Journal of Accountancy articles from October 2006

Journal of Accountancy archives from October 2006

An AICPA Tax Section task force submitted comments.(HIGHLIGHTS)
October 1, 2006... An AICPA Tax Section task force submitted comments to the Treasury Department on its 2005-2006 Priority Guidance Plan, which proposed the issuance of guidance on whether negative additional section 263A costs are taken into account under...

As quoted.(top line: News, People, Trends and Other Noteworthy Items)
October 1, 2006... "As an analyst I was very comfortable being uncomfortable, and as a CFO I have to be comfortable being uncomfortable. I have to be fine with delivering bad news." --Sallie Krawcheck, CFO, Citigroup

Buy me some peanuts and cracker jack.(professional baseball taxation)
October 1, 2006... If the sun is shining outside, you're likely to find Jack Oujo, CPA, on a baseball field. The former AAA minor league umpire just can't get the game off his mind. In addition to running Jack Oujo CPA Inc. of Wall, N.J., Oujo coached his...

Job-hunt tips.(TOP 10)
October 1, 2006... 1| Look for opportunities. Take on new assignments to broaden your skills. Put out feelers to see whether you're marketable outside your company On an interview, don't passively expect to be told where you'll fit in. Create a job for yourself....

Policies and Procedures to Prevent Fraud and Embezzlement: Guidance, Internal Controls, and Investigation.(Brief article)(Book review)
October 1, 2006... Policies and Procedures to Prevent Fraud and Embezzlement: Guidance, Internal Controls, and Investigation By Edward J. McMillan 308 pages; softcover John Wiley & Sons Inc., Hoboken, N.J., 2006 Nearly every enterprise is a potential victim...

On the record.(top line: News, People, Trends and Other Noteworthy Items)
October 1, 2006... Although typically the major players have been making the headlines, defendants are coming from all types and sizes of businesses.... When it comes to corporate fraud, anyone can be a player. --Executive Roadmap to Fraud Prevention and...

Data point.(top line: News, People, Trends, and Other Noteworthy Items)
October 1, 2006... Percentage of working mothers that said their bosses were supportive of their family needs. Source: This Is How We Do It: The Working Mothers' Manifesto by Carol Evans, Hudson Street Press, 2006.

The International Ethics Standards Board for Accountants, an independent standard-setting board within IFAC, revised the Code of Ethics for Professional Accountants by updating the definition of a network firm, which is required to be independent of an audit client of another firm within the network.(INTERNATIONAL)
October 1, 2006... The International Ethics Standards Board for Accountants, an independent standard-setting board within IFAC, revised the Code of Ethics for Professional Accountants by updating the definition of a network firm, which is required to be...

AICPA President and CEO Barry C. Melancon and SEC Chairman Christopher Cox will be keynote speakers at the 14th International XBRL Conference & Exhibition in Philadelphia on December 4-6, 2006.(XBRL)
October 1, 2006... AICPA President and CEO Barry C. Melancon and SEC Chairman Christopher Cox will be keynote speakers at the 14th International XBRL Conference & Exhibition in Philadelphia on December 4-6, 2006. "XBRL's potency as a business tool is recognized...

Metrics of greatness: make money - but also make a difference.
October 1, 2006... CPA firms are in the business of measuring business; in our world success is measured mainly by how much money the partners make. Pundits, consultants, journalists and partners usually define a firm's "greatness" by purely economic metrics such...

Tax software 2007: the market narrows, but products improve.
October 1, 2006... With the passing of the 2005 tax season and summer vacations, tax practitioners are gearing up for their annual shopping ritual--deciding what brand of tax-preparation software to purchase for tax year 2006. As the latest Journal of Accountancy...

The ABCs of QPRTs: a properly structured trust can freeze the value of a client's residence for estate tax purposes.(qualified personal residence trust )
October 1, 2006... EXECUTIVE SUMMARY * Transferring a residence to a qualified personal residence trust (QPRT) is a popular estate planning technique that can help reduce the size of the grantor's estate. If structured properly, the QPRT will freeze the...

Matching deductions to payments: payer/payee rules are not always clear.
October 1, 2006... EXECUTIVE SUMMARY * The matching concept is often used to test whether a particular accounting method clearly reflects income. However, the IRS's requirement that one taxpayer's revenue match another's expense may not be upheld by the...

Taking flight: tax aspects of aircraft ownership.
October 1, 2006... EXECUTIVE SUMMARY * Following 9/11 companies of all sizes increased their purchases of business aircraft to make travel easier and more convenient for employees and executives. CPAs should be aware of the tax, financial, operational and...

Bridging a breakup: in divorce, neutrality is the name of the game. (accountant services in divorce mediation)
October 1, 2006... EXECUTIVE SUMMARY * More family law attorneys are recommending their divorce clients hire a single, neutral CPA to help handle the transition from their shared financial life to their new independent lives. Using a neutral CPA often keeps...

First form a plan: keep your goals and strategy up front to help focus marketing and development efforts.
October 1, 2006... EXECUTIVE SUMMARY * The most valuable service trusted CPA investment advisers bring to clients is a clear direction. A business plan helps provide a road map-a sound investment approach based on the tenets of prudent investing-and the...

Understanding closing agreements.
October 1, 2006... When an IRS audit identifies deficiencies in a tax return, the taxpayer may be asked to sign a closing agreement. There are two types of closing agreements. The first--contained on Form 866, Agreement as to Final Determination of Tax...

Medical reimbursement plan for employee-spouse.
October 1, 2006... Employees can exclude reimbursement they receive from their employers for medical expenses--and employers can deduct payments made to employees--only under certain conditions. There must be a bona fide employer-employee relationship and a...

Family limited partnership transfers were indirect gifts of stock.
October 1, 2006... IRC section 2501 imposes a tax on the transfer of property by gift during a tax. able year. IRC section 2511 says this tax applies whether the gift is direct or indirect or the transfer is in trust or otherwise. The gifted property is valued as...

Interest owed to a related foreign entity.
October 1, 2006... When a taxpayer owes interest to a related foreign entity that is exempt by treaty, Treasury regulations section 1.267(a)-3 requires that the taxpayer use the cash method. The Seventh Circuit Court of Appeals affirmed the validity of this...

Home builders have new tax credit: energy efficiency gets rewarded.(From The Tax Adviser)
October 1, 2006... U.S. home builders have new motivation to build energy-efficient homes. The Energy Policy Act of 2005 included many provisions regarding coal, natural gas, renewable energy and energy efficiency and distribution. It also enacted a new tax...

Inductees to B&I Hall of Fame.(Inside AICPA)
October 1, 2006... Four CPAs-Mark Bartlett, Scott Green, William Harmon and Warren Haruki-were inducted by the Institute and Ajilon Finance into the AICPA Business & Industry Hall of Fame in recognition of their strategic insight, business expertise and...

AICPA names new director.(Inside AICPA)
October 1, 2006... Dennis R. Reigle will become the Institute's director of academic end career development in January 2007 in its Durham, N.C, office. In this role, he will lead the AICPA's academic outreach and student recruitment initiatives, the AICPA...

The last word. (influence of certified public accountant's military service)
October 1, 2006... I WAS A 17-YEAR-OLD HIGH SCHOOL DROPOUT DURING VIETNAM; I joined the military to get an education. I started as a communications specialist, carrying a radio on my back, and then switched to the military police. I grew up protecting my family...