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. 70, No. 5, May

Accountants and the Responsible Person Penalty
A misstep can lead to penalties. In Brief Who Decided Not to Pay the Taxes? The U.S. taxation system conveys a virtual fiduciary responsibility on employers with respect to employee payroll withholdings. If employers, for whatever reason, fail to pay...
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Accounting Today's Top 100 Firms Continue Double-Digit Growth
Accounting Today's list of the top 100 firms paints a prosperous picture of the accounting profession: Total revenues of the 100 largest accounting firms increased 16% over the prior year. The Accounting Today analysis breaks out the statistics into...
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AICPA Backs (with Caveats) IRS Registration of Confidential Corporate Tax Shelters
In March, the IRS released proposed and temporary regulations (REG110311-98) requiring registration of confidential corporate tax shelters pursuant to IRC section 6111(d). Failure to comply with these requirements may result in penalties under IRC section...
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A Spreadsheet Template for Installment Loan Amortization Tables
Accountants frequently encounter questions regarding installment Moans, such as how changing the interest rate, the amount borrowed, or the term of the loan will affect the payment amount. Any handheld financial calculator can easily perform this type...
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Building a Financial Planning Practice without Commissions
The sale of financial products-stocks, mutual funds, and insurance policies-comes with the potential for significant compensation from commissions. Many jurisdictions now permit CPAs to accept commissions from clients for whom they do not provide attest...
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Business Valuation Services
In Brief Much to Consider Business valuation services are a viable source of additional revenue for CPA firms. However, CPAs should only accept engagements that involve an acceptable degree of risk, taking into consideration the nature of the business...
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California's New Approach to Apportionment Is a Throwback to the Old
The California Franchise Tax Board (FTB) has proposed an amendment to the California Code of Regulations (18 Prop. C.C.R. section 25100.5) that would revive a long-standing corporate income apportionment rule that had been in effect for more than 20...
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Consulting with Family-Owned Businesses
More than 90% of U.S. businesses are owned and managed by members of a single family. Yet, most family-owned businesses do not survive the second generation. The average life expectancy of such businesses is roughly 25 years. These factors contrive to...
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Continuing Education or Mandatory Hours?
In Brief Building an EfFective Annual CPE Plan The mandatory CPE requirement, designed to ensure that CPAs keep their knowledge up to date, has unintentionally created a burden for many in the profession. The pressures of maintaining a practice combined...
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Controversy Continues over Pooling of Interests vs. Purchase Accounting
FASB Chair Edmund Jenkins testified before the Senate Committee on Banking, Housing, and Urban Affairs in March on FASB's proposal to eliminate the pooling of interests method of accounting for business combinations in favor of the purchase method of...
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Fair Market Value for Business Valuations
CPAs are often called upon to determine the value of an interest in a closely held company. These ownership interests can range from a small percentage to 100% control. What CPAs are really valuing are the ownership rights of that interest in the company,...
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Health Care Trends in the New Millennium
Employers need to review their group health plans this year, as they are certain to experience sizeable rate increases. Employers will need to take a preemptive strike at health care inflation through effective design, cost sharing with employees, self...
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Hyperion Activity-Based Management Software: A Tool for Analyzing Costs and Operational Processes
UNDER AN ABM APPROACH, the cost of each activity is measured and assigned to products using appropriate drivers. CPAs in industry, accountants, controllers, and other financial manlagers need to be able to make business decisions quickly. They need to...
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Identifying Nonresident Aliens and Excludable Income
In Brief Resident Aliens Are Taxed Like Citizens More and more multinational corporations are investing in the robust U.S. economy, and many foreign nationals are finding themselves residing and working in the United States. Of immediate concern to these...
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Independence Standards Board Progress Report
The first major step of the Independence Standards Board in its journey toward a comprehensive logical coherent set of standards was completed at its February board meeting with the release of a discussion memorandum on an auditor independence conceptual...
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Installment Method: Not for Accrual-Basis Taxpayers Anymore
The Ticket to Work and Work Incentives Improvement Act of 1999 (P.L. 106-170) made two substantive changes to the installment method of accounting for tax purposes. First, the act generally precludes accrual method taxpayers from using the installment...
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Investment Industry Leaders Meet to Promote Global Standards for Reporting Investment Returns
Investment industry leaders from 11 countries gathered in March for the inaugural meeting of the Investment Performance Council (IPC) in Paris. The newly appointed council will promote worldwide acceptance of a single, uniform set of standards for investsent...
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IRA Beneficiaries Receive Favorable Payment Schedule
the tax law requires an IRA account holder to start taking minimum annual distributions no later than the April 1 following the year the individual attains age 70 1/2. It usually is beneficial for the account holder and family to take the distributions...
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Job Satisfaction among Entry-Level Accountants
Few would argue that the accounting profession has stiff competition in attracting and retaining the best and brightest business school graduates. At the same time, the accounting faculties at many colleges and universities find their best students are...
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SAB 101's Requirements for Revenue Recognition
A PREREQUISITE FOR REVENUE RECOGNITION IS that delivery has occured or services have been rendered. Staff Accounting Bulletin 101, Revenue Recognition in Financial Statements, is the third in a series of SABs issued in response to SEC Chair Arthur Levitt's...
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The Audit Committee Handbook, 3rd Ed
John Wiley & Sons, Inc., $60, 446 pp, plus appendices Reviewed by Vincent J. Love, CPA, chair, NYSSCPA Auditing Standards and Procedures Committee The third edition of Professor Braiotta's Audit Committee Handbook could not have been timelier. The...
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The Effect of SFAS 135 Technical Corrections on Measurement of Net Periodic Pension Expense
For fiscal periods ending after February 15, 1999, the net periodic pension cost will reflect the actual return on assets held by corporate pension funds. The inclu sion of the actual return instead of the previously required expected return is due to...
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The New Mix of Client Services
Exploring emerging revenue streams In Brief Toward Higher-Profit-Margin Services CPAs in increasing numbers are embracing the opportunities presented by new and emerging client services. The results of a recent PCPS-sponsored survey show a relative shift...
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The New Structure for International Accounting Standards
Implementation Is Under Way The International Accounting Standards Committee's role on the world scene took on greater prominence in 1997 when the International Organization of Securities Commissions agreed to sanction a core set of standards for use...
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