Journal of Accountancy articles from November 2003

Journal of Accountancy archives from November 2003

How to take the revised CPA exam: an online tutorial helps candidates prepare for the new, computerized test.
November 1, 2003... In September the JofA began a series of articles exploring different aspects of the new CPA exam. These stories offered insights into how the revised test differs from the paper-based exam and the ways in which it benefits the public interest....

Change your attitude to rev up for success.(approaches to pricing and billing accounting services)
November 1, 2003... Pricing for services and billing appropriately is one of the most important skills in the successful practice of accountancy. However, you need to understand first how your attitude and habits hold you back. The number one problem facing...

Register here to testify: www.experts.com.(Expert Witness Sites)
November 1, 2003... CPAs looking to become--and lawyers looking for--expert witnesses can do both at this Web site. Users can read the titles "The Art and Science of Expert Witnessing" and "The Correct Way to Present Exhibits," to name a few, and witnesses who...

Help clients keep 401(k) plans up to date.
November 1, 2003... Often the responsibility to review a company's retirement plan falls on its accountant. CPAs can use this checklist to help their employers or clients determine whether they should update their 401(k) to meet participants' needs. The following...

Tax services after Sarbanes-Oxley: how to cope in an uncertain present.
November 1, 2003... In response to the public outcry for enhanced investor protection, Congress enacted the Sarbanes-Oxley Act of 2002. Among other things it created new penalty and enforcement powers for the SEC--which subsequently issued audit rules--expanded...

Investment adviser advertising: for the uninitiated, the SEC's complex rules can have unintended consequences.
November 1, 2003... In the competitive field of investment advisory services, effective advertising can make the difference between an adviser's success or failure. Government agencies, including the SEC, heavily regulate the form and content of investment adviser...

A good deal depends on preparation: CPAs can help client-owners of closely held entities tidy up their businesses for a sale.
November 1, 2003... Even the most workaholic proprietors eventually want to take it easy, develop an exit plan and turn their business assets into cash. The decision to let go is a big one, and a CPA business valuator can help the client sell the company on the...

The profession's roots: reestablishing integrity as CPAs' primary focus is job no. 1 for the new AICPA chairman.(S. Scott Voynich)(Interview)
November 1, 2003... For S. Scott Voynich, a CPA's most important asset is his or her reputation for honesty and fairness. It's not that the new chairman--who assumed his post in October at the Institute's annual meeting--doesn't recognize the value of competence....

Materiality considerations: audits of government financial statements just got more complex.
November 1, 2003... Few issues involving financial statements in conformity with generally accepted accounting principles (GAAP) have been more elusive and difficult for preparers to address and resolve--or of greater importance--than that of materiality. For...

In Excel, cell names spell speed, safety: give a cell a name, and your work will go faster and be more error-free.
November 1, 2003... Which of these two spreadsheet formulas would you more easily remember and would be less likely to cause typing lapses? =Sales-Expenses or =R3-T9 The first is a hands-down choice because it's composed of word descriptions...

In the money? Some companies may be due an employment tax refund.
November 1, 2003... For years the IRS has insisted companies collect and pay Social Security, Medicare and unemployment taxes on all severance payments they made to former employees after a layoff or termination. About 13 years ago, CSX Corp. challenged this...

Bankruptcy and S corporation pass-through.
November 1, 2003... Although there are some signs the economy is improving, many businesses continue to fail. Recently the Tax Court considered the effect of an S corporation's selling an asset while in bankruptcy. All S corporation shareholders contemplating...

Reasonable compensation.(in assessing taxes for C corporations under IRC section 162)
November 1, 2003... Determining what constitutes reasonable compensation is a longstanding issue for C corporations. IRC section 162(a)(1) allows a deduction for reasonable compensation for personal services actually rendered. The IRS views unreasonable salaries...

Losses trust deducted were not from passive activity.
November 1, 2003... IRC section 469(a)(1) defines a passive activity as one involving the conduct of any trade or business in which the taxpayer does not materially participate. In section 469(a)(2), the statute describes a taxpayer as any * Individual,...

Court says unallocated support payments are alimony.(Tax Court memo)
November 1, 2003... Generally, whether a payment is alimony depends on IRC section 71(b). Alimony and separate maintenance payments (collectively referred to as alimony) are taxable to the recipient and deductible by the payor. When a taxpayer makes support...

Funding medical expenses: alternative ways to pay medical bills.(from The Tax Adviser)
November 1, 2003... Taxpayers needing to fund large and/or ongoing medical expenses should explore tax-minimizing ways to pay them beyond deducting them under the 7.5% of adjusted-gross-income threshold. Potential alternative funding vehicles are described below....

Follow the greenback road: criminal's downfall: what good is all that loot if you can't spend it?(fraud examiners and prosecutors' techniques of discovering illegal income)
November 1, 2003... With a sixth-grade education, legendary gangster Al Capone thought he was smart enough. By the time he was 26, "Scarface" had 1,000 employees and a weekly payroll of $300,000. In the 1930s, when the average American worker made about $2,400...

Directory of AICPA selected services.(Inside AICPA)
November 1, 2003... Address and employment information can be changed online through www.cpa2biz.com ("Member Services", tab, then link for paying dues). Or, members can e-mail, mail or fax the information to Member Satisfaction in New Jersey. In either case, the...