Accounting Today articles from September 2004

Accounting Today archives from September 2004

Advocates stir tax reform pot.
September 6, 2004... Tax reform has come into the open again as candidates and legislators on the national stage weigh in with proposals to simplify or eliminate the federal income tax. Even though President George W. Bush backtracked from his initial response...

FASB faces crowded docket in Q4.(Financial Accounting Standards Board)
September 6, 2004... If the Financial Accounting Standards Board follows through on its project schedule, the fourth quarter of this year could see a host of pronouncements - five final statements, one final interpretation and eight exposure drafts. The...

Slowdown for SOX?: SEC considers delaying some requirements.(Internal control requirement)(Security Exchange Commission)
September 6, 2004... Fearful that the pace of accounting reform is putting auditors and their corporate clients on "overload," regulators at the Securities and Exchange Commission are now giving serious consideration to temporarily delaying implementation of key...

Why Web sites work.(Brief Article)
September 6, 2004... It's de rigueur to have a Web site these days; the trick is to have one that people will use, and that does what you want it to. Here's what you need to know: * Know why. Figuring out specifically why you're building a site - to fly the...

D&T, KPMG's WorldCom bill's $350M.(Brief Article)
September 6, 2004... Deloitte & Touche, Deloitte Consulting and KPMG are seeking combined fees of nearly $350 million for their respective work on the WorldCom bankruptcy, according to court documents. All together, the consultants, lawyers and other advisers who...

CBO reports on tax rate fluctations.(Congressional Budget Office)(Brief Article)
September 6, 2004... Thanks to legislation enacted in 2001, 2002 and 2003 that is scheduled to phase in, phase out and "sunset" entirely after 2010, federal tax rules will differ in every year from 2001 through 2011, and so will effective tax rates, notes a report...

PCAOB opens fifth regional office.(Public Company Accounting Oversight Board)(Brief Article)
September 6, 2004... The Public Company Accounting Oversight Board has opened a regional office in southern California, bringing its total number of regional offices to five. The new office, located in Orange County, joins existing locations in Atlanta,...

Correction.(Correction Notice)
September 6, 2004... In "Choices for payroll software run the gamut," (Aug. 9-22, 2004, p. 24), Intuit's QuickPayroll is described as a stand-alone enhancement for QuickBooks; it is, in fact, a stand-alone enhancement for Quicken. Also, the set-up of DIY Payroll is...

Fla. suit against KPMG, others seeks eight figures.(Best Communications)(verio)(Ricci-Leopold PA.)
September 6, 2004... Six executives of a Florida Internet firm are seeking an eight-figure settlement in a lawsuit against Big Four firm KPMG. Via a spokesman, KPMG declined to comment on the suit. The lawsuit by six executives of Best Communications, a...

U.K. faces uphill task on audit liability limitation.
September 6, 2004... The accounting profession in the United Kingdom has suffered a major setback in its campaign to secure limitation of liability for auditors. An independent agency, the Office of Fair Trading, has produced a government-sponsored report that...

Family office advisors urge formal succession planning.
September 6, 2004... One of most challenging aspects of family office work is the transition of the advisory relationship from the first to the second and third generations within a client family. Some financial advisors are solving the problem by encouraging...

Treasury finalizes guidance for health savings accounts.
September 6, 2004... The health savings account is here to stay, and in yet another effort to make the rules clear to the masses, the Treasury Department has issued a new set of technical guidance in the form of answers to the 88 most commonly asked questions about...

Web Cites.
September 6, 2004... DICTIONARIES AND LIBRARIES AnnualReports.com - www.annualreports.com Find annual reports for many companies all in one place. Visitors can search alphabetically, by company name, ticker symbol, sector or industry. Reports can be viewed...

Footnotes.( Lattimore Black Morgan & Cain )(Brief Article)
September 6, 2004... LENDING A HAND BRINGS BENEFITS FOR TENNESSEE FIRM: Nashville, Tenn.-area firm Lattimore Black Morgan & Cain is in the process of learning that lending a hand to community nonprofits can pay off with big marketing exposure. As part of a...

Down and Outsourcing.
September 6, 2004... Several months ago, at my wife's urging, I finally added my phone number to the official "do not call" list. My spouse, whose patience level exponentially exceeds mine, was weary of having representatives from credit card companies,...

Commentary: The pity of it all.
September 6, 2004... In July 1994, The CPA Journal (published by the New York State Society of CPAs) carried my article, "Public Accounting No Longer a Profession," which concluded with, "Some may say there has been a diminution of standards in other areas such as...

Letters: Profession must take leadership role.(Letter to the Editor)
September 6, 2004... Solutions to Bill Carlino's editorial, "Widening the GAAP," and John Sharbaugh's commentary, "A Demographic Tidal Wave" (Accounting Today, Aug. 9-21, 2004) require the wisdom of Solomon and the courage of Star Trek's Jean Luc Picard. Since...

Letters: Baker vs. Nisberg.(Letter to the Editor)
September 6, 2004... Having attended presentations by both Ron Baker and Jay Nisberg, I read both of their commentaries ("The diffusion of a new idea," Accounting Today, June 21-July 11, 2004, and "A response to Ron Baker," July 26-Aug. 8, 2004) with a great deal...

Letters: FASB, AICPA are not regulators.(Brief Article)
September 6, 2004... I read the recent letter to the editor by Mr. Anatole Hramtsov, CPA, titled "Government is the answer" (July 26-Aug. 8, 2004, p. 29). I would like to offer a few comments. Mr. Hramtsov makes the comment that "both the Financial Accounting...

Taxing Issues.
September 6, 2004... IRS INITIATIVE EYES TAX-EXEMPT GROUPS' COMPENSATION: The Internal Revenue Service has started a new enforcement effort to identify and halt abuses by tax-exempt organizations that pay excessive compensation and benefits to their officers and...

IRS needs more money to improve enforcement.(Internal Revenue Service)
September 6, 2004... The Internal Revenue Service Oversight Board's 2004 fourth annual report paints a mixed picture of the agency's successes and shortcomings in meeting its goals over the past year. While the service has improved its assistance programs, the...

Tax gap hearings provide latest window on IRS focus.(United States. Internal Revenue Service)
September 6, 2004... Just prior to the August recess, the Senate Finance Committee held a hearing on ways to close the tax gap - the gap between taxes due and taxes being collected. The testimony of Commissioner of Internal Revenue Mark Everson at the hearing...

CHANGE OF AUDITORS.
September 6, 2004... LIGAND, DELOITTE TO PART COMPANY: Ligand Pharmaceuticals Inc., a developer and marketer of drugs to treat cancer, skin diseases and hormone-related diseases, said that Big Four firm Deloitte & Touche, its auditor of four years, will resign. ...

GASB statement lets gov'ts account for other benefits.(Governmental Accounting Standards Board)
September 6, 2004... The Governmental Accounting Standards Board has issued a statement that will, for the first time, give governments guidance on how to accurately report a huge and growing cost: post-employment benefits other than pensions, including the big one...

Two wrong letters definitely don't make it right.(Column)
September 6, 2004... A recent issue of Accounting Today published letters from two obviously stressed readers. Although the letters' topics are different, they both shout to the world: "Stop telling me what to do!" According to our Web searches, both writers...

Former IRS director signs on at Deloitte.(Brief Article)
September 6, 2004... Following a 35-year career with the Internal Revenue Service, Robert E. Brazzil has joined the tax services practice of Deloitte & Touche as a director in the tax controversy services line and consumer business group. Brazzil most recently...

PFP Briefs.(Personal Financial Planner)
September 6, 2004... NEWKIRK INTRODUCES NEW RETIREMENT PAYOUT ESTIMATORS: Financial services application services provider Newkirk has rolled out two new retirement payout estimators for retirement plan providers. While the company has offered a calculator that...

The hard truth about bonds - the buyer must beware!
September 6, 2004... Interest rates are at a 45-year low - great news, right? Maybe not for all the investors who flocked to bond funds in light of what seemed to be a perpetually declining stock market. Many investors are looking to the "more conservative"...

Should your clients make lifetime gifts to spouses?
September 6, 2004... In doing estate planning for a married client, you should generally plan for the client's spouse at the same time. Planning should involve determining whether lifetime gifts should be made from one spouse (usually the wealthier spouse) to the...

Tech Briefs.
September 6, 2004... INTUIT NAMES VP OF INVESTOR RELATIONS: Mountain View, Calif.-based Intuit has named Jessica Kourakos vice president of investor relations. In that capacity, Kourakos will work closely with Intuit's senior management team to develop investor...

New Wi-Fi communicator is a big hit with auditors.
September 6, 2004... Several larger accounting firms, led by Big Four firm PricewaterhouseCoopers, are finding that a relatively new technology has put them on the cutting edge of staff collaboration. And while collaboration software, such as Lotus Notes, has...

Tectura buys Aston Biz Solutions.
September 6, 2004... Fast-growing Tectura leapfrogged rivals with its acquisition of Aston Business Solutions in mid-August, making it the largest reseller of mid-market accounting software in a reseller market that has changed dramatically in the last two months....

Invesmart Inc. launches new partner program.(Brief Article)
September 6, 2004... Invesmart Inc., a Pittsburgh-based retirement services firm, has kicked off a nationwide rollout of its new Partner Program to banks and investment advisors. Through the new offering, Invesmart and its advisory affiliate, Invesmart Advisor...

SOX software: More questions than answers?(risk management, Sarbanes-Oxley Act)
September 6, 2004... As accountants, we're all use to deadlines and filing requirements. Why, then, is the Nov. 15 phase-in of the reporting requirements of the Sarbanes-Oxley Act causing such unrest in the industry? What is it about SOX that's makes everyone...

Free is not necessarily inexpensive.(Brief Article)
September 6, 2004... Your clients don't have to spend the equivalent of a luxury car to be in compliance with SOX. Microsoft has a freebie called the Office Accelerator for Sarbanes-Oxley. Of course, the term "free" is relative. While the Office Accelerator...

Your IT: Funding or performance constraints?(Information Technology)
September 6, 2004... Is your firm funding technology at "good enough" levels, or at a level indicative of the fact that technology is a strategic asset in today's professional services firm? Firms that choose the "good enough" level often do not comprehend the...

Software.
September 6, 2004... New Paradigm Best Software has introduced the latest version of its MIP Fundraising solution, Paradigm 5.1. Designed for smaller, growing nonprofit organizations, it offers an extensive suite of fundraising and development management...

Books.
September 6, 2004... Managing better The big problem with being a manager is that you're not just responsible for your work - you're responsible for other people's work as well. That's a daunting charge, particularly if you're new to the experience. Carol...

Companies mentioned.(Brief Article)(Directory)
September 6, 2004... * ACL Services Ltd. Vancouver, B.C. (604) 669-4225 www.acl.com * Approva Corp. Vienna, Va. (703) 821-0165 www.approva.net * Axena Inc. Orlando, Fla. (407) 447-0050 www.axena.com * CaseWare Idea Inc. ...

People.
September 6, 2004... California Gregg Landers has been made a shareholder in Nation Smith Hermes Diamond, San Diego, where he is director of the Growth Management Team. Colorado Kimberley K. Higgins has joined Gordon, Hughes & Banks LLP, Greenwood...

Editor's Note: The Paperless Chase.(Brief Article)
September 6, 2004... In case you missed it, there is a wonderful article in the July 2003 issue of Accounting Technology by associate editor Carly Lombardo-Bohach that talks about the selling of imaging systems and the fact that "Trees sigh in relief as pros...

"60 Minutes" Speaks to SurePrep.(SurePrep )
September 6, 2004... What if you could prepare a thousand more tax returns without adding even one more staff member? And what if you could prepare those returns for up to 50 percent less than what it costs you right now? SurePrep says that you can dramatically...

Virtual Online Filing Cabinets.
September 6, 2004... GoFileRoom from Immediatech Corporation maintains paper and electronic files in a secure, off-site location. Rather than searching for documents in physical files, accountants can access them instantly from virtual, on-line filing cabinets....

Integration and Efficiency.(CCH)
September 6, 2004... CCH's ProSystem fx Engagement lets the accounting firm move toward true paperless engagements and offers powerful workflow tools that allows it to store tax, assurance, and consulting engagement binders in an intuitive Windows Explorer-style...

Book More Appointments.(Customer Appointment Manager)(Brief Article)
September 6, 2004... Customer Appointment Manager from Atlas Business Solutions, is a fast, user-friendly software for scheduling and managing appointments. It will show the user who's available and when, and let the user book appointments in seconds. No more...

You Cannot Live By Links Alone.
September 6, 2004... Integration has always been the key to the paperless office. In fact, one could say that it is a basic need. It is one thing to have everything you need in an electronic format; it is another to have all those critical pieces in one,...

Working with Governments.
September 6, 2004... PayCycle is considered a leader in working with the Federal government to adapt new technologies that allow the small business to bypass paper filing. The company works with the IRS to develop an XML specification for all payroll tax filings...

Online HR Services.(Brief Article)
September 6, 2004... TriNet Group delivers paperless, real-time human resource services that protect, leverage, and maximize the value of a company's human capital. Its offerings include human asset administration, employer risk management, online employee benefits...

No More Metal File Cabinets.(Blaylock & Company)(Paperless document storage )
September 6, 2004... EFile Cabinet (www.efilecabinet.com) is a paperless document storage solution that saves time, money, and hassle. The company says that it gives the CPA the power to find any client information it wants in seconds from its own computer. An...

Value Added Productivity Features.(West Point Parents Club (WPPC))(Brief Article)
September 6, 2004... WPPC's e-Practice Aidstm (powered by Microsoft(r) Word & Excel), is considered the fastest and most convenient way to use PPC's industry-leading practice aids PPC e-Practice Aidstm are Microsoft(r) Word and Excel versions of all of the...

Solving Nomadic Workgroup Inefficiencies.(Wireless network)(Brief Article)
September 6, 2004... Colligo Workgroup Editions is Colligo Networks' software that helps solve nomadic workgroup inefficiencies by allowing team members to connect any Windows-based laptops, Tablet PCs and handheld devices via ad-hoc (server-free) peer-to-peer...

CPA Paper Factory Problem Solved.
September 6, 2004... Since 1968, AMI has earned a solid reputation by being there for its clients, by providing cutting-edge solutions, and by committing its resources to help its clients succeed. Through the years, the company has earned the trust of its...

The "Less Paper" Office.(Paperless)(CyberCabinet)(Brief Article)
September 6, 2004... According to AccountantsWorld, the paperless office should be the ultimate goal of every accounting office, but a full implementation is still beyond the resources of all firms. For many accounting practices, a phased implementation is a more...

Extending Paperless to Payroll.(Brief Article)
September 6, 2004... PayMaxx believes that while a major part of the paperless office involves document imaging, file sharing, and the like, the benefits of a paperless office also extend to the payroll department. They say that paperless payroll is a growing trend...

Paperless Product for Over 10,000 Accounting Firms.(FileCabinet Solution)(Tzinberg, Goldenberg & Deck)(Brief Article)
September 6, 2004... Creative Solutions' FileCabinet Solution is a digital document management system that enables the paperless office. It was released in 1999 and is the paperless product for more than 10,000 accounting firms. Charles Tzinberg, managing...

Total Document Solutions.(Docutrend Imaging Solutions)(Brief Article)
September 6, 2004... Docutrend Imaging Solutions, a sister company of NetWork, specializes in accounting and business management solutions, and partners with the likes of Microsoft, Accpac, Best, and Citrix. The company's WorkflowXtender for Accounts Payable is a...

New Document Imaging Capability.(North 40 Systems)(Brief Article)
September 6, 2004... North 40 Systems (formerly Giardina & Associates) has added a new document imaging capability to Office Tools Pro 2004. The system allows accountants, CPAs, and financial service professionals to create new records and images from inside the...

Enterprise Capture.(Software)(Brief Article)
September 6, 2004... Document imaging software creator DocuLex has released Enterprise Capture, the company's new production paper-to-electronic document program developed for high-volume production document conversion and management. Enterprise Capture is...

Growing Firms Extend the "Paperless" Office.(Tedder, James, Worden and Associates)
September 6, 2004... As smaller accounting firms grow and attempt to improve client service, they are beginning to take the "paperless" office to new heights through wireless data and remote connectivity. Even the smallest firms can utilize wireless technology to...

Scanning Solution.(Brief Article)
September 6, 2004... The Fujitsu ScanSnap scanning solution is a compact, upright, one-touch color scanner, allowing users to quickly convert paper documents into searchable Adobe Portable Document Format (PDF) files that are easily shared, organized, and...

CPA Wealth Provider: 2nd Annual Financial Planning Awards Call for Nominations.
September 6, 2004... Nominations are now open for CPA Wealth Provider's Second Annual Financial Planning Awards in the following three categories: CPA/Financial Planning Firms Broker/Dealers Financial Planning Software Vendors Winners are those...

Who's succeeding you?: Firms reassess leadership changes to thwart competition.
September 20, 2004... Seattle-based Moss Adams, the 10th largest accounting firm in the United States, named Rick Anderson to succeed Robert Bunting as chief executive in June - the firm's first new CEO in 23 years. Anderson joined Moss Adams in 1973 and rose...

PCAOB discovers Big 4 deficiencies.
September 20, 2004... Deloitte & Touche, Ernst & Young, KPMG and PricewaterhouseCoopers were cited with a series of serious audit and accounting deficiencies in reports outlining the results of the Public Company Accounting Oversight Board's 2003 limited inspections...

NASBA proposes quality control self-reporting guidelines for firms.(National Association of State Boards of Accountancy)(Brief Article)
September 20, 2004... The National Association of State Boards of Accountancy has proposed a set of rules that would have CPA firms self-report on their internal quality control procedures, as well as those of their audit clients. Unlike traditional quality...

IIA prez asks membership to push sustainable development.(Institute of Internal Auditors, David A. Richards)
September 20, 2004... The Institute of Internal Auditors has long been an advocate of a more ethical and effective "tone at the top" - the clear intent of upper management that fraud and financial misrepresentation will not be tolerated. Now IIA president David A....

KPMG may have written new versions of illegal shelters.(Brief Article)
September 20, 2004... A Senate subcommittee has revealed internal e-mail messages showing that KPMG reportedly discussed selling a new tax shelter similar to one that was banned more than two years earlier by the Internal Revenue Service, according to published...

FASB offers options on options.(Financial Accounting Standards Board)(Brief Article)
September 20, 2004... At a meeting in early September, members of the Financial Accounting Standards Board decided not to indicate in their final standard on stock option expensing that any particular valuation model is preferable to another, according to reports....

SEC OKs third audit standard...(Securities and Exchange Commission )(Brief Article)
September 20, 2004... The Securities and Exchange Commission has given its stamp of approval to the Public Company Accounting Oversight Board's third audit standard. Auditing Standard No. 3, Audit Documentation, which was adopted by the board in June,...

... and may delay filing requirements.(filing shcedules)(Brief Article)
September 20, 2004... Citing concerns raised by companies and their auditors in meeting both Sarbanes-Oxley 404 compliance requirements and accelerated filing schedules, the Securities and Exchange Commission said that it may postpone by one year its mandate of...

AFC Enterprises sues Andersen.(Arthur Andersen LLP)(Brief Article)
September 20, 2004... AFC Enterprises Inc., the franchisor and operator of brands such as Popeyes Chicken & Biscuits, Church's Chicken and Cinnabon, has filed a lawsuit against Arthur Andersen LLP, two of its former partners, and a former audit manager, charging...

Improved disclosure hones advisors' asset allocation.
September 20, 2004... While CPAs are well-attuned to the modern portfolio theory of risk, poor fund governance has sounded a new note of potential danger. The traditional risk of price volatility is joined by the risks of fund managers acting in ways that harm,...

Tighter accounting regs are creating new BPM windfall.(business performance management)
September 20, 2004... Tightening accountancy regulation around the world is driving the expansion of a group of firms that supply the advanced software systems that manage the rules as they come into place. It is pressure from the regulatory side that is driving...

Influential standards.(Editorial)
September 20, 2004... I once knew a grizzled veteran of public relations, who spent the majority of his working life doing what he did best for one of the major automobile manufacturers. But in his much younger years, during the 1950s, he was proficient enough with...

Commentary: A profession, not a brand.
September 20, 2004... I cringe every time I hear someone talk about protecting or restoring the CPA "brand." Not that I disagree with the substance of the discussion, of course. I am firmly committed to the efforts of all CPAs to demonstrate the core values of...

Relinquish the monopoly.
September 20, 2004... Customers are best served when they have many competitive alternatives, and they are suspicious of self-serving monopolies. Of course, as sellers, we all want to be monopolies. We want little competition, the ability to charge high prices...

Letters: No more support.(Letter to the Editor)
September 20, 2004... I have been very impressed with the number and quality of letters to the editor or commentaries that have been critical of the American Institute of CPAs over the last year (or more). For many CPAs, it has been extremely distressing observing...

End the madness.
September 20, 2004... Kudos to Bill Carlino for an excellent editorial in the last issue of Accounting Today (Aug. 23-Sept. 5, 2004, p. 6), and kudos to Mr. Eli Mason, one of my favorite CPAs, for his meaningful commentary in the same issue. The whole point...

Get the most from your marketing director.
September 20, 2004... The latest buzzword I've heard from managing partners is "ROI marketing." I believe it is an attempt to cost-justify the ongoing salary of the marketing director and related expenses. The problem is, marketing in and of itself was never...

Newkirk offers retirement payout calcs.(Brief Article)
September 20, 2004... Financial services application services provider Newkirk has rolled out two new retirement payout estimators for retirement plan providers. While the company has offered a calculator that demonstrates the benefits of saving, the new...

Presidential candidates face off with different tax plans.
September 20, 2004... The presidential candidates' tax plans are generating more discussion than usual, even for such a hotly contested election, with President George W. Bush and Senator John Kerry both proposing different approaches. President Bush's recent...

Gain on principal residence sales: working the final regs.
September 20, 2004... Finally, it appears that the Internal Revenue Service has had its say for a while on the rules governing the sale of a principal residence. It's been over six years since Congress enacted the $250,000 exclusion ($500,000 for joint filers)...

Taxing Issues.
September 20, 2004... IRS GETS TOUGH ON 527S: Having identified concerns about dozens of filings among the growing tax-exempt Section 527 political group segment, the Internal Revenue Service is moving to improve reporting and disclosure by those groups. Under...

Controversy still raging over stock compensation.
September 20, 2004... The controversy over accounting for employee stock option compensation has been burning for almost 10 years now, and it just keeps getting worse. Since the mid-1990s, the Financial Accounting Standards Board has been trying to get public...

Financial reporting costs: It's time for better vision.
September 20, 2004... When we talk about Quality Financial Reporting and its potential to bring real change to financial reporting, we're often challenged to show how managers receive a payoff from providing more information to users. We're not dismayed at all; in...