Financial Reporting
FASB issued guidance to help CPAs use future cash flows as the basis for accounting measurements at initial recognition, when making fresh-start measurements and with the interest method of amortization.
Tax
Transfer tax changes are a major component of the new tax act. It repeals the estate and generation-skipping taxes as of 2010 and phases in lower rates and higher exemptions in the interim period. The legislation also brings almost unprecedented complexity to the estate planning process.
Compensation and Benefits / Tax
Golden parachutes for executives usually are costly and complicated. CPAs asked to help with these agreements can save their employers and clients significant sums of money through careful planning.
Technology
A survey of tax preparation software users indicated that most products continued to get high marks. Use of electronic filing was gaining, and fewer preparers planned to charge for the service this tax year.
Compensation and Benefits / Tax
Stock options are great as long as the underlying securities rise in price. But if prices slip, the tax burden can be painful. Here’s advice on how to avoid problems.
Education
Academics who invite practitioners into the classroom to talk to students about the profession and its opportunities help spread the word that the field is both varied and lucrative. Two professors get CPAs to tell accounting students about what practice is really like.
Compensation and Benefits / Tax
Is the music still playing at the incentive compensation party? Stock options are widespread currency for executives and other employees. When markets decline, businesses look for ways to handle option plans to protect employees from losses.
For the Practicing Auditor
Business Valuation
In today’s market, CPA valuation experts need to understand the fundamentals that apply to all industry segments. Valuators also must grasp the current forces and trends affecting each segment to prepare an objective, comprehensive report.
Insurance Issues
Special to the Journal of Accountancy
The idea is right, the implementation plan is right, the timing is right and the leadership is right—the only remaining question is whether our profession has the courage and confidence to lead the professional services industry in the 21st century, says the author, an analyst for the larger professional service firms.
For the Practicing Auditor