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. 5, May

AcSEC Becomes Strict on Fundraising
The American Institute of CPAs accounting standards executive committee is issuing a new Statement of Position, Accounting for Costs of Activities of Not-for-Profit Organizations and State and Local Governmental Entities That Include Fund Raising....
After the Flood
Helping clients handle disaster-related business losses. Few calls a CPA receives are more urgent: A client phones to say that last week's torrential rain storms caused flooding, destroying everything in her company's ground floor office. She is...
Auditor's Liability for Securities Violations
The U.S. Court of Appeals for the Ninth Circuit ruled that an audit firm preparing a fraudulent audit report that it knew would be included in its client's annual 10-K filing with the Securities and Exchange Commission may be held liable as a primary...
Bill Gates' Win-Win Scenario for CPAs
Microsoft sees business systems consulting in small firms' future. A vanguard of CPAs is pushing the envelope to provide new consulting services unheard of just a few years ago, and it is using technology to do it. Practitioners are advising their...
Computerized Travel and Expenses
Travel and expenses recordkeeping requirements under Internal Revenue Code section 1.62-2(c)(2)(I) can be burdensome and time-consuming for employees and employers. According to private letter ruling 9706018, a company tried to reduce the paperwork...
Congress Criticizes Taxpayer Advocate Report
Congresswoman Nancy L. Johnson (R-Conn.), who chairs the House Ways and Means Committee's Oversight Subcommittee and is the author of Taxpayer Bill of Rights 2 (TBOR 2), told the Internal Revenue Service that the first report of IRS Taxpayer Advocate...
Court Rules on Professional Liability Insurance Policy
A court of appeals in Florida ruled that notice of a potential claim, as opposed to an actual claim, was sufficient notice under the accountant's professional liability insurance policy. This case began when the accounting firm purchased primary and...
Divorced Man Can't Defer Gain on Sale of Former Residence
While married, Perry lived with his wife and daughter in a house in city A. In June 1984, he moved out but continued to pay the mortgage and other household expenses. Later that year, Perry moved to city B to live with a woman he ultimately married...
Earnings per Share Standard Is Finalized
The International Accounting Standards Committee issued International Accounting Standard (IAS) no. 33, Earnings Per Share. The IASC worked closely with the Financial Accounting Standards Board in drafting the standard, which is very similar to the...
Fair Value for Governments
The Governmental Accounting Standards Board issued a standard requiring governments to report their investments at fair value in their annual financial statements. Statement no. 31, Accounting and Financial Reporting for Certain Investments and for...
Forging a Union
A CPA's quest for consistency, accuracy and relevance in the face of one utility company's growth. Sean D. Windsor is the manager of diversification accounting services at Brooklyn Union Gas Co., a $1.4 billion utility that serves the New York City...
Going Local
Using the Web to reach your next-door neighbor. One key aspect of the World Wide Web is its ability to link to international sites as easily as local ones. It's an aspect David B. Robinson decided to ignore. He designed his Web site as one part...
Handling the Small Public Audit Client
Increasingly, smaller businesses are discovering that smaller CPA firms can meet their auditing and other accounting needs. Small firms should not assume that certain clients are out of reach; in fact, when it comes to attracting small business clients,...
Letter from the State Board: What Should You Do Next?
Nothing can be more disquieting than a letter from your state board of accountancy saying that a client has filed a complaint against your firm regarding an engagement. Managing partners who receive such a notice immediately want to know what to do....
LLC Members and Self-Employment Tax
Limited liability companies (LLCs) are proving to be a very popular form of doing business in the many states that now allow their creation (48 states and the District of Columbia, at last count). However, since such entities are still relatively new,...
Managing Wealth
Making sure clients' assets last their lifetimes and beyond. Less than two years ago, Kaycee Krysty left a large CPA firm to help launch Tyee Asset Strategies, a firm that provides wealth management and investment consulting. With a partner, she...
Marketing Clinic
Make your corporate sponsorship work for you. With $4,000 to contribute, would you rather your firm be the main sponsor of a health agency's gala dinner, a trade association's two-day seminar, the chamber of commerce's breakfast or a social group's...
New Role for NPO CPAs
Charities want to report most expenses as program services rather than as administrative or fundraising activities to appear favorably to the public and attract potential donors. Publications often rate charities based on the percentage of money spent...
New SAS on Passing the Baton
The American Institute of CPAs auditing standards board is seeking comments on an exposure draft that would supersede the 22-year-old Statement on Auditing Standards no. 7, Communications Between Predecessor and Successor Auditors. While not seeking...
Participating Mortgage Loans Addressed - Finally
The American Institute of CPAs accounting standards executive committee has issued a Statement of Position, Accounting by Participating Mortgage Loan Borrowers, which is the culmination of a project originating with the AICPA real estate committee...
Small Business Fraud
Fraud is a potential threat to every company, including small and midsize entities. The good news is that the risk of fraud can be managed. The following is a checklist of simple and affordable measures for small and midsize business owners and managers...
Small Business Tax Solutions
This is a series based on questions from the AICPA tax certificate of educational achievement (CEA) courses. Q. What recent legislative developments in the Congress and changes at the Internal Revenue Service have allowed S corporations to diversify...
Taxpayers Can Use Direct and Circumstantial Evidence to Show Timely Filing
In 1993, the Lewises filed for an automatic extension to file their 1992 federal tax return. They maintained they had mailed the extension request, along with a $5,000 payment, sometime before noon on April 15, 1993, in a specially designated box at...
The CPA as Family Adviser
Helping family businesses navigate between the family and the business. Family-owned businesses represent the heart of America. As important as they are, however, special challenges, conflicts and problems mostly related to managing the complex...
The Power of Spreadsheets
Before the first electronic spreadsheet, Visicalc, burst on the scene in the early 1980s, spreadsheet preparation was a slow, painful, manual job. Although Visicalc proved that the silicon chip was faster, more accurate and more versatile than paper...
The Smart Way to Invest in Computers
How to make technology work for you. Keeping current with office technology is expensive. Right? Faster, smarter computers and software just keep rolling out, and even though the upgrades are expensive, accountants have no choice but to keep making...
Witnesses Want Simpler Code and Better Taxpayer Rights
The National Commission on Restructuring the Internal Revenue Service, which wrapped up its public hearings in April, heard a lot of complaints that the tax code was so complex it interfered with the fair and efficient administration of the law. "Witnesses...
Search by... Author
Show... All Results Primary Sources Peer-reviewed

Oops!

An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.