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. 174, No. 6, December

1992 Economic Census under Way
More than 3.5 million American businesses will receive 1992 Economic Census questionnaires from the U.S. Census Bureau in December. Businesses are required by law to return the completed forms by February 15. "CPA firms should inform their clients...
Accounting and Reporting by Health and Welfare Benefit Plans
Statement on Auditing Standards no. 69, The Meaning of "Present Fairly in Conformity With Generally Accepted Accounting Principles" in the Independent Auditor's Report, identifies American Institute of CPAs statements of position (SOPs) as sources...
Accounting for Deferred Taxes under FASB 109
A standard has finally been adopted for measuring and recognizing deferred income taxes. In December 1987, the Financial Accounting Standards Board issued Statement no. 96, Accounting for Income Taxes, which was intended to replace Accounting Principles'...
AICPA Looks at Ways to Lower Review Costs
Even as the quality review program completes its first three-year cycle, with firms reviewed in the 1989 pilot year receiving their second reviews in 1992, the AICPA continues to focus its attention on member concerns--particularly the cost of quality...
Auditing Employee Benefit Plans
Auditing employee benefit plans is not a risk-free activity. The American Institute of CPAs professional ethics division has released a summary of the most frequent technical standards violations in 52 employee benefit plan audit engagements investigated...
Bifurcation Rules Revisited
Corporate Several months ago Merrill Lynch created MITTS (market index target term securities), a debt instrument promising to pay at maturity the instrument's issue price plus a contingent payment equal to 115% of any increase in the Standard &...
Bills Fall Victim to Adjournment
Many bills of importance to the accounting profession died in the waning hours of the 102nd Congress. While bills opposed by the American Institute of CPAs were defeated, legislation supported by the Institute became trapped in the traditional end-of-session...
Deductibility of Repairs
There is a distinction in the tax code between deductible repair expenses and capital improvements. Normally, the costs of repair and maintenance to property used in a trade, business or profession, or held for investment (that is, the costs that keep...
FASB 109: Planning for Implementation and Beyond
Will the new statement reduce the complexity of accounting for income taxes? The deadline for implementing Financial Accounting Standards Board Statement no. 109, Accounting for Income Taxes is rapidly approaching. The requirements must be reflected...
Fiduciary Relationship Exists between Investor and Adviser
The fact that in some cases Deloitte dismissed negative information because it was outweighed by contrary information may have been bad judgment but did not sustain a securities fraud action. The U.S. Court of Appeals for the Seventh Circuit ruled...
Final Branch Profits Regulations
The IRS issued final regulations for the branch profits tax (Internal Revenue Code section 884). The new regulations, effective for tax years beginning on or after October 13, 1992, replace temporary regulations issued in September 1988. Added as...
Financial Institutions Strengthen despite Stagnant Economy
An analysis of Federal Reserve Board call data for the second quarter of 1992 by Veribanc, Inc., the bank rating company, showed the nation's financial institutions continued to improve, despite the current recession. Commercial banks. The nation's...
How to Protect Clients against IRS Attack on Independent Contractors
A business that claims a worker as an independent contractor rather than an employee is nearly always asking for trouble with the Internal Revenue Service. Making such a claim automatically raises a red flag because the IRS considers many of them misclassifications--often...
How to Work with Administrative Support Staff
It's important to recognize the many contributions administrative support staff can make to a firm. Bonnie M. Householder, executive secretary to the senior vice-president--finance, Clopay Corp., 312 Walnut Street, Cincinnati, Ohio 45202, a certified...
How Utilities Will Account for Income Taxes under FASB 109
Regulators and companies alike need to consider the new provisions' effect on utility operations. After years of debate, the Financial Accounting Standards Board this year issued Statement no. 109, Accounting for Income Taxes, a landmark pronouncement...
Lease of Farm Kills Special-Use Valuation for Estate Tax
Elizabeth Williamson owned property in Minnesota, which her grandson, Harvey Williamson, operated as a family farm under a crop-sharing agreement with his grandmother. Elizabeth died in 1983, and her son, Beryl, who lived in California, inherited...
New AICPA Chairman Sees a Bright Future for the Profession
Jake Netterville will stress the positive view of the profession's future during his term as chairman. When Jake Netterville, new chairman of the American Institute of CPAs board of directors, was asked about the state of the profession during a...
New Guidance on Personal Financial Planning Engagement Functions and Responsibilities
The American Institute of CPAs personal financial planning executive committee has issued a Statement on Responsibilities in Personal Financial Planning Practice, Basic Personal Financial Planning Engagement Functions and Responsibilities. The statement...
Powerful Testimony Techniques
Knowing what to expect and how to respond are the keys to being an effective expert witness. A CPA who performs business valuation and other litigation services often must appear as an expert witness in trials involving, for example, a disenfranchised...
Practice Valuation: Thumb Rules and Common Sense
Traditional measures should be applied with care and with an eye toward the long term. How much is my practice worth?" Contrary to popular opinion, an appropriate and equitable selling price can be found quickly and inexpensively for most small...
Small Firms Satisfied with AICPA but Ask for More Attention
A survey of 2,000 local and regional firms conducted by the private companies practice section (PCPS) of the American Institute of CPAs division for CPA firms found that small firms are satisfied overall with AICPA services but want more contact with...
Software Tools Document Internal Control Systems
The recent introduction of computer programs that draw flowcharts has made some aspects of CPAs' work easier and more effective. In this article, Ralph E. Viatot, CPA, PhD, an associate accounting professor at the University of Kentucky, Lexington,...
The Auditor, SAS 54 and Environmental Violations
How can auditors learn to recognize environmental red flags? Financial statement auditors are becoming increasingly familiar with accounting for environmental costs and environmental liability disclosure. However, many are not aware of the steps...
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.