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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Get your clients ready for tax season

These year-end tax planning strategies address recent tax law changes enacted to help taxpayers deal with the pandemic, such as tax credits for sick leave and family leave and new rules for retirement plan distributions, as well as techniques for putting your clients in the best possible tax position.

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