California CPA articles from July 2005

California CPA archives from July 2005

New resource for Accounting Education/career development.(AICPA News)(American Institute of Certified Public Accountants)(Brief Article)
July 1, 2005... The AICPA Accounting Education Center provides users with education and curriculum development programs; student recruiting resources; scholarship and award information; and a variety of publications, reports and other studies. ...

Pension plan amendment guidance.(IRS Update)(Brief Article)
July 1, 2005... The IRS has issued Rev. Proc. 2005-23 to address the application of a recent Supreme Court decision relating to pension benefits, Central Laborers' Pension Fund v. Heinz, 541 U.S. 739 (June 7, 2004). [ILLUSTRATION OMITTED] ERISA...

Trusted adviser.(News & Trends)(certified public accountants)(Brief Article)
July 1, 2005... [ILLUSTRATION OMITTED] A RECENT AICPA SURVEY asked 420 business decision makers, 110 executives and 506 investors to rate their attitude toward the CPA profession. The survey found that: have favorable view of the CPA profession. ...

Circular 230 revised: written tax advice.(News & Trends)(legal guidelines to tax advisers)(Brief Article)
July 1, 2005... The IRS and Treasury Department have issued revisions to the Circular 230 standards for written tax advice that were announced late last year. The revisions clarify several areas of the new standards, including: * Advice from in-house...

The concentration on retaining.(News & Trends)(Brief Article)
July 1, 2005... The concentration on retaining independence "may have led people to exaggerate how little communication they can have. William McDonough, chair, PCAOB

No more Package X.(News & Trends)(tax forms and instructions)(Brief Article)
July 1, 2005... Due to budget cuts in printing and shipping, the IRS has eliminated Package X, Reference Copies of Federal Tax Forms and Instructions, effective Tax Year 2005. As a result, IRS Pub. 1045, Tax Professionals Guide to Federal Tax Products,...

More time to spend FSA funds.(DEADLINE EXTENDED)(Flexible Spending Arrangements)(Brief Article)
July 1, 2005... Notice 2005-42 issued by the Treasury Department and IRS will allow employers to modify Flexible Spending Arrangements to extend the deadline for reimbursement of health and dependent care expenses up to 2.5 months after the end of the plan...

Attacking the tax gap.(FTB News)(Brief Article)
July 1, 2005... At a recent FTB symposium on California's tax gap, state controller Steve Westly and other FTB members outlined specific initiatives to reduce the gap, including: * Enhanced detection of tax preparers filing fraudulent tax returns; *...

Chapter CPE.(Web Focus)(California CPA Education Foundation)(Brief Article)
July 1, 2005... Chapter CPE listings on CalCPA.org have nearly doubled in size, thanks to the California CPA Education Foundation. While chapter home pages already boast a calendar of events that features fast and easy online event registration, you now can...

Statement No. 154: reporting Accounting Changes.(FASB News)(Financial Accounting Standards Board )(Brief Article)
July 1, 2005... FASB has issued Statement No. 154, Accounting Changes and Error Corrections, which applies to all voluntary changes in accounting principle, and changes the requirements for accounting for and reporting of a change in accounting principle. ...

CalCPA goes to Washington.(News Trends)(California Society of Certified Public Accountants)(Brief Article)
July 1, 2005... AICPA California Council members met with legislators during the Spring Council meeting in Washington D.C. to discuss Social Security and financial literacy. From left: CAMICO CEO John Dodsworth, former CalCPA Chair Steve Wimmers, Sen. Diane...

FASB simplifies option-expensing rule.(News Trends)(Financial Accounting Standards Board )(Brief Article)
July 1, 2005... FASB has suspended a provision indefinitely in Statement 123R that specifies when an employee leaves a company while holding unexercised options, 123R applies only for the first 90 days. If the options were exercised after that time, matters...

SEC, PCAOB issue more Sec. 404 internal control guidance.(SEC News)(Public Company Accounting Oversight Board)(Securities and Exchange Commission)(Sarbanes-Oxley Act of 2002)(Brief Article)
July 1, 2005... The SEC and PCAOB have issued additional guidance relating to internal control reporting under Sarbanes-Oxley Sec. 404. The SEC noted that an overarching principle of its guidance is the responsibility of management to determine the form...

SEC begins online posts of staff letters to companies.(SEC News)(Securities and Exchange Commission)(Brief Article)
July 1, 2005... The SEC is making public its comment letters and response letters to firms. The letters relate to disclosure filings made after Aug. 1, 2004. "We believe it is appropriate to expand the transparency of our comment process by making this...

Guidance for attest engagements regarding XBRL.(PCAOB News)(extensible business reporting language )(Brief Article)
July 1, 2005... The PCAOB has released staff Q&As related to attest engagements regarding XBRL data furnished under the SEC's XBRL Voluntary Financial Reporting Program on EDGAR. The Q&As provide guidance for auditors engaged to report on whether the XBRL...

Interstate practice requirements.(Professional News)(Brief Article)
July 1, 2005... Since requirements for tax professionals vary from state to state, CPAs with clients located in another state need to know that state's rules. In some instances, tax professionals may be required to register with other state boards of...

2005 accounting salary guide.(Survey Says)(Brief Article)
July 1, 2005... 2005 will be a year of cautious growth in the accounting and finance sectors, according to Accountants Inc. 2005 Compensation, Benefits and Workplace Trends Guide. The guide highlights salaries from a wide range of position--from CFO to...

Giving back CalCPA Public Service Award winner.(News & Trends)(Leonard W. Williams)(California Society of Certified Public Accountants)
July 1, 2005... 2005 LEONARD WILLIAMS For a lifetime devoted to the betterment of the community, Leonard W. Williams is CalCPA's 2005 Public Service Award winner. A Sunnyvale-based sole practitioner, Williams has served in numerous capacities for...

Survey: many companies revamp executive compensation.(WHAT INCENTIVES?)(Brief Article)
July 1, 2005... Companies are significantly altering the eligibility criteria, design parameters and size of executive long-term incentive awards as they face increasing regulatory and shareholder pressure to align pay with performance and manage costs,...

IRS continues crackdown on tax professionals.(IRS CRACKDOWN)(Internal Revenue Service)(Brief Article)
July 1, 2005... Continuing its efforts to beef up enforcement, the IRS has little patience for procrastinating tax professionals. A recent memo sent by Examination Director K. Steven Burgess to IRS examination area directors in the Small Business/Self...

PWC study: global implications of SOX.(WHAT INCENTIVES?)(Sarbanes-Oxley Act of 2002)(PricewaterhouseCoopers, LLP)
July 1, 2005... Investors and analysts outside the U.S. are not well informed about Sec. 404 of the Sarbanes-Oxley Act and are concerned about the potential impact of negative disclosures, according to a PricewaterhouseCoopers survey of investors and analysts....

Clarification.(Correction Notice)
July 1, 2005... In the May 2005 issue of California CPA, an item titled "Audit Rotation Misinformation" stated, "And a report from the Panel on the Nonprofit Sector... does not recommend the rotation of auditors for charitable organizations." It should have...

In memoriam.(News & Trends)(Kurt J. Fraenkel)(Obituary)
July 1, 2005... Kurt J. Fraenkel, a former CalCPA director, died May 30. He was 81. A Lafayette-based CPA, Fraenkel was an active member of the profession at the national and state levels, and an advocate for CPAs in industry. Fraenkel was...

Announcements.(member mile stones)(Brief Article)
July 1, 2005... Andrew Barnett is retiring after 22 years as a professor and eight years as director of the San Diego State University School of Accountancy. Barnett began his career at PricewaterhouseCoopers and Arthur Andersen. He has served on the AICPA's...

Accomplishments.(member mile stones)(Fausto Hinojosa)(William W. Holder )(Brief Article)
July 1, 2005... Clovis-based Fausto Hinojosa has been elected to the board of directors of Easter Seals Central California... USC Leventhal School of Accounting Ernst & Young Accounting Professor William W. Holder has been reappointed as a member of GASB for...

Firm news.(member mile stones)(Patrick, Buzarellos, Pregent, LLP)(Accountant on Demand, LLP)(Gift & Long, Inc.)(Brief Article)
July 1, 2005... Sacramento-based Patrick, Buzarellos, Pregent, LLP, with Accountant on Demand, LLP, has acquired the accounting practice of Gift & Long, Inc. and will maintain the Citrus Heights satellite office. Send Member Milestones to:...

Awards.(member mile stones)(Wayne Pinnell)(Brief Article)
July 1, 2005... Irvine-based Wayne Pinnell, managing partner of Haskell & White LLP, was initiated as honorary member of California State University, Fullerton's chapter of Beta Alpha Psi. Send Member Milestones to: felicia.rodriguez@calcpa.org.

Members in the news.(member mile stones)
July 1, 2005... Larry Russell was quoted in the March 28 Los Angeles Business Journal... Bob Sullivan wrote an article for the April CPA Wealth Provider... Linda McCall was quoted in the April 2 Whittier Daily News... Dave Sullivan was quoted in the April 6...

Pension attention: increased regulatory oversight increases pension plan Consulting opportunities for CPAs.(certified public accountants)
July 1, 2005... Pension plans and fiduciary responsibility rocketed into the regulatory spotlight with Enron's collapse, and with United Airlines recent high-profile pension plan failure, the increased scrutiny won't be subsiding anytime soon. Regulators...

Exam changes ahead? Armed with concerns, CBA has Uniform CPA exam in crosshairs.(government relations)(California Board of Accountancy)(cerified public accountants)
July 1, 2005... The California Board of Accountancy expressed frustration during its May meeting with a number of issues related to the new computer-based CPA Exam, which was rolled out last year. The CBA's concerns include scheduled cost increases,...

Sold! Navigating your client through a business' sale.
July 1, 2005... The climate for selling a business today is about as good as it gets. Low-interest capital is available through almost every conceivable source, including private equity groups, company buyers and lending institutions. Buyer expectations of...

Lessons learned: COSO, COBiT and other emerging standards for SOX compliance.(SOX COMPLIANCE)(Committee of Sponsoring Organizations)(Control Objectives for Information and Related Technologies)(Sarbanes-Oxley Act of 2002)
July 1, 2005... After nearly three years, many companies still are coming to grips with the Sarbanes-Oxley Act, specifically Sec. 404, and other new compliance laws, such as HIPAA and Gramm-Leach-Bliley. And even now, there are lessons to learn regarding...

Status check: three years after SOX, effectiveness of audit committees is a mixed bag.(AUDIT COMMITTEES)(Sarbanes-Oxley Act of 2002)
July 1, 2005... Three years ago, the executive search world was abuzz with the anticipated business search firms would receive from audit committee chairs and members looking for the prized "financial expert" as required by the newly enacted Sarbanes-Oxley...

Money business: how the Bank Secrecy Act impacts CPAs and their clients.(FEDERAL REGULATION)(certified public accountants)
July 1, 2005... With new federal filing requirements imposed on money service business activities, it is more important than ever that CPAs understand MSB definitions and requirements, and educate their clients accordingly. I recently participated in a...

TaxTalk highlights: real estate withholding, trusts and online sales taxes.(california tax)
July 1, 2005... A recently widowed client sold her residence. Her lawyer had assigned the residence to the surviving spouse's trust, so she gave the real estate agent that trust's ID number. Since the trust functioned as a grantor trust, no tax return was...