Journal of Accountancy articles from October 2007

Journal of Accountancy archives from October 2007

Seeking clarity: the battle against complexity heats up.(SEC Advisory Committee on Improvements to Financial Reporting chairman)(Interview)
October 1, 2007... [ILLUSTRATION OMITTED] Robert Pozen is chairman of MFS Investment Management and was recently appointed chairman of the new SEC Advisory Committee on Improvements to Financial Reporting (CIFiR). He recently answered questions from the...

Users grade tax software: industry consolidation continues.
October 1, 2007... A record number of CPAs responded to our fourth annual professional tax software survey in which we invited AICPA members to disclose, among other things, what tax-preparation software they use and how they evaluated various aspects of their...

Untying the knot: planning for de-merger: a well-drafted agreement eases the pain if a CPA firm merger goes sour.
October 1, 2007... [ILLUSTRATION OMITTED] EXECUTIVE SUMMARY * A merger process should include planning for a de-merger and establishing a sound agreement if a de-merger subsequently becomes necessary, * De-merger agreements define how to treat...

NPO compensation in the spotlight: best practices help tax-exempt entities avoid penalties.(nonprofit organizations)
October 1, 2007... [ILLUSTRATION OMITTED] EXECUTIVE SUMMARY * Intermediate sanctions impose a penalty tax on key employees of certain tax-exempt organizations who receive unreasonable compensation, and on managers who approve it knowingly. *...

Fashioning a fraud: analysis of expense patterns exposes crime.
October 1, 2007... [ILLUSTRATION OMITTED] EXECUTIVE SUMMARY * Businesses must clearly define the roles and responsibilities of employees who sign expense reports and those who process the reports. That should eliminate confusion about whether a manager's...

Accounting for uncertainty: FIN 48 and new return standards require tax preparers to assess a variety of thresholds.
October 1, 2007... [ILLUSTRATION OMITTED] EXECUTIVE SUMMARY * FASB Interpretation no. 48 (FIN 48), Accounting for Uncertainty in Income Taxes, sets the threshold for recognizing the benefits of tax return positions in financial statements as "more likely...

Corner: "reasonable certainty" for a theft loss deduction.
October 1, 2007... [ILLUSTRATION OMITTED] The Internal Revenue Code often requires the calculation of amounts that are less than absolute but more than mere guesses. IRC [section] 165 allows taxpayers to deduct theft and other casualty losses but requires...

Pot parsed from deductible expenses.
October 1, 2007... As a general rule, it is illegal to traffic in marijuana, although California and some other states have legalized the use of marijuana for medical treatment. A California nonprofit benefit corporation that supplied medical marijuana to its...

Travel deduction gets bumped.
October 1, 2007... The Tax Court recently held that an airline mechanic could not deduct travel expenses while working in a city to which he was transferred by his employer, even though he hoped to return to his city of residence. The court concluded the mechanic...

Overlooked medical deductions abound.
October 1, 2007... While it is common knowledge that taxpayers may deduct qualified medical expenses for themselves and their dependent children, other opportunities to deduct medical expenses are not so widely known. One is the deduction of medical expenses that...

Statement on Standards for Accounting and Review Services No. 15 - elimination of certain references to statements on auditing standards and incorporation of appropriate guidance into statements on standards for accounting and review services.
October 1, 2007... (Amendment to Statement on Standards for Accounting and Review Services [SSARS] No. 1, Compilation and Review of Financial Statements, AICPA, Professional Standards, vol. 2, AR sec. 100.01, 100.04, 100.14-.15, 100.18, 100.42, 100.46-100.48,...

The last word.(forensic accounting)
October 1, 2007... As a forensic accountant, I feel like a modern-day Nancy Drew. I am an accountant, investigator and therapist, all wrapped up into one. In the family law division of litigation support, our main focus is to help clients through the divorce...