Journal of Accountancy articles from September 2004

Journal of Accountancy archives from September 2004

A former AICPA president is dead at 88.(Obituary)
September 1, 2004... Ralph E. Kent of Durham, North Carolina, died on June 26, 2004. He served as president--the title then held by the Institute's highest ranking volunteer--for the 1968-69 committee year and then as a life member of the AICPA council until the...

Non-profits face funding pressures.(from Audit Risk Alert)(Advertisement)
September 1, 2004... Fund-raising shortfalls can cause problems for some NFPs that auditors need to know about. Adapted from the new Audit Risk Alert. by Lori A. West, CPA, Technical Manager, AICPA Accounting and Auditing Publications As the world changes,...

CPA2Biz delivers update to AICPA council: CPA2Biz, the AICPA's marketing and technology provider, experiences steady online growth, releases new site features and develops a set of core business solutions programs to meet the needs of small and midsize public practitioners and CPAs working in business and industry.
September 1, 2004... Over the past year CPA2Biz, the exclusive marketing provider of the AICPA, has launched a pair of new initiatives enabling CPAs to build stronger relationships with their clients or employers. Now it's looking ahead to several new Web site...

Encourage general ledger efficiency.
September 1, 2004... A company's general ledger function requires regular upkeep to streamline the number of accounts, store the most current information in readily accessible locations and contribute to a quick, efficient closing process. Frequent maintenance lets...

Divorce agreement language: proper wording in divorce documents is crucial.(tax issues in divorce)
September 1, 2004... EXECUTIVE SUMMARY * FOR ALIMONY TO BE TAX DEDUCTIBLE, payments must be made in cash under a divorce or written separation instrument, the spouses must reside in separate households, the payor's liability must end with the payee's death,...

EE vs. I bonds: which are better? U.S. savings bonds can be an integral part of an investment strategy.
September 1, 2004... EXECUTIVE SUMMARY * CPAs WHO PROVIDE FINANCIAL PLANNING SERVICES need to weigh the similarities and differences between U.S. Treasury series EE bonds and I bonds to help clients make savings bonds a part of their investment strategy. ...

Add muscle to "what-if" analysis: make Scenario Manager even more productive.
September 1, 2004... When you prepare budgets or other financial analyses built on future assumptions, you usually have to try out various estimates before you can come up with the scenario that meets your needs. In a typical situation, you even may need to print...

Financial reporting goes global; international standards affect U.S. companies and GAAP.
September 1, 2004... EXECUTIVE SUMMARY * THERE IS A CLEAR TREND TOWARD ADOPTING IFRS as the single body of internationally accepted financial reporting standards. In the next few years, thousands of companies will move to IFRS as a primary basis of financial...

Employer-provided education benefits: section 132(d) is worth a second look.
September 1, 2004... EXECUTIVE SUMMARY * MANY EMPLOYERS PROVIDE EMPLOYEES WITH TAX-FREE education benefits. The two most common are scholarships and grants under IRC section 117 and education-assistance programs under section 127. There is, however, a third...

Fraud risk: are you prepared? The mission: to create stronger support for an ethically sound business environment.(Interview)
September 1, 2004... Incentives that reward individuals for short-term results, a culture that has been insufficiently vigilant, advances in technology and more sophisticated business transactions have increased opportunities for fraud and abuse and enabled...

Internal audit's new role: put together a top-notch department.
September 1, 2004... EXECUTIVE SUMMARY * NYSE-LISTED COMPANIES MUST HAVE INTERNAL audit departments in place in advance of an October 31 deadline. Internal auditors also are evaluating the scope of work their departments should take on to comply with...

What's ahead in enforcement? By looking at NASD and stock exchange regulation, firms can see what might unfold regarding their own.(National Ass'n of Securities Dealers)
September 1, 2004... One of the main features of the Sarbanes-Oxley Act was the creation of the Public Company Accounting Oversight Board (PCAOB). The PCAOB, a Congressionally created private-sector, nonprofit corporation, was granted sweeping powers over the...

Impact of self-employment loss on earned income.(Tax Court memo in Briggs v. Commissioner)
September 1, 2004... Inconsistencies in the law often prove troublesome for taxpayers and the IRS. Various tax code sections define "earned income" differently, some reference it differently and still others refer to it but don't define it. IRC section 63 is a...

Debt allocation and LLCs.(limited liability companies)
September 1, 2004... The number of limited liability companies (LLCs) in the United States is increasing dramatically. Most choose to be taxed as partnerships and follow the normal partnership rules. However, some of those regulations must be adjusted as a result...

Court upholds IRS lien against corporate "alter ego".(Baum Hydraulics Corp. v. United States)
September 1, 2004... Title 26, section 6321, of the U.S. code provides: If any person liable to pay any tax neglects or refuses to pay the same after demand, the amount... shall be a lien in favor of the United States upon all property and rights to property,...

IRS allows statistical sampling for M&E costs: new procedure may increase taxpayer deductions.(meals and entertainment)(from The Tax Adviser)
September 1, 2004... There is very good news for CPAs whose clients face the often burdensome administrative costs of claiming allowable expense deductions for meals and entertainment (M&E)--the IRS now will permit the use of statistical sampling to account for...