The Treasury Department and IRS provide administrative tax relief for individual and business taxpayers who were prevented from meeting their federal tax obligations as a result of the September 11 terrorist attacks. The relief applies to all affected taxpayers, regardless of where they reside. ( http://ftp.fedworld.gov/pub/irs-news/ir-01-81.pdf )
The Social Security Administration relaxes documentation rules for claims related to the attack on the World Trade Center and issues a reminder that survivors’ benefits may be available to the families of those who perished. The agency adds that those critically injured—whether physically or mentally—may be eligible for Social Security disability benefits. (www.ssa.gov/emergency.htm; www.ssa.gov/pressoffice/releaseattack.htm )
The Labor Department’s Pension and Welfare Benefits Administration (PWBA), the IRS and the Pension Benefit Guaranty Corporation extend the deadline for filing employee benefit plan report forms 5500 and 5500-EZ. In addition, the PWBA offers plan fiduciaries guidance on ERISA compliance. ( www.dol.gov/dol/pwba/public/media/press/Pr091401.htm )
Dozens of CPAs and CPA/PFSs are among the nation’s financial planning elite, says the September issue of Worth magazine in the publication’s annual ranking of the best in the field. (www.worth.com/content_articles/articles.cfm?id=42)
Robert K. Herdman, until recently a senior partner at Ernst & Young, is the SEC’s new chief accountant, effective October 8. ( www.sec.gov/news/press/2001-95.txt )
The IRS’s Electronic Federal Tax Payment System (EFTPS) is now available on the Internet, making it possible to pay federal taxes through a secure Web site. ( www.eftpsnorth.com )
In a recent status report, FASB explains the financial reporting objectives and fundamental goals that constitute its conceptual framework. (www.fasb.org/statusreport_articles/august2001.pdf)
The 16th World Congress of Accountants will take place in Hong Kong’s Convention and Exhibition Centre November 18–21, 2002. The Hong Kong Society of Accountants and the International Federation of Accountants are organizing the gathering, which they expect to attract accounting and business leaders from around the world. (www.wcoa2002.com)
The article “Say Good-Bye to Pooling and Goodwill Amortization” ( JofA, Sept.01, page 31) erred in explaining the term goodwill . On page 32, under the subhead Recognizing Goodwill, it reads, “Goodwill is the difference between what a company paid for an acquisition and the book value of the net assets of the acquired company.” It should read, “Goodwill is the difference between what a company paid for an acquisition and the fair value of the net assets of the acquired company.” The book value of the identifiable net assets at acquisition is the amount at which they were recorded (or carried) on the books of the acquired company. The fair value is the amount that such assets could be sold for at the date of acquisition.
This concept is correctly shown on page 34 in the exhibit, “New Rules Illustrated.” A company’s identifiable net assets have a book value of $650 and a fair value of $800. The acquiring company paid $1,000 for the assets, of which $200 is considered goodwill. We regret the error.