Journal of Accountancy articles from February 2005

Journal of Accountancy archives from February 2005

In support of CPA financial planners: the AICPA applauds CPAs' professional and volunteer efforts in their communities.(certified public accountants)
February 1, 2005... The AICPA developed the Web-based Personal Financial Planning Competency Model Self-Assessment Tool to help CPAs identify required PFP skills. In 2005, the AICPA will celebrate its 20th year supporting CPAs as they continue their role in...

Jump-start success: how to set up a world-class internal audit function.(Cover Story)
February 1, 2005... Congratulations! You got your dream job--chief audit executive of an NYSE-listed company that just went public. You're charged with starting your own internal audit function. Or perhaps you've received an offer to rebuild an existing department...

Selling to audit committees: to develop opportunities CPAs need to find out exactly what services a committee needs.(certified public accountants)
February 1, 2005... Before the Sarbanes-Oxley Act of 2002, an audit committee was essentially an extension of a company's board of directors, often rubberstamping the CFO or CEO's choice of auditor. The chosen auditor usually also performed many or all of the...

What a governance referee thinks.(Robert Roath, certified public accountant)(Interview)
February 1, 2005... Robert Roath, CPA and former CFO of RJR Nabisco, is an independent board member and chairman of audit committees for two distinctly different businesses. Interdigital Communication Corp. is a high-tech Nasdaq telecommunications company with $1...

Succession-planning dos and don'ts: who will take over when you're ready to retire? If you don't know, it's time to decide.
February 1, 2005... For many CPAs the practice they have spent years building is both their most valuable asset and their retirement vehicle. However, surprisingly few have a solid exit plan for selling their firms or turning them over to the next generation....

Hedge fund investing: current advice for financial advisers and planners.
February 1, 2005... Hedge funds are one of the hottest investment opportunities in today's stock market. They have been very prominent in the financial news, attracting a lot of attention from investors, brokerage firms, the SEC and the attorney general of the...

Second in a series of interviews with the SEC's Office of the Chief Accountant. (In the Public Interest, part 2) (Interview)
February 1, 2005... If you feel like the world is changing faster than you can keep track of it all, you're not alone. The JofA recently spent a day at the Office of the Chief Accountant of the SEC, talking about changes at the SEC, the world of regulation, the...

XBRL revisited: grasp the fundamentals to see how businesses use XBRL today.(extensible business reporting language)
February 1, 2005... Use of XBRL is gathering momentum. In September 2004, investors, analysts, public companies and other securities market participants--including CPAs--took note of the SEC's announcement it will permit public companies to submit their mandatory...

Host a virtual meeting: collaborate with a video link and a whiteboard.(Product/Service Evaluation)
February 1, 2005... One of Microsoft's best-kept secrets is that its software lets you host a virtual meeting by computer in which participants can talk, share files and even see each other--all in real time. The only things you need are access to the Internet and...

NASBA: focusing state boards on revitalizing public trust.(National Association of State Boards of Accountancy)
February 1, 2005... The National Association of State Boards of Accountancy (NASBA) held its annual meeting in Chicago in October. Attendees were advised how to restore public trust in the profession. The gathering's keynote speaker, Public Company Accounting...

Firm-and-fixed-plan rule reaffirmed.(Merrill Lynch & Co. v. Commissioner)
February 1, 2005... The Second Circuit Court of Appeals affirmed the Tax Court's decision in a case involving Merrill Lynch. Although the actual transactions were complicated and involved consolidated returns, the court's conclusion is applicable to many stock...

Lottery winnings taxable under foreign treaties.(Abeid v. Commissioner)
February 1, 2005... Nonresident aliens are subject to tax in the United States on their U.S. source income. Taxation of that income is governed by U.S. tax law and subject to a tax treaty, if one exists, with the taxpayer's resident country. The Tax Court recently...

Are substitute payments alimony?(Okerson v. Commissioner)
February 1, 2005... Alimony payments are deductible for adjusted gross income for the payor spouse; however the payee spouse must include the alimony in gross income. IRC section 71 (b) provides specific criteria that must be satisfied if payments from one...

Is division of an IRA a taxable event?(individual retirement account, Cohen v. Commissioner)
February 1, 2005... Generally the transfer of property from one spouse to another due to a divorce is a nontaxable exchange under IRC section 1041. IRC section 408(d)(6) further states that the transfer of an individual's interest in an individual retirement...

Directory of AICPA selected services.(Directory)
February 1, 2005... Address and employment information can be changed online through www.aicpa.org/about/dues.htm. Or, members can e-mail, mail or fax the information to the Member Service Center in New Jersey (see Member Service Center for additional services...