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. 181, No. 5, May

An American CPA in Tokyo
How an adventurous CPA runs a successful practice in Japan. It always had been Garry Royce's dream to live and work in Japan. He was intrigued by Asia ever since his childhood days in Minnesota. After four years working for a small CPA firm in Minneapolis,...
Bankruptcy Trustee May Sue
The U.S. District Court for the District of Massachusetts ruled that the trustee of a failed bank may bring a direct action against the bank's former auditors. This case arose from the failure of a bank holding company, the Bank of New England, and...
Buyers' Guide to Low-End Accounting Software
Selecting the best package for your needs. About a dozen years ago most accounting programs that cost less than a few thousand dollars were hardly worth the cost of the floppy disks they came on. As a result, accountants generally ignored them, advising...
Chewing Gum and Giraffes
Two decisions help clarify what constitutes nexus for state income tax purposes. The question of whether a company's activities in a state are substantial enough to subject it to the state's corporate income tax lurks behind any business expansion decision....
FASB Considers Measuring Derivatives at Fair Value
The Financial Accounting Standards Board is pursuing a new approach to account for derivatives and hedge activities: All derivatives would be carried on the balance sheet as assets or liabilities and measured at fair value. This approach, proposed at...
Financial Accounting: EITF Update
Income Tax and Foreign Companies This month's column lists new EITF consensuses adopted March 21, 1996 (see the sidebar on page 101). In addition, three earlier consensuses on deferred tax implications for foreign companies that are assessed taxes on...
Financial Status Audits: A Widespread Problem
The issues that practitioners and their clients have faced. Steven L. Wilson, managing partner of Wilson & Cuite in Tulsa, Oklahoma, was prepared to meet an Internal Revenue Service agent for a very simple audit. His clients, two married physicians,...
Four Steps to Useful Present Values
Financial statements that include flawed present value measurements will be far less helpful to users. The concept of present value is increasingly important in financial accounting. More and more, generally accepted accounting principles use present...
How to Build a Network
A key method for discovering new business. To advance at a firm you must bring in new business. At best, those who don't are unlikely to get promoted beyond the manager level. At worst, they risk being pushed out in favor of those who can do the same...
How to Make Spreadsheets Error-Proof
Making those handy number-crunches more productive. Commercial spreadsheet application programs probably are accountants' most widely used computer tools. But how accurate are the numbers they generate? While the underlying programs that run spreadsheet...
Insurer Must Defend Accountant-Attorney
An Illinois appellate court ruled that a professional liability insurer must defend an insured accountant even if only one of the theories of recovery stated against the insured comes within the scope of coverage under the policy. Martin J. Waltzman,...
IRS Attempts to Clarify Independent Contractor Status
Responding to widespread uncertainty among businesses and workers about the definition of an independent contractor, the Internal Revenue Service in March issued a new training manual to help field agents make that determination. The amount of control...
IRS Home Page Is a Hit
The Internal Revenue Service opened its own home page on the World Wide Web in January 1996 and already it has wooed millions of users. The IRS web page (http:// www.irs.ustreas.gov) was accessed 220,000 times during its first 24 hours of operation and...
Marketing to Family Businesses Checklist
A unique demographic bubble is occurring: The men and women who started businesses after World War II are reaching retirement age. This means many family businesses face issues--management succession, compensation, estate planning, business valuation...
More Flexible Subpart F Provisions
The Tax Court recently ruled in Bausch & Lomb Sunglasses Incorporated v. the Commissioner that assembly operations performed by two foreign subsidiaries of Bausch & Lomb constituted "manufacturing" for purposes of the subpart F provisions, and...
Naming IRA Beneficiaries That Cut Taxes
Alternative beneficiaries including charitable trusts should be considered. In income and estate tax planning, sometimes insufficient consideration is given to naming a beneficiary for the capital that has accumulated in qualified retirement plans and...
Pros and Cons of the New IRS Mediation Program
An alternative to litigation. In general, a popular alternative to litigation to resolve disputes has been the use of alternative dispute resolution programs (such as arbitration and mediation); however, until recently, such programs and procedures...
SEC Calls for More Efficient FASB but Rejects Stronger outside Influence
The Securities and Exchange Commission has made public its concern that the Financial Accounting Standards Board is taking too long to draft standards. However, the commission strongly supports an independent FASB and says it will resist any move to...
SEC Commissioner Proposes New Multilayer Reporting Model
Steven M. H. Wallman, commissioner of the Securities and Exchange Commission, unveiled his proposal for an alternative reporting model in which financial statements and related disclosures would be viewed in different layers. Wallman told members attending...
SEC Supports Disclosure Simplification Recommendations
An internal study group of the Securities and Exchange Commission has recommended eliminating or modifying hundreds of rules and forms in an effort to improve the disclosure process. The Report of the Task Force on Disclosure Simplification contains...
Senator Introduces Bill to Improve Single Audit Process
Senator John Glenn (D-Ohio) has introduced a bill that would amend the Single Audit Act of 1984. The legislation, S 1579, is intended to improve financial management of federal funds and reduce paperwork burdens on state and local governments, universities...
Small Business Tax Solutions
This series is based on questions from AICPA tax certificate of educational achievement (CEA) courses. Q. Processing a court-issued qualified domestic relations order (QDRO) is a difficult problem for a qualified retirement plan. What happens when the...
The Future of Financial Accounting: Universal Standards
Widespread adoption of international accounting standards has come considerably closer to reality. In 1995, the technical committee of the International Organization of Securities Commissions (IOSCO)--of which the Securities and Exchange Commission is...
What Should CPAs Do?
Suggestions on how to react when faced with financial status audit techniques. The guidance developed by the American Institute of CPAs financial status audits working group is intended to help CPAs who conclude clients are being subjected to an inappropriate...
Worklife and Family Programs on the Rise
The number of employers with programs and policies that help their employees balance work and family responsibilities has grown substantially during the past five years and is expected to continue increasing, according to a survey of 1,050 major U.S....
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.