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. 176, No. 6, December

Banking Industry Finances Remain Strong despite Earnings Decline
A Veribanc, Inc. analysis of Federal Reserve Board second quarter call report data for the nation's 11,768 commercial banks found their net income had declined 3.5%, from $11.4 billion in the first quarter to $11 billion. However, net income for the...
Comfort Letters: How Does SAS 72 Affect Them?
Conditions once again appear favorable for public offerings of securities. In 1992, the volume of initial public offerings (IPOs) on the New York Stock Exchange (NYSE), which handles about 80% of all IPOs in the United States, was $34.2 billion. The...
Dealing with Shades of Gray: The Realistic Possibility Standard
Although finding an authoritative answer to a complicated tax question can be a challenge, resolving an issue for which there is no definitive answer is an even greater challenge. Before taking a tax position, CPAs must consider the technical provisions...
Deductibility of Environmental Remediation Costs
The United States is just beginning to realize the tremendous cost of yesterday's imperfect waste disposal practices: An estimated $750 billion will be spent between 1990 and 2020 to clean up thousands of hazardous waste sites. Companies that fail...
Firm Focus: Establishing Guidelines and Limits
THE BUSINESS TRAVELER This month the Journal inaugurates a new quarterly column dedicated to providing practical and money-saving information for CPAs to use in their business travel. The column provides tips and news for individual travelers and...
GASB Issues Statement 21 on Escheat Property and DM on Contributed Capital
The Governmental Accounting Standards Board issued Statement no. 21, Accounting for Escheat Property, establishing reporting standards for escheat property and for liabilities and interfundtransfers related to such property. The statement is effective...
How to Handle FASB 112
In November 1992, the Financial Accounting Standards Board issued Statement no. 112, Employers' Accounting for Postemployment Benefits, which requires that accrual accounting be used to value the cost of benefits provided to former or inactive employees...
Instant Refunds
Tax Briefs Individual The government usually taketh away, but sometimes it also giveth. The Omnibus Budget Reconciliation Act of 1993 (OBRA), for instance, includes retroactive provisions that entitle many taxpayers to immediate refunds....
New Forms Introduced for Small Business Loans
CPAs with small business companies and clients seeking bank loans may find it easier to meet lenders' information requirements. In the past, most banks required financial statements conforming to generally accepted accounting principles to evaluate...
OBRA and CFCs: Still More Complexity
International The Omnibus Budget Reconciliation Act of 1993 adds an additional layer of complexity to the current tax on controlled foreign corporation (CFC) earnings. Newly created tax code section 956A applies to CFCs that have "excess passive...
One CPA's Busy Season Solution
Pooling resources with other practitioners helped solve seasonality problems for one CPA. Douglas L. Blensly, CPA, Delbert M. Goehner Accountancy Corporation, 136 South Oak Knoll Avenue, Suite 200, Pasadena, California, 91101, reports on how it works....
Opening Windows for CPAs: Here's How the Multitasking Software Makes Computers More Productive
To go to Windows or not to go to Windows? That is the question many CPAs are asking. Not since accountants faced the dilemma of whether to keep their minicomputers or replace them with personal computers (PCs) have CPAs been confronted with such a...
Proposed Transfer of IRS Appeals Office Opposed by AICPA
Tax News In a letter to Internal Revenue Service Commissioner Margaret Richardson, the American Institute of CPAs strongly opposed the proposed transfer of the IRS Office of Appeals to the chief counsel's office. The proposal is part of a reorganization...
Qualifying for Section 1244
To encourage investment in small businesses, Congress in the late 1950s allowed individual shareholders to deduct losses on the sale, exchange or worthlessness of certain small business corporations' stock. Losses from the disposition of such stock are...
Recruiting Future CPAs: Is Enough Being Done?
Are college accounting departments doing enough to recruit the "best and the brightest" students into the CPA profession? Based on a survey we conducted, we found substantial efforts were being undertaken but more definitely could be done. We asked...
Spouses and Dependent Persons
1. A partner's dependent parent is a-5% limited partner in a firm client. Does the parent's direct financial interest in the client impair the firm's independence? [] Yes [] No 2. An individual participating in a review engagement who...
Supreme Court Reduces Exposure for Knowing Participants in Fiduciary Breach
The Employee Retirement Income Security Act (ERISA) imposes substantial personal liability on. benefit plan fiduciaries and provides a clear definition of who is and is not subject to it. However, when there is a fiduciary breach plaintiffs often allege...
Uniformity Is Attainable through the Uniform Accountancy Act
With the globalization of the world's economies and increasing mobility among professionals, the need for uniformity of accounting licensing requirements has grown immeasurably. Increasing numbers of CPAs in firms of all sizes practice outside their...
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