Journal of Accountancy articles from June 2005

Journal of Accountancy archives from June 2005

Volunteering for financial literacy: from Texas to Ohio, Virginia to Montana, CPAs take the message to the streets of their hometowns.(certified public accountants)
June 1, 2005... In hundreds of communities across the country, CPAs are using the resources of the AICPA's 360 Degrees of Financial Literacy program (www.aicpa.org/financialliteracy) as the foundation for building public service programs of their own. "The 360...

Manage a virtual team: we all thought it was hard to keep track of on-site staff - until we started managing teams remotely. Here are some tips to help you communicate with telecommuters as effectively as if they were sitting in your office.
June 1, 2005... [] Set expectations about behavior and performance and document them. Define each member's responsibilities, such as e-mail response time, and share the information with all team members. [] Encourage and provide feedback on all team...

Would you, could you, should you blog? Flexible, low-cost Web logs are a formidable business tool.
June 1, 2005... EXECUTIVE SUMMARY * BLOGS (SHORT FOR WEB LOGS) are an information-sharing tool with many business possibilities. They offer commentary on a variety of topics with links to Web sites or other online resources. Low operating costs make...

Time to go paperless: just preparing for the switchover will save you money.
June 1, 2005... EXECUTIVE SUMMARY * THE MAJOR OBSTACLE TO A PAPERLESS OFFICE is not technology; rather, it's resistance to re-engineering of business processes. Overcoming the mind-set requires the active cooperation of everyone from the GEO down to the...

Outsourcing, offshoring, nearshoring: what to do? Whether you outsource locally or globally, you're still responsible for client privacy.
June 1, 2005... EXECUTIVE SUMMARY * FANS OF OFFSHORE OUTSOURCING SAY it lowers labor costs; it's efficient; and it lets firms accept new work during periods of peak demand. * SOME LONG-TERM CONCERNS CPAs VOICE ARE: How will outsourcing affect the...

Assessing company-level controls: another hurdle on the road to compliance.
June 1, 2005... EXECUTIVE SUMMARY * THE ASSESSMENT OF COMPANY-LEVEL CONTROLS is a critical part of complying with section 404 of Sarbanes-Oxley. The PCAOB says public companies must assess the design and operating effectiveness of these controls in...

EBR: the next step: enhanced business reporting will improve information quality, integrity and transparency.
June 1, 2005... EXECUTIVE SUMMARY * ENHANCED BUSINESS REPORTING (EBR) WILL IMPROVE the quality of information companies provide so investors can make better decisions about a company's situation and prospects. The EBR Consortium is leading the effort to...

The practitioner-professor link: when practitioners partner with professors, everyone goes to the head of the class.
June 1, 2005... EXECUTIVE SUMMARY * PERIODIC FEEDBACK FROM PRACTITIONERS to faculty about the strengths and weaknesses of their graduates and their program can help to positively influence the accounting profession. * CPAs ALSO CAN iNSPIRE STUDENTS'...

When you suspect fraud: who a smart business owner calls to conduct an investigation.
June 1, 2005... The new general manager of a small manufacturing company knew something was amiss. Each time he asked the chief financial officer for critical cost information he got the runaround. "We don't have a cost accounting system that can produce that...

Sell it or rent it? Our spreadsheet can help you decide what to do with a former residence.
June 1, 2005... Should I sell it or rent it out? How will you respond when your clients ask you that question when they're moving out of a home? CPAs can provide a valuable service by helping clients think through this issue in a structured way. To help, we've...

Redeeming closely held stock.
June 1, 2005... When a corporation redeems its own shares, the selling shareholder must report either capital gains or dividend income; IRC section 302 decides the type of income to report. Under IRC section 318(a) a taxpayer is deemed to own the stock owned...

A winning tax shelter case.
June 1, 2005... In another loss for the IRS in its fight against tax shelters, a district court sustained allocations of income to a foreign partner that did not pay U.S. taxes, thereby allowing the partnership to avoid an enormous amount of U.S. income tax....

Extraordinary personal services exception.
June 1, 2005... IRC section 469 generally disallows a deduction in the current year for the amount by which taxpayers' losses from passive activities exceed their passive income; instead, such losses can be carried forward and offset against passive income in...

Expanded e-services access: playing with the IRS's online toys.(from The Tax Adviser)
June 1, 2005... IRS news release IR-2005-33 explains that the service has eased the qualifications for tax advisers to use its suite of e-services incentive products, meeting their demands to access these valuable online tools. WHAT ARE THEY? ...

Directory of AICPA selected services.(Directory)
June 1, 2005... DIRECTORY OF AICPA SELECTED SERVICES 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...

Golden business ideas.(strategic planning)
June 1, 2005... Organize Your Time When faced with an oft-postponed decision, how frequently do you say, "I can't work on that problem right now. I've got to stay flexible so I can handle today's emergencies." That's a sure sign that you're not planning...