Accounting


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 ).

NEWS

IRS sets start date for tax season

The IRS announced that tax season will start in late January and that it will issue refunds to taxpayers despite the partial shutdown of the federal government.

PODCAST

Why CPAs can’t wait on automation tools

What do accounting firms waiting on others to develop AI, automation, and data analytics tools have in common with a baseball fan sitting in a stadium filling with water at an exponential rate? The answer could determine your firm’s fate.