Journal of Accountancy articles

Recent articles from Journal of Accountancy

Due diligence on a QI: as the financial press focuses on Bernard Madoff and other Ponzi schemes, recent investor losses approaching $1 billion by the failure of qualified intermediaries have gone relatively unnoticed. Qualified intermediaries, or QIs, facilitate tax-deferred exchanges of like-kind property under section 1031 of the Internal Revenue Code.
July 1, 2009... Some QIs have made allegedly imprudent investments in recent years, while others have allegedly siphoned off funds to related parties and are facing criminal charges. Investor/taxpayers in these cases often not only lose the proceeds from the sale of their exchanged (and not yet replaced)...

Economic optimism improved in Q2 among C-suite CPAs.
July 1, 2009... Optimism about the U.S. economy's prospects improved sharply in the second quarter, but compensation freezes, layoffs and capital spending cuts were still on the horizon for about half of companies, according to a survey of CPA financial executives. Nearly one-fifth of respondents were...

A fresh approach for compilation and review.
July 1, 2009... EXECUTIVE SUMMARY * The AICPA's Accounting and Review Services Committee has proposed the most significant changes to the professional literature for compilation and review engagements in more than 30 years. * The primary change in the proposed standards for review engagements...

Valuation discounts for estate and gift taxes: recent court decisions offer guidance on interests in closely held businesses.
July 1, 2009... EXECUTIVE SUMMARY * Unintended estate and gift tax consequences can arise from valuations of interests in closely held entities. Because these interests often lack any readily available market value, their values at transfer are usually determined under any of three methods: the market...

Accounting for emissions: emerging issues and the need for global accounting standards.
July 1, 2009... EXECUTIVE SUMMARY * Concerns over the environmental, economic and health risks posed by greenhouse gas emissions have become a frequent topic of discussion. Recent events and initiatives suggest that climate change ranks high on the U.S. political agenda. * Cap-and-trade programs...