Journal of Accountancy articles from February 1993

Journal of Accountancy archives from February 1993

The COSO Report: Challenge and Counterchallenge
February 1, 1993... When the Committee of Sponsoring Organizations (COSO) of the Treadway Commission released its landmark report, Internal Control--Integrated Framework, in September 1992, it thought its work was done and the baton could be passed to others who...

POB Annual Report Stresses Liability Crises
February 1, 1993... The Public Oversight Board's (POB's) 14th annual report focused on the profession's response to the growing liability crisis. The five-member POB oversees the activities of the SEC practice section (SECPS) of the American Institute of CPAs...

AICPA hails court decision in Standard Chartered v. Price Waterhouse. (Arizona) (Brief Article)
February 1, 1993... In mid-December, Judge John R. Sticht of the Superior Court of Arizona granted Price Waterhouse's motion for a new trial in the matter of Standard Chartered PLC v. Price Waterhouse. Judge Sticht found the jury verdicts in an earlier trial so...

Shareholder concerns link executive pay to performance. (Brief Article)
February 1, 1993... A study of 144 large U.S. corporations (those with sales of $5 billion or more) by William M. Mercer, Inc. found companies are taking stronger measures to link executive pay with company performance. Among the corporations studied, 28% have...

Companies plan to add accounting personnel. (Brief Article)
February 1, 1993... According to a Robert Half International survey of 1,000 chief financial officers, more than 10% expect their companies to increase hiring of accounting and financial personnel in the first quarter of 1993. Since 4% plan staff decreases, a...

Small business mood turns sour as growth slows. (Brief Article)
February 1, 1993... The final 1992 quarterly survey of more than 2,200 small business owners conducted by the National Federation of Independent Business (NFIB) found the entrepreneurs in a pessimistic mood. The NFIB's small business optimism index slid. 7% in...

Conventional health care plans in rapid decline. (Brief Article)
February 1, 1993... A national survey of 1,057 employer-sponsored health plans conducted by KPMG Peat Marwick found 62% of the companies polled continued to offer conventional health coverage in 1992, down sharply from 89% in 1988. For the first time a...

Three New Statements: FASBs 111, 112 and 113
February 1, 1993... Three final statements were issued by the Financial Accounting Standards Board. Statement rescinded. Statement no.111, Rescission of FASB Statement no. 32 and Technical Corrections, rescinds Statement no. 32, Specialized Accounting and...

Revised proposal on nonprofit contributions. (Brief Article)
February 1, 1993... A revised exposure draft issued by the Financial Accounting Standards Board would establish accounting standards for contributions to not-for-profit organizations. The ED, a revision of a proposal issued in October 1990, is the companion to...

GASB 16 on Compensated Absences Issued; GASB 11 Delayed
February 1, 1993... The Governmental Accounting Standards Board issued Statement no. 16, Accounting for Compensated Absences, establishing accounting and reporting standards for compensated absences by state and local governmental entities-- regardless of the...

IASC issues standard and ED. (Exposure Draft by the International Accounting Standards Committee) (Brief Article)
February 1, 1993... The International Accounting Standards Committee has issued revised International Accounting Standard (IAS) 7, Cash Flow Statements, and IAS Exposure Draft E47, Retirement Benefit Costs. Cash flow statements Revised IAS 7 (product...

IOSCO endorses IFAC auditing standards. (International Organization of Securities Commissions and International Federation of Accountants) (Brief Article)
February 1, 1993... The International Organization of Securities Commissions (IOSCO) officially has endorsed international statements on auditing issued by the International Federation of Accountants' international auditing practices committee. IOSCO said the...

IAPC releases addendum to international auditing standard. (International Federation of Accountants) (Brief Article)
February 1, 1993... The international auditing practices committee of the International Federation of Accountants has released Addendum 2, Audit Considerations Relating to Entities Using Service Organizations, to International Standard on Auditing no. 6, Risk...

State and local tax take continues to rise. (Brief Article)
February 1, 1993... State and local tax collections totaled $531 billion for calendar year 1991--an increase of $23.9 billion, or 4.7% from the previous year. State tax collections rose 3.7% during the period to $317.3 billion, while locally imposed taxes were...

AICPA Responds to IRS Circular 230 Amendments
February 1, 1993... The American Institute of CPAs commended the Internal Revenue Service and the Treasury Department on proposed amendments issued last October to regulations governing the practice of individuals before the IRS under circular 230, while...

Executive Options under Clinton
February 1, 1993... The Internal Revenue Service recently issued a revenue ruling outlining the obligations of U.S. and foreign employers to U.S. citizens or residents working in a foreign country and to nonresident aliens employed in the United States. Revenue...

Employer obligations to expatriates and nonresident aliens. (Brief Article)
February 1, 1993... The excitement created by Disney and Mirage corporate executives' exercise of options (and prompt sale of underlying stock) focused attention on President Clinton's tentative tax proposals and tax-planning steps taken in response. ...

Abandoning a Partnership Interest
February 1, 1993... Sometimes the owner of an asset decides to abandon his or her property. Such a decision may be based on the property's loss in value or on other factors. ABANDONMENT VS. WORTHLESSNESS While the concepts may be related, abandoning a...

Planning for Long-Term Care without Public Assistance
February 1, 1993... People always have been afraid of dying too soon. Lately, they worry more about living too long. The fear of chronic long-term illness leading to loss of independence and catastrophic health care costs is widespread among the growing ranks of...

Positioning a Firm for International Opportunities
February 1, 1993... There is little doubt the business world is becoming smaller. Advances in technology have brought all forms of business organization closer together and there is a drive on to remove barriers between countries to promote international trade. ...

Employers' Accounting for Employee Stock Ownership Plans
February 1, 1993... According to the provisions of the Employee Retirement Income Security Act of 1974 and the Internal Revenue Code, an employee stock ownership plan (ESOP) is an employee benefit plan characterized as either a stock bonus plan or a combination...

New tools explain tax rules for home office deductions. (Brief Article)
February 1, 1993... The AICPA has added two new products to help CPAs explain to existing or potential clients the often confusing rules surrounding tax deductions for home offices. Home Offices: Opening the Door to Tax Deductions (product no. 889521JA) is...

Tax season materials now available. (Brief Article)
February 1, 1993... Two new AICPA tax season guides for individuals, designed for use through April 15, 1993, are now available: * Lighten Your Tax Burden: A CPA's Tax-Preparation Guide for Individuals (product number 889520JA) is an eight-panel brochure...

AICPA library moves to larger quarters. (Brief Article)
February 1, 1993... One of the world's largest accounting and auditing libraries just got bigger. The American Institute of CPAs library has moved to the concourse level of the AICPA headquarters building at 1211 Avenue of the Americas, New York, New York, where...

The AICPA Role in Standard Setting
February 1, 1993... Statement on Auditing Standards no. 69, "The Meaning of 'Present Fairly in Conformity With Generally Accepted Accounting Principles' in the Independent Auditor's Report," identifies American Institute of CPAs industry audit and accounting...

Accounting for Foreclosed Assets
February 1, 1993... The American Institute of CPAs accounting standards executive committee (AcSEC) has undertaken a project 0n accounting for foreclosed assets. This month Dionne D. McNamee, CPA, technical manager, AICPA accounting standards division, describes...

Working with the Media
February 1, 1993... Jill R. Lock, marketing director of Simon, Master & Sidlow, 2002 West 14 Street, Wilmington, Delaware 19806, describes the benefits for firms that understand the press's needs. Developing and reinforcing media contacts are important...

Proposed Changes in Federal Evidence Rules
February 1, 1993... Marvin L. Stone, CPA, Denver, Colorado, a litigation services veteran and a member qfthe American Institute of CPAs litigation services sub-committee, describes proposed changes in, federal miles that could affect CPAs who offer services as...

Tapping the Equity of Older Homeowners with Reverse Mortgages
February 1, 1993... The numbers certainly are impressive. Americans age 65 years and older now total 32 million. Of these, three-quarters own their own homes, and nearly two-thirds of them own their homes free of any mortgage. Total home equity of older Americans...