Journal of Accountancy articles from February 2003

Journal of Accountancy archives from February 2003

We are in the business of helping our clients succeed.(accountants)
February 1, 2003... As I write this, today's newspaper has two front-page stories about the accounting "industry." Yes, the term they used was "industry," not "profession." All of us must be careful to remember our responsibilities as professionals, as well as to...

Sarbanes-Oxley Act tops NASBA meeting agenda.(National Association of State Boards of Accountancy)
February 1, 2003... Congress's landmark accounting reform legislation--and its potential impact on how states will regulate CPAs--was the leading discussion topic at the annual meeting of the National Association of State Boards of Accountancy (NASBA) in October....

Insist on the BV data that matter.(business valuation)
February 1, 2003... More is more when it comes to business valuation (BV). That's why if you're a CPA hired to value a company, you must begin by getting as much information as possible about the client's business and the industry it's part of before you give an...

Ensuring ethical effectiveness: new rules mean virtually every company will need a code of ethics.
February 1, 2003... EXECUTIVE SUMMARY * THE SARBANES-OXLEY ACT NOW REQUIRES PUBLICLY traded companies to disclose whether they have adopted a code of ethics for senior financial officers. In addition, the New York Stock Exchange is considering new rules that...

Is the Tax Court becoming a divorce court? The answer could change how the innocent spouse rules are interpreted.
February 1, 2003... EXECUTIVE SUMMARY * THE IRS WORKLOAD IS INCREASING AS A RESULT OF MORE innocent spouse claims. A 1998 change in the law is also bringing more work to the Tax Court, which is considering a wide range of domestic issues that previously were...

Period of adjustment: CPAs are finding ways to put auditing and consulting on different sides of the conflict-of-interest dividing line.
February 1, 2003... EXECUTIVE SUMMARY * THE NONAUDIT SERVICES Sarbanes-Oxley prohibits CPAs from providing to their public company audit clients are bookkeeping or services related to the accounting records or financial statements of the client; financial...

Spreadsheets with something extra: how to add explanatory messages and input boxes to your cells.(Microsoft Excel)
February 1, 2003... Have you ever created a spreadsheet only to open it a couple of months later to discover you couldn't remember how to update it or what data it needed? Or, if you prepared the spreadsheet for others in your organization, did they keep calling...

Standing up for what we stand for: the Institute's new chairman urges CPAs to live by their core values.(American Institute of Certified Public Accountants )
February 1, 2003... It's a great honor to represent the members of this distinguished profession. As you know, during the past year the Institute, under the leadership of President and CEO Barry C. Melancon and Past Chairman James G. Castellano, launched many...

Computer software and the research credit.
February 1, 2003... Congress enacted the research credit to encourage businesses to engage in additional, high-risk research activities. Whether computer software development qualifies for the credit is an ongoing question. Recently the Tenth Circuit Court of...

Loan guaranties and tax-free transfers to controlled corporations.
February 1, 2003... IRC section 351 allows a taxpayer to make a tax-free transfer of property to a controlled corporation in exchange for stock. Section 357(c), however, requires the taxpayer to recognize a gain when the liabilities the corporation assumes, plus...

Payroll taxes on terminated employees: court says employers can seek limited refunds.
February 1, 2003... Employers who withheld taxes on severance pay granted to certain terminated employees may be entitled to refunds. In CSX Corp., 52 Fed. Cl. 208 (2002), the Court of Federal Claims approved the refund of Railroad Retirement Tax Act (RRTA) taxes...

The padding that hurts: auditors cannot ignore expense account cheating by management.
February 1, 2003... Davenport, an independent auditor, had a hot potato on his hands. He had just learned from Robert, his client's internal auditor, that an employee had reported to him possible expense account abuses by one of the company's managers. Robert said...

Understanding life insurance illustrations: how to make sense of it all.
February 1, 2003... CPAs who are new to insurance may find they are sometimes confused by policy illustrations. In truth it's not easy to digest the complex information they present without some training. Insurance illustrations are what the industry gives clients...

The Accountant's Business Manual.(Book Review)
February 1, 2003... Your fast response to the variety of business questions you get every day from clients and senior management is a challenge. To help you handle all types of questions easily and effectively, turn to the trusted one-stop source thousands of your...

Fraud Detection in a GAAS Audit: SAS No. 99 Implementation Guide.(Book Review)
February 1, 2003... A new practice aid for implementing the new auditing standard on fraud SAS No. 99, issued to improve auditor performance and increase the likelihood that auditors will detect material misstatements caused by fraud, will change the way you...

Management of an Accounting Practice Handbook .(Book Review)
February 1, 2003... AICPA When it comes to practice management, AICPA's MAP Handbook is the premier source for information and guidance on the best ways to: * Sell or merge your firm * Develop and expand your practice * Hire professional and...