1. news
  2. News Digest

Accounting

Please note: This item is from our archives and was published in 2006. It is provided for historical reference. The content may be out of date and links may no longer function.

Related

TOPICS

For news from the AICPA and state societies, visit www.cpa2biz.com , which also offers online CPE, AICPA professional literature, practice management aids and links to state society Web sites.

ACCOUNTING
The AICPA released three technical practice aids (TPAs), two of which—in relation to Statement of Position (SOP) 03-3, Accounting for Certain Loans or Debt Securities Acquired in a Transfer— specify how to account for pools of loans that are accounted for as a single asset. The other TPA explains why GAAP does not permit preparing parent-company financial statements in lieu of consolidated financial statements ( www.aicpa.org/members/ ).

The Institute submitted comments on IRS technical advice memo (TAM) 200603027, which holds that a taxpayer’s LIFO election must be extended to all items within a dollar-value LIFO pool under the inventory price index computation (IPIC) pooling method. In its letter the AICPA said the TAM’s conclusion is inconsistent with a plain reading of IRC section 472 regulations and violates basic policy ramifications of the LIFO IPIC method rules ( http://tax.aicpa.org/Resources/Tax+Accounting ).