Financial Reporting / Government Auditing and Financial Reporting
With Statement no. 131, FASB had introduced a new way for companies to disclose segment information. While the statement requires management and auditors to give more thought to how a company is managed, it may not solve all the disclosure problems companies experienced under past standards.
Auditing / Business & Industry / Financial Reporting / Government Auditing and Financial Reporting
Earnings management practices often stem from misuse or misunderstanding of the proper application of the materiality concept. SAB no. 99 provides guidance on evaluating materiality in the audit process and the preparation of financial statements.
Practice Development
The biggest single mistake consultants make is failing to prepare detailed strategic plans for marketing, recruitment, compensation, training new staff, developing new niches and quality control. This article tells how to do it.
Auditing
Some accounting firms have found that working smarter can help them maintain, and even improve, audit quality as well as save time and increase profits. A new survey puts a spotlight on these practices so other firms can learn from them.
Tax
Limited liability companies are a well-known form of business organization. The IRS has issued guidance to help CPAs with some of the complex accounting rules that apply to the more common LLC ownership changes.
Estate Planning
Naming a bypass trust as the beneficiary of retirement benefits can result in significant estate tax savings because it allows for exclusion of IRA and qualified plan proceeds from the surviving spouse’s estate. But the income tax consequences may not be as favorable.
Worth Repeating
The chairman of the Public Oversight Board from 1986 to 1999 speaks of his hope for the future of the POB—that it will remain a self-regulatory body free of statutory controls and requirements.
Software / Tax
The tax preparation software market is going through major changes. While the number of customers expands, the list of vendors shrinks. Meanwhile, as fast Internet transmission becomes more available, professional tax preparation software migrates to the Internet.