December 2001 - Journal of Accountancy

EXECUTIVE SUMMARY WHEN THE EURO REPLACES THE NATIONAL CURRENCY of 12 European nations on January 1, 2002, it also will affect commerce with nonparticipating countries including the United States, where thousands of companies contribute one-fifth of EMU imports. COMPANIES MUST BALANCE EUROPEAN CUSTOMERS’ demands for euro billing with the cost

EXECUTIVE SUMMARY THERE’S NO COOKIE-CUTTER STRATEGIC PLAN that works for all firms, but all strategic plans encompass clear initiatives that enable a practice to analyze the effectiveness of alternative actions and logically link tasks and relationships designed to move an organization in a particular, or perhaps new, direction. FIRST, CLARIFY

s a growing number of CPA firms build insurance practices, one key to a thriving venture is clear: The most successful firms focus their resources on just a few insurance strategies that will help clients accomplish tar-geted goals. They know the details of every insurance transaction, their client-base can meet

ometimes, the truth isn’t very pretty. Consider, for example, the American workforce. Although regarded by many as the finest in the world, it has a dark side. According to estimates, a third of American workers have stolen on the job. Many of these thefts are immaterial to the financial statements,

EXECUTIVE SUMMARY MANY COMPANIES ARE recognizing that the conventional static budget—produced near yearend and then used as a guide for the following year even though it’s out of date—is just not good enough. INSTEAD, THEY ARE turning to rolling budgets—forecasts that are updated every few months—in effect, reassessing the company’s

EXECUTIVE SUMMARY TO PROVIDE BUSINESSES WITH GUIDANCE ON WHEN and how to recognize a liability for asset retirement obligations, FASB issued Statement no. 143, Accounting for Asset Retirement Obligations. The statement applies to retirement obligations for tangible long-lived assets. THE STATEMENT REQUIRES ENTITIES TO RECOGNIZE asset retirement obligations at their

EXECUTIVE SUMMARY SUCCESSFUL BUSINESSES TAKE CALCULATED RISKS to achieve objectives. Companies must measure these risks, try to minimize them and—if possible—use them to their advantage. The CPA—as internal or external adviser—is the professional best suited to help them manage risk. CURRENT BEST PRACTICES follow these steps in the risk management