Journal of Accountancy articles from April 2009

Journal of Accountancy archives from April 2009

A path to financial stability: a sound business strategy is important no matter what the state of the economy. As you work with clients to determine the best methods of surviving the recession, be sure to discuss the following critical points for seizing opportunities to refocus, contain expenses and reassure customers.
April 1, 2009... * Take afresh look at your budgetary and revenue needs. Are you meeting budgeted projections? How much of a drop in revenue can your business withstand and for how long? What are your cash-flow needs for the next 90 to 120 days? Or 120 to 180...

Keeping it together: plan the transition to retain staff and clients.(part 2)
April 1, 2009... EXECUTIVE SUMMARY * When a merger or acquisition takes place, clients are chiefly concerned about who their accountant will be, if their fees will change, and if the office location will be convenient. * Top staff worries include job...

Help for solving CPAs' ethical dilemmas.
April 1, 2009... EXECUTIVE SUMMARY * The AICPA recently issued a guide to help CPAs comply with rules 102-505 of its Code of Professional Conduct, affecting members in public practice, business, academia and government. * The guide, while not an...

Taxes in troubled times: explore strategies that can help ease the pain of the down economy.(AICPA vice president Tom Ochsenschlager)(Interview)
April 1, 2009... The IRS has acknowledged there s plenty of pain to go around in the current economic downturn. Financially strapped taxpayers can take advantage of several relief initiatives and provisions that could lessen their tax bite. Those with...

Stimulus Act eases taxes for individuals, small businesses.
April 1, 2009... [ILLUSTRATION OMITTED] With the enactment of the American Recovery and Reinvestment Act of 2009 on Feb. 17, Congress delivered a smorgasbord of tax relief items to individual taxpayers and small businesses. While the specifics of those...

IFRS: a preparer's point of view: be ready to lead your company's transition to IFRS.(international financial reporting standards)
April 1, 2009... EXECUTIVE SUMMARY * Start your IFRS implementation project with internal education rather than assessment. Consider the IFRS publications provided by the AICPA and all of the Big Four firms, not just those provided by your external...

IFRS converges to U.S. GAAP on segment reporting.(international financial reporting standards, generally accepted accounting principles)
April 1, 2009... As part of the convergence effort between IFRS and U.S. GAAP, the International Accounting Standards Board published IFRS 8, Operating Segments, which became effective Jan 1. IFRS 8 supersedes IAS 14, Reporting Financial Information by Segment,...

Tax considerations for buying and selling property with a burdensome lease.
April 1, 2009... EXECUTIVE SUMMARY * When a lessee terminates a lease by purchasing the leased property, the IRS requires capitalization of the entire purchase price, However, some courts have allowed the excess of the price over the fair market value to...

Simplify and improve your office system: put your workstations on a diet, and let your server do the heavy lifting.
April 1, 2009... EXECUTIVE SUMMARY * The sudden failure of even one or two employees' PCs can seriously compromise a small or medium CPA firm's ability to timely meet its clients' needs. * Inexpensive, energy-efficient PC replacements-known as diskless...

Double Accounting for Goodwill: A Problem Redefined.(Brief article)(Book review)
April 1, 2009... Double Accounting for Goodwill: A Problem Redefined by Martin Bloom Routledge, 2008, 248 pp. [ILLUSTRATION OMITTED] This book traces the history of the goodwill accounting controversy in detail. The book explores the problem...

Private Equity: History, Governance, and Operations.(Brief article)(Book review)
April 1, 2009... Private Equity: History, Governance, and Operations by Harry Cendrowski, James P. Martin, Louis W. Petro and Adam A. Wadecki John Wiley & Sons Inc., 2008, 457 pp. [ILLUSTRATION OMITTED] The institutionalization of private...

The Sex of a Hippopotamus: A Unique History of Taxes and Accounting.(Book review)
April 1, 2009... The Sex of a Hippopotamus: A Unique History of Taxes and Accounting by Jay Starkman Twinset Inc., 2008, 456 pp. [ILLUSTRATION OMITTED] The Sex of a Hippopotamus by Jay Starkman is a well-documented and interesting read for...

The Complete Guide to Investing During Retirement.(Brief article)(Book review)
April 1, 2009... The Complete Guide to Investing During Retirement by Thomas Maskell Adams Media, 2009, 256 pp. [ILLUSTRATION OMITTED] If you, or a client, have reached retirement age with only a modest savings for retirement, this book is for...

Exiting Your Business, Protecting Your Wealth: A Strategic Guide for Owners and Their Advisors.(Book review)
April 1, 2009... Exiting Your Business, Protecting Your Wealth: A Strategic Guide for Owners and Their Advisors by John M. Leonetti John Wiley & Sons Inc., 2008, 238 pp. [ILLUSTRATION OMITTED] Private business owners who need a business exit...

Private Foundations: Tax Law and Compliance, 3d ed.(Book review)
April 1, 2009... Private Foundations: Tax Law and Compliance, Third Edition by Bruce R. Hopkins and Jody Blazek John Wiley & Sons Inc., 2008, 768 pp. [ILLUSTRATION OMITTED] Only about 75,000 private foundations exist in the U.S. But like the...

Representing clients with tax delinquencies and deficiencies.
April 1, 2009... It's not unusual for CPAs to encounter clients delinquent in filing individual, corporate or payroll returns. CPAs can establish a rewarding practice niche if they are prepared to offer a full range of tax resolution options and be a trusted...

Partner-level defense rule held valid.
April 1, 2009... The Tax Court upheld the validity of temporary regulations requiring a partner to raise partner-level defenses to penalties in separate litigation after resolution of unified partnership proceedings. Andrew Filipowski created New Millennium...

IRS, historic hotel face off over facade.
April 1, 2009... The Tax Court held that the Uniform Standards of Professional Appraisal Practice (USPAP) are not the sole measure of an expert witness's reliability. The witness had been called upon to provide a value of a conservation easement restricting the...

P&G appeals deduction denial.
April 1, 2009... In a case on appeal before the Sixth Circuit, household consumer goods manufacturer Procter & Gamble (P&G) and a related entity claim a refund of taxes paid on a foreign sales corporation (FSC) advance payment transaction (APT). The U.S....

Capital contributions increase stock, not loan basis.
April 1, 2009... Two brothers' additional capital contributions to S corporations of which they were shareholders could not offset their ordinary income from payments for loans they made to the corporations, the Tax Court held. The court rejected their argument...

Location tax incentive not federal taxable income.
April 1, 2009... The IRS said in a coordinated issue paper that a location tax incentive paid or credited to a business by a unit of state or local government is not included in the business's gross income but rather reduces its tax expense. A location tax...

Democrats keep exemption.
April 1, 2009... In the waning days of the Bush administration, the government ended its long-running effort to retroactively revoke the tax-exempt status of a Democratic Party-affiliated organization that it claimed had improperly promoted the party's...

IRS alternative dispute resolution programs.
April 1, 2009... The IRS recently extended its fast track settlement program to certain exempt and government entities and announced the establishment of a two-year test of mediation and arbitration procedures for offers in compromise and trust fund recovery...

AICPA ... where to turn.(Directory)
April 1, 2009... Member Service Center 1-888-777-7077 * Option #1 Orders/CPE/Conference Inquiries * Option #2 AICPA Membership Inquiries Including Dues * Option #3 Webcast/AICPA.org Web Site/CPA2Biz Including Log In & Access Inquiries *...

The last word.(sole practitioner's commitment to community involvement and leadership role)
April 1, 2009... I am a sole practitioner. I always wanted to be my own boss, and about 11 years ago, taking a "leap of faith" that I would have clients, I left the small firm where I had worked for 14 years to open my own home-based office. Looking back, I ask...