Accounting Today articles from September 2008

Accounting Today archives from September 2008

No heir, apparently: If your firm doesn't have a succession plan - get one!
September 8, 2008... Do you know how much longer your firms partners want to work? The answers might surprise you and help you transition more easily into the future. One of the first questions we ask when a firm seeks assistance for succession is to take...

Housing bill promises preparer headaches.
September 8, 2008... The Foreclosure Prevention Act of 2008, recently signed without fanfare by President Bush, contains provisions that will, according to insiders, complicate tax returns for years ahead. The tax portion of the bill, the Housing Assistance Tax...

Taxwriters mull paring tax breaks for employee health care.
September 8, 2008... Congressional tax reformers are taking aim at one of the most cherished tax breaks available to working Americans employer-paid health insurance coverage. During the latest round of tax reform hearings before the Senate Finance Committee,...

Ernst & Young settles with SEC.(Securities and Exchange Commission)(Brief article)
September 8, 2008... Ernst & Young has settled charges with the Securities and Exchange Commission for $2.9 million alleging a conflict of interest in its audits of three companies. The case involved a series of interviews that Ernst & Young distributed on...

ASB proposes splitting SAS 70 in two.(Auditing Standards Board)
September 8, 2008... In a pair of proposals that may eliminate much of the confusion surrounding audits of companies that outsource certain functions, such as payroll processing, the Auditing Standards Board has approved the issuance of an exposure draft that...

In Brief.(settlement of lawsuit of Deloitte and Touche L.L.P. and General Motors Corp.)(reporting of icome taxes)(report on United States. Internal Revenue Service)
September 8, 2008... MOST COMPANIES DONT PAY FEDERAL TAXES Washington, D.C. Approximately two thirds of U.S. companies and foreign companies doing business in the U.S. paid no federal income taxes between 1998 and 2005, according to a new report. The...

Editor's Desk: Read my lips redux?(tax law)(Editorial)
September 8, 2008... My skepticism regarding the believability of government promises rises commensurate with the number of applications I receive for membership in AARP. Translation: Im not quite as gullible as in my younger days. My skepticism is not without...

COMMENTARY: Who knew? Plenty!: Signals of pending financial crises were apparent long ago.(Viewpoint essay)
September 8, 2008... Im amazed at how clueless people claim to be when the piper finally takes its toll, as though risk assessment practices went unchallenged in days gone by. The truth of the matter is that many forewarned of the problems recently witnessed in the...

Tax software targets Latino immigrant market.(Latino Taxes)
September 8, 2008... Oakland, Calif -- Atax practitioner has teamed up with a software engineer to create a new tax prep program aimed at preparers who service Spanish-speaking taxpayers, especially undocumented immigrants who are ready to begin filing tax returns....

Major Firms Group descends on Capitol Hill: Large-firm practitioners advocate their priorities to Congress.(American Institute of Certified Public Accountants)
September 8, 2008... Washington, D.C. -- In the first-ever visit to Congress by the American Institute of CPAs Major Firms Group, CPA executive leaders from 81 of the nations top 100 accounting firms visited Capitol Hill just prior to summer recess. The firms,...

In Brief.
September 8, 2008... CANDIDATES MAKE TAX PLANS Chicago u Sen. Barack Obama, D-Ill., called for an oemergency energy rebateo of $1,000 to be offered to families this fall, along with a $50 billion stimulus package to help jump-start job creation. The...

Tax Strategy: Tax planning issues arise from housing legislation.
September 8, 2008... While many of the non-tax provisions of the Housing and Economic Recovery Act of 2008, enacted on July 30, 2008, appear directly focused at the problems arising from the housing and mortgage crisis that has developed over the last year, the tax...

COMMENTARY: Greater risk management can help avoid financial catastrophes.
September 8, 2008... Rising gas prices, a declining housing market, the weakening of the dollar and fear of a recession todays economic conditions continue to point south, with no light at the end of the tunnel. Critical to these issues is the role of internal...

In Brief.(Financial Accounting Standards Board)
September 8, 2008... FASB DELAYS OFF-BALANCE-SHEET ACCOUNTING RULE Norwalk, Conn. Under pressure from banks and regulators, the Financial Accounting Standards Board has decided to reverse itself and postpone the effective date of an accounting rule that would...

The Spirit Of Accounting: The perils of clinging to the status quo - Pt. 1.
September 8, 2008... When the hot-air balloon lifted off, the dawn weather was impeccable. Shortly thereafter, a terrible storm hit and engulfed the airship in thick clouds, heavy rain and unpredictable winds. After hours of bad weather, the pilot was relieved to...

Small-business owners and long-term financial planning.
September 8, 2008... Successful small-business owners tend to be hard-working, tenacious, smart and highly focused. They have to be. According to a study by Dun & Bradstreet, businesses with fewer than 20 employees have only a 9 percent chance of surviving a...

In Brief.
September 8, 2008... CAR DONATIONS PLUMMET Automobile donations have sharply declined since 2004, when Congress tightened the tax rules for claiming charitable deductions, according to an analysis of IRS data by Grant Thornton. Before 2005, taxpayers who...

SOFTWARE REVIEW: SOX compliance: More than a single approach.
September 8, 2008... The Sarbanes-Oxley Act was passed in 2002. Six years later, subject companies are still in the process of trying to comply with its provisions. Add in the fact that other countries are implementing similar financial regulations, some of which...

In Brief.(RW and A Inc.)(T.H.E. and Co.)(Brief article)
September 8, 2008... VRAKAS/BLUM BUYS CLIFTON GUNDERSONS SAGE PRACTICE Vrakas/Blum Computer Consulting has acquired the clients and employees of Clifton Gundersons Wisconsin Sage practice. Vrakas/Blum Computer Consulting is the tech practice of CPA and...

Boomer's Blueprint: The profile of a future leader.(Baby Boomers)
September 8, 2008... The accounting profession is blessed with many leaders at firms of all sizes who are dedicated to client service and hard work. Many of the characteristics that make these leaders successful now will be just as important in the future. A...

Partner compensation in large vs. small firms.
September 8, 2008... There are dramatic differences between the way large and smaller CPA firms handle various areas of practice management, such as management and leadership; recruiting, development and retention of staff; training; diversity of services;...

New Products.
September 8, 2008... Software & Hardware MIND THE GAAP With all signs indicating that U.S. GAAP is sinking, accountants and some farsighted companies are getting ready to abandon ship and shift over to International Financial Reporting Standards and...

People.(briefs)
September 8, 2008... ALABAMA Barfield Murphy Shank & Smith, Birmingham, announced a number of promotions: Wendy Adams, Kim Gilmer and Jaime Norris were promoted to senior manager; David Brown, Alison Cook, Mindy Ellis, Ashley McGahey, Matt Phelps and Tony...

Coming Events.(Calendar)
September 8, 2008... SEPTEMBER 8: Chapter meeting, National Conference of CPA Practitioners, New Jersey Chapter. Victors Maywood Inn, Maywood, N.J. Contact: Fred Bachmann (973) 377-2009. 8-10: Advanced Fraud Examination Techniques, Association of...

Firms.(briefs)(Brief article)
September 8, 2008... ILLINOIS Grant Thornton LLP, announced that it had admitted 36 new partners and principals. The firm was also named one of the top workplaces for information technology professionals by Computerworld magazine. MARYLAND Aronson &...

A plan for succession planning.
September 8, 2008... Joel Sinkin, a principal at New York-based Accounting Transition Advisors and a specialist in mergers, acquisitions and succession planning, offers 10 tips on how to implement a firm succession plan: 1. Make sure the operating agreement...

In Brief.
September 8, 2008... RULING MAY INCREASE INSURANCE STOCK REFUNDS Washington, D.C. u A recent court ruling by the U.S. Court of Federal Claims could increase claims for tax refunds by insurance policy-holders who sold stock in insurance providers that went...

Advertiser Index.
September 8, 2008... Advertiser Page 1st Global 19 AccountantsWorld 39 ADP Small Business Services 11 CCH, a Wolters Kluwer business 40 Drake Software ...

LONG-TERMCARE: Gotta stay? Gotta pay!: Long-term care insurance has become a crucial part of retirement planning.
September 22, 2008... Not so many years ago, Randi Grant, CPA, PFS, CFP, thought it would be prudent to recommend a relatively new kind of insurance to many of her clients. The theory behind long-term care insurance made sense: Secure protection from the...

Tough times cause belt-tightening at nonprofits.
September 22, 2008... Smart noNprofits know that donor giving is often reflective of the health of the financial markets. As a result of the current economic malaise, many organizations have honed their strategies in the event of economic rumbles by taking more...

Court rules PCAOB constitutional.(Public Company Accounting Oversight Board)(Sarbanes-Oxley Act of 2002)
September 22, 2008... Washington, D.C. -- The Public Company Accounting Oversight Board along with regulators, audit firms and investor oversight groups are hailing a decision by an appeals court that upheld the constitutionality of the audit firm overseer. ...

The Obama tax plan: We begin our analysis of the presidential candidates' tax plans with a look at the Democratic contender.
September 22, 2008... Washington, D.C.-With the hoopla of the Democratic and Republican National Conventions still reverberating throughout the country and the election less than two months away, Accounting Today will examine the tax plans offered by both Democratic...

SEC proposes IFRS roadmap.(Securities and Exchange Commission)(international financial reporting standards)(Brief article)
September 22, 2008... Washington, D.C. -- The Securities and Exchange Commission has proposed setting a roadmap for transitioning from U.S. GAAP to International Financial Reporting Standards by 2014. The SEC plans to issue a concept release setting several...

Last chance!: IRS hosts 11th-hour hearings on preparer penalty rules.(Internal Revenue Service)
September 22, 2008... Washington, D.C. -- The recent hearings by the Internal Revenue Services on its proposed preparer penalty rules under Code Section 6694 were the proverbial "last shot" for any concerns to be voiced before the rules become final. Five...

In Brief.(Scott Rankin and Gardner)
September 22, 2008... PWC RESTRUCTURES GLOBAL NETWORK London - Big Four firm PricewaterhouseCoopers plans to reorganize its international network of member accounting firms, splitting them into three major geographic clusters. Starting October 1, the east...

EDITOR'S DESK: T100: Judgment call.
September 22, 2008... In what is, I'm sure, a relief for most, I'll spare you my biweekly ramblings about the ineptness of Washington, the 2008 presidential race, the AMT or even whether the addition of Brett Favre will help push the New York Jets above the .500...

COMMENTARY: Take back the professions.(Column)
September 22, 2008... Our society has been gradually drowned by five-year plans and blue-ribbon commissions. Increasingly, those participating in such groups are from other walks of life than that which they are assessing. We have more ill-configured...

FASB on trial over litigation disclosure: Angry Herz responds to WSJ op-ed.(Financial Accounting Standards Board)(Wall street journal)
September 22, 2008... Norwalk, Conn. -- The Financial Accounting Standards Board once again finds itself on the horns of a dilemma. At issue are proposed amendments to Financial Accounting Standard 5, on disclosure of loss contingencies. If adopted as presented...

IRS explores exceptions for exec comp.(Internal revenue code)(executive compensation)
September 22, 2008... In the world of executive compensation, Internal Revenue Code Section 162(m) limits the deduction that a publicly held corporation can claim in any tax year for compensation paid a top executive to $1 million, with several exceptions. Two...

In Brief.(Internal Revenue Service has issued a guide to help safeguard donor-advised funds against abuses)(Welles family sold stock in Therma Tru Corp. to three tax shelter promoters )
September 22, 2008... IRS WARNS ON DONOR-ADVISED FUNDS Washington, D.C. - The Internal Revenue Service has issued a guide sheet for organizations that maintain donor-advised funds to help safeguard against abuses. The guide sheet includes a series of questions...

Tax Strategy: Tax planning for businesses in a troubled economy.
September 22, 2008... While the tax law cannot exactly make lemonade out of the lemons produced by a bad economy, it can help many businesses prevent a bad situation from becoming worse. Several Tax Strategy columns back, we outlined some tax planning ideas for...

A whole new world for business combinations: A recent standards revamp involves significant changes.
September 22, 2008... A long-awaited overhaul of accounting for business combinations and consolidations was recently completed by the Financial Accounting Standards Board. FASB issued a revised version of FAS 141, Business Combinations (FAS 141(R)) and the new...

In Brief.(European Commission has allowed audit firms from other countries to operate in Europe)(American Institute of Certified Public Accountants has released Audit Sampling guide)
September 22, 2008... EUROPE STREAMLINES PROCESS FOR OUTSIDE AUDIT FIRMS Brussels - The European Commission has decided to cut some of the red tape to allow audit firms from other countries, including the U.S., to operate in Europe. The decision grants a...

THE SPIRIT OF ACCOUNTING: Of slide rules and the perils of clinging to the status quo - Pt. 2.
September 22, 2008... In our previous column, we analyzed the comments on Paul Miller's op-ed in the May 2008 Journal of Accountancy offered up by a CPA and controller we're calling "Tom." Our goal is not to embarrass but to persuade him and others to embrace the...

Wealth management: Why, how and when.
September 22, 2008... There are hundreds of CPA firms that claim to provide wealth management services to their clients. For those that truly do, hats off, as many do a fine job. But for the majority of firms that I encounter, they're dreaming if they think...

In Brief.(American Institute of Certified Public Accountants and Texas Tech University have teamed up to offer a new educational program)(financial planners responding to a recent survey indicated that they were satisfied with their career choice)(Survey)
September 22, 2008... AICPA AND TEXAS TECH PARTNER ON PFS TRAINING The American Institute of CPAs and Texas Tech University's Division of Personal Financial Planning have teamed up to offer a new educational program for gaining the AICPA's Personal Financial...

XBRL - the benefits are clear, but challenges remain.(extensible business reporting language)
September 22, 2008... The Securities and Exchange Commission has made it clear through its recently proposed rules that XBRL, or the Extensible Business Reporting Language, will be mandatory for all filers beginning in 2009. The SEC's rules will kick in for...

In Brief.(Intuit Inc. is providing online services for small businesses)(Universal Business Computing Co. has enhanced its payroll software)
September 22, 2008... INTUIT REFINES ITS SMALL BUSINESS STRATEGY Intuit has said that it will begin offering new online services for small businesses using QuickBooks software as part of its "Connected Services" strategy. The company plans to provide its...

BOOMER'S BLUEPRINT: Get real about strategic planning.
September 22, 2008... Most firms agree on the importance of documenting a strategic plan, but few have plans that are easily communicated and integrated with technology, human resources, succession, training/learning and other plans. Having a plan for its own sake...

It's a new century, so what are we doing new? Pt. 1.
September 22, 2008... Some 30 years ago, Peter Drucker proposed that the purpose of a business (or accounting firm) is to create clients. Today, it's more important to do more than just create clients: We need to create the right types of clients for our practices....

In Brief.(Burr Pilger & Mayer has introduced an employee stock ownership plan)(Virchow, Krause & Co. is pursuing a name change )
September 22, 2008... CPA FIRM OFFERS EMPLOYEE STOCK OWNERSHIP PLAN San Francisco - Accounting firm Burr Pilger & Mayer has introduced an employee stock ownership plan that it is offering to all of its 325 employees. Under the qualified retirement plan,...

New Products.
September 22, 2008... Software & Hardware SNAP TO IT! Where punching an intercom button and barking out an order to distant underlings was once the sole province of 1950s business moguls, now it's within reach of everyone thanks to the Snap Communicator, a...

People.(Michael M. Tonthat has been promoted to partner at Hedman & Associates)(Cheryl Wallace has joined Bondi & Co.)(Grant Thornton L.L.P. has appointed Susan Cullen)
September 22, 2008... CALIFORNIA Michael M. Tonthat has been promoted to partner at Hedman & Associates CPAs, Valencia.... Haskell & White LLP, Irvine, announced a number of promotions: Corey Higa and Kevin Krogstad have been promoted to senior tax manager;...

Firms.(briefs)(Grabush, Newman & Co. )(Brief article)
September 22, 2008... COLORADO NetSuite Inc. has opened a new sales and services facility in Centennial at 8000 S. Chester Street, Suite 100. Marc Huffman will serve as general manager. ILLINOIS Crowe Chizek and Co. LLC, Oak Brook, has been named to...

Coming Events.(Calendar)
September 22, 2008... SEPTEMBER 22-23: National Governmental Accounting & Auditing Update, American Institute of CPAs. Hyatt Regency Tech Center, Denver. Contact: www.cpa2biz.com or (888) 777-7077. 22-23: Introduction to U.S. International Tax, Alliance for...

Tomorrow's frontiers.(Supplement)(Accounting services )
September 22, 2008... Byline: Bill Carlino If it's possible to transition from an evolution to the precipice of new frontiers, one could argue that the accounting profession is doing just that. Last year, our Top 100 Most Influential People report captured...

2008 Top 100 Most Influential People.(Supplement)
September 22, 2008... Mark Albrecht CEO, XCM Solutions A long-time tax partner with a Massachusetts firm, Albrecht developed an automated workflow solution to help make tax season less frenzied - and became a thought leader on better workflow. Career...

Q&A: Ready, set - wait!(Supplement)
September 22, 2008... We asked the Top 100 People if they thought the accounting profession was ready for the shift to International Financial Reporting Standards. Some said yes and some no, but all agreed a massive educational effort was needed. Yes. -...

Surfing with the T100.(Supplement)
September 22, 2008... Longevity is a natural contributor to influence, so it's understandable that many of the Top 100, to put it delicately, came of age before the Internet revolution was in full swing. With the Web becoming an indispensable tool for accountants,...

The Tyranny.(Supplement)
September 22, 2008... The accounting profession is large, it contains multitudes - and far more than 100 of them wield influence. But calling the report "The Top 127" or "A Large Bunch of Important Folks" just wouldn't have the same impact, so each year our editors...

Melancon by a mile.(Supplement)(most influential people in accounting)(Brief article)
September 22, 2008... Byline: Dan Hood Every year, we ask candidates for our Top 100 to name who they think are the most influential people in accounting, and every year their answers offer an insight into the state of the profession. Once again, we had a...