Journal of Accountancy articles from December 2007

Journal of Accountancy archives from December 2007

House passes tax strategy patent ban, FHA overhaul legislation.(Federal Housing Administration)
December 1, 2007... On Sept. 7, the House of Representatives passed major patent reform legislation, which would ban the issuance of patents on tax strategies. The AICPA is a strong advocate of Congress' work in this area. The comprehensive patent reform bill...

Practical training tips for smaller firms: implementing a training program in a smaller firm does not require a significant financial investment and can be done without hiring a trainer.
December 1, 2007... [ILLUSTRATION OMITTED] A standardized training process can help ensure that all new employees coming into the firm are on the same page and improve retention. Consider these tips for establishing and maintaining a training program in your...

Securing succession success: position you firm to ride the wave of baby boomer retirements.
December 1, 2007... EXECUTIVE SUMMARY * Act now. Start planning for succession several years in advance. Don't wait until you're almost ready to retire, * As soon as a potential successor candidate has been identified, start the grooming process. Look for...

Make direct marketing pay off: practical tips and real-life results to guide your campaigns.
December 1, 2007... EXECUTIVE SUMMARY Direct marketing has become a popular and successful form of CPA firm marketing with the following potential benefits: * The process encourages you to define a very specific target audience of prospects most likely to...

Navigating the crossroads of control and independence: practical guidance for private company auditors.
December 1, 2007... EXECUTIVE SUMMARY * Statement on Auditing Standards no. 112, Communicating Internal Control Related Matters Identified in an Audit, introduced terms, definitions and guidance for identifying and evaluating control deficiencies and...

Software revenue recognition on the rise: technology boom expands relevance of SOP 97-2.(Statement of Position)
December 1, 2007... EXECUTIVE SUMMARY * Statement of Position (SOP) 97-2 provides guidance on applying GAAP in recognizing revenue from software and software-related transactions. The SOP provides instruction on recognition for licensing, selling, leasing or...

What is your fraud IQ?
December 1, 2007... [ILLUSTRATION OMITTED] Fraud detection class is now in session. It's time to put your smarts to the test and see how you score on these questions from the Association of Certified Fraud Examiners. 1. According to ACFE's 2006 Report to...

The finer points of fair value: FASB 159 opens up options.(Financial Accounting Standards Board)
December 1, 2007... EXECUTIVE SUMMARY * To adopt FASB Statement no. 159, companies must comply with the requirements of Statement no. 157, Fair Value Measurements. * Companies and their auditors must consider whether the use of fair value option...

Opportunity detected: new SEC interpretive guidance and AS5 give companies and auditors a chance to make internal controls more efficient.
December 1, 2007... EXECUTIVE SUMMARY * The crux of the SEC's interpretive guidance for management is a top-down, risk-based approach that puts risk first and foremost. Four key areas of opportunity can be used to reduce an organization's overall SOX 404...

Ease the burden of busy season: with busy season just around the corner, here are some suggestions from firms that have learned how to make what could be their annual trial by fire less stressful and more productive.
December 1, 2007... [ILLUSTRATION OMITTED] By treating their staffs with an extra measure of consideration and carefully planning and analyzing their operations, these firms have found benefits that last well beyond the April tax filing deadline. CONSIDER...

Circular 230 revisions finalized.(regulations concerning conflicts of interest, contingent fees and sanctions)
December 1, 2007... The Treasury Department issued final regulations amending a number of Circular 230 standards, including sections on conflicts of interest, contingent fees, conduct for which practitioners may be sanctioned and publicity of disciplinary...

No theft loss for "phantom" income.
December 1, 2007... The section 165 theft loss deduction seldom benefits taxpayers to the extent they think it should. This can be especially true if the thief is their investment manager and they discover only belatedly they've .been paying taxes on investment...

Indianapolis Power & Light trips circuits.
December 1, 2007... In a split decision, the Third Circuit Court of Appeals required a grocer to include in gross income a payment characterized as a loan from a supplier. The loan could be forgiven if the grocer, Karns Prime and Fancy Foods Ltd. of Harrisburg,...

Tax court to rule on sex change.
December 1, 2007... The U.S. Tax Court in Boston is reviewing whether expenses of a sex-change operation are deductible. Rhiannon G. O'Donnabhain, born anatomically male, was diagnosed by her psychotherapist in 1996 with gender identification disorder (LID),...

A point of no return.(fraudulent filing)
December 1, 2007... Is filing of a return required for a conviction of false return preparation? A recent case held it was not. Linda Borden of Florida was convicted by a federal jury in March 2007 of 27 counts of preparing or presenting false or fraudulent...

A moot point (and a half) for Exxon.
December 1, 2007... When it comes to overpayment interest due them, most taxpayers probably wouldn't quibble too much over a difference of 1.5 percentage points, especially if that margin applied only to compounding of previously earned interest. But Exxon Mobil...

Saving taxes in transfers of personal goodwill: sale of a closely held business.(from The Tax Adviser)
December 1, 2007... While many of the reasons for a family business to choose being a C corporation have been eliminated over the years (the deduction of shareholder health insurance, for example), there are still situations in which the limitations on S...

Stolen Without a Gun.(Book review)
December 1, 2007... * Stolen Without a Gun by Walter Pavlo Jr. and Neil Weinberg Etika Books, 2007, 312 pp. For nearly four decades, I have been investigating, researching and writing about occupational fraudsters. From the mailroom to the boardroom, what...

Guide to ESOP Valuation and Financial Advisory Services, 2d ed.(Book review)
December 1, 2007... * Guide to ESOP Valuation and Financial Advisory Services (Second Edition) by Robert E Reilly and Robert P. Schweihs Willamette Management Associates Partners, 2007, 585 pp. [ILLUSTRATION OMITTED] The Guide to ESOP Valuation and...

Double Take: Unequal Taxation of Equals.(Book review)
December 1, 2007... * Double Take: Unequal Taxation of Equals by Lester B. Snyder Vandeplas Publishing, 2007, 281 pp. In the backward world envisioned 135 years ago by Samuel Butler in Erewhon, taxation is regressive, on the theory that a business fortune is...

Quiet Guys Can Do Great Things, Too: A Black Accountant's Success Story.(Book review)
December 1, 2007... * Quiet Guys Can Do Great Things, Too: A Black Accountant's Success Story by Frank K. Ross, CPA, MBA Writing Our World Press, 2006, 189 pp. It is difficult to remain the "quiet guy" when so many are singing your praises. Thus it became...

Compensation as a Strategic Asset: The New Paradigm.(Book review)
December 1, 2007... * Compensation as a Strategic Asset: The New Paradigm by August J. Aquila and Coral L. Rice AICPA, 2007, 190 pp. Compensation is a complex matter for most firms, with money being only one aspect of the equation. This book begins with a look...

Social Security story wins best article.
December 1, 2007... Kathryn L. Garnett has won the .Journal of Accountancy's 2006 Lawler Award for the best article of the year. [ILLUSTRATION OMITTED] Her article, "Social Security: What's the Magic Age?" (July 06, page 28, www.aicpa.org/pubs/...