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. 229, No. 4, April 24

Accounting Profession Leaders Call for Action against Climate Change: Environment-Related Issues Are Recognized as a Significant Emerging Risk
Fourteen accounting bodies representing members worldwide recently published a call to action urging accounting professionals to put sustainability and the fight against climate change at the forefront of their work. "The accounting profession has long...
AICPA Launches SOC for Supply Chain: The Voluntary Framework Enables Reporting on Control Effectiveness
The AICPA has launched SOC for Supply Chain, a market-driven, flexible, and voluntary framework for organizations to communicate certain information about their manufacturing, production, or distribution system and the effectiveness of controls that...
COVID-19 Pandemic Prompts Many Tax Changes: Taxpayers Have a Variety of Relief Measures to Help Them through the Economic Disruption Caused by the Public Health Crisis
Legislative and administrative responses to the COVID-19 pandemic have given America's taxpayers many short-term ---and a few longer-term--tax breaks. From tax credits to filing postponements, here is a breakdown of the changes benefiting individuals...
Failure to File FBAR Is Not Due to Reasonable Cause: A Taxpayer Is Subject to Civil Penalties for Nonwillful Failure, a Court Holds
A district court granted summary judgment against a taxpayer, enabling enforcement of civil penalties for nonwillful failure to timely report his financial interest in certain foreign bank accounts. It ruled that the taxpayer did not establish an issue...
How Auditors Can Test Inventory without a Site Visit: The COVID-19 Pandemic Has Made It Difficult or Impossible to Physically Inspect Inventory, but Sufficient Appropriate Evidence Can Still Be Observed and Documented
As a result of the coronavirus, there are situations where by law we may not be able to go out to a client location and physically observe inventory as we've done in the past (see the sidebar, "Remote Auditing Comes to Forefront During Pandemic"). We...
Pandemic Places Accounting, Auditing Rules in Flux: The Coronavirus Caused Regulators, Standard Setters, and Others to Adjust Requirements and Effective Dates
After the COVID-19 pandemic raised concerns that harried company finance departments would struggle to implement new accounting standards, FASB voted to add a project to its technical agenda to propose delaying the effective dates of its standards on...
Sec. 6662(a) Penalties Require Written Supervisor Approval: The Tax Court Rules on When the Burden of Production regarding Written Supervisory Approval Moves to the Taxpayer
The Tax Court held that the burden of production regarding compliance with procedural requirements related to a Sec. 6662(a) penalty initially falls to the IRS. The burden transfers to the taxpayer after the IRS provides evidence of written supervisory...
SEC Exempts Certain Companies from ICFR Attestation Requirement: Maintaining Effective ICFR Will Still Be Required
Smaller reporting companies with less than $100 million in revenue will no longer be required to obtain a separate attestation of their internal control over financial reporting (ICFR) from an outside auditor under amendments adopted by the SEC. Under...
Strategic Disruption: An Expert's Thoughts on Moving Forward; A 'New Normal' Sparked by the COVID-19 Pandemic Is Bound to Shake Up Well-Established Business Models and Dispel Long-Held Assumptions
Rita McGrath, a professor of management at Columbia University's Graduate School of Business, has written several books on business disruption. Her thoughts would be relevant anytime, but they are especially relevant in spring 2020, a time of unprecedented...
Supreme Court Overturns Consolidated Group Tax Refund Allocation Rule: The Court Holds the Bob Richards Rule Exceeds Federal Courts' Common-Lawmaking Authority
The U.S. Supreme Court struck down a long-standing common law rule by which federal courts had decided disputes between members of an affiliated group filing a consolidated return over which of them should be allocated any tax refund. Instead, according...
Survey Shows How Firms Can Advance Women in the Workplace: Modified Work Arrangements Are Popular and Well Regarded
Firms that use modified work arrangements (MWAs) and formal advancement report that the benefits are clear for women in the workplace, according to the AICPA's 2019 CPA Firm Gender Survey. The survey revealed that the vast majority of firms (94%) offered...
The Indirect Impacts of COVID-19 on CPA Firms
The world has changed dramatically in recent months. At the beginning of 2020, many CPAs were excited about the prospect of an "easier" busy season after dealing with the law known as the Tax Cuts and Jobs Act, P.L. 115-97, last year. Financial markets...
When Hard Times Hit Staff
Employees coping with the death of a loved one or a serious illness in the family may need time, space, and leave from work. Experts advise how to assess leave policies and offer support. Respond with sympathy and empathy. How an employer relates to...
Where to Turn
Member Service Center 1-888-777-7077 9 a.m.-6 p.m. ET, Monday-Friday 220 Leigh Farm Road, Durham, NC 27707 Fax:1-800-362-5066 service@aicpa.org www.aicpa.org Accounting Technical Information Hotline 1-877-242-7212 9 a.m.-8 p.m. ET, Monday-Friday The...
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