Journal of Accountancy articles from May 2009

Journal of Accountancy archives from May 2009

Loan covenants tighten up.
May 1, 2009... [ILLUSTRATION OMITTED] In the first quarter of 2009, 22% of CPA financial executives said previous sources of credit had dried up, according to the AICPA/UNC Kenan Flagler Economic Outlook Survey. As a result, many businesses are shopping...

Economic outlook remains uncertain: CPA financial executives share insights on credit, collections, staffing and customer demand.
May 1, 2009... [ILLUSTRATION OMITTED] Recessions--roughly two per decade--have occurred quite regularly since World War II. Most last less than four quarters, according to International Monetary Fund data. But the depth and breadth of recessions are...

Small retirement plans: face funding dilemma: explore strategic options to realign your plan with current and future business needs.
May 1, 2009... EXECUTIVE SUMMARY * A defined benefit plan must meet its funding target. To determine the funding target at the beginning of each plan year, a defined benefit plan's funded level is measured by comparing the value of benefits earned as of...

Help for homebuyers: a guide to the new first-time homebuyer credit.
May 1, 2009... EXECUTIVE SUMMARY * Under the Housing and Economic Recovery Act of 2008, the first-time homebuyer credit became available for homes purchased between April 9 and Dec. 31, 2008. Qualifying homebuyers, meaning those who had not held an...

Introducing the new principles-based peer review standards: enhancing the clarity and integrity of peer review reports.
May 1, 2009... EXECUTIVE SUMMARY * The AICPA revised its standards for performing and reporting on peer review. The revised standards, which went into effect for reviews beginning on or after Jan. 1, 2009, will enhance the quality of peer reviews and...

Valuations for financial reporting in today's market: experts reconcile approaches with emerging risk factors.(Discussion)
May 1, 2009... [ILLUSTRATION OMITTED] The current economic environment has presented unprecedented circumstances for members of the business valuation profession. Those who perform valuations for financial reporting are grappling with issues surrounding...

What's your fraud IQ?
May 1, 2009... [ILLUSTRATION OMITTED] As the economy struggles, businesses and individuals are hanging on to their money more tightly than ever. With fewer resources available and reserves dwindling, becoming a victim of fraud during a recession could...

Internet telephone services for individuals and small businesses.
May 1, 2009... In a typical home or small office the traditional wired phone line has undergone many changes. High-speed Internet service and advances in voice and data compression have improved voice quality tremendously, making conversations possible...

Strengthening tax services' foundation.
May 1, 2009... [ILLUSTRATION OMITTED] The AICPA's Statements on Standards for Tax Services (SSTSs) have been updated, clarified and streamlined in proposed revisions now available for study and comment by AICPA members. They can be found on the Tax...

Deduction denied for ESOP stock redemption. (employee stock ownership plans)
May 1, 2009... The Eighth Circuit Court of Appeals denied food giant General Mills' deductions for "cash distribution redemptive dividends" it paid participants in the company's employee stock ownership plans (ESOPs). In so doing, the Eighth Circuit reversed...

Noncompete agreement payment wasn't sale of personal goodwill.
May 1, 2009... The First Circuit upheld a district court's holding that money allocated to a noncompete agreement was not for "personal goodwill" when a business' sale agreement didn't specifically identify it as such. When a business is sold, it is not...

Looking through the QSub election.(qualified subchapter 5 subsidiary)
May 1, 2009... The Tax Court denied a taxpayer's claim that the interest expense deduction for IRC [section] 265 qualified tax-exempt obligations (QTEOs) held by a qualified subchapter 5 subsidiary (QSub) bank is exempt from IRC [section] 291(a)(3) financial...

Third party's activities create nexus.
May 1, 2009... The U.S. Supreme Court declined to review a finding of substantial nexus by New Mexico for gross receipts tax on mail-order and online sales in that state by a subsidiary of Texas-based computer maker Dell Inc. The New Mexico Court of...

Mechanic gets bumped again.(deductions for travel expenses)
May 1, 2009... The Seventh Circuit Court of Appeals upheld a Tax Court opinion that had denied former airline mechanic David Wilbert's deductions for travel expenses incurred when he accepted assignments in various cities to keep his job under the airline's...

Retirement planning using a client's tax return.
May 1, 2009... Many CPAs never follow up with clients after tax season, but CPAs can provide valuable assistance by taking some time after busy season to use the tax return as a guide to helping clients prepare for retirement. A tax return is an excellent...

AICPA ... where to turn.(Directory)
May 1, 2009... AICPA Contact Information AICPA Logo 919/402-4440 CPA Accessory Collection (Big Game Outfitters) 212/596-6299 CPA Logo ...

The last word.(career satisfaction for accountants)
May 1, 2009... Everybody needs a stress-reliever. Mine is driving my 2003 Ford Mustang Cobra 140 mph. Of course, I can't--and wouldn't--do that on the street. But everyone who has a Mustang, a Corvette, a Porsche or a BMW wants to take it out and "open it...