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. 73, No. 12, December

Accountants' Anti-Money-Laundering Responsibilities
Accountants' anti-money-laundering responsibilities are more important than ever. The terrorist attacks of September 11 led to a number of governmental actions aimed at preventing terrorism and related money-laundering activities. The recently enacted...
Accountants Serving as Corporate Directors
In the wake of the Sarbanes-Oxley Act of 2002, the demand for accountants to serve as corporate directors is likely to increase, and the associated liability of corporate directors with "special expertise" may increase as a matter of law. Under the Sarbanes-Oxley...
Accounting for Stock Options
The FASB would be well advised to forget its Black-Scholes fair value method of accounting for stock options and proceed instead with Occam's Razor. By definition, Occam's Razor advises that "the simplest of competing theories should be preferred to...
Audit Committees: The Solution to Quality Financial Reporting?
A 1999 Blue Ribbon Committee recommendation proposed that audit committees publicly express their belief that financial statements are fair and conform with generally accepted accounting principles (GAAP) in all material respects. Consequently, the Auditing...
Costs Associated with Exit or Disposal Activities
In June 2002, FASB issued SFAS 146, Accounting for Costs Associated with Exit or Disposal Activities, to provide guidance on the measurement and recognition of a liability and related expense for costs associated with exit or disposal activities. SFAS...
Elder Care and Estate Planning: Reconciling Strategies
When it comes to planning for wealth preservation, a planner must consider three basic obstacles in the effort to keep assets within a family:* Income, estate, and gift taxation;* Long-term healthcare costs (home custodial care, assisted living arrangements,...
Ethics for Cpas
ETHICS FOR CPAS By Dan M. Guy, Douglas R. Carmichael, and Linda A. Lach John Wiley & Sons, Inc.; $45; 364 pages; ISBN: 04 71271764When I reviewed the authors' previous book, The CPAs Guide to Professional Ethics (May 2001), I believed it left little...
Healthcare Alternative Dispute Resolution
Disputes with health insurers or managed health care organizations can be bitter and complicated. The most time- and cost-efficient ways of resolving those disputes are the various forms of alternative dispute resolution (ADR), all of which are more...
Highlights of Recent Tax Legislation
Congress, after much debate, passed the Jobs and Growth Tax Relief Reconciliation Act of 2003, which contains major tax cuts for individual and business taxpayers. The legislation was signed into law by President Bush on May 28, 2003.Federal ChangesTax...
Inside the Journal
The editorial team at The CPA Journal would like to thank all its editorial board members, its review board members, its ad hoc reviewers, and the many diligent professionals that create the articles the rest of us read. The Journal serves the CPA profession...
It's Time for Triple Bottom Line Reporting
Companies around the world have started to realize that investors are not interested solely in financial performance. Corporate greed and exploitation have created a renewed interest in compassion and sustainability. This is where triple bottom line...
Letters to the Editor
ON VALUING INTANGIBLES I react with interest the article "Valuing Intangible Assets" in the October 2003 CPA Journal.The writers correctly point out that some companies will benefit from reporting certain intangibles on their balance sheet, especially...
New Treatment for Irc Section 457 Plan Distributions
Recent amendments to IRC sections 457 and 3401 changed the characteristic of distributions from a government section 457 deferred compensation plan, from payment as wages to payment as a pension or annuity. This change affects only government section...
Per Diem Arrangements and Accountable Plans
Both employers and employees benefit when an employee's business expenses are reimbursed in conformity with an accountable plan. Employee business expenses reimbursed under an accountable plan can be deducted for an employee's adjusted gross income....
Sec Regulations G, S-B, and S-K: Reporting Non-Gaap Financial Measures
Personal ViewpointIn recent years, many companies have publicly emphasized earnings figures that do not conform to GAAP, excluding nonrecurring charges from those measures. Companies often report such charges, including restructuring costs and inventory...
'Sunlight Is the Best Disinfectant'
Sunlight is the best disinfectant," a wellknown quote from U.S. Supreme Court Justice Louis Brandeis, refers to the benefits of openness and transparency. I invoke this quote often as executive director of the NYSSCPA, to illustrate that the most credible...
The Streamlined Sales Tax Project
A sales tax is an excise tax on goods or services purchased by a consumer from a retailer that has a physical presence in the same state as the consumer. The buyer bears the legal burden of the tax but the seller is required to collect and remit the...
Variable Prepaid Forward Transactions Not Considered Sales
In Revenue Ruling 2003-7 [2003-5 IRB 1 (January 16, 2003)], the 1RS held that a shareholder who entered into a variable prepaid forward transaction secured by a pledge of appreciated shares neither caused a sale of stock under general tax principles...
Website of the Month: Sisterstates Tax Directory
Tax practitioners, accounting instructors, and taxpayers alike will find the SisterStates Tax Directory (www.sisterstates.com) to be an easy way to access state tax forms and related information. The website's motto "Your One-Stop Source for all State...
Xbrl, Financial Reporting, and Auditing
The future delivery of financial reports will be digital; the question of which information exchange language will become the de facto standard remains unanswered. Currently, most digital representations of financial information are coded in hypertext...