Accounting


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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 ).

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Solving the lease accounting challenge

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FEATURE

Tackling TCJA changes this tax season

Return preparers must be ready for how the Tax Cuts and Jobs Act has modified many common features of individual and business returns.