November 2005 - Journal of Accountancy

EXECUTIVE SUMMARY ALTHOUGH SARBANES-OXLEY SETS NO SPECIFIC requirements for CPAs valuing intellectual property, it does put greater emphasis on accurate valuation of all assets and imposes punishments on CEOs and CFOs for failure to do so. RUSS BANHAM is a freelance business writer. His e-mail address is bzwriter@aol.com . efore

was recruited to the American Red Cross by a former member of this council, Ron Pitman, who asked whether I’d chair an audit committee meeting at my local chapter. I didn’t believe I had the time, but felt one meeting was doable. Well, we never can anticipate what events will

here are we going, where have we been and how can we best reach our destination together? These are some of the subjects on the minds of the chief executives of the world’s leading accounting organizations representing more than 335,000 members around the globe who work in business and industry.

EXECUTIVE SUMMARY THE DEFERRAL OF TRADE DISCOUNTS BY RETAILERS has caused the IRS to closely police whether allowances contingent on services performed are really trade discounts. If a discount is strictly volume-related, receiving it in advance should not prevent deferral. But it may be very difficult to convince the IRS

EXECUTIVE SUMMARY LAWS AND REGULATIONS PROHIBIT CPAs from disclosing clients’ personal financial information, but bankruptcy statutes require that very same information to go into the public record. CPAs can’t change the law, but they can help clients get through the bankruptcy process. THERESA HOLT, JD, is an attorney and associate

EXECUTIVE SUMMARY CPA/ABVs NEED TO BE AWARE that a market-data approach to valuing medical entities is easy to follow but may yield less meaningful data than an income approach. INCOME-APPROACH METHODS include capitalization of cash flows (CCF) and discounted cash flow (DCF). CPA/ABVs must identify a normalized net cash flow

EXECUTIVE SUMMARY CPAs WHO SEEK TO DEVELOP A BV NICHE should first determine the areas in which the firm can demonstrate expertise to referral sources. Prospects want to know that a firm understands their business. CPAs need technical training and specific valuation credentials to become credible providers of BV services.

he AICPA is committed to supporting its members in business and industry, and therefore, the Financial Management Center has been created with the needs of these members in mind. Financial executives’ and financial managers’ responsibilities are vast and cannot be neatly described through titles. Human resources issues, corporate governance, organization

Key to Instructions To help readers follow the instructions in this article, we use two different typefaces: Boldface type is used to identify the names of icons, agendas and URLs. Sans serif type shows commands and instructions users should type into the computer and the names of files. reating a

EXECUTIVE SUMMARY LAWRENCE S. CLARK, JD, LLM, is dean of the Cameron School of Business at the University of North Carolina (UNC) in Wilmington and lead author of the McGraw-Hill Law and Business textbook series. His e-mail address is clarkl@uncw.edu . RANDALL HANSON, JD, LLM, chairman of the department of

“All of us at the AICPA share the deep sadness and concern the entire nation feels over the devastation caused by Hurricanes Katrina and Rita. Our hearts go out to the hundreds of thousands of Americans whose lives have been forever changed, including the thousands of AICPA members and their