Journal of Accountancy articles from February 2008

Journal of Accountancy archives from February 2008

Vendor management tips: selecting the right vendors and properly managing vendor relationships can help protect your company from damages and long-term losses.
February 1, 2008... [ILLUSTRATION OMITTED] As more work is outsourced to specialized vendors, companies face greater exposure to fraud, security breaches and the possibility of financial losses. When companies outsource, they are still responsible for...

Change agent: Robert Herz discusses FASB's priorities, the road to convergence and changes ahead for CPAs. (Financial Accounting Standards Board) (Interview)
February 1, 2008... [ILLUSTRATION OMITTED] Robert Herz has led FASB through a period of tremendous change in the accounting profession. The former PricewaterhouseCoopers chief technical partner took the helm at FASB on July 1, 2002, just weeks before the...

Six steps to XBRL: learn how to translate your income statement into tagged format.(Extensible Business Reporting Language)
February 1, 2008... EXECUTIVE SUMMARY * XBRL is reinventing how we transmit and Use data in business. XBRL is not just for SEC companies: Small businesses and practitioners alike could soon be using XBRL to submit information to bankers, the IRS, and other...

Deepening insolvency: an emerging threat? Legal theory's development raises liability risks for auditors.
February 1, 2008... EXECUTIVE SUMMARY * Deepening insolvency is a relatively new end developing legal theory. Courts have disagreed about whether deepening insolvency is a stand-alone tort claim or simply a basis for seeking damages related to fraud,...

From the defense: how to combat a deepening insolvency claim.
February 1, 2008... In 2007, I represented Grant Thornton in its challenge of a deepening insolvency claim in Minnesota. The decision by the Minnesota Court of Appeals in the case--Julia A. Christians, Trustee for the Bankruptcy Estate of Technimar Industries Inc....

Legal update: high court bars secondary liability in securities case.(Stoneridge Investment Partners LLC v. Scientific-Atlanta Inc.)
February 1, 2008... The U.S. Supreme Court ruled in a major securities fraud case that secondary parties--essentially aiders and abettors--can't be held liable when the companies they work with mislead investors. Stoneridge Investment Partners LLC v....

Expanding the ranks of African-American CPAs: a report on the CPA Examination Summit.
February 1, 2008... EXECUTIVE SUMMARY * The National Association of Black Accountants (NABA) and the Howard University School of Business Center for Accounting Education (CAE) in June 2007 convened the CPA Examination Summit, a gathering designed to identify...

Partnerships for community development: properly structured deals can benefit owners, developers and neighborhoods.
February 1, 2008... EXECUTIVE SUMMARY * CPAs can use their expertise to structure partnerships between long-term community investors and developers who want to contribute to improving markets without displacing current residents and local businesses. *...

Discover the power of Excel 2007.
February 1, 2008... When most users open Office Excel--launched with Microsoft's new Vista operating system--their first reaction is, "Where's the file menu? How do I begin?" This article is designed to help you steer through the labyrinth of new and...

Real tax savings in real estate: owners and traders who materially participate in managing their property can reap big tax benefits.
February 1, 2008... EXECUTIVE SUMMARY * While the passive loss limitation rules generally prevent the current deduction of rental real estate net losses, many taxpayers with real estate rental income may meet the standard for a real estate professional...

Independent contractor or employee?
February 1, 2008... [ILLUSTRATION OMITTED] A recent congressional inquiry into whether Blackwater USA properly classified its security guards in Iraq and Afghanistan as independent contractors rather than employees highlights the often complicated application...

Passive or nonpassive activity - IRS wins either way.
February 1, 2008... The Tax Court recently ruled on the same day in favor of the IRS in two unrelated cases involving the passive loss rules for rental activities (see also "Real Tax Savings in Real Estate," page 68). In one case, the court determined that a...

Deciphering the code.(bank's deductions for interest and tax-exempt income)
February 1, 2008... A recent case that ostensibly dealt with a bank's deductions for interest and other expenses associated with tax-exempt income could affect how advisers approach interpretation of the Code and revenue rulings generally. PSB Holdings is the...

Do-it-yourself will succeeds in spite of itself.(marital deduction for terminable interests)
February 1, 2008... The Ninth Circuit Court of Appeals recently upheld a district court's decision that a self-prepared will's bequest qualified for the marital deduction, even though its literal wording created a disqualifying terminable interest. The courts...

Son of boss adjustment timely for IRS.
February 1, 2008... A federal court has concluded that a suspected "Son of BOSS" transaction that caused an overstatement of basis in the calculation of gain from a sale of real estate is a gross income omission that allows the IRS six years to assess a deficiency...

Till death or (section) 6015(e)(4) do us part.(innocent spouse relief)
February 1, 2008... The Tax Court recently decided an issue of first impression concerning innocent spouse relief, describing it as "a small but noticeable gap in the tax law": Does the right of a nonelecting spouse to intervene in an innocent spouse case continue...

FASB No. 160: Statement of Financial Accounting Standards No. 160--Noncontrolling Interests in Consolidated Financial Statements (an amendment of ARB No. 51).(Official Releases)
February 1, 2008... SUMMARY Why is the FASB Issuing This Statement? A noncontrolling interest, sometimes called a minority interest, is the portion of equity in a subsidiary not attributable, directly or indirectly, to a parent. The objective of this...

GASB No. 52: Statement No. 52 of the Governmental Accounting Standards Board--Land and Other Real Estate Held as Investments by Endowments.(Official Releases)
February 1, 2008... SUMMARY Accounting standards previously required permanent and term endowments, including permanent funds, to report land and other real estate held as investments at their historical cost. Endowments exist to invest resources for the...

The last word. (African American accountant's perspective on the profession)
February 1, 2008... I've always tried to be a positive thinker, have a good attitude and to make a difference. I say our firm is like a train that's moving down the track, mobilizing our team to be the best we can be in serving our clients, making opportunities...