Accounting Today articles from November 2007

Accounting Today archives from November 2007

Staffing: Ready for tax season?
November 5, 2007... The continuing business boom, rising client demand and the movement of tax professionals toward other accounting niches has generated varied responses to staffing needs, as firms turn to remote technology, outsourcing, part-time former...

International Tax: Translation needed: Transfer pricing and FIN 48.
November 5, 2007... Small and midsized companies are facing increased scrutiny from tax authorities both in the U.S. and in foreign jurisdictions to ensure that the transfer pricing of transactions among their subsidiaries is treated as if they were at arm's...

Lawmakers urge charities to boost diversity support.
November 5, 2007... WASHINGTON, D.C. -- Congressional tax writers have issued a subtle warning to charities and other nonprofit organizations: Start placing a heavier emphasis on serving diverse communities, or you may risk losing your tax-exempt status. That...

Melancon, Flynn named to audit panel.(Barry Melancon and Tim Flynn)(Brief article)
November 5, 2007... WASHINGTON, D.C. -- Barry Melancon, president and chief executive of the American Institute of CPAs, and a number of other accounting profession luminaries such as Tim Flynn, chief executive at Big Four firm KPMG, have been named to the...

Lister out as Jackson Hewitt CEO.(Jackson Hewitt Inc. to appoint Michael Yerington in place of Michael Lister )(Brief article)
November 5, 2007... PARSIPPANY, N.J. -- Jackson Hewitt Tax Service has ousted chair and chief executive Michael Lister after more than 125 of the company's franchises faced charges of fraudulent tax return preparation. Michael Yerington succeeded Lister as...

FASAC mulls march toward international standards.(Financial Accounting Standards Advisory Council )
November 5, 2007... NORWALK, CONN. -- When the Financial Accounting Standards Advisory Council met in September to discuss the use of International Financial Reporting Standards, they found themselves answering questions with questions. FASAC, which advises...

In Brief.(Sage Group Inc. )
November 5, 2007... SAGE JETTISONS NORTH AMERICAN EXECS LONDON - With performance lagging in the company's North American business, the Sage Group purged that region's C-level suite, ousting Sage Software chief executive Ron Verni, chief financial officer Jim...

Editor's Desk: Audit brain trust.
November 5, 2007... In medieval times, scores of religious contemplatives grappled with such esoterica as how many angels could fit on the head of a pin - comfortably or otherwise. Despite failing religious education for two consecutive years, I don't feel that a...

Commentary: A profession without borders.
November 5, 2007... How do you define mobility for CPAs? The accounting and auditing standards that an Iowa CPA follows are the same ones a Florida CPA follows. Add the Internet-driven, practically borderless nature of commerce today and it would seem reasonable...

IRS blinks on stance against Circ. 230 fees.(Internal Revenue Service)
November 5, 2007... Washington, D.C. -- The Internal Revenue Service has softened its opposition to contingent fees charged by Circular 230 practitioners. Originally, the IRS proposed permitting a contingent fee only in connection with an IRS examination or the...

In Brief.(accounting services predicts standard deductions )
November 5, 2007... INDEXING WILL LOWER TAXES NEXT YEAR RIVERWOODS, Ill. - CCH predicted that the indexing of many features of the Tax Code to adjust for inflation will bring taxpayers some relief next year as the company released its 2008 tax rate...

Dealing with the new return preparer penalties.
November 5, 2007... The Small Business Tax Act amended Code Sec. 6694 to increase tax return preparer penalties, the types of returns to which the penalties apply, and the support required for the position taken on the return. The provision was to be effective for...

FASB set to ratchet up in fourth quarter.(Financial Accounting Standards Board)
November 5, 2007... NORWALK, CONN -- After a summer of discussions, the Financial Accounting Standards Board is expected to release as many as 10 documents by the end of the year or early in 2008. Susan Bielstein, FASB director of major projects and technical...

Change of Auditors.(H&R Block to replace its auditor Richard Breeden)(Outdoor Channel Holdings Inc. to appoint J.H.Cohn)(Culp Inc. to replace Grant Thornton)(Brief article)
November 5, 2007... H&R BLOCK TO REPLACE KPMG Tax-prep giant H&R Block said that it would replace its auditor, Big Four firm KPMG, after former Securities and Exchange Commission Chairman Richard Breeden was named to Block's board. Breeden is a...

CIFiR: So far, not so good.(Report)
November 5, 2007... Like many others, we're interested in the work of the Securities and Exchange Commission's recently created advisory Committee on Improvements to Financial Reporting. Improvement is something that everybody likes, at least if it doesn't really...

The wrong kind of diversification: 'Di-worse-ification:' Adding investments or advisors that increase the risk of a portfolio.
November 5, 2007... Individuals managing their own assets receive no legal guidance on the standards for prudent investing. Fortunately, they can look to the Uniform Prudent Investor Act for guidelines. The act sets forth standards that govern the investment...

In Brief.
November 5, 2007... SMHG BUYS 25% STAKE IN IPRO ONE Sanders Morris Harris Group, a financial services holding company, has acquired a 25 percent ownership interest in iPro One, a company that provides CPA practices with investment systems and products. Terms...

Software Review: Write-up software still comes in handy.
November 5, 2007... Most accountants have stopped worrying about their clients bringing bookkeeping in-house. Even with a client performing their own bookkeeping, there's plenty of work that only an accountant can perform, including making adjusting and closing...

The evolution of partner value.
November 5, 2007... While partner value and compensation continue to be topics that attract considerable attention at firm summits and practice management conferences, fear of the unknown often trumps any motivation for change or improvement. The Balanced...

In Brief.(CCH Inc. to introduce CorpSystem, a line of software)(Brief article)
November 5, 2007... CCH DEBUTS NEW CORPSYSTEM RIVERWOODS, Ill. - CCH has introduced CorpSystem, a line of software for corporate professionals who do tax and accounting work. CorpSystem includes sales and use tax software that integrates with a company's...

New Products.(NetSuite )(Journyx )(Dymo )
November 5, 2007... Software & Hardware NETSUITE VERTICALS On-demand software provider NetSuite has released two new versions of its hosted business and accounting software, one for services companies and one for wholesale and distribution companies....

People.(RBZ LLP. to promote Cindy Chu and Sunny Meneou)(American Institute of Certified Public Accountants to appoint Yvette Garcia)(Carr, Riggs & Ingram LLC. to appoint Evan Bohannon and Amna Ashar )
November 5, 2007... CALIFORNIA Cindy Chu and Sunny Meneou have been promoted to director at RBZ LLP, Los Angeles. FLORIDA Yvette Garcia, a partner of Morrison, Brown, Argiz & Farra LLP, Miami, has been appointed to the Technical Issues Committee of...

Coming Events.(Calendar)
November 5, 2007... NOVEMBER 5-6: NATP 1040 and 1040 Extra Workshops, National Association of Tax Professionals. Atlanta; Kingston, N.Y.; Columbus, Ohio; Oklahoma City; Erie, Pa.; and Knoxville, Tenn. Contact: (800) 558-3402 ext. 3 or www.natptax.com. ...

Firms.(Singer Lewak Greenbaum & Goldstein LLP to be named best place to work in Los Angeles)(Carter, Belcourt & Atkinson to combine with Crowe Chizek and Co)(Gautreau Group LLC to merge with LaPorte Sehrt Romig Hand )
November 5, 2007... CALIFORNIA Singer Lewak Greenbaum & Goldstein LLP has been named one of the Best Places to Work in Los Angeles by the Los Angeles Chamber of Commerce, the Professionals in Human Resources Association and the Los Angeles Business Journal....

In Brief.(Ernst & Young to appoint James S. Turley)(Michele J. Hooper and Barry Melancon to serve as co-vice chairs of American Institute of CPA's)(Brief article)
November 5, 2007... E&Y CEO TO CHAIR CENTER FOR AUDIT QUALITY WASHINGTON, D.C. - Ernst & Young chairman and CEO James S. Turley has been appointed chair of the governing board of the Center for Audit Quality to help improve investor confidence in the audit...

Advertiser Index.
November 5, 2007... Advertiser Page 1st Global 15 AccountantsWorld 31 ADP Small Business Services 19 CaseWare International 9 CCH, a Wolters Kluwer Business 7 ...

Tax Planning: Opportunities Ahead: Tax planning software helps practitioners boost client services, revenue.
November 26, 2007... Tax planning is one of the few forward-thinking services that accountants can offer their clients. Given the fact that the accountant has most of the data and is the clients most trusted advisor, it makes sense for them to show clients how to...

Reporting Standards: SEC IFRS proposal drawing mixed reactions.
November 26, 2007... WASHINGTON, D.C. -- The American Institute of CPAs has given a thumbs-up to a Securities and Exchange Commission plan that would allow U.S. corporations to abandon generally accepted accounting principles and report their financial results...

FASB poised to release GAAP codification.
November 26, 2007... NORWALK, CONN. -- One of accountings most complex and significant projects the codification of the countrys generally accepted accounting principles is about to step into daylight. After four years of intense and technically complex...

Rangel takes aims at AMT.(alternative minimum tax)
November 26, 2007... WASHINGTON, D.C. -- Labeling it the Mother of all Tax Reforms, Rep. Charles Rangel, D-N.Y., chairman of the House Ways and Means Committee, has introduced a bill aimed at repealing the alternative minimum tax and cutting the top corporate tax...

The global talent crunch: Staff shortages in accounting and finance spread worldwide.
November 26, 2007... If you think the U.S. is the only country grappling with a shortage of accounting professionals, think again. A recent survey released by staffing concern Robert Half International revealed that the drought of human capital in accounting...

In Brief.(United States. Internal Revenue Service)(arr, Riggs & Ingram to acquire Cuthill & Eddy)(United States. Security and Exchange Commission)
November 26, 2007... IRS OFFERS RELIEF TO CALIFORNIA FIRE VICTIMS WASHINGTON, D.C. The Internal Revenue Service said that it is extending the filing deadlines for victims of the wildfires in Southern California. Taxpayers in the presidentially declared...

Editor's desk: Competitive fire.(Editorial)
November 26, 2007... Ive always subscribed to the belief that you lose your edge in the absence of competition. In my humble opinion, the more heated the competition, the better. Coming from the New York area, I witnessed such now-defunct retailers as Hermans...

Commentary: Modern lessons from ancient internal controls.
November 26, 2007... As lawmakers and regulators continue to tinker with the Sarbanes-Oxley Act for U.S. public companies, they could do worse than look to the 14th century, when the budding capitalists of Southern France developed corporate governance institutions...

Letters: Compliance is part of the equation.(Letter to the editor)
November 26, 2007... I take considerable issue with your view (I volunteer not, Accounting Today, Sept. 10-23, 2007, page 6) that voluntary compliance is not part of the equation. Certainly more and improved enforcement has been lacking and is much needed....

Defined-benefit and 401(k) plans could spell tax savings.
November 26, 2007... While the word is that defined-benefit plans are no longer in favor, they can still provide a tax savings for the right client. A lot of the press would lead you to believe that defined-benefit plans are on the way out, said Karen Shapiro,...

In Brief.(Red Wing Software to introduce new service)(Internal Revenue Service )(Brief article)
November 26, 2007... IRS EASES LATE S CORP ELECTIONS The Internal Revenue Service has given businesses a simpler process for requesting relief for late elections. Revenue Procedure 2007-62 allows small businesses that missed filing Form 2553, Election by a...

Insolvency exception to debt-forgiveness income can be tricky.
November 26, 2007... In a special area on its Web site (in a Q&A on home foreclosure and debt cancellation), the Internal Revenue Service advised, Insolvency can be fairly complex to determine and the assistance of a tax professional is recommended. Also, in...

Commentary: With or without due process?
November 26, 2007... The Securities and Exchange Commission Statement of Policy reaffirming the status of the Financial Accounting Standards Board as a designated private-sector standard-setter (Release Nos. 33-8221; 34-47743; IC-26028; FR-70) recognizes FASBs...

Change of auditors.(CVS Caremark Corp. to contract with Ernst & Young)(Mair Holdings Inc. to name Grant Thornton as new auditor)(Allegheny Energy to contract with Deloitte )
November 26, 2007... CVS CAREMARK DISMISSES KPMG CVS Caremark Corp., a prescription drug provider, has jettisoned Big Four firm KPMG as its independent accountant and named Ernst & Young as its successor. In a filing, Woonsocket, R.I.-based CVS did not...

CIFiR: Five points to ponder (out of 10).(Column)
November 26, 2007... Our column in the previous issue considered the Securities and Exchange Commissions recently appointed Committee on Improvements to Financial Reporting, which has been charged with finding ways to strengthen the system. As our readers might...

The new college try: Tax deductions, credits and other strategies to help with the skyrocketing costs of college.
November 26, 2007... As college costs increase with no end in sight, more and more of your clients are struggling to find ways to lighten the tuition load. Luckily, there exist several beneficial tax deductions, credits and scholarships that can help. ...

In Brief.(Certified Financial Planner Board of Standards Inc. to name Carol Lee Roberts as regulatory body)(Brief article)
November 26, 2007... CALVERT GIVING FUND DIVESTS DARFUR INTERESTS In a break with donor-advised funds sponsored by other national financial services firms, the Calvert Foundation said that its Calvert Giving Fund is now fully divested from companies affiliated...

Vendor Profile: Avalara: An Rx for sales tax headaches.(Company overview)
November 26, 2007... Avalara aims to make the process of calculating sales tax less taxing and more relaxing. The company is so serious about their message that theyve adopted an island theme for their exhibition booth at technology trade shows, complete with...

In Brief.
November 26, 2007... ACCOUNTANTSWORLD BRINGS ACCOUNTING RELIEF TO WEB AccountantsWorld has released its Accounting Relief software with Web 2.0 features that allow accountants to collaborate with small business clients. The software includes client...

Boomer's Blueprint: Avoid commoditization - increase value.
November 26, 2007... Innovation and technology are powerful forces in commoditization. Harvard economist Joseph Schumpeter coined the term creative destruction, a process that involves several stages, beginning with emergence and moving on to growth, status, and a...

Streamlining a taxing process.(Streamlined Sales Tax Program)
November 26, 2007... In May 2006, Avalara completed a 13-month certification process that allows the company to operate as a Certified Service Provider for states participating in the Streamlined Sales Tax Program. The 22-state project strives to simplify and...

Driving profitability.
November 26, 2007... There is a distinct correlation between a firms profitability and the degree to which its partners think and act strategically. During the course of my consulting, I have identified nine key non-financial elements that drive high-performing...

New Products.
November 26, 2007... Software LEASE ACCOUNTING Just a year or so back, mere mention of the subject of lease accounting by the chief accountant of the Securities and Exchange Commission caused over 300 companies to restate their financials in terror, so...

People.(Sam Porter to join McGladrey & Pullen LLP)(Jacqueline Akerblom to join Grant Thornton LLP )(Rachel Rico and Harmeet Singh to join Singer Lewak Greenbaum & Goldstein LLP)
November 26, 2007... CALIFORNIA Sam Porter has been named a partner in the Irvine office of McGladrey & Pullen LLP.... Jacqueline Akerblom of the San Jose office of Grant Thornton LLP has been named national managing partner of womens initiatives and...

Coming Events.(Calendar)
November 26, 2007... NOVEMBER 24-30: Income Tax Practice Course, Canadian Institute of Chartered Accountants. Collingwood, Ont. Contact: www.cica.ca/cpdevents. 26-27: NATP 1040 and 1040 Extra Workshops, National Association of Tax Professionals. New...

Firms.(Grant Thornton LLP to receive award)(BAM Advisor Services LLC. to celebrate 10th anniversary)(KPMG LLP. to admit new partners )
November 26, 2007... FLORIDA Dohan Brown Salum + Ferro CPA, Miami, has joined Firm Foundation. ILLINOIS Grant Thornton LLP, Chicago, received the Trusted Advisor Award from nonprofit group Springboard Enterprises, in recognition of its support of...

In Brief.(trends in salaries)(Report)(Brief article)
November 26, 2007... ACCOUNTING SALARIES STILL RISING MENLO PARK, CALIF. Starting salaries for accounting and finance professionals will increase an average of 4.3 percent in the year ahead, predicted the 2008 Salary Guide from staffing firm Robert Half...

Advertiser Index.
November 26, 2007... Advertiser Page 1st Global 17 ADP Small Business Services 19 CCH, a Wolters Kluwer business 7 CCH Tax Group 32 GuideStar 13 Microsoft Business Solutions 8 Sage Software 11 State Farm Insurance 15...