California CPA articles from May 2005

California CPA archives from May 2005

CalCPA's Nominations to AICPA Council.(CalCPA News)(California Society of Certified Public Accountants)(American Institute of Certified Public Accountants)(Brief Article)
May 1, 2005... CalCPA's Nominations Committee has nominated the following members for AICPA Council terms expiring in October 2008: Teresa Mason, San Francisco Chapter; D. Paul Regan, San Francisco Chapter; Marc Parkinson, Silicon Valley San Jose Chapter; and...

Loretta Doon named CalCPA, Education Foundation COO.(CalCPA News)(appointed Loretta Doon as Chief operating officer)(California Society of Certified Public Accountants)(Brief Article)
May 1, 2005... Loretta Doon has joined CalCPA and the California CPA Education Foundation as COO. Doon, a CPA and CalCPA member, most recently served as associate executive director of the California Teachers Association, where she's held various...

CalCPA committee name change.(NEW NAME)(California Society of Certified Public Accountants)(Brief Article)
May 1, 2005... The CalCPA Members in Industry Committee has changed its name to the CalCPA Business and Industry Committee. For the roughly 6,000 CalCPA members who work in business and industry, the committee provides a forum to exchange information...

Two new white papers explain GASB Nos. 40 and 45.(NEW NAME)(Brief Article)
May 1, 2005... CalCPA's Governmental Accounting and Auditing Committee, with the California Committee on Municipal Accounting, has issued two white papers. One of the white papers offers several California-specific examples that incorporate the...

Bankruptcies drop in 2004.(News Trends)(Brief Article)(Illustration)
May 1, 2005... While the number of bankruptcy filings dipped slightly last year, there were 344,018 more filings in 2004 compared with 2000. [ILLUSTRATION OMITTED] TOTAL NON-BUSINESS BUSINESS 2004 1,597,462 1,563,145 34,317 ...

E-bulletin: update your e-mail address.(News Trends)(Brief Article)
May 1, 2005... To guarantee more timely delivery of news and information, CalCPA's chapter bulletins are moving toward e-mail delivery, in both HTML and text. Don't miss a beat, make sure CalCPA has your e-mail address; contact member services at (800)...

Find a CPA www.calcpa.org/members/memberdirectory.htm.(Web Focus)(Certified Public Accountants)(Brief Article)
May 1, 2005... Increase your visibility and show your expertise to the world by listing yourself in CalCPA's exclusive database of California financial experts, Find a CPA. Often CalCPA.org's most visited page, Find a CPA receives thousands of views each...

Online scholarship donations.(News & Trends)(Brief Article)
May 1, 2005... Help create a brighter future for college and university students majoring in accounting with a simple click of a mouse. Donate to your chapter scholarship fund--or CalCPA's statewide fund--online. CalCPA chapter scholarship funds...

Save on CPE: VP memberships available.(Education Foundation News)(Value Priced)(Brief Article)
May 1, 2005... The California CPA Education Foundation value-priced memberships for 2005-06 are available. The CalCPA member price is $1,025 for those who purchase their VP membership before June 30. The VP program allows you to take up to 88 hours of...

AICPA launches two specialist websites.(AICPA News)(American Institute of Certified Public Accountants)(Brief Article)
May 1, 2005... The AICPA has launched two websites meant to serve as online communities for those who audit employee benefit plans and CPAs involved in information technology. The employee benefit website provides comprehensive resources for those who...

Changes to GAAP for private companies?(News & Trends)(Brief Article)
May 1, 2005... The AICPA's Private Company Financial Reporting Task Force has recommended establishing a process to evaluate potential changes to GAAP to improve the usefulness of private company reporting. The AICPA Board of Directors, the Financial...

Business valuation standards proposed.(News & Trends)(Brief Article)
May 1, 2005... The AICPA has released an exposure draft of proposed business valuation standards, including guidelines on developing valuation conclusions and reporting the results. The valuation standards would apply to AICPA members who perform...

Audit rotation misinformation.(SOX SEC. 203)(Brief Article)
May 1, 2005... While auditor rotation has been bandied about in the wake of the Sarbanes-Oxley Act, there is no requirement for public companies, government entities or nonprofits to change audit firms. For publicly held companies, SOX Sec. 203 requires...

Pro-bono assistance for military families.(News & Trends)(Brief Article)
May 1, 2005... The Fresno Chapter rolled up its sleeves in early 2005 and began offering tax preparation and budgeting assistance to local families with a loved one on active duty. Thad Scott helped start the program after being contacted by a reserve...

IRS offers settlement for stock-option scheme.(IRS Update)(Internal Revenue Service)(Brief Article)
May 1, 2005... The IRS began a settlement initiative for executives and companies that have engaged in abusive tax avoidance transactions involving transferring stock options or restricted stock to family-controlled entities. Those who engaged in these...

IRS redesigns employment Tax Return form.(IRS Update)(Internal Revenue Service)(Brief Article)
May 1, 2005... The IRS has redesigned Form 941, Employers Quarterly Federal Tax Return, with a new layout, plain language instructions, simplifications for deposit reporting and paid preparer identification. The form is also scannable, which the IRS expects...

More focus on executive compensation compliance.(IRS Update)(Brief Article)
May 1, 2005... Since executive compensation has become increasingly complex, the IRS is stepping up examinations to ensure compliance with employment and income tax requirements. [ILLUSTRATION OMITTED] Areas of particular scrutiny include: *...

Transition relief to partnerships, pass-thru entities.(IRS Update)(Brief Article)
May 1, 2005... The IRS and Treasury Department have issued guidance providing limited transition relief for certain partnerships and other pass-thru entities that are subject to IRC Sec. 470. This new provision addresses leases of property in sale-in,...

Expanded access to e-Services products.(IRS E-SERVICES)(Brief Article)
May 1, 2005... The IRS has expanded the number of tax professionals who can use its suite of e-Services products. In the past, a tax professional had to e-file 100 or more individual returns a year to qualify for the full suite of e-Services tools. ...

Federal tax gap: $300B per year.(News & Trends)(Brief Article)
May 1, 2005... The IRS has released the results of a four-year study of taxpayer compliance, the first such study since 1988. The research found that the nation's gross tax gap exceeds $300 billion per year. Enforcement activities and late payments...

FASB invites participation in codification project.(FASB News)(Brief Article)
May 1, 2005... FASB is inviting feedback via web surveys and focus groups in its quest to codify all GAAP literature into one authoritative source, a project that will change the way financial reporting standards are accessed. To help shape this project,...

Guidelines for measuring options value.(SEC News)(Brief Article)
May 1, 2005... SEC Staff Accounting Bulletin No. 107--Share-based Payment allows companies to use a number of different models to estimate the fair value of stock options, even if subsequent events indicate other estimates would have been more accurate. ...

Free tax seminars for nonprofit and exempt orgs.(BOE News)(Board of Equalization )(Brief Article)
May 1, 2005... The Board of Equalization is conducting free tax seminars throughout the year for nonprofit and exempt organizations. The seminars will highlight issues such as property taxes, sales tax for nonprofits, tax laws for nonprofits and...

International Oversight Board created.(Regulatory News)(Public Interest Oversight Board )(Brief Article)
May 1, 2005... The Public Interest Oversight Board has been formed to oversee the International Federation of Accountants' standard-setting activities regarding audit performance; independence and auditor ethics; audit quality control and assurance; and...

No camera phones allowed in some IRS centers.(News & Trends)(Internal Revenue Service)(Brief Article)
May 1, 2005... CPAs should be aware that the next time they visit their local IRS center, they may have to leave their cell phone at home. Since many cell phones include a camera function, federal buildings are either collecting the phones at the door in...

Proposal on material weaknesses reporting.(PCAOB News)
May 1, 2005... The PCAOB has proposed a standard that asks auditors to report on the elimination of a material weakness in a company's internal control over financial reporting. When a company eliminates a material weakness, management may convey that...

Accounting majors are most recruited group.(Survey Says)
May 1, 2005... Accounting majors were the most recruited group of graduates for 2005, according to a survey of more than 1,000 companies conducted by the National Association of Colleges and Employers. What's more, the average starting salary jumped 1.9...

CFOs: takes a month to fill accounting positions.(Survey Says)(Brief Article)
May 1, 2005... It takes CFOs an average of four weeks to fill a staff-level accounting position and six weeks to bring a new accounting manager on board, according to a survey of 1,400 CFOs by Robert Half International, Inc. Read the results at...

Correction.(Correction Notice)
May 1, 2005... In the Federal Tax column of the March/April 2005 issue of California CPA, Rev. Proc. 2005-14 was identified as Rev. Proc 2005-4.

In memoriam.(News & Trends)(Brief Article)(Obituary)
May 1, 2005... Albert Lax, a CalCPA board member from 1988-99, died March 21. He was 76. A CalCPA member since 1956, Lax served in numerous CalCPA leadership roles, often as an advocate for sole practitioners. In addition to his work on CalCPA's...

Announcements.(member mile stones)(Appointments)(Brief Article)
May 1, 2005... Gilbert Greene and Kevin Yardumian have been named shareholders of Santa Monica-based Gumbiner Savett Inc.... Fred Harrison has joined Roseville-based Valliance Capital Group... Kevin Cordano was named tax partner and Sandy Heit was named tax...

Accomplishments.(member mile stones)(California Board of Accountancy's Administrative Committee)(Appointments)(Sidney Kimmel Cancer Center)(Brief Article)
May 1, 2005... San Francisco-based Jim Petray has been appointed to the California Board of Accountancy's Administrative Committee... Fremont-based Alan Olsen published a book titled "Duties of the Trustee" in March... San Diego-based James Ledwith has been...

Firm news.(member mile stones)(Brief Article)
May 1, 2005... Holthouse Carlin & Van Trigt LLP has been ranked by Accounting Today as the top CPA firm headquartered in Southern California... Imperial Valley-based Foss Accountancy Corporation has merged with Hutchinson and Bloodgood LLP... Long...

Members in the news.(member mile stones)
May 1, 2005... Kerry Lorincz, Barry Dolowich and Gregory Lippe are frequent contributors to The Hollister Free Lance, Monterey County Herald and San Fernando Valley Business Journal, respectively... Karina Lapp was quoted in the Jan. 30 Redding Record...

A new era: using the internal audit to spot fraud.
May 1, 2005... Numerous headlines regarding recent litigation cases tell the tale: a strong internal audit group can be the most effective weapon for stopping fraud in its tracks. An effective internal audit group can do everything from evaluating the...

At your service: FTB ruling looks at "personal services," time-spread method.(california tax)(Franchise Tax Board)
May 1, 2005... What constitutes a "personal service" for purposes of attributing gross receipts to California using the time-spread method provided by California Revenue and Taxation Code Sec. 25136(d)(2)(C)? Receipts from a sale "other than a sale of...

Who are you? Authentication technologies ensure users are who they claim to be.(USER IDENTIFICATION)
May 1, 2005... Today, more than ever, protecting your electronic identity is a top priority. In addition to normal security precautions, such as using antivirus software and keeping system patches up to date, computer users must be on guard against phishing...

You talkin' to me? Voice recognition software quickly making a name for itself.(VOICE RECOGNITION)
May 1, 2005... In the "Star Trek" series, Captain Kirk often would deliver commands to his computer, which would then perform the requested task. Or, he would verbalize a problem and the computer would respond with an answer. [ILLUSTRATION OMITTED] ...

Set apart: CITP gives CPAs an edge.(CITP CREDENTIAL)(certified information technology professional)(certified public accountants)
May 1, 2005... Businesses must identify and evaluate technology skills when hiring IT specialists as employees or consultants. CPAs with a certified information technology professional credential from the AICPA can distinguish themselves by bridging business...

Technology & compliance: looking at the big picture of Sarbanes-Oxley.
May 1, 2005... Welcome to the age of compliance, governance and risk management initiated by the demands placed on publicly traded companies, and in many cases private firms, to comply with the Sarbanes-Oxley Act. [ILLUSTRATION OMITTED] For most...

Break free: a user's guide to wireless technology today--and tomorrow.(WIRELESS TECHNOLOGY)
May 1, 2005... It's no secret that wireless technology continues to change the way we access information and conduct business. Consider the following: * 95 percent of all notebooks shipped include Wi-Fi; * 50 million hotspot users worldwide; *...

Healthy computing: feed your computer a steady diet of secure software.(DATA SECURITY)
May 1, 2005... You want to be healthy, right? Doctors tell us to eat foods that are good for us, so we read the nutritional information on the back of food packaging, and while we may not always choose what is best, it's hard not to think about our health--at...

Tech's top 10: security, document management hot issues for 2005.(TECH TRENDS)
May 1, 2005... As technology continues its increasingly important role in how CPAs serve their clients, here are the top issues CPAs should watch for, according to the AICPA's 2005 Top Technologies survey. The annual survey polled more than 300...

Peace of mind: disaster recovery plans can keep your business alive.(DISASTER PLANNING)
May 1, 2005... Let's say your client has five offices across the country. They manage their operations, accounting, IT network and all software services for these offices from their local office. Your client hosts its e-commerce website at its local...

More measures: (performance measurement & cost reduction).(Auditing)
May 1, 2005... As regulators increase emphasis on a top-down approach to auditing, auditors are being asked to provide additional performance measurement services that focus on obtaining information on the business as a whole as a basis for evaluating...

Power speaking: tips and tricks for presenting with confidence and style.(PUBLIC SPEAKING)
May 1, 2005... You can't hide forever. Everyone must address a group at some point. Whether you are speaking to prospects, customers, co-workers, family members or friends, your presentation skills can greatly impact your business, career, reputation and...

They're back ...: audit rotation and other issues re-emerge.(government relations)
May 1, 2005... SB 393 (Ortiz), as proposed, would impose additional requirements on CPAs who perform audits of special districts and would expand controller oversight of those firms that perform audits of special districts including: * Auditor or audit...

Consultant junction: is consulting in your future?(CONSULTING SERVICES)
May 1, 2005... You are a trusted adviser. And never has the time been riper to provide your clients with consulting services--or spread your talents to new clients. In fact, there is at least five times more business within your existing client...

Taking stock: employee evaluations can help employers and employees alike.(PRACTICE MANAGEMENT)
May 1, 2005... Employee evaluations can be extremely effective and motivating, benefiting your business as much as your employees. The keys to a successful payoff are clear communication of your business' goals and carefully and consistently charting employee...

Funding stale trusts: what you should know when faced with an unfunded trust.(estate planning)
May 1, 2005... With the proliferation of family trusts over the last two decades, and the misinformation provided by some promoters of these trusts, tax practitioners now have to deal with more cases of unfunded--or stale--trusts. Most of these involve...

True stories: tax season tales from the TaxTalk listserve.(california tax)(tax treatment of stock options)
May 1, 2005... The TaxTalk listserve has just successfully completed its sixth filing season, proving yet again an invaluable reource for those who take the time to post their queries. The first two stories here hail from the annals of a longtime CPA. ...