Journal of Accountancy articles from April 2007

Journal of Accountancy archives from April 2007

AICPA files briefs in securities and malpractice cases.
April 1, 2007... From time to time, the AICPAs Office of General Counsel files amicus curiae (friend of the court) briefs in matters that could affect the profession. I would like to inform you of two such recent filings. The first was to the U.S. Supreme...

Build, buy (or sell)? It's a seller's market for CPA firms.
April 1, 2007... EXECUTIVE SUMMARY * In managing a practice's lifecycle, CPAs periodically face questions of how best to grow--to build the practice from within over time or to acquire an existing firm. They also must consider how best and when to sell...

Structuring for growth: so you want to build rather than buy. Here are tips from people who've made it happen.
April 1, 2007... EXECUTIVE SUMMARY * Managing partners at small CPA firms--those having four or fewer professionals on staff--face a challenge. Their chief responsibilities are to build and maintain a solid foundation of financial, technological and legal...

Talent-tempting Web sites: increase your recruiting power in the digital age with an online presence that resonates with today's college crowd.
April 1, 2007... EXECUTIVE SUMMARY * CPA firms have long sought answers to problems in recruiting and staffing. Some have used their Web sites to attract and inform prospective hires by adding features and content that highlight aspects of a career there....

Barriers to mobility: a crisis for many CPAs: the chair of the AICPA's Special Committee on Mobility outlines the mobility problem facing the CPA profession and the Institute's recommended solution.
April 1, 2007... Out-of-state CPAs who want to temporarily serve a client in South Carolina must register and pay a variety of fees. In California and Illinois, there are multiple registration requirements whether or not the CPA even enters the state. In...

A road map for share-based compensation: find the best strategy for rewarding employees.
April 1, 2007... EXECUTIVE SUMMARY * Since FASB Statement no. 123(R) began requiring companies to recognize an expense equal to the grant-date fair value of options awarded as compensation, there has been a significant change in share-based payments to...

Frontline reaction to FASB 123(R): companies are altering their policies, but more changes are likely.
April 1, 2007... EXECUTIVE SUMMARY * The issuance of FASB Statement no. 123(R) forced companies to make several important decisions about their use of stock options as a compensation tool, to select the right valuation model and minimize the impact on...

S corporation update: the business entity continues to grow in popularity but requires attention to its P's and Q's.
April 1, 2007... EXECUTIVE SUMMARY * S corporations have become the dominant business entity type, in part because requirements for electing the status have been relaxed and clarified. * An S corporation may now have more shareholders because certain...

Surf safely: how to avoid Internet minefields.
April 1, 2007... The Internet is a gold mine of information, but its also a minefield, loaded with scores of innocent-looking sites that contain stealthy programs designed to steal or destroy your data. But if you take proper precautions, you can browse the Web...

Spyware protection: seek and destroy embedded bugs.
April 1, 2007... Embedded stealthily on the hard drives of many computers--even those protected with conventional antivirus software--are tiny unfriendly programs variously called spyware, malware or adware. Most are simply nuisances, triggering unsolicited...

Mining audit research: learn a few tips from researchers - without going back to school.
April 1, 2007... This column is the first of a series that will review accounting research journals to distill practical pointers for busy CPAs. The resulting summaries offer useful suggestions practitioners can apply immediately to day-to-day activities. This...

Taxing international transactions: a world of difference.
April 1, 2007... Globalization has brought many new opportunities for U.S. businesses. By pursuing broader horizons, however, your clients can find themselves in unfamiliar shoals of the tax code. Here are 10 of the leading situations in which clients might...

Energy-efficient commercial buildings deduction: new incentive for business owners and landlords.(from The Tax Adviser)
April 1, 2007... The Energy Policy Tax Act of 2005 included incentives for taxpayers that make new or existing commercial property more energy efficient. Under new IRC section 179D, taxpayers that own or lease commercial buildings and install certain...

Beating the clock on refunds.
April 1, 2007... Most taxpayers know when to file their annual tax return. But they may be less sure of how much time they have to claim a refund. Three decisions last year may help clarify the rules. In the first, Wachovia Bank was trustee for the George...

IRS scores victory over alleged tax shelter.
April 1, 2007... The Second Circuit Court of Appeals overturned the TIFD III-E Inc./Castle Harbour decision (see "Tax Matters," JofA, June05, page 93), a win for the IRS in its battle against tax shelters. The court ruled that the mere existence of a business...

Value gifts on the date given.
April 1, 2007... The Fifth Circuit reaffirmed that under IRC section 2512, a gift's value is determined on the date it is given. The court also decided that a discount used to determine the present value of a previously transferred interest was allowable if it...