FASB published standards that change the way entities account for securitizations and special-purpose entities. Both standards will require new disclosures. FASB Statement no. 166, Accounting for Transfers of Financial Assets, and Statement no. 167, Amendments to FASB Interpretation No. 46(R), will affect financial institution balance sheets beginning in 2010.
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Auditing
The AICPA’s Auditing Standards Board issued Statement of Position (SOP) 09-1, Performing Agreed-Upon Procedures Engagements That Address the Completeness, Accuracy, or Consistency of XBRL-Tagged Data. This interpretative SOP, drafted with the assistance of the XBRL Assurance Task Force of the AICPA Assurance Services Executive Committee, provides guidance regarding the
Reduced Gain Opportunity Means Higher Tax Bill
The Tax Court held that a leveraged securities agreement was not a securities lending arrangement under IRC § 1058 since its economic substance indicated the taxpayers’ opportunity for gain had been reduced. Thus the arrangement was treated as two separate sales transactions; the first resulted in no gain or loss,
Broader Interpretation of Economic Substance Blunts Deductions
The Fifth Circuit Court of Appeals affirmed a district court ruling that Klamath Strategic Investment Fund’s loan transactions lacked economic substance and that no penalties applied. Furthermore, the appeals court held that the lower court erred in allowing Klamath deductions for operational expenses in connection with a sham transaction and
Blogging for a Better Tax Practice
Some CPA tax practitioners find they are able to garner new clients and better maintain ties with existing ones by blogging on tax topics. Beyond providing an electronic soapbox, they say, a blog can be a powerful way to disseminate information to existing clients while revealing to prospective ones the
FYI
David E. Sundstrom, auditor-controller of Orange County, Calif., is the newest member of the GASB board. The Financial Accounting Foundation (FAF) Board of Trustees appointed Sundstrom to a five-year term on the seven-member board. Sundstrom’s term began July 1 and runs until June 30, 2014. He succeeds Richard C. Tracy,
Defined Contribution Plans for Nonprofit Organizations
When it comes to qualified retirement plans, the 403(b) has long been the default alternative for nonprofit organizations. The lack of nondiscrimination testing for elective deferrals and no plan audit requirement as well as the ability to avoid Employee Retirement Income Security Act (ERISA) regulations have traditionally been the biggest
International
The International Accounting Standards Board (IASB) published an exposure draft on fair value measurement. If adopted, the proposals would replace fair value measurement guidance contained in individual IFRS with a single, unified definition of fair value, as well as further authoritative guidance on the application of fair value measurement
Psst! Click (or Mouse Over) Here for a Hot Tip
Q: You know those little identifying messages that pop on the screen when I hover my cursor over some icons? Is there some way I can create a similar feature in Word or Excel so readers can get more information about some material in the document or financial statement? A:
Shortcuts in Word
Apply List Bullet style: Ctrl+Shift+L Apply or remove space above current paragraph: Ctrl+0 (zero) Make selected text all caps: Ctrl+Shift+A Double underline the selected text: Ctrl+Shift+D Toggle subscripting for selected text: Ctrl+ = Toggle superscripting for selected text: Ctrl+Shift+ +
Priorities Change With Economy
Leadership priorities change depending on the performance of the overall economy, according to an Ajilon Finance survey of 700 accountants. In good economic times, respondents said, the top three most challenging decisions for leaders to make are regarding: recruiting and retaining top talent (47%), pursuing growth opportunities (42%) and maintaining
Putting Economic Stimulus Provisions to Work
Many financial executives say their companies are using or are planning to take advantage of economic stimulus tax provisions, according to a Grant Thornton survey of U.S. CFOs and senior comptrollers. Here are the provisions they’re planning to use: Bonus depreciation (50%) Increased section 179 expensing (46%) Net operating loss
Layoff Survivors’ Relief Turning to Stress
At first, workers who survive layoffs may feel grateful and relieved to still have their jobs. But, as workloads and anxiety over job security increase, those feelings can quickly turn to stress and burnout. According to a nationwide survey of 4,400 workers by CareerBuilder.com, 30% of layoff survivors feel burned
Larzette Hale, CPA
Accounting is a profession in which qualified people who really know their field can advance, regardless of race. But accounting is hard work; it takes discipline. Some people think they can make a lot of money as a CPA. That could be, but it takes a lot of time and
Government
The Federal Accounting Standards Advisory Board (FASAB) released an exposure draft of Technical Bulletin 2009-1, Deferral of the Effective Date of Technical Bulletin 2006-1, Recognition and Measurement of Asbestos-Related Cleanup Costs. The proposed technical bulletin’s purpose is to defer the effective date of Technical Bulletin 2006-1 for two years to
Taking Advantage of the RMD Holiday for IRAs
For 2009 only, the required minimum distribution (RMD) rules applicable to retirement plan withdrawals have been waived. This allows retirees to forgo a year’s distributions. The benefit of this suspension may seem obvious: The beneficiary can defer taxable income and hopefully the holdings—likely battered over the past year—can recover before
Line Items
IRS to Recommend New Tax Preparer Standards The IRS plans before the end of the year to recommend new standards for tax preparers, Commissioner Doug Shulman announced June 5. In testimony before the House Ways and Means Oversight Subcommittee and in a news release, Shulman said he would propose to
CPAs Embrace Twitter
Twitter has taken the Internet by storm. Like LinkedIn and Facebook, Twitter hosts a growing community of CPAs and financial professionals, but unlike its social-networking peers, the microblogging Web site limits users’ messages, questions and conversations to 140 characters (including spaces). To put this limit into perspective, this paragraph has
In a Noncompete Bind?
If you find yourself out of a job in this downturn, keep in mind that restrictive covenants may limit your next move. If you are a party to such an agreement, you could face a costly lawsuit if you go to work for a competing company or firm or start
How Long Can You Hang in With Microsoft XP?
Q: I’m one of the Microsoft customers who opted not to “upgrade” to Vista. I don’t think I’m a dinosaur; I just have more important things to do than learn new software—especially when good, old reliable XP suits me just fine. So I’m hoping to stick with XP and Office
Features
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