Accounting Today articles from November 2004

Accounting Today archives from November 2004

Staff now - or struggle later: As 2005 tax season nears, firms face shortage of qualified staffers.
November 8, 2004... The requirements of the Sarbanes-Oxley Act, coupled with the demand for accountants in other areas, has increased the difficulty in finding qualified staff for the annual rush of returns during the 2004 filing season. "Don't think it's too...

FASB expensing measure on hold.(Financial Accounting Standards Board)
November 8, 2004... As the Financial Accounting Standards Board agreed to delay the effective date of its impending standard on accounting for employee stock option compensation, proponents of expensing are bemoaning another six months of opposition, while...

KPMG sanctioned for TV Guide audits.
November 8, 2004... The Securities and Exchange Commission sanctioned KPMG LLP, two former partners and a current partner and senior manager for improper professional conduct in connection with audit failures involving licensing and advertising revenue in the past...

Wind and water.
November 8, 2004... The principles of feng shui haven't yet been included in GAAP, but the venerable Chinese practice does offer some interesting suggestions for arranging your office. * Take the "Command Position." Sit with a clear view of your office door,...

Mixed news on IRS employees: Harassment cases decline, but tax non-compliance on rise.(Internal Revenue Service )
November 8, 2004... Taxpayer allegations of harassment and other forms of misconduct by Internal Revenue Service employees have declined sharply in recent years, and the vast majority of charges that are leveled against IRS personnel turn out to be...

Europe's accounting standards are coming together piecemeal.
November 8, 2004... The course is firmly set for the European Union to have International Accounting Standards in place for its 7,000 listed companies by Jan. 1, 2005. But the new rules will come in with one standard - IAS 39 - with a carve-out of 17...

PCAOB to share reports with states.(Public Company Accounting Oversight Board )(Brief Article)
November 8, 2004... The Public Company Accounting Oversight Board will provide its full inspection reports to states that agree to honor Sarbanes-Oxley confidentiality provisions, the board's chairman told state regulators in October. "We have worked out a...

SEC formalizes Fannie Mae probe.(Securities and Exchange Commission )(Brief Article)
November 8, 2004... The Securities and Exchange Commission stepped up to a formal probe its previous informal inquiry into accounting issues at mortgage giant Fannie Mae, the company disclosed in an SEC filing. Fannie Mae had revealed the SEC's informal inquiry in...

Fiducial expands, eyes more.(Frontier CPA Group LLP)(Brief Article)
November 8, 2004... As part of aggressive expansion plans, Fiducial, a provider of business outsourcing services to small businesses and entrepreneurs, has gained a foothold in the Midwest with the acquisition of Indianapolis-based Frontier CPA Group LLP. The...

SEC names deputy chief accountant.(Securities and Exchange Commission )(Brief Article)
November 8, 2004... The Securities and Exchange Commission has named former Arthur Andersen partner Julie A. Erhardt, 43, to serve as deputy chief accountant. As deputy chief accountant, Erhardt will share responsibilities for the day-to-day operations of the...

Novogradac & Co. expands into Boston.
November 8, 2004... San Francisco-based CPA firm Novogradac & Co. LLP has expanded its East Coast presence with a new office in Boston. The expansion marks Novogradac's third new office in the past 12 months, and brings the firm's total number of offices to...

Long-term care insurance: Only strongest are surviving.
November 8, 2004... Long-term care insurance is coming of age. The numbers of carriers offering the product has been winnowed to a few strong hands, while the number of LTCI features have narrowed to what clients really need and want. And this evolution...

Trends, new legislation fuel an increase in e-payments.
November 8, 2004... A shift in consumer buying habits, both at the business and personal levels, is causing new headaches among business owners. The 2003/2004 Study of Consumer Payment Preferences conducted by the American Bankers Association and Dove...

More Accounting Associations.(Brief Article)
November 8, 2004... DFK International USA - www.dfkusa.com DFK International is based in the U.K. The site includes a directory, a newsletter and basic info on the association. GMN International - www.gmninternational.com This site includes a nifty...

Footnotes.(Walter & Shuffain PC)(Brief Article)
November 8, 2004... PARTNERS DON DENIM TO FIGHT BREAST CANCER: The shareholders and partners of Walter & Shuffain PC, a Norwood, Mass.-based CPA and business consulting firm, all wore denim last month to support the fight against breast cancer on the ninth annual...

It's not who you know.
November 8, 2004... As I've grown older, and hopefully wiser, I've often wondered about the impetus behind the genius who actually took the time to sit down and come up with the axiom, "What you don't know can't hurt you." Throughout my adult life, I've never...

An open letter to the PCAOB.(Letter to the Editor)
November 8, 2004... I receive letters, lots of letters, some nice, some not so nice. In response to my recent commentary, "Financial Literacy - a Gulf of Misunderstanding," (Accounting Today, Aug. 23-Sept. 5, 2004) I received a fascinating letter from a...

An open letter to the PCAOB.(Letter to the Editor)
November 8, 2004... Call for a federal sales tax I read with great interest the three articles on the Internal Revenue Service's efforts to increase enforcement of the Internal Revenue Code and thwart the efforts of tax cheats (Accounting Today, Oct. 11-24,...

Time to consider a cost segregation study.(cost accounting)
November 8, 2004... Many professionals are aware of the significant tax savings that can be generated through a cost segregation study. A CSS, for either new construction or recently completed projects, can significantly improve the financial viability of a...

A managing partner's annual report.(organizational communication)
November 8, 2004... As firms struggle to retain good staff, I haven't seen an increase in internal communications. Too many firms are still under the old thinking - staff doesn't need to know. Given the recent turmoil in the profession and the difficulty in...

For better or worse, Jobs Creation Act of '04 is here.
November 8, 2004... The most radical revision of business taxes since 1986 - the American Jobs Creation Act of 2004 - has passed both the House and the Senate by wide margins. At press time, President Bush, despite expressing some misgivings over the...

New act creates planning opportunities for clients.
November 8, 2004... As of this writing, the American Jobs Creation Act of 2004 has just passed Congress and is awaiting President Bush's expected signature. With 580 amendments to the Internal Revenue Code affecting 274 sections, including 34 brand-new sections,...

Taxing Issues.(meshed brief)
November 8, 2004... UNDER FSC/ETI BILL, SUV WRITE-OFFS WILL GO: When President Bush signs the FSC/ETI bill, the days of small business owners and professionals such as doctors and lawyers expensing luxury SUVs are over. Writers of the 600-page measure closed...

IASB, Japan plan talks on convergence.(International Accounting Standards Board)(Brief Article)
November 8, 2004... The International Accounting Standards Board and the Accounting Standards Board of Japan announced that they have started talks about a joint project to minimize differences between international financial reporting standards and Japanese...

Opportunities for auditors seen to lie in sustainability.(Global Reporting Initiative)
November 8, 2004... When 17 socially responsible investment firms of the Social Investment Forum issued a joint recommendation that public companies adopt the sustainability reporting standards of the Global Sustainability Initiative, they foresaw not only better...

Can you spell an accountant's e-p-i-p-h-a-n-y?
November 8, 2004... Early in September, less than two weeks into his intermediate class, Paul Miller received this e-mail message from one of his students: Hello Mr. Miller, I have a dilemma. I've been in the accounting field for a number of years and...

Change Of Auditors.(meshed brief)(contracts, accounting services)(Brief Article)
November 8, 2004... BIG DOG HOLDINGS DISMISSES DELOITTE: Consumer products retailer Big Dog Holdings Inc. has dismissed its auditor, Big Four firm Deloitte & Touche, according to a federal filing. The company subsequently named Singer Lewak Greenbaum &...

It's never too early for your clients' year-end planning.
November 8, 2004... At the end of a year of sideways markets, many tax advisors are focusing on the ramifications of the two recently passed tax acts. There is, however, a roster of other year-end strategies that are worth looking into. Retirement planning is...

Deduct sales and use taxes - instead of income taxes.
November 8, 2004... For tax years beginning in 2004 and 2005, the American Jobs Creation Act of 2004, recently passed by Congress, allows taxpayers to elect to take state and local general sales and use taxes as an itemized deduction on their federal income tax...

PFP Briefs.(Tanager Financial Services Inc)
November 8, 2004... WACHOVIA TO BUY TANAGER FINANCIAL: In an effort to strengthen its wealth management practice, Charlotte, N.C.-based Wachovia Corp., the nation's fifth-largest bank, agreed to acquire wealth advisory firm Tanager Financial Services Inc. ...

CITP membership: Moving along - but for how long?(Certified Information Technology Professional)
November 8, 2004... Does the Certified Information Technology Professional credential appeal to a finite universe, or can it ride the wave of rising client demand in information technology consulting and systems upgrades? A bit of both, according to critics...

Ex-Peregrine execs hit with accounting fraud charges.
November 8, 2004... The Department of Justice has charged eight former executives of software maker Peregrine Systems Inc., the company's former outside auditor and two of its outside business partners with conspiracy to commit a multi-billion dollar securities...

Tech Briefs.(FundWare)
November 8, 2004... FUNDWARE UNVEILS VERSION 7.30: Nonprofit and governmental accounting software maker FundWare has rolled out the latest version of its software - a new general ledger with a three-dimensional account structure. The FundWare v. 7.30 general...

Write-up - the application that won't go away.
November 8, 2004... Accounting software is selling like hotcakes nowadays. With all these sales - each of which represents a company maintaining its own books and records - you might suppose that client write-up is a dying application. While some practices have...

Vendor information.(Directory)
November 8, 2004... Accountant's Relief Plus AccountantsWorld 140 Fell Ct. Hauppauge, N.Y. 11788 (888) 999-1366 www.accountantsoffice.com Pricing: $995. ProSystem fx Office Write-up CCH Tax and Accounting 21250 Hawthorne Blvd....

Top 10 topics to consider for your firm summit.
November 8, 2004... As the season approaches for firm summits (or retreats, if you focus on the past), the following list of topics will or may appear on your agenda. Many firms use these meetings to focus on the results of the current year and plan for the coming...

Software and Services.(meshed brief)
November 8, 2004... Red Wing Payroll 9.0 Red Wing Software has released the newest version, 9.0, of its Red Wing Payroll, with a number of updates and enhancements. The software includes updated federal and state tax forms, including the 2004 W-2, 1099 and 941...

Hardware.(Brief Article)
November 8, 2004... HP's new wave As part of its "Smart Office" initiative, Hewlett-Packard has introduced a number of new imaging and printing systems aimed at all levels of small and midsized businesses: * BUSINESS INKJET 1200: A color printer with...

Books and Media.(Commerce Clearing House Inc., RIA Novosti)
November 8, 2004... State tax guide RIA has added a supplemental chapter covering streamlined sales tax to its State Taxation Third Edition, the comprehensive guide to the subject that is published by its Warren, Gorham & Lamont unit. Given that over 90...

Enzi rallies option expensing opponents.(Brief Article)
November 8, 2004... Sen. Mike Enzi, R-Wyo., the sole accountant in the Senate, is spearheading a bipartisan effort to block the proposal by the Financial Accounting Standards Board to require the expensing of stock options, claiming that it would harm small...

Serenic buy completed.(Vision HRM Software Inc)(Brief Article)
November 8, 2004... Vision HRM Software Inc. completed its purchase of Lakewood-based Serenic Software, a provider of not-for-profit and government software. Terms were not disclosed. Edmonton, Alberta-based Vision HRM, a payroll and human resources software...

Boards, senior execs see problems in monitoring and reporting.(business performance management)
November 8, 2004... When it comes to measuring the non-financial aspects of corporate performance, most board members and executives say that companies fall short, according to a Deloitte Touche Tohmatsu survey. While 92 percent of board members and executives...

Reaching Hispanic clients: An untapped market.
November 8, 2004... It's no secret that the Hispanic population boom has gotten our attention. There are 39.9 million Hispanics in the United States, and Census officials estimate that this figure will rise to 50 million by 2007. According to the Selig Center...

Rosenberg survey: 'Solid' year for firms.
November 8, 2004... The accounting profession had "another solid, though not spectacular, year in 2003," according to the latest MAP Survey from Wilmette, Ill.-based Rosenberg Associates. Last year's revenues were up 6.3 percent from 2002. Most of the 218...

Coming Events.(Calendar)
November 8, 2004... NOVEMBER 7-9: National Business Valuation Conference, AICPA. JW Marriott Orlando Grande Lakes, Orlando, Fla. Contact: www.cpa2biz.com/conferences or (888) 777-7707. 7-9: Fall ITA Collaborative, Information Technology Alliance. Eden...

Bruce Charron named new MP at CCR.(Carlin, Charron & Rosen LLP)(Brief Article)
November 8, 2004... Following the sudden death of managing partner Bruce M.Carlin, the executive committee of New England firm Carlin, Charron & Rosen LLP has named firm co-founder Robert H. Charron as its managing partner. "It is with humility and deep...

People.(appointments, accounting services)
November 8, 2004... ALABAMA Beverly S. Virciglio and Stephen C. Schaaf have been named members and directors of Warren, Averett, Kimbrough & Marino LLC, Birmingham. Virciglio works primarily in estate, gift, trust and individual taxation; Schaaf works in...

Firms.(meshed brief)
November 8, 2004... ARIZONA Rowie Walker & Associates Inc., Toronto, has joined the Information Technology Alliance, Scottsdale. CALIFORNIA Mohler, Nixon & Williams, Silicon Valley, has joined Moore Stephens North America Inc., an international...

KPMG names Pfau vice chair of human resources.(Brief Article)
November 8, 2004... KPMG LLP has named Bruce Pfau vice chair of human resources. Pfau will be responsible for all human resources activities, with a major focus on retention, recruitment and workplace initiatives. As vice chair and chief human resources officer...

Let the seller beware.(Patrick O'Boyle, Leadership Advocates Network)(Brief Article)
November 8, 2004... Leadership Advocates Network's Patrick O'Boyle pointed out several recommendations for business owners who want to reduce fees on credit sales, or at least be confidant that they are only paying the required fees on those sales. * Educate...

ADVERTISER INDEX.(Illustration)
November 8, 2004... Advertiser Page 1st Global 19 AccountantsWorld 47 Best Software 15 CCH Tax and Accounting 25, 33, 48 The CFP...

Young named to FASB board.(Financial Accounting Standards Board)(Brief Article)
November 8, 2004... The Financial Accounting Foundation, overseer of the Financial Accounting Standards Board, named former Paine Webber/UBS managing director Donald M. Young to the board of the accounting standard-setter. Young's three-year term is effective...

Tax planning goes long range.
November 29, 2004... What started as a natural progression of tax preparers doing simple projections a year or two into the future has evolved into a true value-added practice for their clients, generating both client loyalty and additional income. At the same...

PCAOB boosts FY '05 budget.(Public Company Accounting Oversight Board )
November 29, 2004... The Public Company Accounting Oversight Board approved a hefty $152.8 million operating budget for itself for 2005 - an increase of roughly 50 percent that would allow the oversight body to expand its staff and step up its inspections of audit...

Accounting enrollments rising.
November 29, 2004... By almost anyone's accounting, accounting is making a comeback. According to data from the American Institute of CPAs, the number of accounting degrees awarded nationwide in 2003 jumped 11 percent from the year before, to nearly 50,000...

Clear the decks!
November 29, 2004... Tax season is starting soon - are you ready? Once things get hairy, you won't have a chance for any kind of office maintenance, so take care of it now: * Clear off the top of your desk and wipe it clean. * Replace only the essential...

AICPA Council urges CPAs to become 'changemakers'.(Certified public accountants, American Institute of Certified Public Accountants )
November 29, 2004... While specialty credentials, auditor independence and XYZ were thrust to the forefront of member issues during past Council meetings of the American Institute of CPAs, attendees at the 2004 fall confab were urged to take a more proactive role...

AICPA adopts outsourcing ethics.(Brief Article)
November 29, 2004... The American Institute of CPAs has adopted ethics rules that place new requirements on members who outsource clients' work to third-party providers and broaden the definition of those providers beyond just any outside tax service bureau to any...

LarsonAllen adds firm in Charlotte.(Brief Article)
November 29, 2004... Top-ranked firm Larson, Allen, Weishair & Co. LLP has merged Bullard, Blanchard, Johns PLLC into its fold, boosting its presence in Charlotte. The BBJ merger brings 13 additional members to LarsonAllen's Charlotte office, bringing its total...

Dunleavy named interim CalCPA CEO.(Brief Article)
November 29, 2004... The board of the California State Society of CPAs has appointed John V. Dunleavy, executive director of the California CPA Education Foundation, to serve as transitional chief executive of the 28,000-member organization, based here. ...

Correction.(Correction Notice)
November 29, 2004... In the headline of our Nov. 8-28, 2004, story on Carlin, Charron & Rosen LLP (page 36), we inadvertently misnamed the new managing partner. His correct name is Robert H Charron. Our apologies for the error. Copyright 2004 Thomson Media...

Conn. judge rules against IRS on tax shelter.
November 29, 2004... A Connecticut district judge ruled against the Internal Revenue Service and ordered the agency to refund more than $62 million to a General Electric subsidiary stemming from a transaction that the IRS said was a sham. TIFD III-E Inc., a...

FASB struggles with the line between principles & rules.(Financial Accounting Standards Board )
November 29, 2004... Two years ago, the Financial Accounting Standards Board announced that it would strive to write standards that depended more on principles than on specific rules or guidance. The idea was to encourage the preparers of financial reports to...

Sin taxes seem a safe bet for many states in 2005.
November 29, 2004... Sin taxes. Throughout history, governments have padded their coffers with taxes on the addictions and predilections of the populace. Current taxes on alcohol, tobacco and gambling help state governments meet their budget requirements...

International Accounting.(Brief Article)
November 29, 2004... * Canadian Institute of Chartered Accountants - www.cica.ca/ The CA is the Canadian CPA, and the CICA represents close to 70,000 of them. * CMAs of Canada - www.cma-canada.org The site of the professional body of Canada's 33,000...

Footnotes.
November 29, 2004... DELOITTE FOUNDATION ANNOUNCES WINNERS OF REGIONAL TAX COMPETITION: A total of 12 student teams were selected to advance to the national finals in the third annual National Tax Case Study Competition, a contest sponsored by the Deloitte...

Bamboo in Orlando.
November 29, 2004... As I previously have used this space to confide in you my shortcomings as a student, I will also tell you about a marvelously inventive science teacher I had in junior high school who employed trick questions to get suspect minds like mine to...

Render therefore unto Caesar.(Certified public accountants)
November 29, 2004... I was recently asked, "What concrete steps would you take to improve the profession?" After pondering the question for a full second, I replied, "I would redirect some core functions of the American Institute of CPAs and make it an advocacy...

Government auditors need rotation, too.(Brief Article)
November 29, 2004... Mr. Eli Mason's commentary ("Profession needs rotation of auditors," Oct. 25-Nov. 7, 2004, p. 6) advocates mandatory rotation of auditors for publicly traded companies. I not only agree with Mr. Mason, but further believe that mandatory...

The implications of Check 21.
November 29, 2004... As we move toward a truly electronic society, what we once demanded in print is changing before our eyes. Electronic delivery is affecting almost every industry, and banking is no exception. In fact, many banks have already begun truncating...

You've nailed your niche ... now build your boutique!
November 29, 2004... If you've been perfecting your niche development, congratulate yourself, but don't stop there. Kick things up another notch by considering "boutiquing." A boutique is a specialty provider that offers a single category of services. It...

Maximizing AJCA benefits requires tough calculations.(American Jobs Creation Act of 2004)
November 29, 2004... With the dust finally settling on the American Jobs Creation Act of 2004, tax professionals are studying its voluminous sections and clauses to map out optimum strategies. The legislation, signed by President Bush on Oct. 22, 2004, has...

Tax-planning changes are required for new Jobs Act.
November 29, 2004... The American Jobs Creation Act of 2004, at least in terms of the tonnage it adds to the Internal Revenue Code, is one of the biggest tax laws to come along since the 1986 Tax Reform Act. Some contend that it has no rival in terms of complexity....

Taxing Issues.
November 29, 2004... IRS INVESTIGATING OVER 60 CHARITIES ON POLITICAL ACTIVITIES; FUROR OVER NAACP PROBE: More than 60 charities, churches and other tax-exempt groups have been contacted by the Internal Revenue Service about alleged improper political activities,...

IRS warns on OICs, unveils revised forms.(Brief Article)
November 29, 2004... The Internal Revenue Service warned consumers against bogus claims by promoters that tax debts can be settled for "pennies on the dollar" through the Offer in Compromise Program. IRS Commissioner Mark Everson warned taxpayers to watch out...

Advisors warn FASB about slew of risky issues coming.(Financial Accounting Standards Board)
November 29, 2004... In an annual survey of recommended projects and priorities, the Financial Accounting Standards Advisory Council has warned the Financial Accounting Standards Board that the world is changing fast and getting riskier, and that the board's agenda...

Can the flaws in FASB's framework be fixed?(Financial Accounting Standards Board )
November 29, 2004... In an unheralded but potentially earthshaking move, the Financial Accounting Standards Board voted last spring to reconsider its conceptual framework, which was mostly completed in the 1970s and 1980s. In addition, the board plans to work...

Change of Auditors.(Brief Article)
November 29, 2004... WESTERN WATER NAMES ARMANINO MCKENNA: Western Water Co., a Point Richmond, Calif.-based purveyor of water rights in the western U.S., has dismissed its auditor, Big Four firm KPMG, and hired Armanino McKenna LLP as its successor. According...

Report: IRS corporate audits continue to slump.
November 29, 2004... Despite Internal Revenue Service assertions that it had halted the decline in the government's efforts to police corporate tax non-compliance, the pace of corporate audits is running well below the record-low levels registered in 2003,...

Institute debuts consumer financial literacy portal.
November 29, 2004... As part of its multi-pronged educational effort on financial literacy, the American Institute of CPAs has launched a consumer Web portal that offers information and articles organized by a series of life stages, such as college,...

Jobs Act limits deductions for some recreation costs.
November 29, 2004... The American Jobs Creation Act of 2004 limits the deduction allowed for entertainment, amusement and recreation provided to certain specified individuals to amounts treated as income to the recipient for federal income tax purposes. ...

PFP Briefs.(Certified Financial Planner Board of Standards Inc.)
November 29, 2004... * CFP BOARD REGISTERS NEW EDUCATION PROGRAMS: The Certified Financial Planner Board of Standards Inc. said that its Board of Examiners has registered nine new financial planning education programs at eight institutions, bringing the total...

Salaries to rise in '05; internal auditors, public acc'ts to see largest gains.
November 29, 2004... There's good news for accounting and finance professionals - starting salaries are expected to increase an average of 2.4 percent next year. But the news is far better for internal auditors and professionals focused on Sarbanes-Oxley and other...

Institute taps Purcell, honors Rosen.
November 29, 2004... The American Institute of CPAs has named Thomas J. Purcell III to a two-year term as chairman of its Tax Executive Committee, the tax policy and standards-setting body of the AICPA. Purcell, the first educator to lead the committee, is an...