The private equity (PE) market (including venture capital, buy-out, mezzanine and similar longer-term, illiquid investments) has expanded exponentially over the past 10 years. U.S. GAAP requires private equity (PE) investments be stated at fair value. Given the nuances inherent in PE, there can be significant challenges in determining the fair
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CFO Priorities
Source: Hewitt Associates, Lincolnshire, Ill., www.hewitt.com , 2005.
A Substitute for the Hard-to-Reach Equal Sign
Why don’t computer manufacturers put an equal sign (=) in a more convenient place on keyboards? It’s such a pain to find that out-of-the-way key we use in so many Excel formulas. The answer is simple: Keyboard designers aren’t accountants. But cheer up, here’s a simple work-around. When you enter
No ID Worries
Source: Survey of 1,004 U.S.adults, TrueCredit, San Luis Obispo, Calif., www.truecredit.com , 2005.
Tri It—You’ll Like It.
ALL IN A DAY’S WORK ax season is not the time to make big changes in computer systems. So when you’re a CPA who specializes in IT, the weeks between January 1 and April 15 are the slowest of the year. Slow is hardly the word for CPA/CITP Roman Kepczyk,
Bookmarks
Successful Practice Sales By John R. Ezell, CPA, and Ken Berry 204 pages; softcover Pro Horizons, Los Altos, Calif., 2005 n Successful Practice Sales: The Complete Guide to Buying, Selling or Merging Your Accounting, Consulting or Tax Practice, CPA John R. Ezell and consultant Ken Berry present guidance for accountants
Alternative Dispute Resolution: Collaborative Law Works
Is having an opponent our way of life? Is litigation an efficient and responsible means of resolving disagreements? Is advocating for a client, to the detriment of the “other” side, acceptable? Or, is there a recipe for peaceful resolution of differences? What if the disagreeing parties agree to engage in
IRS Costs Rise
Source: IRS, www.irs.gov .
Heir Tight
FINANCIAL FUTURES If you’re counting on a big inheritance to get you through your retirement, you might consider a backup plan. The median inheritance of Americans in 2004 was just $29,000 in today’s dollars, according to the Federal Reserve Board.
The Last Word: Dennis Groth
DENNIS GROTH, CPA CEO, Groth Vineyards & Winery Oakville, California I’VE ALWAYS ENJOYED BUSINESS; I studied accounting because I wanted to have the skills to be successful at it. I was an audit partner in Arthur Young’s San Jose office in the ’70s, working with Atari and Apple Computer when
Working for the Love of It
SURVEY SAVVY Hoping to retire in your 50s? Good luck! Most of us will not be so fortunate. MetLife’s “Living Longer, Working Longer” survey, published in April, found that six out of 10 adults between the ages of 60 and 65 were either working or looking for a job. And
Highlights
The AICPA Auditing Standards Board issued three exposure drafts. A proposed Statement on Quality Control Standards (SQCS), A Firm’s System of Quality Control, will replace all existing SQCSs and provide guidance for a CPA firm’s responsibilities for its system of quality control over its accounting and auditing practice ( www.aicpa.org/download/members/div/auditstd/ed_sqcs.pdf).
Avoid the Documentation Nightmare
CHECKLIST Under Sarbanes-Oxley not all corporate artifacts and actions need to be documented. IT managers and CITPs can use these tips to keep Sarbanes-Oxley documentation simple. Specify accountability. Technically the CEO and CFO have ultimate responsibility for financial reports, but they will want to know who provided the information. Create
Free at Last!
Source: Tax Foundation, www.taxfoundation.org , June 2006.
Financial Reporting
The Committee of Sponsoring Organizations of the Treadway Commission (COSO) released Internal Control over Financial Reporting—Guidance for Smaller Public Companies to supplement Internal Control—Integrated Framework, t he committee’s landmark 1992 publication that outlined a comprehensive framework for internal control systems. The new guidance was developed primarily to help smaller public
Collaborative Divorce: Better for Everyone
When it comes to divorce, emotions and the desire to be litigious often run high. The toll on a divorcing family is both emotional and financial—and it can be devastating to both children and parents. An alternative to litigation in family breakups is called “collaborative divorce,” a process begun by
Forecasts Miss the Mark
SURVEY SAVVY Eighty-four percent of financial forecasts were less than 95% accurate, according to the “Global Planning Survey” by Cartesis ( www.cartesis.com ) of 282 companies with revenues of more than $100 million in the United States, United Kingdom, France and Germany.
Can Capital Losses Be Carried Back for the AMT?
TAX CASE axpayers pay an additional tax when their alternative minimum tax (AMT) liability exceeds their regular tax liability. In some cases, regular tax deductions and exclusions of income are not allowed for the AMT. Differences between the two tax liabilities also can be due to the acceleration of income
Commitments to Private Equity
Note : Includes venture capital, LBO, mezzanine, turnaround and recapitalization-focused funds. Source: Thomson Venture Economics/National Venture Capital Association; Goldman Sachs for 2005 buyout data. Determining fair value requires managers to exercise judgment. While each manager’s judgment may result in different but supportable views on valuation, using common guidelines consistent with
Smart Stops on the Web
CAREER BUILDING SITES Value for Your Business http://bvfls.aicpa.org The AICPA’s Business Valuation and Forensic Litigation Services Center offers members case studies on fraud schemes, a practice management toolkit and a definition of the month. Read the full text of an exposure draft on valuation service standards and get tips on
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How to find the right CAS clients
The key to success with CAS is selecting the best clients. Tools like ideal client profiles (ICPs), buyer personas, and even artificial intelligence can help identify the businesses that best fit each CAS practice.
From The Tax Adviser
March 31, 2026
Current developments in taxation of individuals: Part 1
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Current Developments in Taxation of Individuals: Part 1
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