Journal of Accountancy articles from October 2008

Journal of Accountancy archives from October 2008

Profession reacts to IFRS plan: for U.S. GAAP, the end of an era could be in the making. In August, the SEC unveiled a proposed road map that begins to widen the acceptance of International Financial Reporting Standards. The plan could lead to a requirement for U.S. public companies to begin using IFRS by 2014.(generally accepted accounting principles)
October 1, 2008... "It may be a very long time indeed before the world's six and a half billion people can all speak in the same tongue," SEC Chairman Christopher Cox said at the meeting during which the commission agreed to seek comments on the proposal....

Although investors are less confident in U.S. capital markets than they were a year ago, 70% or more continue to voice confidence in the markets and U.S. companies in general, as well as in audited financial statements, according to the Center for Audit Quality's second annual survey of investors.
October 1, 2008... Although investors are less confident in U.S. capital markets than they were a year ago, 70% or more continue to voice confidence in the markets and U.S. companies in general, as well as in audited financial statements, according to the Center...

Nexus for sales and use taxes.
October 1, 2008... States have become more aggressive in claiming a seller has substantial nexus for sales and use tax purposes. They look for instate activities, relationships and assets of unregistered businesses with customers in the state. Here are some tips...

Freedom of choice is good for businesses and consumers. (developing uniformity in accounting services across state lines)
October 1, 2008... In an increasingly global economy, business no longer stops at national borders much less at state lines. With advancements in technology, even relatively small companies have little difficulty extending operations across the nation. All...

Tax treatment of rebates may be clearing up: here's how to manage these payments' tax recognition.
October 1, 2008... EXECUTIVE SUMMARY * The IRS has attempted for many years to categorize rebates as deductions rather than exclusions so that the restrictions of IRC [section] 162 can be applied. But the courts have allowed exclusion treatment for direct...

A showcase of tax research: survey of taxation analysis carries potential insights for practitioners.
October 1, 2008... [ILLUSTRATION OMITTED] In this third installment of "In Practice," we distill research published in tax and accounting journals that should be of interest to busy tax practitioners. The pervasiveness of tax considerations in the affairs of...

Derivatives and hedging: accounting vs. taxation: ballast for stormy financial seas.
October 1, 2008... EXECUTIVE SUMMARY * Hedge documentation is important in both financial reporting and income taxation. For financial accounting purposes, on the date of the hedge, an entity must identify the hedged item, the instrument used, the type of...

XBRL around the world: a look beyond U.S. shores to put the SEC'S interactive data initiative in a global context.
October 1, 2008... EXECUTIVE SUMMARY * While the United States and Asia focus on XBRL for use in capital markets, Europe has developed an eye-opening array of governmentwide and cross-border applications that can share consistently structured XBRL data for...

Better brainstorming.
October 1, 2008... EXECUTIVE SUMMARY * The PCAOB in 2007 raised concerns about accounting firms meeting the brainstorming mandates of SAS no. 99, which requires auditors to brainstorm to determine possible fraud risks, and SAS no. 109, which requires...

Refocusing on reliability: new thinking for compilations and reviews.
October 1, 2008... EXECUTIVE SUMMARY * Current technical literature precludes CPAs from performing review engagements when independence is impaired and requires modifying reports to disclose lack of independence in compilation engagements. * The AICPA...

Linking strategy to operations: balanced scorecard and activity-based costing co-creator shares insights on evolution of management accounting tools.(Harvard Business School professor Robert S. Kaplan)(Interview)
October 1, 2008... [ILLUSTRATION OMITTED] Harvard Business School professor Robert S. Kaplan is co-developer of both activity-based costing and the balanced scorecard. In 2006, Kaplan was elected to the Accounting Hall of Fame, and received the Lifetime...

Rules clarified for claiming the exemption (and related tax breaks) for children of divorced parents.
October 1, 2008... [ILLUSTRATION OMITTED] New final rules clarify who may claim qualifying children in the case of divorced or separated parents. Treasury Decision 9408, amending Treas. Reg. [section] 1.152-4, clarified the "counting nights" rule to identify...

All that glitters is not deductible.
October 1, 2008... The Tenth Circuit Court of Appeals upheld a district court's ruling that a company could not carry back a loss because the statute of limitations had passed. Taxpayers that incur net operating losses are permitted under IRC [section] 172...

Shell wins $19m refund.
October 1, 2008... A district court in Texas allowed Shell Petroleum to carry back capital losses and receive a nearly $19 million refund. The losses were generated by a restructuring transaction involving an exchange of high-basis property for new subsidiary...

Equitable owner equals deduction.
October 1, 2008... The Tax Court held that a married couple could deduct mortgage interest and property tax payments made from a corporate checking account on a home that was owned by their son. The court held that the taxpayers were equitable and beneficial...

Court hangs up on phone tax refund.
October 1, 2008... The Court of Federal Claims held that the statute of limitations applies to taxpayers who paid the telephone excise tax through carriers and were not required to file returns related to it. Until May 2006, the IRS contended that telephone...

Taxpayer ignores CPA's advice at his peril.
October 1, 2008... An owner of a California health care company was found liable by the Tax Court for an accuracy-related penalty for a deduction he claimed in spite of his CPAs advice against it. Larry Wadsworth was a general partner of Gold Coast Medical...

Online retailers battle N.Y. nexus.
October 1, 2008... Online retailers Amazon.com and Overstock.com sued the New York State Department of Taxation and state officials over the state's new definition of Web sellers required to collect sales and use tax. New York changed the definition of vendors...

Substantially equal periodic payments from an IRA.(individual retirement accounts)
October 1, 2008... In the current economic climate, unexpected circumstances may cause many individuals to consider the early withdrawal of IRA funds. Minimizing the tax consequences of these withdrawals requires careful consideration of opportunities to avoid...

Professors receive grants for management accounting research.
October 1, 2008... The Institute awarded research grants for 2008-2009 to accounting and management professors Barry Mishra and Erik Rolland of the A. Gary Anderson Graduate School of Management at the University of California-Riverside; and Shannon W. Anderson...

AICPA ... where to turn. (American Institute of Certified Public Accountants) (Directory)
October 1, 2008... Member Service Center 1-888-777-7077 * Option #1 Orders/CPE/Conference Inquiries * Option #2 AICPA Membership Inquiries Including Dues * Option #3 Webcast/AICPA.org Web Site/CPA2Biz Including Log In & Access Inquiries * Option...