California CPA articles from September 2005

California CPA archives from September 2005

Council: no tax in valuation standards; deadline extended.(CalCPA News)
September 1, 2005... CalCPA Council passed a resolution July 23 opposing the inclusion of tax in the AICPA's Proposed Statement on Standards for Valuation Services: Valuation of a Business, Business Ownership Interest, Security, or Intangible Asset. The move...

Volunteer now--before disaster strikes.(News & Trends)(Brief Article)
September 1, 2005... With wildfire season in full bloom, volunteer now for CalCPA's disaster recovery program. Each year, families and businesses lose everything to wildfires--homes, offices, personal belongings, vehicles, tax and financial documents, and...

S Corp explosion.(News & Trends)(Brief Article)
September 1, 2005... [ILLUSTRATION OMITTED] The IRS has started a research program assessing the reporting compliance of S corporations, partly due to their rising popularity. Since the mid-1980s, the use of S corps has exploded: 1985 ...

Business and Industry Committee launches monthly webinars.(News & Trends)(Calendar)
September 1, 2005... CalCPA's Business and Industry Committee will hold its first monthly webinar Tuesday, Sept. 20, noon-1 p.m. [ILLUSTRATION OMITTED] Titled "Profitable Employment Practices," the webinar will discuss untapped recruiting sources; human...

The panel has come to the consensus that we ought to repeal the AMT.(News & Trends)
September 1, 2005... The panel has come to the consensus that we ought to repeal the AMT. The issue is still open as to how we're going to pay for it. Connie Mack, chair, President's Advisory Council on Federal Tax Reform

Two-thirds work.(News & Trends)
September 1, 2005... two-thirds work: The average American worker spends about six hours of the eight-hour workday (not including lunch) working.--Salary.com/AOL

Foundation honors instructors.(Education Foundation News)
September 1, 2005... The California CPA Education Foundation recently honored the following veteran instructors: Mary Beth Armstrong: Award for Meritorious Service for her participation and involvement as an author, instructor, volunteer and program...

The case for CPAs as CFOs.(AICPA News)
September 1, 2005... A recent AICPA white paper, CPAs as CFOs: Why You Should Have a CPA in Your C-Suite, makes the case for CPAs as CFOs, citing a high level of professional competence, integrity and ethical conduct; continuing education requirements; a 100-year...

MAP Committee resources.(Web Focus CalCPA.org)(Management of an Accounting Practice )(Brief Article)
September 1, 2005... CalCPA's MAP Committee's website contains a host of resources aimed at solving the most pressing issues that face those who manage an accounting practice. For example, the MAP Doctor contains a list of subject-matter experts ready to assist on...

AICPA audit committee toolkit for governments.(AICPA NEWS)
September 1, 2005... The AICPA has a free toolkit for audit committees at all levels of government that covers topics such as conducting an executive session; discussions to expect from the independent auditor; peer review of CPA firms; evaluating independent...

CPA marketing toolkit bulks up.(News & Trends)
September 1, 2005... The AICPA has added two brochures and accompanying speeches to the CPA Marketing Tool Kit: "College Planning: Easing the financial Burden" is aimed at those who are planning to send their children to college, and "Securing Your Business...

Facsimile signatures as good as the real thing.(IRS Update)(Brief Article)
September 1, 2005... Recent IRS rules outlined in Rev. Proc. 2005-39 allow corporate officers or duly authorized agents to sign employment tax forms using alternative signature methods, including mechanical devices and computer software. [ILLUSTRATION OMITTED]...

Nominations wanted: become a CalCPA officer or AICPA Council member.(News & Trends)
September 1, 2005... If you're interested in helping shape the next group of CalCPA leaders, nominate a member for the job. Or, if you're interested in playing a leadership role, self-nomination is the most effective way to make your interest known. The CalCPA...

Pensions shunned.(News & Trends)
September 1, 2005... pensions shunned: Nearly 11% of large companies that offer traditional pension plans terminated the plan or froze benefits last year.--Watson Wyatt Worldwide

Industry CPAs with active licenses can sign off on candidate experience.(News & Trends)
September 1, 2005... If you're a CPA in industry with an active license, you can supervise CPA candidates getting their general accounting or attest experience for Pathways 1 and 2. While CPAs must have an active license during the period of supervision, they...

Proposal on Accounting for Uncertain Tax Positions.(FASB News)
September 1, 2005... FASB has published an exposure draft of a proposed interpretation, Accounting for Uncertain Tax Positions, aimed at unifying diverse methods associated with recognition and measurements in accounting for income taxes. The draft requires...

Oct. 28 comment deadline for business combinations drafts.(BIZ COMBOS)(Brief Article)
September 1, 2005... The International Accounting Standards Board and FASB each have published exposure drafts aligning the accounting for business combinations for both domestic and cross-border financial reporting. The proposed standard would replace IASB IFRS 3...

Ruling 2005-02: IRC Sec. 965, apportionable business income.(FTB News)(Internal Revenue Code)(Brief Article)
September 1, 2005... The American Jobs Creation Act of 2004 enacted IRC Sec. 965, which provides U.S. companies with a temporary incentive to repatriate any earnings held by foreign subsidiaries. However, a requirement under Sec. 965 that dividends be used in...

New ethics, independence rules on tax services, contingent fees.(PCAOB News)
September 1, 2005... The PCAOB has adopted new ethics and independence rules addressing tax services, contingent fees, and certain related general ethics and independence standards. [ILLUSTRATION OMITTED] The board also adopted Auditing Standard No. 4,...

The division of incentive stock options in a divorce.(News & Trends)
September 1, 2005... The IRS recently released Private Letter Ruling 200519011 (5/13/05) addressing the division of incentive stock options (ISO) in a divorce. The specific case involved a trust arrangement by which the employee spouse (ES) holds the non-employee...

Options.(News & Trends)
September 1, 2005... options: 89% of public companies are considering alternate forms of equity-based compensation, with 51% choosing time-vested restricted stock.--Deloitte Consulting

Ethics matter.(CalCPA HOTLINE)
September 1, 2005... Faced with a professional dilemma? Concerned about inadvertently compromising your position? Don't fret--CalCPA's Ethics Hotline can help. CalCPA's Ethics Hotline is a free member resource, staffed by experts who will confidentially handle...

Jan. 1: mandatory sexual harassment training.(Labor Law Update)
September 1, 2005... California businesses with 50 or more employees--including independent contractors and temporary workers--must provide at least two hours of interactive sexual harassment training and education to all supervisors by Jan. 1, 2006, under AB 1825....

401(k) not hassle-free.(Speak Out)
September 1, 2005... I just finished reading the article "Pension Attention" (California CPA, July 2005) and disagree with Mr. Framson's statement that "... the 401(k) is the most hassle-free type of retirement plan." This is clearly not true from the perspective...

Indiana offers tax amnesty Sept. 15-Nov. 15.(Tax Amnesty News)(Brief Article)
September 1, 2005... California CPAs with clients who file in Indiana be aware: Indiana has instituted a tax amnesty program for individuals and businesses to pay and file past-due taxes free of penalty, interest and collection fees, and without fear of criminal or...

In memorium.(News & Trends)(Henry G. "Hank" Wong)(Brief Article)(Obituary)
September 1, 2005... HENRY G. "HANK" WONG Henry G. "Hank" Wong, 1975-76 president of the East Bay Chapter, died July 12. He was 73. Wong, a partner with Oakland-based Clark, Wong, Foulkes & Barbieri (now RINA Accountancy Corp.), was a 44-year member of...

Sox spurs.(News & Trends)
September 1, 2005... sox spurs: 64% of CEOs of private companies say that SOX has improved their company's control documentation and testing.--PricewaterhouseCoopers

CPA Exam, Mandatory Peer Review.(Speak Out)
September 1, 2005... Thank you for the opportunity to clarify the position of the California Board of Accountancy (Board) on two issues that were covered by Bruce Allen's July 2005 article in this magazine: the computer-based Uniform CPA Exam and Mandatory Peer...

Sox bill.(News & Trends)
September 1, 2005... sox bill: U.S. companies will spend about $5.8 billion on SOX compliance this year, 25% of which is pegged for new technology purchases.--AMR Research

Announcements.(member milestones)(appointments)(Brief Article)
September 1, 2005... Sacramento-based Beverly Brautigam was named president of the California CPA Education Foundation... Anaheim-based Haijin Wang was promoted to senior in the audit and business advisory services division of Haskell & White LLP... Irvine-based...

Accomplishments.(member milestones)
September 1, 2005... Glen Rossman was named to the board of directors of Emeryville-based Planitax, Inc.

Awards.(member milestones)
September 1, 2005... Judith Hamilton of Solana Beach-based Hamilton Accountancy Corporation won the San Diego Business Journal's "Women's Entrepreneurial Awards of 2005," which recognized the top 50 women-owned business in San Diego... Leonard Williams received a...

Firm news.(member milestones)
September 1, 2005... San Ramon-based Armanino McKenna has merged with Pleasant Hill-based TAI.

Members in the news.(member milestones)
September 1, 2005... Andrew Armanino was quoted in two articles in the June 1 Practical Accountant. Sheryl Rowling was also quoted in that issue, in a separate article... Mike Eisenberg was quoted in the June 3 Almaden Times... Beverly Brautigam was quoted in the...

Inside out: California CPA reviews NASBA priorities from the inside looking out.(National Association of State Boards of Accountancy)(Cover Story)
September 1, 2005... As the profession evolves at a staggering pace, the National Association of State Boards of Accountancy has been busier than ever tackling peer review, ethics, enforcement and professional standards, as well as issues such as education...

Fair value era.
September 1, 2005... FASB Statement No. 123(R), Share-Based Payment, has a single goal: to report the fair value of employee compensation paid in the form of stock options and other share-based payments in financial statements. Some 800 public companies already...

PFP: what it takes: credentials, time commitment among considerations of offering PFP services.(FINANCIAL PLANNING)(personal financial planning)
September 1, 2005... CPAs who provide tax and other financial services already possess many of the requisite skills to provide personal financial planning services. And the trust-worthiness and competency inherent in the CPA brand--our status as the trusted...

Focus on fraud: internal controls, audit policies--and a tough stance--can help deter fraud.(FRAUD PREVENTION)
September 1, 2005... Consumer fraud in California amounted to $53 million in 2004, according to the Federal Trade Commission. To stop fraud in its tracks, it's necessary to understand the four general elements that must occur to establish fraud: * A...

Valuation standards: opposing the inclusion of tax in proposed valuation standards.(federal tax)
September 1, 2005... The CalCPA Council passed a resolution July 23, 2005 opposing the inclusion of tax in the AICPA's Proposed Statement on Standards for Valuation Services: Valuation of a Business, Business Ownership Interest, Security, or Intangible Asset. This...

Combined financial statements & independent auditor's report 2004 to 2005.(2005 annual report)
September 1, 2005... CalCPA TREASURER'S REPORT CalCPA experienced another excellent year. Revenues exceeded budget by $871,000 due to a number of factors: The great success of several chapter events; an increased demand for CPAs, which boosted print and online...

Pre-recess flurry: legislators face number of issues before Sept. 9 break.(government relations)
September 1, 2005... California's legislators returned to work Aug. 15 for a final flurry of activity before they recess for the year on Sept. 9. The contentious issues they are grappling with include driver's licenses for undocumented immigrants and same-sex...

TaxTalk highlights: trust ownership, multi-state tax, nonresident tax and more.(california tax)
September 1, 2005... Change in ownership for beneficiaries is a frequent subject on the TaxTalk listserve. In 1991, the Board of Equalization issued a Letter to Assessors (LTA) 91/08, "Change in Ownership Consequences of Real Property in an Estate or Trust...