Accounting Today articles from April 2007

Accounting Today archives from April 2007

Tax Season Update: All Quiet on the 1040 Front: 2007 Filing Season Passes Midpoint Without Incident.
April 2, 2007... Although there were delays on issuing 1099s, and some problems have surrounded the telephone tax refund, the 2007 filing season has been relatively uneventful, observers said. The traditionally frenetic period had, at press time, passed its...

Opinions pour in on SOX 404 proposal.(Public Company Accounting Oversight Board)
April 2, 2007... WASHINGTON, D.C. -- Plans by the Public Company Accounting Oversight Board to overhaul the organization's standards for internal control audits don't go far enough to correct the problems of the PCAOB's original ground rules - or they go too...

Skirmish continues over IRS's debt collection strategy.(Internal Revenue Service)
April 2, 2007... The controversial use of private debt collectors by the Internal Revenue Service may be little more than a stopgap to make up for the service's lack of funding to hire its own personnel - while opponents charge that the initiative is expensive...

Vitale faces malpractice suit.
April 2, 2007... Boston-based Vitale Caturano & Co. is facing a malpractice suit for allegedly failing to properly investigate a number of red flags that could have tipped a prominent New England family off to the looting of some $57 million from its trust...

Accounting Online: NetSuite rolls out new e-commerce features.
April 2, 2007... SAN MATEO, CALIF. -- Online business applications provider NetSuite has bolstered its e-commerce operations with a variety of new features designed to target larger, midsized companies and complement a recently sealed partnership with online...

In Brief: Olson, McCreevy Target '09 for Convergence.(Public Company Accounting Oversight Board's Mark Olson)(European Union's Charlie McCreevy)(Brief article)
April 2, 2007... WASHINGTON -- The heads of the major accounting regulators in the U.S. and the European Union agree that they are on the same page in heading towards convergence of standards. Speaking at a meeting in Washington, Public Company Accounting...

In Brief: Grant Thornton, J.H. Cohn report double-digit growth.(earnings)(Brief article)
April 2, 2007... CHICAGO -- Grant Thornton LLP, the U.S. member firm of Grant Thornton International, reported that its revenues for the 2006 calendar year were up 18.2 percent, to $940 million. The total number of Grant Thornton employees increased 14 percent,...

Debate opens on IFRS reporting standards for SMBs.(International Financial Reporting Standards)(Small and Medium Business)
April 2, 2007... BRUSSELS -- Following a long period of assimilation, the London-based International Accounting Standards Board has released an exposure draft on accounting principles under International Financial Reporting Standards for the small and midsized...

Editor's desk: The seven-year ditch.(accounting services)(Editorial)
April 2, 2007... In 1982 I received a letter that, incredibly, bore a seven-year-old postmark. It was sent by my parents in New York and was intended to reach me at college in Colorado. The mailing had apparently taken a wrong turn somewhere near the Rockies,...

Commentary: How about mobility and public protection?(interstate trade)
April 2, 2007... By Tom Hood -- Call me an eternal optimist, but I subscribe to a theory put forth by Jim Collins, author of the best-selling book Built to Last, which is to celebrate the beauty of "and" thinking and fight the tyranny of "or" thinking. As...

Letters.(Letter to the editor)
April 2, 2007... An outdated concern? I read your First Look e-mail (for the Feb. 26-March 18, 2007, issue) and I am shocked. The article on diversity ("The profession changes - but is it enough?" page 1) should have been pulled and the author blacklisted...

Take advantage of e-filing - but prepare early!
April 2, 2007... By now, tax practitioners know that e-filing is here to stay. Every year, changing mandates increase the number of businesses required to file their federal tax returns electronically, and the Internal Revenue Service offers more and better...

In Brief: Phone Tax Headache Continues.(Internal Revenue Service)(Brief article)
April 2, 2007... WASHINGTON -- Only time will tell whether the bane of the 2006 tax filing year for the Internal Revenue Service is the scam-prone telephone tax refund, or the confusion that seems destined to arrive soon surrounding a number of extender...

In Brief: IRS to Develop LIFO Guidance for Auto Dealers.(Internal Revenue Service)(Last in, first out )(Brief article)
April 2, 2007... WASHINGTON -- The Internal Revenue Service and the Treasury announced that they will work on creating detailed LIFO guidance for automobile wholesalers, manufacturers and dealers. The accounting issue confronting the automobile industry -...

FIN 48: The latest challenge for accounting and tax professionals.(Sarbanes-Oxley Act of 2002)
April 2, 2007... The Sarbanes-Oxley Act brought the tax manager into the financial statement reporting process as never before. As SOX Section 404 internal control certifications were made with respect to each input into the financial statements, it became...

Commentary: Balancing risk and control approaches for Sarbanes-Oxley.(Public Company Accounting Oversight Board)(Securities and Exchange Commission)
April 2, 2007... After much criticism and debate over the best approach to regulating business, in December the Public Company Accounting Oversight Board proposed a new audit standard for Sarbanes-Oxley Section 404 implementation. Concurrently, the...

Assurance Briefs.(Ernst & Young L.L.P. to resign as auditor of The Shaw Group Inc.)(survey of audit committees)
April 2, 2007... SHAW AUDITOR RESIGNS The Shaw Group Inc., a Baton Rouge, La.-based multi-services provider for clients in the government and private sectors, said that Big Four firm Ernst & Young will resign as the company's auditor. In a filing,...

Gaining a new perspective: They were so intent on managing the image of their companies that they ignored the reality that the capital markets will do what they must in order to be adequately informed.
April 2, 2007... In The FASB: The People, the Process, and the Politics, a book that we published under the McGraw-Hill imprint in 1998, we presented a brief discussion of what we called "a new perspective" that unveils the futility of many of the beliefs and...

In Brief: Mayer to Lead IRS CID.(Internal Revenue Service)(Eileen Mayer appointment at Criminal Investigation Division)(Brief article)
April 2, 2007... The head of the Internal Revenue Service's Office of Fraud/Bank Secrecy Act will now play a key role in efforts to halt tax fraud, after being named the new head of the agency's Criminal Investigation Division. In announcing Eileen Mayer's...

CPAs can boost their financial planning practices via alliances.(Certified Public Accountant)
April 2, 2007... Industry data projects that by 2010, nearly half of all CPA firms will, to some degree, be providers of financial services to affluent clients. This represents a dramatic leap from the situation today, when only 19.4 percent of CPA firms...

In Brief: Retirement Saving Tops Concerns.(Survey)(Brief article)
April 2, 2007... Retirement is the No. 1 personal financial planning concern, regardless of age, according to an informal survey taken by the American Institute of CPAs at its Personal Financial Planning Conference. The AICPA said that it was a surprised to...

In Brief: Vest Partners with Cannon Financial.(H.D. Vest Inc.)(Cannon Financial Institute)(Brief article)
April 2, 2007... Broker/dealer H.D. Vest has teamed with Cannon Financial Institute, a provider of financial services consulting, to provide practice management training to its top 600 advisors. The training sessions are scheduled to take place in Arizona and...

In Brief: Morningstar Introduces Baskets.(Morningstar Investment Services Inc.)(Brief article)
April 2, 2007... Morningstar Investment Services, a registered investment advisor and subsidiary of financial information concern Morningstar Inc., has launched Morningstar Managed Portfolios Select Stock Baskets, a managed account service consisting of...

Vendor Profile: SAP charges towards small and midsized market.(Company overview)
April 2, 2007... Global software provider SAP is working to shed its reputation of being inaccessible to the small-and-midsized market. The Walldorf, Germany-based company, known for its enterprise relationship planning software system, is targeting what it...

In Brief: Office Accounting Express Reaches 1mn Downloads.(Brief article)
April 2, 2007... Microsoft Office Accounting Express 2007, a stripped-down version of the company's Accounting Professional 2007 software, recently passed the 1 million mark in downloads during its first three months as a free application. Microsoft...

In Brief: Kintera Rolls Out NFP system.
April 2, 2007... Kintera Inc. has unveiled its first software-as-a-service fund accounting system for nonprofits. Kintera Sphere Fundware will allow nonprofit and government organizations to track end-to-end flow of funds, integrating with business...

The 7 requirements of a training/learning culture.
April 2, 2007... A training and learning culture is key to retaining and attracting bright employees. What is a training and learning culture? It's a culture in which the firm grows smarter and more productive. Mediocrity is unacceptable to firms that embrace...

New Products.
April 2, 2007... SOFTWARE QB control Internal controls are all the rage these days, but the small companies that could benefit the most from implementing them are often unable to do so - so QuickBooks users will welcome the new release of Personable...

People.(briefs)(appointments)
April 2, 2007... ALABAMA Tracy T. Conerly, a partner with Carr, Riggs & Ingram LLC, has joined the Board of Directors of BancTrust Financial Group Inc., Mobile, the holding company of BankTrust (Florida), where she has been a director since 1999. ...

Firms.(Restivo Monacelli LLP's new office at boston)(Skoda, Minotti & Co. and Benefits Resource Group are forming together Aurum Wealth Management Group)(Old Dominion University received $50,000 from Wall, Einhorn & Chernitzer PC)(Brief article)
April 2, 2007... LATIN AMERICA BDO Bustamante & Bustamante, Panama, and BDO Trinity Limited, Trinidad and Tobago, have joined BDO International as member firms. MASSACHUSETTS Restivo Monacelli LLP, Providence, R.I., has opened a Boston office at...

Coming Events.(Calendar)
April 2, 2007... April 9-10: Balanced Scorecard Workshop III: Executive Strategy with the Balanced Scorecard, American Institute of CPAs. AICPA Boardroom, New York City. Contact: (888) 777-7077 or www.cpa2biz.com. 18-19: Tiburon CEO Summit XII, Tiburon...

Advertiser Index.
April 2, 2007... Advertiser Page AccountantsWorld 31 CCH ATX 23 CCH Tax Group 32 CCH TaxWise 15 Drake Software 17 ...

Opening Thoughts: Money: Where it is and Where it is Going.(Viewpoint essay)
April 2, 2007... Wealth! My dictionary says it is an abundance of valuable material possessions or resources. In other words, money. Just like that song from "Cabaret," money apparently makes the world go round. Or does it? Most people believe that money...

Financial Planning News: Building Wealth.(National Association of Securities Dealers and NYSE Group Inc. to gel regulatory functions)(Americans financially prepared for retirement says survey)(H.D. Vest Advisors adopts new technology)
April 2, 2007... OVERSIGHT MERGER ON DECK Forming one organization Members of NASD have approved bylaw changes needed to combine regulatory functions with NYSE Group and form one organization to oversee U.S. securities brokers and dealers, according to...

Estate Planning: Beware of the Deficit Reduction Act: What accountants need to know.
April 2, 2007... Craig Smith, a long-time client, comes in for his usual financial services and planning advice. In the course of the meeting, you learn that his 82 year-old mother is going into a nursing home. Craig asks you, as his financial advisor, what he...

Investment Opportunities: Swap, Hold, or Fold?: Playing your hand in a down market.(certified public accountants)
April 2, 2007... How do you best advise your clients when the market is falling? Most savvy CPAs relish a temporary down market; this is when they can help their clients distinguish themselves from the herd. When the red-hot bull market of real estate was...

Cover Story: The Great Wealth Transfer: Will Your Services Be In Greater Demand?(Cover story)
April 2, 2007... The greatest wealth transfer this country has experienced will continue over the next 10 to 25 years. Although a lot of wealth was also generated in the late19th and early 20th centuries, this was held by relatively few in the U.S. population....

Financial Planning: Business Succession Strategies That Work: Values, Morals, and Matters of the Heart.
April 2, 2007... A seminal event occurred in 2006 that will have a profound impact on family businesses in the years to come. The first baby-boomer turned age 60 and here is why it's such a big deal. Many of these baby-boomers own successful businesses and...

Estate Planning: The Incredible Sinking ILIT Policy.(irrevocable life insurance trust)
April 2, 2007... One of the standard techniques in estate planning has been to recommend the purchase of a policy of life insurance to be owned by an irrevocable life insurance trust (ILIT) or to recommend the transfer of a policy owned by a client to such a...

Investment Planning: How To Identify An Advisor You Can Trust.
April 2, 2007... When it comes to home repairs, individuals can be categorized into two broad groups. The first group is what we might call the "Home Depot Crowd," the do-it-yourselfers (DIY). This group has many subgroups. One subgroup belongs because they...

Retirement Planning: Making Most the of Your 401(k) Plan.
April 2, 2007... Everything in life involves risk, and investing for retirement is certainly no exception. Knowing how much risk you're comfortable with can go a long way in preventing sleepless nights and uncertainty during volatile markets. * PAY OFF...

Retirement Planning: The Silver Bullet.
April 2, 2007... In a pivotal study of American retirees in 2002, gerontologist Ken Dychtwald found that the single biggest driver of retiree satisfaction was not in the assets they had accumulated, but in their financial preparedness. So there you have it....

My Two Cents: Fitting Social Responsibility Into the Investment Process.
April 2, 2007... As socially responsible investing (SRI) becomes more popular, advisors might consider what to do when clients want to integrate an SRI component into their portfolios. It's a mistake to begin by choosing investments based on clients' SRI...

Disaster recovery planning: How do you measure up?
April 16, 2007... NEW YORK -- When Matt Camden, chief information officer at UHY Advisors in Chicago, faced an audit server outage in one of his New England offices over a February weekend, he was able to restore his data in a period of 11 hours. "Two of...

Regulatory spotlight shines on NFPs.(nonprofit organizations)
April 16, 2007... The climate is changing for nonprofit organizations, with both the Internal Revenue Service and Congress zeroing in on issues such as transparency, board oversight and compensation matters. While Sarbanes-Oxley requirements apply to only...

Runaway Tax: Dems, GOP agree: AMT needs to go!(alternative minimum tax)(Grand Old Party)
April 16, 2007... WASHINGTON D.C. -- Like their GOP predecessors, the Democrats in charge of Congressional tax committees continue to wring their hands over the fiscal train wreck looming due to the escalating alternative minimum tax. But agreement on a way...

Opinions divided on FASB's proposal on derivatives.(Financial Accounting Standards Board )
April 16, 2007... NORWALK, CONN. -- Derivatives may be complex instruments, but they nevertheless have to be calculated, accounted for and reported on to investors and other users of financial information. The Financial Accounting Standards Board tried to...

In Brief.(Mosebach Griffith and Co. acquires Chavarria Dunne & Lamey LLC)(Government Accountability Office requests increase in funding)(Carlin, Charron & Rosen, ends merger negotiations with UHY Advisors)
April 16, 2007... CLIFTON GUNDERSON ABSORBS NEW MEXICO FIRM PEORIA, ILL. - Midwestern regional firm Clifton Gunderson has acquired Chavarria Dunne & Lamey LLC of Albuquerque, N.M. Terms of the merger, which became effective April 1, were not disclosed....

States and feds fight for military tax benefits: 26 states offer tax breaks for members of the military. Five states offer outright exemptions.
April 16, 2007... WASHINGTON, D.C. -- New Jersey is working to join a roster of U.S. states that are offering tax breaks to local military personnel, as a state legislator has authored a bill that would exempt income earned by military personnel stationed...

Editor's desk: Chamber music.(Chamber of Commerce of the United States and financial market regulations)
April 16, 2007... The first time I came into contact with a chamber of commerce was to research a high school project on the rapid growth of business parks around my hometown on Long Island. The office agreed to let me speak to one of the associate directors,...

Commentary: CPA mobility plan needs the right framework.(Certified Public Accountants)
April 16, 2007... As it stands now, CPAs must often register or pay a fee when practicing in a state in which they are not licensed and have no office or intention to open one. This is true even if the CPA's business is being conducted over the Internet, by...

Letters.(Letter to the editor)
April 16, 2007... A RARE CONSENSUS It surprised me, but for once I don't disagree with columnists Miller & Bahnson! Their article on purchase accounting (Feb. 26-March 18, 2007, page 12) is correct. Coming up with the fair value for the seller's assets and...

State tax rates hold steady, but some find other ways to bite.
April 16, 2007... A combination of both strong economic growth and low unemployment helped keep state tax rates flat for 2006. Nevertheless, some states are continuing to mine tax-related revenue streams. "Currently, there are several states that are looking...

In Brief.(non-Certified Public Accountant tax preparation and bookkeeping business subject to tax)(Internal Revenue Service revises taxpayer application for an offer in compromise)(banker ineligible for charitable contribution deduction)
April 16, 2007... IRS REVISES OFFER IN COMPROMISE APPLICATION WASHINGTON - The Internal Revenue Service announced that its revised taxpayer application for an offer in compromise, Form 656, is now available. The Form 656 package was last revised in 2004 to...

Don't forget a depreciation strategy for like-kind exchanges: The treasury admitted that confusion and inconsistency among taxpayers had developed.
April 16, 2007... Strategies for the use of tax-deferred like-kind exchanges have grown over the years from almost exclusively a real estate concern to one in which billions of dollars of business tangible personal property are traded each year. While the main...

Allen and FASAB wrestle with the $50 trillion question: How do we determine the financial condition of the u.s. government over the next 75 years?(Tom Allen)(Federal Accounting Standards Advisory Board)
April 16, 2007... WASHINGTON, D.C. -- It figures that it would be Tom Allen who took on the single biggest accounting issue in the country, if not the world. It was Allen who, as chairman of the Governmental Accounting Standards Board, ushered in Statement...

Change of Auditors.
April 16, 2007... ATLAS AIR ENGAGES PWC Atlas Air Worldwide Holdings, the Purchase, N.Y.-based parent of cargo carriers Atlas Air and Polar Air Cargo, has retained Big Four firm PricewaterhouseCoopers as its new independent accountant. PwC succeeds...

Financial accounting quality: Penny-wise but pound-foolish: Ask 10 accountants what they think about quarterly reporting, and 11 of them will say, 'it costs way too much!'.
April 16, 2007... Ask 10 accountants on the street what they think about the Sarbanes-Oxley Act, and 11 of them will probably say, "It costs way too much!" This message has been repeated so many times that no one seems to doubt it. Ask 10 accountants why...

Paulson: Regulation should be 'principles-based'.(Treasury Secretary Henry Paulson)(Brief article)
April 16, 2007... WASHINGTON, D.C. -- Treasury Secretary Henry Paulson said that U.S. rulemakers should consider adopting "principles-based" regulations and accounting standards, in a speech at the Capital Markets Competitiveness Conference. Paulson said...

IRA withdrawals and their effect on your clients: The IRS has adopted final regs requiring changes in the methodology used for calculating RMDS for annuities beginning in calendar year 2006.(Individual Retirement Accounts)(required minimum distribution)
April 16, 2007... Your clients probably want to leave as much as possible to their heirs. However, if they don't take minimum distributions from their Individual Retirement Accounts after they reach 70-1/2, the government could take a substantial amount of those...

In Brief.(investment advisors to increase use of alternative investments)(defined-benefit pension plans gets full funding)(Nursing home care costs)
April 16, 2007... USE OF ALTERNATIVE INVESTMENTS TO INCREASE AHEAD OF BOOMERS Registered investment advisors intend to ratchet up their use of alternative investments such as hedge funds, real estate, commodities and currencies in the next five years,...

Insurer funds retirement income research center.(New York Life Center for Retirement Income )
April 16, 2007... Insurance and financial services conglomerate New York Life Insurance Co. is donating $2 million to establish the New York Life Center for Retirement Income at Bryn Mawr, Pa.-based financial educator The American College. The company said...

Software Review: Time and billing software: Do you know where your money is?
April 16, 2007... It's little wonder that in many accounting firms, time and billing is still one of the most critical applications, as well as the one most likely to be neglected. The reasons for this importance are underscored by the name of the application...

In Brief.(FRx Software Corp. unveils budgeting and planning software)(Sage Software names Chairman's Club members)(Sage Software offers donor relationship management system)
April 16, 2007... RESELLERS ANNOUNCE MERGER Blytheco Business Solutions and Macdonald Consulting Group, two high-volume Sage Software resellers, have merged to form Blytheco LLC. With annual revenue of $16.5 million, nearly 90 employees and two...

Key breakpoints in firm systems.
April 16, 2007... Digital systems have breakpoints just like paper-based systems. Over the past 10 years, the requirements and capabilities of firm systems have changed, yet processes and people often have not made the necessary adjustments to leverage the...

When does turnover begin?(employee turnovers)
April 16, 2007... Recently, a managing partner shared with me his answer to the question, "When does turnover begin?" His reply was, "At the beginning." Duh! Why didn't I think of that? So, if employee turnover begins with the selection process, what steps...

New Products.(Thomson Tax & Accounting adds Corporate Registered Agent service and Regulatory Compliance service)(Siber System's password management tool RoboForm)(DeviceLock V. 6.1 from SmartLine)
April 16, 2007... Software & Hardware AGENCY SERVICES Thomson Tax & Accounting has added two new services to its Transaction Tax domain to help companies deal with state and federal compliance. The Corporate Registered Agent service meets state...

People.(David A. Fonda)(Martha O'Gorman receives Certified Franchise Executive designation from International Franchise Association)(David A. Fonda joins UHY Advisors SALT LLC)(Vic Merkel named tax director of the Atlanta office of Joseph Decosimo and Co. LLC)
April 16, 2007... CALIFORNIA RBZ LLP, Los Angeles, has named three partners to share the managing partnership: David Roberts will serve as managing partner; Harvey Bookstein as visionary partner, and Mark Baumohl as administrative partner.... Rick Lange...

Firms.(Belfint, Lyons & Shuman PA secures award)(Watkins Meegan Drury & Co. receives award)(Singer Lewak Greenbaum & Goldstein LLP's donation to California State University at Northridge Foundation)
April 16, 2007... ALABAMA Donaldson, Holman & West PC, Birmingham, has joined CPAmerica International. CALIFORNIA Singer Lewak Greenbaum & Goldstein LLP, Los Angeles, has made a donation to the California State University at Northridge Foundation...

Coming Events.
April 16, 2007... APRIL 18-19: Tiburon CEO Summit XII, Tiburon Strategic Advisers. Ritz Carlton Hotel, San Francisco. 18-20: Innovate 2007, Annual User Conference for Sage MIP Fund Accounting, Sage Fundraising 50, Sage Fundraising 100 and Kintera...

People: Deloitte Names Nominees for Global CEO, U.S. Arm.(Deloitte & Touche L.L.P.)(Brief article)
April 16, 2007... NEW YORK -- The Deloitte Touche Tohmatsu Board has approved the nomination of James H. Quigley - currently the head of Deloitte's U.S. arm - as the next global chief executive officer of the Big Four firm, though worldwide member firm partners...

Got Technology?(data management)
April 16, 2007... Recent trends, according to WithumSmith+Brown IT partner-in-charge Jim Bourke, are revealing that more companies are backing up their data off-site with mirror-image technology in real time. "In today's rapidly changing environment, the...

Advertiser Index.
April 16, 2007... Advertiser Page BQE Software 21 CaseWare International 13 CCH Tax Group 40 Drake Software 7 Flagg Management 19 Hewlett Packard 15 NACVA 17 NYSSCPA 25 State Farm Insurance 11 Thomson...