Accounting Today articles from October 2004

Accounting Today archives from October 2004

IRC 527s are at heart of campaign controversies.(Internal Revenue Code,section 527)
October 11, 2004... Section 527 of the Internal Revenue Code has come under intense scrutiny during this year's presidential election race - a campaign replete with examples of organizations using the shield of Section 527 to collect large sums of money and...

Bush stumps on tax reform.(George W. Bush)
October 11, 2004... The White House has begun filling in the details on President Bush's call for fundamental tax reform. In his acceptance speech at the Republican convention in August, the president said: "The American people deserve and our economic future...

The glass ceiling is slowly cracking: But in some cases, how much is up to women themselves.
October 11, 2004... Debra Sessions, a partner at Atlanta-based Porter Keadle Moore, admits that while the proverbial glass ceiling does exist in the accounting profession, it's something that employees have helped build. Sessions said that it's difficult...

A beautiful booth.(Brief Article)
October 11, 2004... If you're looking to reach clients in a particular niche, exhibiting at a trade show may make sense. There are over 13,000 held every year, but while 71 percent of businesses say they've exhibited at one, only 22 percent say that it was...

California board sanctions E&Y.(Ernst & Young )(Brief Article)
October 11, 2004... The California Board of Accountancy has sanctioned Ernst & Young over the firm's independence in its audit of former client PeopleSoft. The CBA said that its action was based on an earlier order by the Securities and Exchange Commission, which...

Lawmakers OK tax cut extensions.(Brief Article)
October 11, 2004... Legislation that extends soon-to-expire provisions of last year's tax cuts for families - at a cost of about $146 billion over 10 years - easily sailed through Congress in late September. The House of Representatives approved the measure by a...

Fannie discloses accounting issues.(Federal National Mortgage Association)(Brief Article)
October 11, 2004... Troubled mortgage giant Fannie Mae said in late September that a report on its accounting policies and practices uncovered serious issues that raised doubts about the validity of its previous financial results. The company also revealed that...

SEC worried by Big 4 client-dropping.(Securities and Exchange Commission)(Brief Article)
October 11, 2004... A trend among the nation's four largest firms of dropping small audit clients reportedly has the Securities and Exchange Commission's chief accountant concerned. The Big Four have dropped at least eight U.S. audit clients in the past two...

IASB chair: Convergence must be two-way process.(International Accounting Standards Board )
October 11, 2004... Political maneuvering to short-circuit the Financial Accounting Standards Board's plan for stock option expensing could derail efforts to create a convergence of international accounting standards, European professional leaders warned Congress....

Non-audit fees still high in U.K., rattling investors.
October 11, 2004... Major British audit firms and their large corporate clients have faced a torrent of criticism about the volume of non-audit fees that they continue to generate. A year ago, firms, clients and government alike were predicting that the ratio...

E&Y, Capgemini settle travel-billing lawsuit.(Ernst & Young)(Brief Article)
October 11, 2004... Ernst & Young and its former consulting unit, Capgemini, have agreed to pay a combined $20 million to settle a class-action lawsuit in which clients sued them for overcharging them for travel expenses. Miller County, Ark., Circuit Judge...

FEI poll: Better governance is costing companies more.(Financial Executives International)
October 11, 2004... The Sarbanes-Oxley Act has brought about tremendous improvements in corporate governance and internal control, but the changes haven't come cheap. According to a survey recently released by Financial Executives International, 46 of the 100...

Option expensing creating confusion among employees.
October 11, 2004... While Congress and the Financial Accounting Standard Board churn over accounting standards regarding stock options, employees are left wondering about their financial lives. Some Fortune 500 companies like Coca-Cola and The Washington Post...

Web Cites: Academic and research organizations.(Directory)
October 11, 2004... * American Accounting Association - http://aaahq.org/ The home page for the American Accounting Association offers some good links, and lets you access AAA news, publications and more. * Association of College and University Auditors -...

Footnotes.
October 11, 2004... WALTER & SHUFFAIN SWINGS Hammers FOR HABITAT FOR HUMANITY: Recently, a team of 15 accountants from the CPA and business consulting firm of Walter & Shuffain PC volunteered to help in building a Habitat for Humanity home located in Easton, Mass....

Board of Bad Management.
October 11, 2004... In the interest of full disclosure, I'm probably safe in assuming that I'm in no danger of joining Mensa. For one thing, I could never conquer those abstract puzzles where you have to mentally fold one end over another and flip it around to...

Follow the 'Yellow Book' road.
October 11, 2004... Here in New York State, fraud is hitting the headlines. Accusations of alleged theft and embezzlement by school officials have citizens questioning whether their tax dollars go to learning or to luxuries for school officials. New York...

Simplification's not so simple.
October 11, 2004... While tax reform and, more particularly, tax simplification are popular topics for articles, cocktail party discussions and campaign speeches, the obvious obstacle to fulfillment is rarely discussed ("Advocates stir tax reform pot," Accounting...

Miller and Bahnson's thin skin.
October 11, 2004... "It will be useful [emphasis supplied] to report value-based information." Thus do Messrs. Miller and Bahnson place the final nail into the coffin of the two unfortunate letter writers who dared disagree with them. These eminent professors...

Execution - the forgotten discipline.
October 11, 2004... In these turbulent times, many accounting firms (and consultants to those firms) continue to pay too much attention to performing SWOT (strength, weakness, opportunity and threat) analyses and developing grand strategies in light of those...

Taxing Issues.
October 11, 2004... NEW BILL WOULD PREVENT DOUBLE TAXATION OF TELECOMMUTERS: Democratic Senators Christopher Dodd and Joseph Lieberman, both of Connecticut, have introduced a bill to prevent double taxation of taxpayers who work from home. The Telecommuter Tax...

Florida hurricanes prompt disaster relief assistance.
October 11, 2004... Although Tropical Storm Bonnie and Hurricanes Charley, Frances and Ivan have taken their toll on Florida this season, disaster tax relief affects most preparers at some time during their career. For the last two years, parts of more than 40...

The LTCH court decision: tax shelter opinion reliance.(Long-Term Capital Holdings)
October 11, 2004... As the Internal Revenue Service continues to labor to finalize Circular 230 on the requirements for tax shelter opinions and when they may be relied on, a recent court decision may have already done a significant portion of its work. The...

Taxing mutual fund scandal fines and penalties.
October 11, 2004... This tax season, the regulatory fallout from the mutual fund scandals will leave tax practitioners treading in uncharted territory. For the first time, they will have to consider the tax implications of over $3.5 billion of settlement...

PCPS developing program to teach nonprofit boards.(American Institute of Certified Public Accountants)
October 11, 2004... The Sarbanes-Oxley Act has demanded some pretty tough adapting by the directors of the mightiest corporations. Now, imagine the impact of a similar law applied to the volunteer, non-professional boards of community-scale not-for-profits. ...

Change Of Auditors.(Brief Article)
October 11, 2004... * E&Y RESIGNS ASTEC: Astec Industries, a manufacturer of environmental cleaning equipment, said that its auditor, Big Four firm Ernst & Young, had resigned, according to a filing with the Securities and Exchange Commission. The company has...

Just 'cuz it ain't on there, doesn't mean it ain't there.(Convertible bonds)
October 11, 2004... The Aug. 23-Sept. 5, 2004, issue of Accounting Today reported on several seemingly unrelated controversies that nonetheless were connected in our minds. They were: * Congress voting to rein in FASB's efforts on options expensing; *...

Biz developers are from Saturn; partners are from Mars.
October 11, 2004... If the prospect of hiring a business development specialist gives you pause, you're not alone. Although this practice was historically embraced among the Big Four, midsized CPA firms have been slower to jump on the bandwagon. Until now, it's...

PFP Briefs.(Personal Financial Planner )
October 11, 2004... 529 ASSETS REACH $43 BILLION: Assets in 529 college savings plans totaled an estimated $43 billion at the end of the second quarter, up 7.4 percent over assets in the first quarter, according to a report from the College Savings Foundation. The...

Baby Boomers can't count on Social Security alone.
October 11, 2004... Federal Reserve Chairman Alan Greenspan sounded the death knell, again, for the Baby Boom generation's hopes for some external help during their retirement. Using uncharacteristically pointed language at a recent conference on the aging...

Heads up! The end of bonus depreciation is Dec. 31, '04.
October 11, 2004... For most taxpayers, bonus first-year depreciation ends Dec. 31, 2004. This means that taxpayers who want to maximize their depreciation deductions for 2004 should accelerate purchases of new depreciable assets into this year. ...

Tech Briefs.(Product/Service Evaluation)
October 11, 2004... BEST SOFTWARE UNVEILS ACT 2005: Best Software has debuted new versions of Act 2005, its contact and customer management product, at a recent briefing held in New York. Act 2005 is designed for individuals and teams of up to 10 users, while...

Accountants find ways to diversify, expand practices.
October 11, 2004... How can accounting firms help clients with software needs, above and beyond the obvious acquisition and installation of accounting software? This question is being repeated by accountants everywhere as they look for new directions in which to...

Getting a CIO: A natural move for progressive firms.(Chief Information Officer )
October 11, 2004... The leadership skills required in information technology today are similar to those of a managing partner or chief executive. However, the decision-making styles and focus may be somewhat different. The trend in corporate governance is to...

Fixed assets software: The forgotten application?(Product/Service Evaluation)
October 11, 2004... Fixed asset software does not get a lot of attention in many accounting practices. That lack of attention often follows through to the client's sites as well. If you took the time to analyze the situation, you'd probably find that many of your...

Vendor information.(Brief Article)(Directory)
October 11, 2004... Fixed Asset Relief AccountantsWorld 140 Fell Court Hauppauge, N.Y. 11788 (888) 999-1366 www.accountantsworld.com Price: $595. Bassets Fixed Asset System Decision Support Software P.O. Box 665 Ramsey,...

Coming Events.(Calendar)
October 11, 2004... OCTOBER 10-13: HS 350: Understanding the Older Client, The American College. Bryn Mawr, Pa. Contact: www.amercoll.edu or (888) AMERCOL. 11: Fraud Prevention Policies that Work, PPC-Bell Learning. Embassy Suites, Columbus, Ohio....

Software.(Product/Service Evaluation)
October 11, 2004... Pro Series upgrade According to Accpac, the newest release of its Pro Series accounting system, Version 7.3, is the biggest upgrade in the line's history, and offers small and midsized businesses improved information reporting and...

Books.(book review)(Book Review)
October 11, 2004... Tax-exempt orgs Kansas City lawyer Bruce R. Hopkins had already written a guide to the law of tax-exempt organizations, which summarized the law regarding these unique entities - but that wasn't enough for some. Those demanding critics...

People.
October 11, 2004... * Arizona Jeffrey Newcom, Alex Robison and Jennifer Smith have been promoted to senior manager, and Margaret Colwell, Eric Engstrom and Maxwell Kagan to manager, in the Phoenix office of Protiviti Inc. * California Gumbiner,...

Firms.(accounting services)(Brief Article)
October 11, 2004... * Georgia PKF North American Network, Duluth, a network of 94 independent North American firms, announced two new members: Heywood Holmes & Partners LLP, of Red Deer, Rocky Mountain House, Sylvan Lake and Delburne, Alberta, with nine...

College offers high-net-worth designation.(Brief Article)
October 11, 2004... The College for Financial Planning has unveiled a new planning designation that it says is aimed at advisors working with high-net-worth clients, bringing the number of planning designations that it offers to six. The Accredited Wealth...

Bad timing: Fund settlements for charges related to market timing.(Brief Article)(Illustration)
October 11, 2004... Fines & penalties Date Mutual fund company (in $mns) Dec. 18, 2003 Alliance Capital Management $250 ...

Illinois: Troubling results?
October 11, 2004... The Illinois CPA Society, through its Women's Executive Committee, released the results of its second annual women's leadership survey, designed as a means of assessing the role and representation of women in Illinois public accounting firms....

Byword for tax vendors: Integration.(tax preparation software-usage)
October 25, 2004... With the consolidation and contraction of the tax prep software industry over the past decade, the fewer players in the market have continued their efforts to grow organically, through purchases, and, in some cases, by marketing directly to the...

Heart attack fells Carlin, Charron MP.(Brief Article)(Obituary)
October 25, 2004... Bruce M. Carlin, managing partner of regional firm Carlin, Charron & Rosen LLP, died of a heart attack on Oct. 2 at the age of 58. Robert Charron and Larry Rosen, who co-founded CCR with Carlin in 1995, said that the firm's executive...

Lawmakers scramble to fit in tax cuts.(taxpayers)
October 25, 2004... Congressional tax cutters went into a feeding frenzy during the closing hours of this year's session, approving legislation that supporters say will save taxpayers more than $100 billion over the next 10 years, and vowing to swing the axe even...

I'll do that later.(Brief Article)
October 25, 2004... Time management is an issue that can't wait, since everything else depends on it. Brian Tracy, an expert on the subject, offers his top time management tools: * Use a time planner. You want one that lets you plan for the year, month, week...

News Briefs: KPMG to settle Lernout for $115M.(Brief Article)
October 25, 2004... Big Four firm KPMG and its Belgian unit agreed to pay $115 million to settle a class-action shareholder lawsuit that alleged that the firm's audits of Belgium-based Lernout & Hauspie Speech Products NV violated generally accepted accounting and...

News Briefs: RFS rebrands, plans expansion.(Reznick Fedder & Silverman )(Reznick Group )(Brief Article)
October 25, 2004... As it gears up for expansion, top-ranked accounting firm Reznick Fedder & Silverman is getting a new name, a new brand and a new logo. The Bethesda-based firm has changed its name to Reznick Group and rolled out a new brand statement,...

News Briefs: Metro New York firms merge.(Reminick, Aarons & Co)(Brief Article)
October 25, 2004... Regional audit and tax consulting firm Holtz Rubenstein & Co. LLP and New York-based Reminick, Aarons & Co. have merged their practices, effective Oct. 1. The combined entity will operate under the brand of Holtz Rubenstein Reminick LLP...

Correction.(Correction Notice)
October 25, 2004... In our 2004 Top 100 People report (Sept. 20-Oct. 10, 2004), Ernst & Young CEO James Turley was misquoted; his comments should have read, "The leaders of the profession must set the tone from the top, instilling appropriate values in all that we...

All is well, or at least it's getting there, at Big Four.
October 25, 2004... A recent survey of large employers published by Hewitt Associates - a high-volume human resources outsourcing and consulting firm - showed that a whopping 95 percent of the 960 companies participating in the poll offer some form of wellness...

New EITF pronouncement aims to close CoCo loophole.(Emerging Issues Task Force)(contingent convertible bonds)
October 25, 2004... The Financial Accounting Standards Board's Emerging Issues Task Force issued a pronouncement that would close a widely used loophole that lets companies issue contingent convertible bonds - called CoCos - without diluting their earnings per...

Accounting workers' confidence rebounds to new high.(job satisfaction)(Brief Article)
October 25, 2004... Following a sharp drop in August, confidence among accounting and finance workers rebounded to hit a record high for the year in September, according to staffing firm Hudson. The Hudson Employment Index, which tracks workers' confidence in...

U.K. firms pull out all stops in battle for staff recruits.(accountants recruitment in financial services)
October 25, 2004... Accountants have taken the job market here by storm. Qualified accountants - especially those with one to three years of experience - are in demand by the Big Four, in the financial services sector and across industry. And that upsurge...

EU slowly moving closer to new unified audit standards.(European Union)
October 25, 2004... Barring the wrangling that is inevitable when 25 diverse countries try to work together, the European Union is moving along with a new packet of legislation to unify the auditing of company accounts. The International Standards on Auditing...

Accounting Associations.(Brief Article)
October 25, 2004... ACPA International - www.acpaintl.org The Affiliated Conference of Practicing Accountants has close to 80 members in 40 countries. The site provides basic info on the group. Accountants Global Network International - www.agn-na.org ...

Footnotes.(Houston Certified Public Accountants Society)(Brief Article)
October 25, 2004... TEXAS ACCOUNTANTS TAKE THE FIELD FOR CHILDREN: Houston Astros' outfielder Lance Berkman, center, joins Houston CPA Society president Stephen M. McEachern, right, society Golf Committee chair and PricewaterhouseCoopers partner Stephen G. Parker,...

The rules of principles.(accounting)
October 25, 2004... In my 20 years of reporting on myriad events, whether it be a Yankees-Red Sox skirmish, a title fight, an initial public offering or an arraignment, I've been witness to some pretty spirited dialogue. I once saw two reporters actually engage in...

Profession needs rotation of auditors.
October 25, 2004... Rotation of auditors should be good for the accounting profession and good for the public interest. KPMG (formerly Peat Marwick Mitchell) has been the "independent accountant" for General Electric for over 100 years. Deloitte & Touche has been...

Wrong for T100 to omit NCCPAP.(Letter to the Editor)
October 25, 2004... I received the most recent issue of Accounting Today last week, and was astonished to find that in your list of the Top 100 Most Influential People in Accounting (Sept. 20-Oct. 10, 2004), there was no one among the 100 who is a member of the...

AICPA unveils valuation & forensics site.(American Institute of Certified Public Accountants )(Brief Article)
October 25, 2004... The American Institute of Certified Public Accountants has launched a dedicated Web site for its members who specialize in business valuation and forensic and litigation services. The site, www.aicpa.org/bvfls, is designed for CPAs who...

Taxing Issues.
October 25, 2004... CHANGE BOOSTS SMALL BUSINESSES ELIGIBLE FOR SCHEDULE C-EZ: In a move aimed at reducing the paperwork burden for small businesses, the Internal Revenue Service said that it would boost the number of small businesses eligible to file a simplified...

The appeal of IRS Appeals: A better resolution, faster.(Internal Revenue Service)
October 25, 2004... Tax practitioners should be pleased that recent improvements have enabled the Internal Revenue Service to handle appeals more efficiently and in a more timely fashion than in the past. While for many practitioners, taking a case to the IRS...

Year-end strategies have to adjust for new tax laws.(taxpayers)
October 25, 2004... Year-end tax planning generally never turns out to be the same routine each year. Either the client's circumstances change, or the tax law changes. For 2004, one of the major unexpected developments is the eleventh-hour passage of the Working...

Fannie Mae agrees to revamp accounting, boost reserves.
October 25, 2004... A week after the release of a scathing report by its federal regulator, mortgage giant Fannie Mae agreed to major changes in its accounting, internal controls and management practices. The agreement between Fannie Mae and its overseer, the...

Change of Auditors.(GoRemote)(Horwath Gelfond Hochstadt Pangburn)(Brief Article)
October 25, 2004... E&Y RESIGNS GOREMOTE: Big Four firm Ernst & Young is resigning as auditor for GoRemote, a provider of remote Internet access. In a federal filing, GoRemote said that there were no disagreements with E&Y on any matter of accounting...

COSO releases a new risk management framework.(Committee of Sponsoring Organizations)
October 25, 2004... After three years in development, the Committee of Sponsoring Organizations of the Treadway Commission has released its finalized Enterprise Risk Management Integrated Framework. "The ERM project came about before Enron. When we looked at...

Just 'cuz it's on there doesn't mean it's really there.(accounting principles)(Column)
October 25, 2004... Our previous column described flaws in generally accepted accounting principles, in which real things and events are left off the statements because powerful political interests like it that way. Our theme was, "Just because it ain't on there...

AICPA launches Governmental Audit Quality Center.(American Institute of Certified Public Accountants )(Brief Article)
October 25, 2004... The American Institute of CPAs has launched the third of its planned audit quality centers. The latest firm-based, voluntary membership center focuses on governmental audits, including audits of federal, state and local governments,...

Poll: CFOs are still optimistic.(Brief Article)
October 25, 2004... Despite a challenging business environment, chief financial officers' optimism about the economy and their own companies' financial prospects remains high, according to a recent poll. In spite of high oil prices, increases in health care...

PFP Briefs.(financial and retirement planning)
October 25, 2004... TRUST COS. CONSOLIDATE: A quartet of independent trust companies - First Trust Corp., Lincoln Trust Co., Resources Trust Co. and Retirement Accounts Inc. - have rolled up under a single brand, Fiserv Investment Support Services. The convergence...

Industry Analysis: Defined-contribution world is changing - for the better.
October 25, 2004... The defined-contribution world has never been more competitive. Retirement plan providers are fighting aggressively to keep existing clients, as pricing has come down dramatically, services have improved and, importantly, provider disclosures...

Buy your automobile in '04 to get bonus depreciation.
October 25, 2004... When bonus first-year depreciation deductions end at the close of 2004, so will the extra first-year dollar limit for autos, light trucks and vans subject to the luxury auto rules. Under the basic luxury auto rules, the maximum depreciation...

Tech Briefs.
October 25, 2004... CORPORATE IT SPENDING TO SLOW IN Q4: Corporate information technology spending is still growing, but the rate of growth will slow in the fourth quarter, led by a decline in laptop and desktop spending, according to a recently released study....

SEC floats proposal to let cos. file reports in XBRL.
October 25, 2004... The Securities and Exchange Commission has issued a proposal that would allow filers to submit financial data in Extensible Business Reporting Language, or XBRL. Under the regulator's proposal, companies would be allowed to include an...

Make conflict management successful - if not cheerful!
October 25, 2004... In the last article on this topic, I shared the reasons why conflict can be a positive influence on your practice and provided you with important background information to help you identify your own "fallback" conflict management style (Sept....

Vendor Profile: RIA has come a long way from ham and eggs.(Company Profile)
October 25, 2004... RIA, a business unit of the $7.6 billion Thomson Corporation, is today one of the pre-eminent providers of comprehensive and easy-to-use solutions to complex and challenging tax research, information and compliance issues. It is also the...

RIA at a glance.(Brief Article)
October 25, 2004... 395 Hudson Street New York, N.Y. 10014 (212) 367-6300 http://ria.thomson.com Year founded: 1935 Number of employees: 1,050 Senior executives: Brian H. Hall, president and CEO, Thomson Legal & Regulatory; Peter Warwick,...

Your strategic assets: Investment or depletion?
October 25, 2004... In most firms, net income per partner is an important measurement of how the firm is performing. In today's environment, another important measurement is the level of investment that the firm is making in training, learning and technology....

ProSystem Write-Up.
October 25, 2004... CCH has added a write-up product to its ProSystem fx suite of tax and accounting applications. ProSystem fx Write-Up is brand-new, built from the ground up with the latest technologies, including .Net, MSDE, and the latest in grid controls, to...

PDF conversion.
October 25, 2004... PDFs have more than demonstrated their usefulness, becoming one of the foremost ways of making sure that diverse users can view and read the same set of electronic information. Viewing and reading information, however, isn't the same thing as...

Wholesale PayCycle.(Brief Article)
October 25, 2004... Online payroll provider PayCycle has introduced its new PayCycle Wholesale Program for Accounting Professionals - a comprehensive client payroll solution with deeply discounted wholesale pricing. Designed to make payroll services profitable for...