Accounting Today articles from November 2005

Accounting Today archives from November 2005

PCAOB sets '06 agenda: Audit reviews at top of the list.(Public Company Accounting Oversight Board)
November 7, 2005... Washington -- The Public Company Accounting Oversight Board is closing in on a proposed new audit standard governing engagement quality reviews by accounting firms. That standard, which appears on track to be advanced during 2006, is part...

Tax help wanted: Apply now!(accountants in demand)
November 7, 2005... The current business and regulatory climate has fueled so much demand for accountants across the board that it will make seasonal staffing during tax time more difficult than ever, according to industry observers. "Demand is even higher...

CPAs face brave new world in LTCI.(certified public accountants, long term care insurance)
November 7, 2005... CPAs are under increasing pressure to provide long-term care insurance to firm members, as well as to advise clients on appropriate LTC coverage. The triple-whammy of increasing medical costs, longer life expectancies, and the aging Baby Boomer...

Not ready yet?(taxation)(Brief Article)
November 7, 2005... Look, if you haven't prepared for tax season yet, we can't help you. Just give up and schedule a long vacation. If you have prepared, though, now would be a good time to check just how ready you are. * Rally the troops - and reinforce firm...

News Briefs: More KPMGers indicted for shelters.(KPMG L.L.P.)(tax evasion)(Brief Article)
November 7, 2005... Washington -- The government added 10 defendants to its indictment in the KPMG LLP tax shelter investigation, including the Big Four accounting firm's former chief financial officer, bringing the number of people charged in the case to 19. ...

DiPiazza reappointed at PwC.(Samuel A. DiPiazza reappointed at PricewaterhouseCoopers L.L.P. )(Brief Article)
November 7, 2005... New York -- PricewaterhouseCoopers announced that Samuel A. DiPiazza Jr. has been reappointed to a second four-year term as chief executive of PricewaterhouseCoopers' global organization. His new term will begin Jan. 1. DiPiazza, 54, has been...

AICPA releases tax reform report.(American Institute of Certified Public Accountants)(Brief Article)
November 7, 2005... Washington -- The American Institute of CPAs has released a nonpartisan tax reform report titled, "Understanding Tax Reform: A Guide to 21st Century Alternatives." The report is meant as an overview to understanding major issues in the debate...

Instant messaging is not always an instant solution.(certified public accountants )
November 7, 2005... At the CPA firm of Hamilton, Boynton and Associates, 35 employees communicate with each other from two different locations - one in Simi Valley and the other in Orange County, Calif. - by using instant messaging. "It's a lot quicker than...

FASB issues new, revamped draft on earnings per share.(Financial Accounting Standards Board)
November 7, 2005... Norwalk, Conn. -- The Financial Accounting Standards Board has issued another exposure draft on accounting for earnings per share, adding what may be the final tweaks to an amendment of Statement 128. The revised edition has few changes...

AICPA to consider relocating 400 N.J. workers.
November 7, 2005... New York -- The American Institute of CPAs will ask its Governing Council to consider relocating more than 400 of the trade association's employees from their Jersey City, N.J., offices to an undisclosed location in the Southern Atlantic...

FASB launches task force to mine investor expertise.(Financial Accounting Standards Board to protect investors)
November 7, 2005... Norwalk, Conn. -- Franklin Delano Roosevelt created the Securities and Exchange Commission to protect the country's investors. The SEC went on to create the Financial Accounting Standards Board to give investors standardized financial reports....

Bankruptcies, rising rates, inflation roil bond waters.
November 7, 2005... Bonds are leaning into the double headwinds of rising interest rates and rising inflation. The high-yield end of the market is also struggling with mega-downgrades and troubling bankruptcies. Those events have prompted advisors to begin...

Tax season is coming ...
November 7, 2005... * Council on State Taxation - www.statetax.org COST represents more than 500 multi-state corporations engaged in interstate and international business. The group works to ensure that corporate taxpayers are represented on state tax issues...

Footnotes.(Certified public accountants society)(Brief Article)
November 7, 2005... CPA SOCIETY UNVEILS MINORITY CPA EXAM GRANT: The Educational Trust Fund of the Connecticut Society of CPAs has established a new minority CPA candidate grant with support from four CPA Exam review providers, including Becker Professional...

Groundhog Day for the Big 4?
November 7, 2005... In a former life covering sports, I was once assigned to a late-season game between the New York Mets and the Chicago Cubs. It seemed back then that most every season for the Cubs was eerily similar to Groundhog Day, where a cynical weatherman...

Perception and reality.
November 7, 2005... After the unimaginable devastation in the aftermath of Hurricane Katrina, the embattled director of the Federal Emergency Management Agency announced his resignation from his position as the organization's chief. The public's perception...

Letters.(Letter to the Editor)
November 7, 2005... Setting FASB's record on GAAP straight The recent series of columns by Paul Miller and Paul Bahnson about the Financial Accounting Standards Board's views on generally accepted accounting principles and, in particular, its recommended...

Governance: What fits your firm?
November 7, 2005... Accounting firms tend to embrace one of three types of governance systems - the benign dictator, the republic or the democracy. Many of my clients often ask me these questions: * Which one is the best? * Which one helps the firm...

Taxing Issues.(Richard Egan accused by Internal Revenue Service)(sales tax)(Adelphia Communications Corp.'s John Rigas and his son accused of accounting scandals)
November 7, 2005... * REFORM PANEL RULES OUT NATIONAL SALES TAX: The President's Advisory Panel on Federal Tax Reform ruled out a proposed national retail sales tax, and said that it would instead suggest changes to the current Internal Revenue Code framework,...

States mull solutions to falling corp. tax revenues.(corporate tax collections reducing)
November 7, 2005... States have taken two different paths in response to falling revenue from corporate tax collections. On the one hand, some states have focused on lowering corporate taxes or at least changing them to make themselves more attractive for...

New nonqualified deferred compensation regulations.(taxation)
November 7, 2005... Several provisions of the American Jobs Creation Act of 2004 have required tax advisors to be very proactive with their clients to consult with them about the impact of the statutory changes, as well as subsequent regulatory developments. ...

DeSantis tapped to lead overseer of FASB, GASB.(Robert J. DeSantis appointed to Financial Accounting Standards Board and Governmental Accounting Standards Board)
November 7, 2005... Norwalk, Conn. -- The Financial Accounting Foundation, overseer of the Financial Accounting Standards Board and the Governmental Accounting Standards Board, recently named Robert J. DeSantis to the newly created post of president and chief...

How far we've come - and how far we haven't.(Harnischfeger Corp.)
November 7, 2005... This semester, Paul Bahnson is using a new textbook (Business Analysis and Valuation, by Palepu, Healy and Bernard) in his financial analysis course. We mention it because it includes a case about the Harnischfeger Corp. that challenges...

Change Of Auditors.(Reader's Digest Association Inc. hires Ernst & Young L.L.P.)(Brief Article)
November 7, 2005... * READER'S DIGEST ENGAGES E&Y: Publishing giant Reader's Digest Association hired Ernst & Young as its new auditor for its fiscal year ending June 30, 2006. Ernst succeeds Big Four firm KPMG as Reader's Digest's new independent accountant....

PFP Briefs.
November 7, 2005... * FICPA HELPS RESIDENTS WITH FINANCIAL GOALS: Members of the Florida Institute of CPAs have reached out to help Floridians struggling with financial issues to get back on track through "360 Degrees of Financial Literacy," the nationwide...

Buy-sell agreements can help protect your business.
November 7, 2005... If you are an owner of a business, what would happen if you or a co-owner were to die suddenly? Large problems can result from the death, incapacity, resignation, etc., of one of the owners. How would the decedent's heirs liquidate the...

Making charitable gifts of appreciated property.
November 7, 2005... In determining what property to contribute to a charitable organization, it is usually best to contribute appreciated property, i.e., property whose fair market value is higher than its basis in the donor's hands. This is because the...

Tech Briefs.(QuickBooks lowers prices)(Deloitte Consulting acquires Technology Consultants Inc.)(I.B.I.S. Inc. acquires InfoVision)
November 7, 2005... * QUICKBOOKS LOWERS PRICING, READIES FOR SBA: As Intuit's QuickBooks girds for its largest competitive challenge to date - Microsoft's Small Business Accounting - it has lowered the prices for its QuickBooks Premier and QuickBooks Pro...

One size doesn't fit all: End users look for perfect 'fit' with open source code.
November 7, 2005... Imagine if all your clothes and shoes were tailored to your size and shape - with everything fitting like a glove. Would your work clothes be as comfortable as your pajamas? How much less would your feet hurt at the end of the day? ...

Sage launches MAS 90/200.(Sage MAS 90 and Sage MAS 200)(Brief Article)
November 7, 2005... Irvine, Calif. -- Business software developer Sage Software has unveiled updated versions of its mid-market enterprise resource planning systems, Sage MAS 90 and Sage MAS 200. The 4.1 versions offer features to streamline sales order entry and...

Software Review: Write-Up Software Remains As Popular As Ever.(Product/Service Evaluation)
November 7, 2005... Every time some industry pundit declares write-up dead, sales of this important application simply refuse to dry up. With more and more emphasis being placed on control and accountability, even some of your clients who have moved their...

Vendor information.(Brief Article)
November 7, 2005... * AccountantsRelief Plus AccountantsWorld 140 Fell Court Hauppauge, N.Y. 11788 (888) 999-1366 www.accountantsoffice.com Price: $995. * ProSystem fx Write-Up V. 2.5 CCH Tax and Accounting 21250 Hawthorne...

Creative recruitment strategies are imperative!
November 7, 2005... No matter where you turn today, one of the top concerns facing firm leadership is attracting and retaining the best in human capital. One crucial aspect of attraction and retention that is a challenge for every firm is recruitment. How do...

Software.(Product/Service Evaluation)
November 7, 2005... Abra HRMS 8.0 Sage Software recently released a new version of its human resource management system, Abra HRMS. In addition to its usual set of HR, benefits, training and recruiting features, Version 8.0 features support for multiple...

Books.
November 7, 2005... Getting the grease We used to think that the ultimate in debt collection involved baseball bats and broken legs, but that was before we heard about Michelle Dunn. A long-time expert in the collections field - and owner of her own...

People.(Adamson and Co. appoints Lisa Russo)(Rothstein, Kass and Co. appoints Kristine Stromeyer)(Mayer, Brown, Rowe & Maw LLP appoints Philip Rotner )
November 7, 2005... CALIFORNIA Kristine Stromeyer has been promoted to principal at the Beverly Hills office of Rothstein Kass, while Vincent Calcagno has been promoted to principal at the San Francisco and Walnut Creek offices. Stromeyer joined the firm in...

Coming Events.
November 7, 2005... - NOVEMBER - 7: Fraud Prevention, Association of Certified Fraud Examiners. San Juan Marriott & Stellaris Casino, San Juan, P.R. Contact: (800) 245-3321 or www.cfenet.com/events. 7: Audit Representation or S Corp Tax Essentials, NATP....

Firms.(Gary Rosene & Co. changes its name to Rosene, Pickhinke, Peters & Co.)(Eisner & Lubin LLP opens new office)(Palmer, Currier and Hoffert LLP enters into a partnership with RSM McGladrey Inc.)(Brief Article)
November 7, 2005... IOWA Gary Rosene & Co. PC, Storm Lake, has changed its name to Rosene, Pickhinke, Peters & Co. PC. MARYLAND Stegman & Co., Baltimore, has joined AGN International Ltd., an association of independent accounting and consulting...

Weaver and Tidwell acquires another Texas firm.(Brown and Nelson)(Brief Article)
November 7, 2005... Dallas -- Accounting firm Weaver and Tidwell LLP has signed a merger deal with Dallas firm Brown & Nelson PC to add forensic accounting and litigation support expertise to the firm. Financial terms weren't disclosed, and the firm will be...

SoCal firms to sharpen tech focus in merger.(Robert Redwitz & Co. acquires Coradino, Hickey and Hanson)(Brief Article)
November 7, 2005... Irvine, Calif. -- Robert Redwitz & Co. acquired Coradino, Hickey and Hanson, a San Diego-based accounting firm, in a merger effective Oct. 1. The newly merged firm has relocated its offices, but will continue to operate in La Jolla under...

Advertiser Index.
November 7, 2005... Advertiser Page 1st Global 19 AccountantsWorld 17 ADP 21 Capital One 27 CCH Tax and Acctg. 12, 34, 37, 48 ...

Editor's Note: It's Here for the Long Haul.(Brief Article)(Editorial)
November 7, 2005... I heard a story recently about a major pizza chain that was faced with not having enough people to service their customers on a 24/7 basis. So, they outsourced pizza delivery jobs to India. Sounds crazy, eh? But, maybe not. When it...

The Outsourcing Evolution.
November 7, 2005... Originally viewed as a way to relieve domestic staffing shortages, outsourcing is evolving in ways previously unforeseen. Most significantly, it has spawned the development of sophisticated workflow technologies that enable tax returns to be...

A Key To Success.
November 7, 2005... If viewed on a balance sheet, the number of accounting professionals versus the demand for services from the nation's tax and accounting firms would result in a major deficit on the staffing side. Firms of all sizes would be in the red,...

Outsourcing Accounting Makes Sense.
November 7, 2005... Outsourcing your accounting function at some level makes sense, regardless of the size of your company or client company. For many, the decision to outsource is purely a financial one. Does it cost more money for me to hire the talent in-house...

Robust New Technologies.
November 7, 2005... Have you ever sat back in the middle of the busy season surrounded by piles of files, feeling absolutely overwhelmed and thinking there has to be a better way to process and control all your work? Your tax department is challenged every...

Choosing A Payroll Partner.
November 7, 2005... Outsourcing the payroll function can appear as a simple task-at least on the surface. But anyone who's ever outsourced payroll knows that it's not simply a matter of finding a resource to do the math. Certainly, getting all the calculations...

Managing Outsourcing.(Mphasis BFL Ltd.'s ranking)
November 7, 2005... The Black Book of Outsourcing has ranked MphasiS as the fourth best managed outsourcing vendor for the year 2005. The rankings are based on customer satisfaction and employee satisfaction surveys, comparison with independent vendors, ratings of...

A Sun Rise Industry.
November 7, 2005... The term "outsourcing" has created lots of debates among economists, politicians, and sociologists. But this way of doing business goes back to the barter age. The magnitude of outsourcing has increased considerably resulting in a widening...

Outsourcing on the Web.
November 7, 2005... With all the buzz around Web-based software, more accounting firms are migrating from a client-server to an on-demand, or software-as-a-service, infrastructure. CPAs report that providing finance and accounting outsourcing services boosts sales...

HR Outsourcing Increases.(human resource)
November 7, 2005... ADP reports that 84 percent of those surveyed believe that outsourcing of human resources activities will continue to increase. In fact, 41 percent of worldwide organizations surveyed plan to outsource employee benefits administration....

Developing A Successful Relationship.
November 7, 2005... Great ideas and entrepreneurial skills get a business started. Good financial management keeps the business going. All too often, businesses don't survive because they are not up to the challenge of effective financial analysis and...

Handling Payroll In-House.
November 7, 2005... If you haven't jumped on the payroll bandwagon yet, think again. With the increasing popularity of on-demand solutions, payroll has never been easier. Here are 10 reasons to stop referring business away, and to start doing client payroll using...

Outsourcing Entity-Related Services.
November 7, 2005... Some of the services your clients request are more tedious and less convenient for you to handle than others. Incorporations, dissolutions, and other entity-related services typically fall into this category. As unappealing as these services...

Outsourcing Marketing.
November 7, 2005... While many companies are outsourcing to cut costs, many outsource and have discovered that a third party can perform this function more effectively, as well. When you factor in the true costs of marketing and lead generation for your practice...

Customized Solutions.(Godrej Global Solutions' services)
November 7, 2005... Godrej Global Solutions (GGS) offers customized business process outsourcing solutions and services for enhancing the effectiveness of business operations and thereby providing valuable leverage to business. Headquartered in Mumbai, India,...

3rd Annual Financial Planning Awards Call for Nominations.(Brief Article)
November 7, 2005... Nominations are now open for CPA Wealth Provider's Third Annual Financial Planning Awards in the following categories: CPA/Financial Planning Firms Broker/Dealers Financial Planning Software Vendors Winners are those firms or...

Numbers dictating Institute N.C. move.
November 28, 2005... Rancho Mirage, Calif. -- Preparations are underway as the American Institute of CPAs begins relocating nearly 400 positions about 500 miles south - from Jersey City, N.J., to Durham, N.C. Within a month of the Governing Council approving...

Let the tax debates begin: Advisory panel submits final proposals on reform.
November 28, 2005... The final report of the President's Advisory Panel on Tax Reform attracted a heavy dose of criticism even before it was released, failing to satisfy the interest groups most concerned about tax reform. The panel offered two options. Plan A,...

Tax planning software stresses 'what ifs,' integration.
November 28, 2005... Tax planning started as a natural response by practitioners whose clients asked how they might fare on next year's return if they engaged in certain transactions during the year ahead. Practitioners who could answer those questions grew...

A last-minute checklist.(Brief Article)
November 28, 2005... With the holiday season here, and tax season looming beyond it, you probably find yourself with very little spare time. Any extra minutes you do have, however, would be well spent double-checking things like the following: * Is all of your...

IRS releases enforcement highlights.(Internal Revenue Service )(Brief Article)
November 28, 2005... Washington -- The Internal Revenue Service released its enforcement results for fiscal year 2005. IRS Commissioner Mark W. Everson, noting that he is at the mid-point of his five-year term heading up the agency, said that the IRS is continuing...

KPMG creates new vice chair ops.(Brief Article)
November 28, 2005... New York -- Jack T. Taylor has been named to the newly created position of executive vice chair of operations for KPMG LLP. Taylor, 53, was formerly vice chair of operations and audit and risk advisory services, where he was responsible for...

Another top accountant leaving SEC.(Securities and Exchange Commission deputy chief accountant Andrew D. Bailey Jr. will leave the commission)(Brief Article)
November 28, 2005... Washington -- Securities and Exchange Commission deputy chief accountant Andrew D. Bailey Jr. will leave the commission in December. In a statement, chief accountant Don Nicolaisen praised Bailey's contributions since joining the SEC in January...

H&R Block COO to step down.
November 28, 2005... Kansas City, Mo. -- H&R Block Inc. said that its chief operating officer, Jeffrey Yabuki, is stepping down to run data processing provider Fiserv Inc. Yabuki will become president, chief executive and a member of the board of directors of the...

Corrections.(Correction Notice)
November 28, 2005... In the Accounting Today Top 100 Most Influential People, the biography for California Society of CPAs CEO John Dunleavy should have stated that, during his tenure, the organization increased its new membership by more than 35 percent, and that...

Why Wi-Fi? Why not?: Evolving wireless access can save time, money.
November 28, 2005... When a CPA saves an extra hour or two by stopping at a wireless Internet hot spot and doing some work online, the benefits can be "huge," according to Peter Henley, a CPA and director of information technology at Clark Nuber, a Seattle-based...

Europe considers upgrades to 4th and 7th Directives.
November 28, 2005... Brussels -- Yet another piece in the jigsaw of legislation controlling corporate governance, accountancy and auditing, aimed at boosting investor confidence in European Union business, is coming into focus as upgrades are being considered to...

PwC reports 2005 global revenues.(PricewaterhouseCoopers)(Brief Article)
November 28, 2005... New York -- Big Four firm PricewaterhouseCoopers and its global network reported combined member firm revenues of $20.3 billion for the year ended June 30, 2005, a nearly 17 percent rise in U.S. dollars versus the previous year. In local...

COSO guidelines may ease compliance for small filers.(Committee of Sponsoring Organizations )
November 28, 2005... If the Committee of Sponsoring Organizations of the Treadway Commission has succeeded in doing what it set out to do, small public companies may soon have an easier time of documenting their internal controls. Back in 1992, COSO issued a...

Investments in China offer rewards - and uncertainty.
November 28, 2005... Investing in China may garner top billing at some international investment conferences, but 1.3 billion people building an economy with near double-digit growth rates still isn't enough to attract the interest of most CPA advisors. The...

Tax resources, part I.(Brief Article)
November 28, 2005... * CBS Marketwatch Tax Guide - www.cbsmarketwatch.com/news/current/tax_guide.htx This tax guide written by CBS reporters is aimed at consumers, but has much to offer tax professionals, too. There's daily analysis of pressing tax issues,...

Footnotes.(Brief Article)
November 28, 2005... MERCADIEN GROUP KICKS OFF SUPPORT THE TROOPS CAMPAIGN: The Mercadien Group, a New Jersey-based diversified CPA and business advisory concern, recently kicked off a campaign to lend support and appreciation for American combat troops in Iraq....

Tax reform or reformed tax?
November 28, 2005... I've often used this space to regale you - or, depending on your interest level, bore you - with my epic 1040 struggles. I'm probably one of the few residents of the Empire State who gets holiday cards from the New York State Department of...

Letters.(Letter to the Editor)
November 28, 2005... RON BAKER REPLIES John Maynard Keynes was once asked why he changed his mind on a particular topic, and he replied: "When somebody persuades me that I am wrong, I change my mind. What do you do?" Apparently, in her letter to the editor...

What is the role of today's firm managing partner?
November 28, 2005... Let's do away with the title of "managing partner." Partners and other professionals are not employees to be managed. They don't like the idea of someone else telling them what to do. If you have any doubt, just ask your current partners....

Merger creates major firm association.(Global Alliance and Moore Stephens North America Inc)
November 28, 2005... New York -- The Global Alliance and Moore Stephens North America Inc. will merge to create one of the largest CPA firm associations. To be known as Moore Stephens North America, the association represents 35 firms with gross revenues of over...

Taxing Issues.
November 28, 2005... FREE FILE AND IRS EXTEND PARTNERSHIP: The Internal Revenue Service and the Free File Alliance have extended their partnership, a pact that provides free tax services and electronic filing to an eligible pool of 93 million taxpayers, and agreed...

Circular logic: Make sense of changes in Circular 230.
November 28, 2005... Tax practice for CPAs is changing. Recent modifications to Circular 230, the U.S. Treasury Department regulations that govern practice before the Internal Revenue Service, have established several changes that leave CPAs with a new standard for...

MBA tuition may be able to qualify as business expense.(Master of business administration)
November 28, 2005... Advanced degrees are being obtained by a higher percentage of the middle- and upper-class population than ever before. Many of these students hold full-time jobs. The recent development of online universities has only served to fuel this trend....

Judge tells IRS to pay Buffett $23M.
November 28, 2005... New York -- A federal judge ordered the Internal Revenue Service to pay Warren Buffett's investment company, Berkshire Hathaway Inc., more than $23 million in taxes and interest for disallowing certain deductions dating back to 1989. The...

Change Of Auditors.(Brief Article)
November 28, 2005... FIELDSTONE JETTISONS KPMG: Fieldstone Investment Corp. has dismissed KPMG as its auditor and named Big Four rival Deloitte as its replacement. Fieldstone, a Columbia, Md.-based residential mortgage banking concern, reported no unresolved...

ASB issues initial private company audit standards.(Auditing Standards Board )
November 28, 2005... As the American Institute of CPAs' director of auditing and attestation, Chuck Landes has guided the Auditing Standards Board through the upheavals of the Sarbanes-Oxley Act, and in late October, he saw the board issue 11 inaugural standards...

Why we haven't written very much about auditing.
November 28, 2005... We recently realized that it's been a while since we dedicated a column to auditing. Even though some things have happened in this area, we just haven't had the heart to write about them. For example, it's been some time since the Public...