Journal of Accountancy articles from April 2005

Journal of Accountancy archives from April 2005

With integrity and fairness: an interview with Mark W. Everson, Commissioner of Internal Revenue.(Interview)
April 1, 2005... Think you're busy this month? Imagine being Mark W. Everson, Commissioner of Internal Revenue, heading into tax season with a $10 billion budget and a staff of 100,000 to manage. Appointed by President Bush in 2003, Everson is a man on a...

Is your retirement plan really safe? Protect your clients' assets from creditors.
April 1, 2005... EXECUTIVE SUMMARY * BENEFITS IN TAX-QUALIFIED RETIREMENT PLANS generally are protected from the creditors of plan participants and insulated from claims in bankruptcy. * PLANS NOT PROTECTED FROM CREDITORS are those that cover only the...

Build customized bond portfolios: take your registered investment advisory practice to the next level.
April 1, 2005... EXECUTIVE SUMMARY * FOR HIGH-NET-WORTH CLIENTS with fixed-income investable assets over $500,000, firms might consider designing customized bond portfolios that meet each client's unique financial goals and risk tolerance. * IN...

Peer review is stronger and better now: the AICPA peer review board has enhanced the standards.
April 1, 2005... EXECUTIVE SUMMARY * THE AICPA REVISED ITS STANDARDS for performing and reporting on peer reviews for firms that do not audit SEC registrants. The revised standards, effective for reviews commencing on or after January 1, 2005, will enhance...

Mass mailings made simple: this do-it-yourself job can save an office a great deal of money.
April 1, 2005... You want to tell 130 clients about several new professional services and send them updated fee schedules. You considered outsourcing the project to a direct-mail ad agency and found the setup alone for each variation of the letter was $65--way...

Will they throw eggs? How to speak with professionalism and pizzazz.
April 1, 2005... EXECUTIVE SUMMARY * TO MEET THE REQUIREMENTS OF SARBANES-OXLEY, CPAs are making more oral and written presentations than ever before to more diverse groups, including audit committees and department gatherings. CPAs' ability to communicate...

No longer an "option": FASB mandates how companies should account for share-based compensation.
April 1, 2005... EXECUTIVE SUMMARY * IN DECEMBER 2004, FASB ISSUED ITS NEWEST standard, Statement no. 123(R), Share-Based Payment. It is proving to be as controversial as its predecessors. The most significant change is the requirement that companies use...

Scotts Co. grows into good governance.(Interview)
April 1, 2005... It was back in 2002, in the course of long discussions about good governance and financial transparency, that Chris Nagel, CPA, CFO of the Scotts Co., and his CEO decided to start expensing stock options. The board of directors and the audit...

XBRL: a multitalented tool: XBRL can save time and money and facilitate information analysis.(extensible business reporting language)
April 1, 2005... CPAs have a rare opportunity to help the business world take a giant leap forward. The extensible business reporting language (XBRL) can vastly improve the timeliness, accuracy and flexibility of data in financial statements and other business...

Maximize tax benefits under IRC section 165: CPAs often overlook the deductibility of investment theft losses.
April 1, 2005... Investment theft losses that result from nonbusiness, for-profit transactions may qualify for advantageous tax treatment. When a client is the victim of fraud or embezzlement, for example, CPAs can reduce the client's ordinary income, recoup...

Buy-sell agreements.(revaluing the stock for estate tax purposes)
April 1, 2005... There are numerous legitimate business reasons to establish a buy-sell agreement for a closely-held family business. Many of these agreements set the value for estate tax purposes when one of the shareholders dies. If the IRS rejects the price...

Does bankruptcy terminate S corp status?
April 1, 2005... A business that elects to be an S corporation continues to be taxed as such until the election is terminated. It can be terminated in any of three ways: (1) The shareholders revoke the election, (2) the corporation no longer satisfies the...

The importance of a valid disclaimer: failure to execute a disclaimer can be a costly mistake.(from The Tax Adviser)
April 1, 2005... While estate planning normally occurs during life, it also can occur after a taxpayer's death. In letter ruling (technical advice memorandum) 200437032, the IRS ruled that a bequest to a member of a religious order who had taken a vow of...