation of its bachelor's degree in business administration from the American Assembly of Collegiate Schools of Business (AACSB),...
New Audit and Compilation and Review Alerts
In late 1997, AICPA issued the 1997/98 versions of the Audit Risk Alert and the Compilation and Review Alert. The former is described as a general update on auditing and accounting matters and the latter as an update on practice developments and professional...
New York State Revises Sales and Use Tax Rules for Promotional Materials
In order to improve the competitiveness of New York printers and mailers and to reduce the costs of direct mail advertising for New York businesses, the legislature amended the tax law to expand the exemption from sales tax for certain purchases of promotional...
Non-CPA Ownership, Holding out as a CPA, the Corporatization of CPA Firms-All Here This Month
What do CPAs practicing in local firms fear the most? Is it W the Big Six becoming the Big Four? Is it not being able to issue plain paper financial statements? Or is it Congress passing legislation delaying the implementation date on the new derivatives...
Online Study Aids Available for CPA Exam Preparation
Suppliers of CPA exam review products are among the many companies continuing to invade the Internet, seizing on this new way to reach customers, particularly younger ones like college students and recently-employed staff accountants. This is good news...
Red Ink-The Budget, Deficit, and Debt of the U.S. Government
BOOK REVIEW: RED INK-THE BUDGET, DEFICIT, AND DEBT OF THE US. By Gary R Evans, Published by Academic Press, 1997 In the late 1980s, during a job interview, a partner at a then Big Eight firm asked me what I thought was the most important current national...
Regardless of Delayed FASB Rule, Majority of Companies Avoid Derivatives
CPAs wait for the controversial new W rule on accounting for derivatives, which was delayed by the Financial Accounting Standards Board and will be issued in March, a new survey shows that most companies do not use derivatives. An overwhelming majority...
Roth IRAs
The Tax Relief Act of 1997 provides a new opportunity for tax-free retirement savings. The act establishes IRC section 408A, which creates a new class of individual retirement account called the Roth IRA. The account is named after its proponent, Senator...
SEC Issues Guidance on Year 2000
Editors Note: From time to time, the SEC staff issues Staff Legal Bulletins. These are similar to the well-known Staff Accounting Bulletins, or ABs, except that the Legal Bulletins are used for nonaccounting matters. Like the SABs, Staff Legal Bulletins...
States Use Gasoline, Cigarettes to Fuel Revenue
Smoking and driving seemed to outpace shopping as a state tax target in the nast year, according to CCH Incorporated (CCH), in its annual State Consumer Taxes Survey. Only one state increased its sales tax, but eight states hiked cigarette taxes and...
Tax and Accounting Implications: Nonqualified Deferred Compensation Agreements
As the effective rate of income taxation for individuals has risen during the 1990's, the level of inter est in the design of executive compensation packages that decrease the impact of taxation has also increased. This increase in effective rate was...
The Future of Non-CPA Ownership
The extensive background of the issue of non-CPA ownership of CPA firms was fully discussed by Pustorino and Rabinowitz in the April 1997 issue of The CPA Journal, and will not be repeated here. The issue is complicated because the accounting profession...
The Intranet and Extranet
The Internet and the World Wide Web have changed the way individuals access and utilize information. Web technology allows global access to all types of data including text, sound, and video. The primary reason for the popularity of Internet has been...
The Real American Express Tax and Business Services
American Express Tax and Business Services (TBS), the tax and business consulting subsidiary of American Express Co., has built the business by acquiring accounting practices previously conducted by CPA firm-ns. TBS is in 50 cities in 22 states, with...
The Taxpayer Relief Act of 1997 and Compliance Dates
The complex Taxpayer Relief Act of 1997 was enacted on August 5, 1997. Sued below are a number of welcome changes to qualified retirement plans and to IRAs. Qualified Plan Disibutions Cashout Limit. The $3,500 limit above which a participant's (and in...
The Use of Trusts in Estate Planning
Except with respect to "I love you" all-to-spouse or all-to-children wills, almost all modem estate plans incorporate one or more trusts. Some types of trusts are utilized in an attempt to postpone or even eliminate estate taxes. Others may be used to...
Warning: New Capital Gains Provisions and Real Estate Partnerships
By now, it has become crystal clear that the Taxpayer Relief Act of 1997 (the "1997 Tax Act") provides little relief to tax professionals. The 1997 Tax Act is arguably the most complicated tax package in recent times. Nearly 1,000 IRC sections have been...
What Hath Ibanez Wrought?
What do the designations "CPA" and "Certified Public Accountant" mean? Who may use the designations, and under what circumstances? The Supreme Court's decision in Ibanez may change conventional wisdom concerning both of these questions. There are two...
Year 2000-A Cost Update
Advice on how to address the Year 2000 problem continues, with costs mounting. Technology consultants estimate the total global tally to make systems compliant will range from $300 billion to $600 billion through 1999. The IRS currently has 600 people...