Journal of Accountancy articles from February 2002

Journal of Accountancy archives from February 2002

The Accountant's Business Manual, 2 vols.
February 1, 2002... The Economic Growth and Tax Relief Reconciliation Act of 2001 is forcing a major update to The Accountant's Business Manual, an AICPA publication issued in hardcopy and, soon on CD-ROM. William H. Behrenfeld, JD, LLM, CPA, one of the two...

Smart stops on the web. (The Internet).
February 1, 2002... BUSINESS CONSULTING SITES Business Advice for Mom and Pop www.efamilybusiness.com This site offers information about offsite presentations on topics such as succession and continuity, and strategy, planning and family-business...

Keep mergers on track.(CPA firm mergers)(checklist)
February 1, 2002... Mergers are complex processes that may derail unless the two entities forge a common path. Whether a CPA firm is merging with another firm or consulting with a client that's considering it, a simple checklist will help facilitate the process....

CPAs get into focus: get targeted feedback to align supply with demand.(focus groups being used by CPA firms)
February 1, 2002... EXECUTIVE SUMMARY * A FOCUS GROUP CONSISTING OF clients and local business leaders can help a firm gather insights to manage practice development in a changing marketplace. It's important to set clear objectives, select participants who...

The business of bankruptcy: CPAs can't make a bad economy go away, but they can provide value to clients on the ropes.
February 1, 2002... EXECUTIVE SUMMARY * A CPA FIRM WITH A CLIENT filing for bankruptcy has a responsibility to serve the client as well as an opportunity to compete for some of the work on the case--and through it develop a specialty. The need for bankruptcy...

Employment benefits and divorce: who pays the tax?(qualified domestic relations orders)
February 1, 2002... EXECUTIVE SUMMARY * FOR MANY COUPLES, THE MONEY THEY HAVE in employee benefit plans represents the most valuable asset accumulated during their marriage. Dividing these funds in the event of a divorce is a complex process fraught with...

Graphical sleight of hand: how can auditors spot altered exhibits that appear in annual reports?(financial graphs in corporate reports)
February 1, 2002... EXECUTIVE SUMMARY * GRAPHS IN CORPORATE ANNUAL REPORTS may have an altered vertical scale and often report a more favorable picture than warranted by the underlying financial information. Auditors can perform a real service for their...

Show-and-tell in real time: link a spreadsheet to a PowerPoint slide for up-to-the-minute visuals.
February 1, 2002... Your boss asks you to make an important financial presentation to a group of potential shareholders who are not particularly adept at reading spreadsheets crammed with numbers. Although the financial information is collected and calculated in...

Deducting environmental cleanup costs.(United Dairy Farmers, Inc. v. United States)
February 1, 2002... Environmental remediation costs can be deductible trade or business expenses under IRC section 162. However, under IRC section 263, businesses must capitalize expenditures that increase a property's value or its useful life or adapt it to a...

Contingent attorney fee is income to client.
February 1, 2002... In today's litigious society, many class action lawsuits have contingent attorney fee arrangements. Although the reasons for the lawsuits differ--age discrimination, wrongful termination and the like--the tax issue is the same. Contingent fees...

Covenants not to compete.(amortization of intangible assets)
February 1, 2002... For legitimate business purposes and occasionally to modify the taxation of a business sale, taxpayers--over time--have used covenants not to compete. Under current law, these covenants may be covered by IRC section 197. Recently the Tax Court...

Tax "tips": finally, no employer FICA liability on unreported gratuities.(Fior D'Italia Inc. v. United States)(US 9th Circuit Court of Appeals)
February 1, 2002... Does the IRS have the authority to assess restaurateurs for employer FICA taxes related to workers' unreported tip income? In a recent ruling the Ninth Circuit Court of Appeals called this authority into question, parting ways with earlier...

Lapping it up: a skimming method doomed to failure over time.
February 1, 2002... Nelson, a computer programmer for a financial institution in New Orleans, sat across the desk from his boss. Nelson flinched when the boss told him the news that he, an 11-year company veteran, was in trouble with the home office in Dallas...