Accounting Today articles from October 2007

Accounting Today archives from October 2007

Workpaper Protection: IRS suffers setback in workpaper court case.
October 8, 2007... The Internal Revenue Service has lost the first round in a much-anticipated test case against Textron Inc., in which it sought judicial approval for a new program seeking tax accrual workpapers during the examination of corporate clients. ...

Women in Accounting: How far to the top?: Work/life programs, mentoring help women inch closer to parity in profession.
October 8, 2007... By Liz Gold -- What happens when you're a female partner who enjoys golfing, but instead of being invited to a golf foursome with important clients, your husband - who's not even with your firm - is asked to go instead? Is this...

Small Business Software: Go for the upgrade!: Convincing your clients to switch up to more powerful accounting software.
October 8, 2007... Here's the situation: Your client needs to upgrade their accounting software from an out-of-the-box program to a more sophisticated, customized system. You know it and your client is avoiding it. What should you do? You might have to get a...

IRS mismatches contribute to tax gap.(United States. Internal Revenue Service)(United States Treasury Inspector General for Tax Administration )(Brief article)
October 8, 2007... WASHINGTON, D.C. -- The Internal Revenue Service is not doing enough to match incorrect or missing identification numbers on income and wage statements with existing tax accounts, charged the Treasury Inspector General for Tax Administration...

Tell it like it is: Group seeks greater transparency in gov't accounting.(Sheila Weinberg )
October 8, 2007... NORTHBROOK, ILL. -- 'Truth" and "accounting" should not be concepts that are terribly hard to reconcile - unless you're also trying to bring "government" into the formula. Uniting those three ideas has been Sheila Weinberg's goal ever...

House nixes tax patents.(United States. Congress. House)(Brief article)
October 8, 2007... WASHINGTON, D.C. -- In a vote that may have a wide-ranging effect on the accounting profession, House lawmakers voted 220-175 to overhaul patent rules and place a ban on tax-planning-method patents. HR 1908, the Patent Reform Act of 2007,...

In Brief.(investigation of Jackson Hewitt Inc.)(Reznick Group is acquiring Tidwell DeWitt)(case against David Amir Makov)
October 8, 2007... JACKSON HEWITT SAYS IT WAS CLEAR OF FRAUD PARSIPPANY, N.J. - Jackson Hewitt Tax Service said that it has completed its internal review of fraud allegations by the Justice Department against several of its franchisees, and said that its...

Editor's desk: In the money - literally.
October 8, 2007... During my extended stay in college, my idea of prudent financial planning was to put enough aside to order extra cheese at Pizza Hut on Friday nights. Several decades later, Friday is still pizza night for me, and I've upgraded a bit since...

Commentary: A modest proposal.
October 8, 2007... Most states do not allow CPAs licensed in other states to do business within their borders unless the CPA first provides notification or pays a fee - and many CPAs find this practice unfair. States are increasingly attempting to enforce...

Deferred-comp plan rules spark concern.(United States. Internal Revenue Service)
October 8, 2007... The deadline for compliance with final Section 409A regulations, scheduled for Dec. 31, 2007, should be extended for a year, according to 92 of the largest law firms in the nation. The new regulations, finalized in April, require...

In Brief.(report on federal government taxes)(case against Derrick Sanders for advising clients not to pay taxes as they belong to Yamassee Native American Tribe)(United States. Internal Revenue Service's warning about junk mail scam)
October 8, 2007... GOVERNMENT OWES $45M IN EMPLOYMENT TAXES WASHINGTON, D.C. - The federal government is itself a tax delinquent, owing approximately $45 million in employment taxes, according to a report from a Treasury Department watchdog. The Treasury...

Tax planning and the credit crisis.
October 8, 2007... The last few months have seen the problems in sub-prime lending start to have a national and even international impact on the credit and stock markets. The combination of expanded sub-prime lending programs with mortgage rates that adjust...

ASB issues new quality control standard.(Auditing Standards Board)
October 8, 2007... NEW YORK -- The Auditing Standards Board has issued a new standard on quality control that sets new criteria for quality reviews and supercedes all existing standards applying to firm quality control. Departing from common practice and from...

Change of auditors.
October 8, 2007... IBC JETTISONS KPMG Financial holding company International Bancshares Corp. said that its audit committee has dismissed KPMG as its auditor and replaced the Big Four firm with McGladrey & Pullen. The Laredo, Texas-based company...

The courts create LAME accounting.(Legally Adopted Measurement Errors)
October 8, 2007... We are long-time critics of generally accepted accounting principles' historical cost tradition in financial reporting. We argue for providing market values to give users the up-to-date information they need to make rational investment and...

Emergency planning for retirement portfolios.(Viewpoint essay)
October 8, 2007... As a young man, I was a crewmember of a 747 that crashed on takeoff in Kenya. The airline's emergency planning helped me keep cool, think rationally and help save the lives of 90 of the 149 passengers. Today, as principal of a financial...

In Brief.(report on financial services)(United States. Internal Revenue Service's Voluntary Closing Agreement Program)(appointment of John Geli at Wealth Management Systems Inc.)(Brief article)
October 8, 2007... STUDY: RIAS NEED TO DIFFERENTIATE A study commissioned by Pershing Advisor Solutions projects that as the market for financial services becomes even more competitive, registered investment advisors need to "fine tune" their area of...

New standards set for valuation engagements: The AICPA has issued a set of comprehensive, wide-ranging standards for valuation engagements - and, just as with the engagements they cover, the devil is in the details.
October 8, 2007... The many practitioners who conduct valuations in the normal course of their practices will shortly be required to follow, for the first time, detailed standards, because the Consulting Services Executive Committee of the American Institute of...

Using specialists in your valuation.(Brief article)
October 8, 2007... In performing an engagement to estimate value, a valuation analyst may rely on the work of a third-party specialist such as a real estate appraiser. However, the analyst should note in the assumptions and limiting conditions portion of the...

A well-rounded report.(valuation )(Brief article)
October 8, 2007... The contents of a detailed valuation report, as mandated by the AICPA's Statement on Standards for Valuation Services No. 1: "The detailed report is structured to provide sufficient information to permit intended users to understand the...

Software Review: Fixed assets software: Striving toward convergence.
October 8, 2007... Ask most people about the developments in the software markets for fixed asset management, and the responses will fall into two areas - the move toward a Web-based application service provider model in fixed assets, and the opportunities for...

In Brief.
October 8, 2007... SAGE UPGRADES ABRA HR; CREATES ADVISORY BOARD Sage Software has unveiled its latest versions (7.6 and 8.3) of Sage Abra HRMS, the company's human resource management system for small and midsized businesses and organizations in North...

Pricing for value: People create intellectual capital, yet many firms allow that intellectual capital to leave when people leave.(Viewpoint essay)
October 8, 2007... For the past two decades, I have watched accountants price services based upon the cost of labor plus a desired profit. This is the effort-based economy trap. About 15 years ago, we developed a pricing matrix for consulting services in an...

New Products.(List)
October 8, 2007... Software USEFUL AT LAST Someone may finally have found a killer app for all those iPods that are going unused out there - podcasts of continuing professional education courses for accountants. CCH has created a CPE Podcast Center...

People.(Deloitte Financial Advisory Services LLP appointed Frank Stevens)(Bondi and Co. appointed Stacy L. Kave)(J.H. Cohn L.L.P's Cohn Consulting Group appointed Sushma Kulkarni)
October 8, 2007... CALIFORNIA Frank Stevens has been named a principal in the Los Angeles office of Deloitte Financial Advisory Services LLP.... Steven Fife has joined LECG, Emeryville, as chief financial officer. COLORADO Stacy L. Kave has joined...

Firms.(Hood and Strong LLP's new office in San Jose)(Grant Thornton L.L.P's new office in San Diego)(Morrison, Brown, Argiz and Farra LLP's new office in Boca Raton)
October 8, 2007... CALIFORNIA Hood & Strong LLP has returned to downtown San Jose after a hiatus of 25 years, with a new 9,000-square-foot office at 10 Almaden Boulevard.... Grant Thornton LLP has opened a new office in San Diego, at 12340 El Camino Real,...

Coming Events.(Calendar)
October 8, 2007... OCTOBER 9-10: Tiburon CEO Summit XIII, Tiburon Strategic Advisors. Ritz Carlton Hotel, San Francisco. Contact: www.tiburonadvisors.com. 11: Compilation and Review, National Conference of CPA Practitioners, Nassau/Suffolk Chapter. The...

Advertiser Index.
October 8, 2007... Advertiser Page 1st Global 19 ADP Small Business Services 13 BQE Software 17 CCH, a Wolters Kluwer Business 7, 40 Doc.IT ...

Liability Insurance: More Risk, More Choices: As claims expand beyond the traditional, more insurers enter the field.
October 22, 2007... While tax preparation remains the most frequent area in terms of claims lodged against accountants, and claims for audit and attest services and the failure to detect fraud continue as the highest in terms of dollar value, there are a number of...

Tax Suite Update: Suites in 2007: Form meets function.
October 22, 2007... As tax prep suites have evolved to meet the needs of the particular market segment targeted by each product, practitioners now have a variety of products from which to choose - each of which will do the job. "The desktop market is becoming...

The next 20 years: Accounting on the future: After two decades covering the profession, Accounting Today asks the experts to consider the next two.
October 22, 2007... If you think quantum change is already happening in the accounting profession, just wait and see what a number of consultants, practitioners and society heads have forecast for the future. To mark its 20th anniversary issue, Accounting...

SEC pushes XBRL tags for GAAP.(Securities and Exchange Commission)(Extensible Business Reporting Language)(generally accepted accounting principles)(Brief article)
October 22, 2007... NEW YORK -- Securities and Exchange Commission chair Christopher Cox said that data tags have been developed for the entire system of U.S. generally accepted accounting principles, advancing the use of the Extensible Business Reporting Language...

Analysis: SOX whistleblowers open to retaliation.(Sarbanes-Oxley Act of 2002)
October 22, 2007... Washington, D.C. -- Internal accountants and other corporate employees who report financial wrongdoing at their companies may not be able to count on Sarbanes-Oxley Act "whistleblower" provisions to protect them from retaliation. Although...

In Brief.(Internal Revenue Service)
October 22, 2007... REGULATIONS ISSUED ON PRACTICING BEFORE IRS Washington, D.C. - The Internal Revenue Service has issued regulations governing practice before the agency. The final regulations under Circular 230 cover matters such as enrollment...

EU snubs IFRS standards for small biz Labels package 'too complex'.(European Union)(International Financial Reporting Standards)(International Accounting Standards Board)
October 22, 2007... BRUSSELS -- The European Union has rebuffed the International Accounting Standards Board's proposed standards for small to midsized businesses, labeling the package "too complicated" for the nature of SMBs. "The feedback we have received...

Editor's Desk: 20 years already?
October 22, 2007... Despite the fact that my job entails frequent use of the written word, I've never been comfortable writing birthday or anniversary cards. I usually let my wife and children fill in the inside jacket with sentimental prose, which somehow...

Commentary: CPAs I have known - Part 6.
October 22, 2007... W. DOUG SPRAGUE He was born William Douglas Sprague. On one occasion, I heard someone call him "Bill" and he seemed to grimace. He was not a "Bill" - he was a "Doug." When I was 10, there were numerous movie theatres that charged 5...

Letter: Right on!
October 22, 2007... I could not agree more with Mr. Bose's letter to the editor ("No place for politics," Sept. 10-23, 2007, page 6). In fact, it echoes the letter you published several months ago by my friend and colleague Kal Barson, a CPA here in New...

Letter: Show me the law!
October 22, 2007... You were quick to run an article about how a federal court has permanently barred Robert Schulz and his organization, We The People, from promoting a "tax scheme" ("Court orders end to tax protest scheme," Sept. 10-23, 2007, page 5). However,...

Institute, practitioners bristle on Circ. 230 penalties.(United States. Internal Revenue Service)(American Institute of Certified Public Accountants)
October 22, 2007... The Internal Revenue Service position on Circular 230 monetary penalties has generated concern and comments from the American Institute of CPAs, while the American Bar Association Tax Section intends to submit its own comments on the matter....

In Brief.
October 22, 2007... IRS OFFERS FORECLOSURE VICTIMS ADVICE Washington, D.C. - The Internal Revenue Service is reaching out to former homeowners who have suffered foreclosure and now are being hit with taxes on any money they were forgiven on their mortgages....

TAX Strategy: 2007 year-end tax planning: Plenty to keep busy.
October 22, 2007... With 2008 little more than two months away, tax practitioners finally have their clients' attention on the need for year-end tax planning. As in prior years, year-end 2007 presents unique tax planning challenges, as well as traditional...

COSO queries concepts in monitoring internal control.(Committee of Sponsoring Organizations of the Treadway Commission)
October 22, 2007... Concerned that companies are investing much in internal controls but then risking it all by not monitoring those controls, COSO, the Committee of Sponsoring Organizations of the Treadway Commission, has issued a discussion document that may...

Change of Auditors.
October 22, 2007... BIOFUEL ENGAGES GRANT THORNTON BioFuel Energy Corp., a Denver-based producer of ethanol, has named Grant Thornton as its new independent accountant. Grant succeeds Big Four firm Deloitte as BioFuel's auditor. Deloitte resigned in...

The truth and the whole truth.
October 22, 2007... Regular readers know that we often challenge financial reporting participants to "tell the truth, the whole truth, and nothing but the truth." This ancient oath covers all the bases by binding witnesses to tell what they know to be true,...

Be careful of abusive 419(e) welfare benefit plans.
October 22, 2007... Life insurance agents and companies have always tried to find ways of making costs paid by business owners tax deductible. The situation became ridiculous a few years ago with outrageous claims about how Sections 419A(f)(5) and (6) of the...

In Brief.(briefs)
October 22, 2007... SEC OKS RULE ON DEFERRED VARIABLE ANNUITIES The Securities and Exchange Commission has approved a rule from the Financial Industry Regulatory Authority that would crack down on abusive sales of deferred variable annuities, particularly to...

Observe proper checks and balances to avoid data loss.
October 22, 2007... As a financial services professional, one of your key responsibilities is to find balance between your credits and debits at the end of the month, the quarter and the fiscal year. But what happens when debits or credits are missing, or when you...

In Brief.(briefs)
October 22, 2007... INTUIT ELEVATES GOODARZI AND WARD; COMBINES DIVISIONS Tax and financial software provider Intuit Inc. has named Sasan Goodarzi president of its Intuit Financial Institutions Division and a senior vice president of the company, and tapped...

What is your development strategy?
October 22, 2007... The development of future partners is of utmost importance in firms of all sizes due to the number of Baby Boomers now occupying those seats. What criteria is your firm using to select future partners? At what age do you select them for...

Sir Isaac Newton and change management.(Viewpoint essay)
October 22, 2007... You may well ask, where did I find a title like this? I doubt that you have ever wondered what Sir Isaac Newton has to do with running a CPA firm - or, for that matter, any business. While everyone knows Newton as the discoverer of gravity,...

People.(RBZ L.L.P. appointed Mishel Justesen)(Reynolds and Rowella L.L.P. appointed Mary Sacks)(Horwich Coleman Levin LLC appointed Daniel K. Pastron )
October 22, 2007... CALIFORNIA Mishel Justesen has joined RBZ LLP, Los Angeles, as marketing coordinator.... Jim Songey has joined Grant Thornton LLP, San Francisco, as a partner and tax practice leader for the Greater Bay Area region, while Kam R. Miramadi...

Firms.(Reznick Group PC's merger with Tidwell DeWitt LLC)(Huron Consulting Group's new office in Georgia)(WithumSmith+Brown changed its location)(Brief article)
October 22, 2007... ALABAMA Reznick Group PC, Bethesda, Md., announced that it would merge in Tidwell DeWitt LLC, Birmingham. GEORGIA Huron Consulting Group has opened an office in Atlanta, in the headquarters of Callaway Partners, which it recently...

20 Years of Excellence.(accounting standards)
October 22, 2007... 1987: A Tough Entrance It was not, perhaps, the best of times for the accounting profession: Scandals, including the implosion that summer of the brazenly fraudulent ZZZZ Best, had tarnished auditors' reputations, malpractice insurance...

Advertiser Index.
October 22, 2007... Advertiser Page 1st Global 19 AccountantsWorld 39 Aon Insurance Services 29 ADP Small Business Services 11 BNA Tax Management 27 CPA Mutual 12 Go TaxSystem 13 Guidestar 16 CCH, a Wolters Kluwer...