Accounting Today articles from February 2006

Accounting Today archives from February 2006

FASB sets its agenda for '06: Framework and financial instruments top 'to do' list.(Financial Accounting Standards Board)
February 13, 2006... Norwalk, Conn. -- The Financial Accounting Standards Board has outlined a productive year that includes a host of projects coordinated with the International Accounting Standards Board, an exploration into the fundamental concepts of...

AICPA Top 10 Tech: Is IT safe?: Security, compliance top institute roster of main issues.(American Institute of Certified Public Accountants)
February 13, 2006... If your firm is anything like Ilene Eisen's Monterey, Calif.-based firm, ie Solutions, there have been some major upgrades in security around your office this year. Eisen, a CPA and Certified Information Technology Professional, has...

NTA Olson calls for simpler code: Annual report attacks noncompliance in cash economy.(National Taxpayer Advocate Nina E. Olson tax reform)
February 13, 2006... Washington -- Practitioners and industry observers concur with the call by Taxpayer Advocate Nina E. Olson for tax simplification. Although legislation calls for the Taxpayer Advocate to list at least 20 of the most serious problems facing...

What's in a name?(business names can effect marketing)(Brief Article)
February 13, 2006... In business, a lot. A good company name can do a lot of your marketing for you, provided you choose correctly. Some things to consider: * Names that limit growth. Geographic names, for instance, can make it hard to expand your range, as...

SEC proposes exec pay rules.(Securities and Exchange Commission)(Brief Article)
February 13, 2006... Washington -- The Securities and Exchange Commission voted unanimously to propose a number of changes to the disclosure rules for executive pay packages. In an attempt at greater transparency, the proposal would require companies to provide...

AIG could pay $1.5B over charges.(American International Group Inc.)(accounting fraud)(Brief Article)
February 13, 2006... New York -- American International Group Inc. could pay as much as $1.5 billion to settle civil investigations by state and federal authorities into an accounting scandal. New York Attorney General Eliot Spitzer and the New York State Insurance...

PCAOB offers small biz audit forums.(Public Company Accounting Oversight Board)
February 13, 2006... Washington -- The Public Company Accounting Oversight Board will continue its forums on auditing in the small business environment throughout 2006. The forums, which began in 2004, are designed to help share information concerning the PCAOB...

SEC makes IBM probe formal.(Securities and Exchange Commission)(investigation of International Business Machines Corp.'s accounting)(Brief Article)
February 13, 2006... Washington -- The Securities and Exchange Commission has launched a formal investigation into an accounting change made by IBM in 2005. Last April, IBM voluntarily made the change to start deducting the cost of employee stock options from its...

Correction.(Correction Notice)
February 13, 2006... "One size doesn't fit all" (Nov. 7-27, 2005, page 22) implied that NetSuite was an open-source product; however, while resellers can customize it, NetSuite does not provide code to the public. (c) 2006 Accounting Today and SourceMedia,...

IRS's new Form 944 program is drawing mixed reviews.(Internal Revenue Service)(payroll tax )
February 13, 2006... Washington -- The Internal Revenue Service has come out of the gate in 2006 with a shiny new employment tax form for small employers. Effective January 1, employers who expect to owe no more than $1,000 in federal employment taxes for the...

EC tables proposed law for financial services regime.(European Commission)
February 13, 2006... Brussels -- Twenty-five different sets of contract law - one for each of the EU's individual member countries - looked recently as if they might soon be joined by a "26th Regime" applicable for certain areas in financial services. However,...

Defendants ask for dismissal of KPMG shelter charges.(case against tax professionals)(Brief Article)
February 13, 2006... New York -- Many of the 19 former tax professionals facing trial over the sale of KPMG tax shelters, whose legality has been questioned by the federal government, have asked for the dismissal of the charges in a variety of joint motions. ...

UHY taps ex-Andersen partner as president, CEO.(Steve Samek is the head of UHY Advisors Inc.)
February 13, 2006... Chicago -- Steve Samek, the former head of Arthur Andersen's U.S. operations, will take over the helm of accounting firm consolidator UHY Advisors Inc. Samek succeeds James B. McGuire in the top slot at UHY. McGuire, who left the firm in...

Choosing the right mutual funds can be overwhelming.(tips to certified public accountants who enter into financial services)(Column)
February 13, 2006... For CPAs just entering the financial services arena, picking mutual funds can be a staggering task. Beginning advisors must choose among the nearly 8,000 funds of varying investment styles, costs, families and distribution avenues. ...

Corporate Reporting and Governance.(Financial Accounting Standards Board's www.fasb.org)(Financial Executives International's www.fei.org)(www.cpatalk.com)(Brief Article)
February 13, 2006... * Corporate Governance - www.corpgov.net Launched by a shareholder activist, the site reads like a blog and includes news, resources and links on all matters concerning corporate governance and shareholder activism. * CPATalk -...

Footnotes.(Mercadien Group teamed up with the Marine Toys for Tots Foundation and the Marine Corps League )(Brief Article)
February 13, 2006... MERCADIEN DOESN'T PLAY AROUND WITH TOYS: Staff at Princeton, N.J.-based The Mercadien Group joined with the Marine Toys for Tots Foundation and the Marine Corps League to help make Christmas a little brighter for the less fortunate. The...

Tech and two left hands.(Certified public accountants annual Top Technologies survey)(Column)
February 13, 2006... While my misadventures with home improvement are well-documented, I'm admittedly not much better with all things technological. That includes any and all maintenance applications or security prevention measures thereof. Before my family...

Commentary: Can Sarbanes-Oxley hold the keys to nonprofit governance?(nonprofit organizations)(Column)
February 13, 2006... The overriding objective of the Sarbanes-Oxley Act is to strengthen the public securities market by holding management accountable for material information filed with the Securities and Exchange Commission and released to investors. To help...

Product management: A secret weapon of growth: Don't just market your offerings - manage them!
February 13, 2006... It's fair to say that CPAs have "gotten the memo" when it comes to the importance and value of marketing. Telling their story to those who need to hear it - and are in a position to respond - is a concept many now understand and even embrace....

Taxing Issues.(Internal Revenue Service introduced online payment services)(report on tax compliance costs)(tax exemptions)
February 13, 2006... IRS OPENS 2006 FILING SEASON: The Internal Revenue Service sent out 17.7 million 1040 tax packages during the first week of January to taxpayers who have previously filed paper returns. The number of paper tax booklets being mailed to Americans...

Malpractice risks rise for preparers as tax season hits.
February 13, 2006... More than half of all professional liability claims against accountants are tax-related, according to insurance industry executives. As accountants plunge ahead into their busy season, they should take note of their increasing exposure. ...

New Roth 401(k) option gaining more supporters.(retirement benefits)
February 13, 2006... The Roth 401(k) contribution option, even with almost five years of advance warning, is taking a while to catch on. Reports are that fewer than 20 percent of eligible 401(k) plans now have them, with the rest sticking with tried-and-true...

Change Of Auditors.(Tvia engages BDO Seidman as auditor)(Ernst & Young declines to be auditor for Vignette Corp)(Docucorp International Inc hires Grant Thornton )(Brief Article)
February 13, 2006... TVIA INC. DISMISSES PWC: Tvia, a designer and marketer of semiconductor systems, has dismissed auditor PricewaterhouseCoopers and engaged BDO Seidman as its replacement. According to a federal filing, Santa Clara, Calif.-based Tvia had no...

GASB sets ambitious pace for 2006 standard-setting.
February 13, 2006... Norwalk, Conn. -- The Governmental Accounting Standards Board's agenda for 2006 will rank among its most ambitious ever. Within the first few months of the year, it may have six or more projects underway, with exposure drafts going out the...

Herz is No. 1! (FASB chair Bob Herz, that is).
February 13, 2006... On Dec. 6, 2005, Financial Accounting Standards Board Chairman Robert Herz addressed the American Institute of CPAs National Conference on Current Securities and Exchange Commission and Public Company Accounting Oversight Board Reporting...

PFP Briefs.(401k plans laws)(case against Wells Fargo for class action lawsuits)(Commerce Bancorp Inc. acquires eMoney Advisor )
February 13, 2006... TREASURY, IRS FINALIZE ROTH 401(K) RULES: The Treasury Department and the Internal Revenue Service have issued final regulations regarding Sections 401(k) and 401(m) related to designated Roth IRA contributions. Roth contributions were...

Advisors craft spending plans for retiring Boomers.
February 13, 2006... Over the next decade, the majority of the 79 million Americans girding for retirement will begin to withdraw from their savings. This group is more likely to live longer, control their investment decisions, and be more active than any...

New year, new financial records: Let clients know what to keep.
February 13, 2006... Personal financial records are a necessary part of our lives, but it's easy for clients to get overwhelmed by the volume of papers. According to the New York State Society of CPAs, the beginning of the year is an excellent time to get...

TRAC says IRS withholding enforcement info.(Brief Article)
February 13, 2006... Seattle -- In violation of a longstanding court order, the Internal Revenue Service has stopped providing detailed statistics about how the agency enforces the nation's tax laws, according to a motion filed in the United States District Court...

GASB projects: Tentative timetable, subject to change.(Brief Article)
February 13, 2006... January * Accounting Treatment for Medicare Part D - Deliberations begin. * Pollution Remediation Obligations - Exposure draft of proposed statement. * Sales and Pledges of Receivables and Future Revenues - Last comment letters...

Canada votes to move to IFRS.(International Financial Reporting Standards )(Brief Article)
February 13, 2006... Toronto -- Canada's Accounting Standards Board has agreed to adopt international accounting standards for the country's public companies over the course of the next five years. The accounting rules known as Canadian GAAP will cease to exist...

Tech Briefs.(Sage Software releases software)(Symantec Corp acquires IMlogic)(PayCycle makes enhancements in its services)
February 13, 2006... SAGE UNVEILS LATEST FAS SOFTWARE UPDATE: Sage Software, a provider of accounting and financial management software, has released the latest update for Sage FAS, its fixed assets solution. Sage FAS 2006.1 is a free online update available for...

Time and billing will not be killed in the revolution.
February 13, 2006... Earl W. Morrow CPA PC, a Roswell, Ga.-based CPA firm, has been using an automated time and billing system for decades without any major complaints. "We have been using an automated system since the first time we opened our doors, some 24...

Sage acquires payments processor.(Sage Group acquires Verus Financial Management Inc)(Brief Article)
February 13, 2006... London -- The Sage Group will enter the credit card and check payment-processing field with the $323 million acquisition of Verus Financial Management Inc. from Financial Technology Ventures. Located in Nashville, Tenn., Verus specializes...

Software Review: Biz plans: Managing and marketing matter.
February 13, 2006... The major news in business plans and planning software in 2006 is that the plans are intended more for management than money. As most business planning software came into being, in the boom economies of the 1990s, the focus was on how best...

Vendor information.(Directory)
February 13, 2006... * Automate Your Business Plan 12.0 Out of Your Mind and Into the Marketplace 13381 White Sand Dr. Tustin, Calif. 92780-4565 (714) 544-0248 www.business-plan.com Pricing: Book and CD - $95; downloadable version - $90....

The 10 rules of technology management.
February 13, 2006... With the scarcity of qualified and experienced staff, the importance of technology continues to grow in today's accounting firm. Firms simply must do more with fewer people, while raising production to offset increasing labor costs. In...

Software & Hardware.
February 13, 2006... Identity management There are two kinds of identity issues. The first are of the "Who am I and what am I doing here?" type, and fall far beyond the scope of New Products. The second are of the "Who are you and what are you doing here?"...

Books.(spreadsheets)
February 13, 2006... Better spreadsheets While both spreadsheets and calculators are enormously useful - indeed, crucial - to accountants, they have one big difference: No one expects you to build your own calculator. And even though you never have to get near...

Coming Events.(Calendar)
February 13, 2006... - FEBRUARY - 15-17: Investigating Conflicts of Interest/Health Care Fraud, Association of Certified Fraud Examiners. The Coleman Center, New York City. Contact: www.cfenet.com/events or (800) 245-3321. 16: Federal Tax Update, National...

People.(Bradley D. Holsworth joins Leibowitz Shumaker Berger & Rubens LLP)(Anne McGeorge joins Grant Thornton LLP)(Tarra L. Curran joins Tofias PC)
February 13, 2006... CALIFORNIA Bradley D. Holsworth has joined Leibowitz Shumaker Berger & Rubens LLP, Walnut Creek, as an audit and assurance partner. He previously was a partner at BDO Seidman.... David Rice, chief financial and chief operating officer of...

Firms.(Protiviti Inc. opens new office and appoints Roberto Abad)(Whittlesey and Hadley PC merges with Snyder & Haller PC)(LarsonAllen merges with Ostroff, Fair & Co. PC)
February 13, 2006... CALIFORNIA Protiviti Inc., Menlo Park, has opened an office in Mexico City, to be led by managing director Roberto Abad. CONNECTICUT Whittlesey and Hadley PC has merged in the Hartford firm of Snyder & Haller PC, bringing its...

On the Agenda.(Brief Article)
February 13, 2006... FASB technical application and implementation projects * Statement 140 Transfers of Financial Assets - Final, second quarter. Servicing of Financial Assets - Final, first quarter. * Hybrid financial instruments Final,...

Other changes.(employment tax law)(Brief Article)
February 13, 2006... The proposed regulations issued in conjunction with the Form 944 Program also affect the de minimis rule for depositing quarterly employment taxes. Formerly, an employer with a tax liability of $2,500 or less in any quarter could forego monthly...

AICPA's Top Ten Technologies 2006.(Brief Article)
February 13, 2006... 1. Information security 2. Assurance and compliance applications 3. Disaster and business continuity planning 4. IT governance 5. Privacy management 6. Digital identity and authentication technologies 7. Wireless...

Advertiser Index.
February 13, 2006... Advertiser Page ADP 19 CCH, a Wolters Kluwer business 13, 32 Creative Solutions 2 Intuit Accountant Central 11 Lexis...

Minorities make minor gains: Firms need to recruit a diverse staff - but more remains to be done.(surveys )
February 27, 2006... Every accountant knows that the numbers tell the story. Most industry people would agree that having a diverse workforce contributes to the overall growth and prosperity of the accounting firm. Recruiting a diverse workforce, then, makes...

New laws trigger surge in e-filing: But 80% e-file goal remains elusive.(tax returns)
February 27, 2006... Observers predict that this year's e-filing season, which kicked off on January 13, will far outpace previous years in terms of the number of e-filed returns. "We experienced a big surge compared to last year," said Jo Ann Cummings,...

House turns up heat on preparers over SSNs.(Social Security numbers)
February 27, 2006... Washington -- Deepening congressional concern over identity theft is casting a spotlight on tax return preparers who share their clients' Social Security numbers with outside contractors. In a report to Congress focusing fresh attention on...

Danger on the Web.
February 27, 2006... Congratulations! You've finally set up a Web site, and now you're counting on it to help drive your firm's growth. Just be careful it doesn't drive your firm into the ground. Some pitfalls to avoid: * No disclaimer. Essentially, no one...

Bernanke takes over at the Fed.(appointments)(Brief Article)
February 27, 2006... Washington -- Ben Bernanke was sworn in as the 14th chairman of the Federal Reserve in early February, with the first item on his agenda likely to be a decision on the direction of interest rates. The Fed increased rates for a 14th consecutive...

GASB wants pollution recognition.(Governmental Accounting Standards Board)(Brief Article)
February 27, 2006... Norwalk, Conn. -- The Governmental Accounting Standards Board issued an exposure draft that would require governments to account for all the obligations and costs related to pollution remediation. The board said that certain costs and long-term...

BearingPoint lays out bad news.(company sales report)(Brief Article)
February 27, 2006... McLean, Va. -- Consulting firm BearingPoint Inc., the spinoff of KPMG's former consulting business, reported a $546.2 million loss for 2004 and said that it still faces liability issues under the Foreign Corrupt Practices Act. In a nearly...

EU offers convergence reprieve.(European Union)(Brief Article)
February 27, 2006... Brussels -- The head of the European Commission's financial markets division said that public companies from the United States and Japan will be given another year to bring their accounting standards closer to new European Union standards. ...

New scoping principles for IT controls proposed by IIA.(Information technology)(Institute of Internal Auditors)
February 27, 2006... Altamone Springs, Fla. -- Auditors have long suffered unease forming conclusions related to information technology controls. They have no standards or principles to guide them, no clear way to match IT controls to the objectives of...

EU regulators warn about transparent IFRS reporting.(European Union)(International Financial Reporting Standards.)
February 27, 2006... Brussels -- Europe's coordinating institution for national securities regulators - the Committee of European Securities Regulators - has issued an alert on the importance to issuers of giving clear and transparent disclosure of the accounting...

FASB issues proposal on fair value.(Financial Accounting Standards Board)(Brief Article)
February 27, 2006... Norwalk, Conn. -- The Financial Accounting Standards Board has issued a proposal providing companies with the option to report financial assets and liabilities at fair value. The board said that the change is aimed at simplifying...

CPAs bracing for possible 'blackout' for BlackBerry.(Certified Public Accountants)
February 27, 2006... The word "blackout" may bring to mind the August night nearly three years ago when roughly 50 million people in New York and several surrounding states suddenly found themselves without any power at all. But a new kind of blackout could...

PCAOB notes deficiencies in GT, Crowe Chizek audits.(Public Company Accounting Oversight Board)(Grant Thornton LLP)
February 27, 2006... Washington -- In mid-January, the Public Company Accounting Oversight Board issued reports on its 2004 inspections of Grant Thornton LLP and Crowe Chizek & Co. LLC - outlining "audit deficiencies" similar to other recently released reviews from...

Data And Data Management.(accounting services)(Brief Article)
February 27, 2006... * ARMA - www.arma.org/ The Association of Records Managers and Administrators is a nonprofit association and an authority on managing records and information. Its 10,000 members include records managers, archivists, corporate librarians,...

Footnotes.(accounting )(Brief Article)
February 27, 2006... DELOITTE SUPPORTS DIVERSITY: Big Four accounting firm Deloitte Touche Tohmatsu puts its money where its mouth is when it comes to diversity, most recently by contributing $100,000 to the National Association of Black Accountants. In the...

'Mission' accomplished?(Letter to the Editor)
February 27, 2006... Over the years, I've worked for companies that prided themselves on their mission statements. Depending on which company I was with at the time, I've had them emblazoned on the back of my business cards, at the top of personalized...

It's not whether you win or lose...(accountnts)
February 27, 2006... Among the hundreds of professional standards set by the American Institute of CPAs, two stand out in my mind as being particularly important to improving the image of the CPA. The standards fall under the category of quality control, and...

IRS says no to any deduction for gender reassignment.(United States. Internal Revenue Service)
February 27, 2006... Washington, D.C. -- A memo out of the Internal Revenue Service's Office of Chief Counsel makes the case that gender reassignment surgery cannot be deducted as a medical expense for tax purposes. The case, involving male-to-female gender...

Taxing Issues.(tax reports)
February 27, 2006... CERTAIN TAX RETURNS WILL HEAD TO DIFFERENT CENTERS: As taxpayers begin to prepare their tax returns, the Internal Revenue Service noted that some may be sending their returns to a different service center than last year. Those who received a...

More prebuilding contracts seen in like-kind exchanges.(taxation)
February 27, 2006... Investors are increasingly seeking creative transaction structures to cash in on the heated real estate market. A strategy that uses preconstruction contracts in Section 1031 like-kind exchanges is one way that is gaining acceptance among...

A 2005 filing season alert: Curveballs and late laws.(regulations in taxation)
February 27, 2006... Every year, Congress and the Internal Revenue Service help us justify a tax preparer's worth to clients by throwing a few new curves into the tax return preparation process. The 2005 tax return filing season is no exception. This year...

Change of Auditors.(contracts)(Brief Article)
February 27, 2006... BROOKLYN FEDERAL JETTISONS KPMG: Brooklyn Federal Bancorp, the parent to Brooklyn Federal Savings Bank, dismissed its auditor, Big Four firm KPMG, and retained Beard Miller Co. as its replacement. According to a federal filing, KPMG's audit...

ASB on partner incentives, quality and communication.(Auditing Standards Board)
February 27, 2006... When the Auditing Standards Board met in mid-January, it resolved to propose a new standard on auditor communication. The board also started a discussion on whether quality control should be linked to compensation control. While the...

To FEI and IMA: Be careful what you ask for.(Institute of Management Accountant's)(Financial Executives International)
February 27, 2006... If you don't remember fashions from the 1970s and 1980s, surely you've seen pictures: Polyester was the fabric of choice; guys wore Madras coats with wide lapels, had droopy moustaches and hair over their ears, and sported white shoes and...

PFP Briefs.(National Association of Securities Dealers)(resignations)
February 27, 2006... NASD ENFORCEMENT CHIEF STEPS DOWN: Barry Goldsmith, the enforcement chief of brokerage regulator NASD, will step down in March to return to private law practice, and his deputy James Norris was named as his acting replacement. Goldsmith, 56,...

Valuations open up myriad options in succession plans.(valuation)
February 27, 2006... Business owners may face a number of issues when confronted with the death, disability or retirement of an employee, partner or shareholder. Some of the dilemmas they face may include paying off business debts, having sufficient funds to...

The new bankruptcy law: Advance planning's critical.(bankruptcy law)
February 27, 2006... The most sweeping changes to federal bankruptcy law in over a quarter century went into effect in October 2005. Distressed businesses and their creditors face new challenges, and comprehensive pre-bankruptcy planning will now need to be...

Tech Briefs.(technology application)
February 27, 2006... INTUIT BOWS TO BLOCK, WILL CHANGE ADS: Intuit Inc. will alter a $25 million ad campaign for its TurboTax software after H&R Block took the company to court, saying the advertisements were inaccurate. Launched January 9, the television and...

Microsoft begins offering discount on SBA software.(Small Business Accounting)(accounting software)(Brief Article)
February 27, 2006... Redmond, Wash. -- In a move that Microsoft Corp. said is about drawing more attention to the product, and not about weak sales, the company announced that it would offer a $100 instant discount as well as a year of free unlimited support to...

ISACA, AICPA reach deal on technology credentials.(Information Systems Audit and Control Association)(American Institute of Certified public accountants)(Brief Article)
February 27, 2006... New York -- CPAs holding the Certified Information Systems Auditor credential from the Information Systems Audit and Control Association are now automatically eligible to receive the Certified Information Technology Professional designation...

Excel: Spreadsheet heaven or hell?(accounting software)
February 27, 2006... Spreadsheets have become a pervasive villain in the financial world - they are guilty of huge error rates and cataclysmic mistakes, and are a major source of heartburn and heartache when it comes to audit and compliance concerns. ...

Software Systems: Fixed asset systems - no big leaps lie ahead.(accounting software)
February 27, 2006... CPAs started installing automated fixed asset management systems decades ago. Todd Blome, a partner at Lincoln, Neb.-based Basso, McClure, Goeglein LLP, first installed BNA Software's fixed assets application over 15 years ago, when DOS was...

Fixed asset system vendors.
February 27, 2006... BNA Fixed Assets BNA Software Washington, D.C. (800) 424-2938 www.bnasoftware.com/fixedassets ProSystem fx CCH, a Wolters Kluwer business Torrance, Calif. (800) 739-9998 www.prosystemfx.com Fixed Assets CS...

You need to define your Internet strategy - now!(accounting software)
February 27, 2006... What is your firm's internet strategy? Perhaps you don't have a Web strategy, and your goal has simply been to maintain a respectable Web site. In today's environment, just having a site is no longer a competitive advantage. In many firms,...

Software & Services.(accounting software)
February 27, 2006... Easy estimates Gone are the days when a contractor could pull a pencil from behind his ear, scratch out an estimate on the back of an envelope, and rest assured that the customer understood that the real price would be three times the...

Books.(price and rates)
February 27, 2006... 80% accounting-free! That's the promise of the business reporting model outlined in Performance-Based Reporting: New Management Tools for Unpredictable Times. After studying over 1,500 businesses, the authors concluded that the accounting...

Coming Events.(calendar)(Calendar)
February 27, 2006... - FEBRUARY - 27-28: Commodity Tax Update - West, Canadian Institute of Chartered Accountants. Calgary, Alb. Contact: www.cica.ca/calendar. - MARCH - 2: Late Season Tax Problems, National Conference of CPA Practitioners,...

One firm's approach to growing a diverse workforce.(accounting software)
February 27, 2006... Deloitte & Touche has made strong progress in growing its diverse workforce. Some diversity and inclusion programs that it offers include the following: * Efficacy: Maximizing professional and personal development. Deloitte offers this...