Journal of Accountancy articles from January 2006

Journal of Accountancy archives from January 2006

Tune up your clients' benefit programs: even the best-oiled machines need a little energy boost sometimes. If your clients are large companies, review the pitfalls that could jeopardize the tax-favored status of their employee benefit plans.
January 1, 2006... * Make sure that agreements with service providers clearly disclose both direct and indirect fees, including float income, shareholder service fees and 12b-1 fees. Pay only those amounts the Labor Department considers legitimate plan expenses....

CAN SPAM: techniques to filter out unwanted e-mail.(Controlling the Assault of Non-Solicited Pornography and Marketing Act of 2003)
January 1, 2006... For some, spam is like ants at a picnic: uninvited, ubiquitous and annoying. For many others, whose uninvited e-mails flood their computer mailbox, it's an expensive headache. Try as you might, technology can't entirely eliminate spam. But stay...

Protect retirement assets: new bankruptcy legislation adds protections for retirement plans.
January 1, 2006... Debtors have hit a fork in the road. The Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (effective October 17, 2005) clarifies the rights of debtors and expands the protections their retirement assets have in federal bankruptcy...

How to prevent investment adviser fraud.
January 1, 2006... Fraud is still in the headlines and on the minds of investors. Over the past few years, investors have grown discouraged with accounts of fraud occurring in trusted sectors of American business, including the financial services industry. Except...

Executive profile: Jeffrey A. Montgomery, chairman and CEO, NFP Securities, Inc.(Interview)
January 1, 2006... by AICPA Custom Media Solutions Jeffrey, why is now such an important time for investors, particularly those who are high net worth (HNW) individuals and small business owners? High net-worth individuals and business owners have more...

Sounding the retirement alarm for baby boomers: CPAs, financial services providers heed the call.(certified public accountants)
January 1, 2006... by AICPA Custom Media Solutions As record numbers of Americans start sprinting toward their retirement years, CPAs are being sought increasingly to help clients develop prudent financial catch-up strategies: many workers finally realize...

New fraud guidance: communication is the name of the game where fraud is suspected.
January 1, 2006... A new statement on standards for accounting and review services (SSARS) makes specific chances regarding an accountant's consideration of fraud and illegal acts in compilation and review engagements. The AICPA Accounting and Review Services...

The MD&A challenge: the difficulty of crafting a quality disclosure.(management's discussion and analysis)
January 1, 2006... EXECUTIVE SUMMARY * CPAs HELPING COMPANIES DRAFT THEIR MD&A do so at a time when the SEC's Division of Corporation Finance is increasingly unhappy with the quality of these disclosures, and in the wake of civil fraud charges against the...

Convergence: in search of the best: CPAs should understand how U.S. and foreign accounting standards influence each other.(certified public accountants)
January 1, 2006... EXECUTIVE SUMMARY * THE CONVERGENCE AGREEMENT BETWEEN FASB and the IASB is significantly affecting U.S. and international financial reporting. * THERE IS NO SINGLE PATH TO CONVERGENCE, but an open-minded pursuit of the highest quality...

Can trusts deduct adviser fees?
January 1, 2006... TAX CASES Many trust fiduciaries incur investment adviser fees while administering the trust. To reduce taxable income, the trustee wants to deduct these costs against trust income--but the courts are split on the issue. The Tax Court...

Reasonable shareholder-employee compensation.
January 1, 2006... IRC section 162(a)(1) allows companies to deduct from income a reasonable allowance for salaries or other compensation for services actually rendered. Determining whether the compensation paid to a shareholder-employee is reasonable is a...

IRS to outsource debt collection: private companies will be able to pursue tax delinquents.(from The Tax Adviser)
January 1, 2006... A provision in the American Jobs Creation Act of 2004 (AJCA) allows private collection agencies (PCAs) to collect federal tax debts. The IRS recently announced it expects to award the first three contracts for private debt collection in...

Directory of AICPA selected services.(Directory)
January 1, 2006... 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...

David Berger, CPA: corporate controller. (certified public accountant) (Interview)
January 1, 2006... DAVID BERGER, CPA Corporate controller VNU New York, New York My brother and I were born the same year and were in the same grade in school. He wanted to be a lawyer and I wanted to be something different. I was always good...