Journal of Accountancy articles from May 2008

Journal of Accountancy archives from May 2008

Regulators from five countries issued a report that assesses a range of risk management practices among major global financial services organizations.
May 1, 2008... Regulators from five countries issued a report that assesses a range of risk management practices among major global financial services organizations. The report, Observations on Risk Management Practices during the Recent Market...

The role of fair value accounting in the subprime mortgage meltdown.
May 1, 2008... [ILLUSTRATION OMITTED] As the credit markets froze and stocks gyrated, investors and pundits naturally looked for someone, or some thing, to blame. Fair value accounting quickly emerged as an oft-cited problem. But is fair value really a...

Framing the future: a first look at FASB's GAAP codification.(Financial Accounting Standards Board, generally accepted accounting principles)
May 1, 2008... EXECUTIVE SUMMARY * FASB's Accounting Standards Codification consists of topically organized content that will soon become the single authoritative source of GAAP as well as an online research system that will be the primary means of...

A global standard for professional ethics: cross-border business concerns.
May 1, 2008... [ILLUSTRATION OMITTED] EXECUTIVE SUMMARY * Standard-setting organizations in more than 100 countries have adopted the International Federation of Accountants' (IFAC) Code of Ethics for Professional Accountants, while others are in the...

Securitized profits: understanding gain on sale accounting.
May 1, 2008... [ILLUSTRATION OMITTED] EXECUTIVE SUMMARY * Securitizations in the mortgage industry are collateralized with home or commercial mortgage loans and are packaged into mortgage-backed securities (MBS) that are sold to institutional...

Lending a hand: SBA, AICPA partner to help small businesses. (ServiceMaster Co. accountant Steve Preston) (Interview)
May 1, 2008... [ILLUSTRATION OMITTED] When Steve Preston stepped into the role of SBA administrator in July 2006, he left a seemingly comfortable career in the private sector, most recently with the ServiceMaster Company, for a less certain future in the...

Post-transaction adjustments: managing global transfer pricing while reducing ripple effects.
May 1, 2008... [ILLUSTRATION OMITTED] EXECUTIVE SUMMARY * Year-end adjustments to intercompany transfer pricing can help international companies save on taxes. Documentation and proper observance of rules in relevant countries, however, are crucial...

Now's the time to comply with NQDC regs: help clients avoid problems with nonqualified deferred compensation.
May 1, 2008... [ILLUSTRATION OMITTED] EXECUTIVE SUMMARY * IRC [section] 409A and related regulations and guidance have transformed tax treatment of nonqualified deferred compensation (NQDC) by prescribing rules for its election, timing, distribution...

Taking a systemic approach. (to recruiting minorities into the accounting profession)
May 1, 2008... For the better part of two decades ending in the late 1990s, I was responsible for university recruiting at KPMG LLP. While we worked to increase diversity in the firm, it was frustrating because so few people of color were studying business...

Interest capitalization: one small step toward convergence.
May 1, 2008... Convergence generally involves standard setters working together to achieve a standard that is superior to either of their existing standards. As a practical matter, in the short term, most changes have resulted in either the IASB or FASB...

Adopting IFRS: one nation's experience. (International Financial Reporting Standards) (Canada) (Interview)
May 1, 2008... Effective March 4, SEC rules allow foreign private issuers listing securities in the United States to report exclusively in International Financial Reporting Standards (IFRS) without reconciling their financial statements to U.S. GAAP. Israel...

When "happily ever after" ends - get it in writing. (tax settlement in divorce)
May 1, 2008... [ILLUSTRATION OMITTED] After the perfect wedding, the happy couple looks forward to sharing a lifetime of happiness. Life, however, does not always go as planned. Divorce happens. In addition to the emotional aspects, there are tax...

A not-so-speedy recovery.
May 1, 2008... The Court of Federal Claims applied rules on theft loss subject to recovery in a holding that recognized a deduction later than it was initially claimed by a taxpayer but, for a portion of the loss, sooner than the IRS had allowed. ...

Contested buyout doesn't bar gain.
May 1, 2008... The Ninth Circuit Court of Appeals affirmed the Tax Court's decision that a cash-method shareholder's forced buyout triggers gain recognition in the year that the buyout payment is received, even if the shareholder continues to dispute the...

Third Circuit silences National Muffler, pumps Chevron deference.
May 1, 2008... The Third Circuit Court of Appeals recently upheld the validity of Treas. Reg. [section] 1.882-4(a)(3)(i), which disallows deductions by a foreign corporation that fails to file a U.S. tax return within 18 months of the normal due date. When...

All in the family?
May 1, 2008... The Tax Court recently held that a note does not constitute a qualified family-owned business interest (QFOBI) for purposes of IRC [section] 2057, which allows an estate to deduct up to $675,000 from its value for estate tax purposes. To...

New split-interest return form.
May 1, 2008... The IRS recently issued a revised Form 5227, Split-Interest Trust Information Return, for use in preparing returns for tax years beginning on or after Jan. 1, 2007. Among its numerous changes, the most significant are: * Charitable...

A healthy deduction for 2% shareholders.
May 1, 2008... In Notice 2008-1, the IRS has offered an opportunity for 2% shareholders of an S corporation to receive a deduction for health insurance premiums under IRC [section] 162(1). A 2% shareholder is defined in section 1372(b) as a person who owns...

AICPA ... where to turn. (American Institute of Certified Public Accountants) (Directory)
May 1, 2008... Member Service Center 1-888-777-7077 * Option #1 Orders/CPE/Conference Inquiries * Option #2 AICPA Membership Inquiries Including Dues * Option #3 Webcast/AICPA.org Web Site/CPA2Biz Including Log In & Access Inquiries *...

The last word.(career opportunities for women in accounting profession)
May 1, 2008... TERESA MASON My mother, Sandra Collins, and I make up a mother-daughter CPA firm. It's been a lot of fun working together. We each bring something different to the table. [ILLUSTRATION OMITTED] As I was growing up, accounting was...