Journal of Accountancy articles from November 2005

Journal of Accountancy archives from November 2005

Financial management Web site opens: the AICPA creates a hub for members in business and industry to connect with colleagues, keep current on business ideas and access tools and research.
November 1, 2005... The AICPA is committed to supporting its members in business and industry, and therefore, the Financial Management Center has been created with the needs of these members in mind. Financial executives' and financial managers' responsibilities...

Five facts about your credit.
November 1, 2005... Things you should know to keep your credit rating healthy. 1 You have three credit reports. Each of the three national credit bureaus--Equifax, www.equifax.com; Experian, www.experian.com; and TransUnion, www.transunion.com--independently...

Get your BV niche out there: referral sources are the key to building business in this fast-growing specialty.
November 1, 2005... EXECUTIVE SUMMARY * CPAs WHO SEEK TO DEVELOP A BV NICHE should first determine the areas in which the firm can demonstrate expertise to referral sources. Prospects want to know that a firm understands their business. CPAs need technical...

Medical practices: a BV [R.sub.x]: using an income approach to value health care practices gets the best results.
November 1, 2005... EXECUTIVE SUMMARY * CPA/ABVs NEED TO BE AWARE that a market-data approach to valuing medical entities is easy to follow but may yield less meaningful data than an income approach. * INCOME-APPROACH METHODS include capitalization of...

Bankruptcy reform is here: at one time a Chapter 7 filing let debtors off the hook - no more.
November 1, 2005... EXECUTIVE SUMMARY * CPAs NEED TO UNDERSTAND THE IMPACT of the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 so they can advise clients how their relationships with or as debtors is altered. The two most important changes...

No privacy in bankruptcy: data in the public record are there for anyone to see.
November 1, 2005... EXECUTIVE SUMMARY * LAWS AND REGULATIONS PROHIBIT CPAs from disclosing clients' personal financial information, but bankruptcy statutes require that very same information to go into the public record. CPAs can't change the law, but they...

The future has never looked brighter: three international leaders representing accountants in business and industry talk about the profession.(Chief executive officers Steve F. Vieweg of Certified Management Accountants of Canada, Charles B. Tilley of Chartered Institute of Management Accountants in London and Barry C. Melancon of AICPA) (Interview)
November 1, 2005... Where are we going, where have we been and how can we best reach our destination together? These are some of the subjects on the minds of the chief executives of the world's leading accounting organizations representing more than 335,000...

Valuing IP Post-Sarbanes-Oxley: it's no longer a matter of making a best estimate.(intellectual property)
November 1, 2005... EXECUTIVE SUMMARY * ALTHOUGH SARBANES-OXLEY SETS NO SPECIFIC requirements for CPAs valuing intellectual property, it does put greater emphasis on accurate valuation of all assets and imposes punishments on CEOs and CFOs for failure to do...

AICPA agenda: helping in time of need.
November 1, 2005... "All of us at the AICPA share the deep sadness and concern the entire nation feels over the devastation caused by Hurricanes Katrina and Rita. Our hearts go out to the hundreds of thousands of Americans whose lives have been forever changed,...

The virtues of volunteering: never underestimate the absolute necessity of trust.
November 1, 2005... I was recruited to the American Red Cross by a former member of this council, Ron Pitman, who asked whether I'd chair an audit committee meeting at my local chapter. I didn't believe I had the time, but felt one meeting was doable. Well, we...

Double-teaming in Excel: spreadsheets now can solve tougher calculations.
November 1, 2005... Creating a spreadsheet to calculate depreciation expenses for a single property class is a piece of cake for most accountants using Excel's LOOKUP function (see "Make Excel a Little Smarter," JofA, Jul.03, page 735. But many CPAs might scratch...

Pay now or defer: no income deferral if services are involved.
November 1, 2005... EXECUTIVE SUMMARY * THE DEFERRAL OF TRADE DISCOUNTS BY RETAILERS has caused the INS to closely police whether allowances contingent on services performed are really trade discounts. If a discount is strictly volume-related, receiving it in...

Conservation easements.(qualified conservation contributions)
November 1, 2005... Do you have a client who's interested in protecting the environment as well as getting a tax break? Recently, the Tax Court considered the deductibility of a conservation easement to a charity. In 1988 Mr. and Mrs. Charles Glass purchased...

What makes it alimony?
November 1, 2005... When do family support payments constitute alimony? CPAs advising clients about their tax status in a divorce need to know the rules. Alimony payments are deductible for tax purposes for a payor spouse but represent gross income to the...

No marketability discount for lottery winnings.
November 1, 2005... The Massachusetts District Court held in Estate of Donovan v. United States that, for estate tax purposes, the value of a stream of lottery payments due to a decedent must be based on the annuity valuation tables in IRC section 7520 without a...

Dyslexia program tuition is a valid deduction: special education as a medical expense.(from The Tax Adviser)
November 1, 2005... In letter ruling 200521003, the IRS held that tuition paid to a school program to help dyslexic children deal with their condition was an IRC section 213(a) deductible medical expense. The ruling broadens--albeit slightly--the definition of the...

Directory of AICPA selected services.(Directory)
November 1, 2005... 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...

The last word.(working in public accounting)
November 1, 2005... I majored in accounting because I wanted to do something in business but didn't know what--and I figured an accounting degree would give me more options in whatever I chose to do. The best thing about public accounting is the chance to...