August 2008 - Journal of Accountancy

EXECUTIVE SUMMARY Corporate divestitures, the sale of stock or assets of a segment of a business, are an important class of business transaction by virtue of their pervasiveness (more than onethird of all M&A activity in a given year) and their size (averaging more than $175 million per deal). Divestitures

EXECUTIVE SUMMARY Long-term care (LTC) insurance benefits are tax-free to the insured for either reimbursement of qualified expenses or payments up to a per-diem limit indexed for inflation—$270 in 2008. Premiums for LTC insurance are tax-deductible according to limits that are also indexed to inflation and increase with the age

EXECUTIVE SUMMARY Return-on-equity (ROE) is the correct profit metric to evaluate the performance of a business. However, the primary emphasis on financial ratio analysis must be on operating performance. The “advanced” version of the DuPont model remedies the original model’s failure to cleanly separate the effects of operating and financing

B en Neuhausen took the helm of the Accounting Standards Executive Committee in 2005 and led the all-volunteer AICPA committee through a tumultuous time during which its responsibilities shifted. On his watch as chairman, AcSEC transitioned from a standard-setting body to a source of practical, nonauthoritative guidance for CPAs and

EXECUTIVE SUMMARY GASB released two important standards intended to disclose the nature and extent of nonpension post-employment benefit liabilities largely related to health care. Governments are not required to fund the liability, but will face disclosure requirements and operational hurdles if funding is not made. GASB Statement no. 45 ,

EXECUTIVE SUMMARY The definition of mentoring is expanding to include the concept of coaching, which is focused on helping others learn job-related skills for growth. In today’s rapidly changing work environment, young accountants appear to learn more quickly and thoroughly through on-the-job training. Firms with strong cultures that facilitate continual

Jump to Web exclusives: Is CRM Worthwhile? Assess Your Customer Relationship Management Readiness EXECUTIVE SUMMARY When a customer relationship management (CRM) strategy is integrated with a firm’s overall strategic plan, it helps the firm perceive and respond to business and economic trends. CRM strategy starts with an understanding of a