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. 180, No. 5, November

AICPA Chairman Lays the Foundation for the Future
Ronald S. Cohen believes now is the time for CPAs to be the architects of the accounting profession's future. "Change is shattering every system - CPAs are competing with other financial professionals and there is a greater demand for a wider array,...
AICPA Issues EDs
The American Institute of CPAs has issued exposure drafts on internal use-only financial statements, quality control standards and personal financial planning responsibilities. Internal use-only financial statements The accounting and review services...
AICPA, State Societies to Establish CPE Network
State CPA societies and the American lnstitute of CPAs are leading an effort to establish a network that would consolidate some of their efforts in the development, purchase, sale and delivery of continuing professional education to CPAs. The Continuing...
Charitable Contributions
Under current law, a taxpayer who receives membership benefits in return for a payment to a qualifying organization may not claim a charitable deduction for more than the excess of the contribution over fair market value of the membership benefits. But...
Employees in Uniform
Congress first considered the problems of veterans and their re-entrance into the workforce in 1940, recognizing that those who were called to serve their country were entitled to certain rights and protections. However, changes in both the character...
FASB Issues ED on Consolidations
The Financial Accounting Standards Board issued an exposure draft of a statement on consolidation policy in mid-October and called for comments by January 15, 1996. The primary FASB decision on consolidation policy was that a controlling entity should...
Financial Accounting: EITF Update: Accounting for Certain Restructuring Charges in Connection with a Purchase Business Combination
This month's column lists new EITF consensuses adopted July 20-21 and September 20-21, 1995 (see the sidebar on page 91). In addition, earlier consensuses on the recognition of liabilities in connection with a purchase business combination are summarized....
GASB Issues Guidance on the Use of Not-for-Profit Accounting
The Governmental Accounting Standards Board has issued guidance on the use of not-for-profit accounting principles by state and local governments. Some government entities use not-for-profit standards and others follow new Financial Accounting Standards...
IFAC Releases Position Paper on the Global Implications of Auditors' Legal Liability
The International Federation of Accountants has published the findings of a worldwide study on the ramifications of the legal liability crisis facing auditors. Auditors' Legal Liability in the Global Marketplace: A Case for Limitation identifies legal...
IRS Postpones TCMP Audits
The Internal Revenue Service has postponed for 60 days the taxpayer compliance measurement program (TCMP) audits. Originally scheduled to begin October 1, 1995, they are expected to start on December 1. The TCMP is a line-by-line verification of over...
IRS Told Field Agents to Alter Financial Status Audit Approach, but CPAs Don't See a Change
Lou E. Carlow, assistant commissioner - examination, of the Internal Revenue Service in Washington, D.C., asked IRS regional chief compliance officers to "assess the facts and apply sound judgment" before asking taxpayers about personal assets or expenditures....
Journal of Accountancy at Age 90
This is the 1,080th edition of the Journal of Accountancy, the publication that was created to "represent, in the best and broadest sense, the interests of the accountancy profession" in the United States. Skimming through nine decades of magazines reveals...
Langenderfer Receives Award
Harold Langenderfer, retired adjunct professor of accounting at the University of North Carolina at Chapel Hill's Kenan-Flagler Business School, was the co-recipient of the 1995 American Accounting Association's Outstanding Accounting Educator Award....
Leach Says Congress Will Consider Merging BIF and SAIF Funds
House Banking Committee chairman Jim Leach (R-lowa) told members attending the American Institute of CPAs national conference on savings institutions that before the end of the year the House and the Senate would consider legislation to consolidate the...
M & A for Smaller Companies
Over the past several years, and especially in 1995, merger and acquisition activity has heated up substantially in both the public markets and the middle market. The increased dealmaking in businesses selling for $1 million to $50 million has created...
Motorola's Financial Closings: 12 "Nonevents" a Year
Last May, Kenneth J. Johnson, corporate vice-president and controller of Motorola Inc., revealed to an audience of management accountants at a re-engineering conference in Dallas that his $22 billion company is now able to conduct its monthly closings...
NASBA Issues Guidance on Non-CPA Ownership
The board of directors of the National Association of State Boards of Accountancy has approved guidelines for state boards that decide to allow nonlicensee ownership of CPA firms. The board did not take a stand on the controversial issue, however. The...
OMB Outlines the Future of Federal Funding to State and Local Governments
John A. Koskinen, deputy director for management of the Office of Management and Budget, told CPAs attending the American Institute of CPAs government accounting and auditing update conference in Washington, D.C., that the federal government must rethink...
Single Injury Rule No Bar to Additional Suit
The Minnesota Supreme Court ruled that the buyer of $15 million of subordinated debentures from a now insolvent savings and loan may maintain an action against the S&L's auditors distinct from other creditors' actions. Northwest Racquet Swim and...
Small Business Tax Solutions
Q. Can rental income from a wholly owned corporation be deemed constructively received when the lessee is able to pay the rent but fails to do so at the direction of its directors, who also are the landlords? A. The doctrine of constructive receipt...
Thinking Computers
Computers are great at following orders. They superbly perform repetitive tasks such as sorting, searching and copying. But when it comes to making decisions based on incomplete or contradictory information - let's can that "thinking" - they are duds....
What CPAs Can Tell Clients about Tax Reform
The tax reform fever that has hit the United States has many clients asking CPAs what changes the might face, as well as how business and investment strategies could be affected. While some of the proposals provide enough information to recompute current...
Which GAAP Should NPOs Apply?
CPAs who work for or with not-for-profit organizations (NPOs) must address a serious question: Is the organization using the appropriate subset of generally accepted accounting principles? Some NPOs are under Financial Accounting Standards Board jurisdiction;...
Who Said the World Isn't Flat?
The proposals to replace the current federal income tax have been the subject of intense debate. Given the current political climate, they may even become a reality. Indeed, if the Republicans gain more seats in Congress, not to mention the White House,...

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