In today’s world, accounting departments run lean. Asked to do more with less, accountants are being pushed to the max. Since adding staff is usually not an option, here are seven ways to lighten accounting’s workload. Challenge every step, every piece of paper, every input and every output. Chances are
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News Highlights for December 2010
The AICPA’s Financial Reporting Executive Committee (FinREC) said it was concerned about the fair value measurement and impairment models along with other provisions of FASB’s comprehensive proposal to revamp financial instruments accounting. FinREC (formerly the Accounting Standards Executive Committee) said that, while it shares the board’s desire to provide financial
Leveraged Partnership a Disguised Sale
In a recent ruling, the Tax Court found that a transfer of assets to an LLC constituted a disguised sale. The court also determined that the taxpayer was liable for an accuracy-related penalty in excess of $36 million for substantial understatement of income tax. The petitioner, Canal Corp. & Subsidiaries,
Financial Reporting
The SEC voted unanimously to propose measures that would require public companies to disclose additional information to investors about their short-term borrowing arrangements. The SEC’s proposal would shed greater light on a company’s short-term borrowing practices, including what some refer to as balance sheet “window-dressing.” The proposed rules are
Auditing
The PCAOB released a report in September that looks at risks and challenges the economic downturn created for audits of financial institutions and other companies. “This report provides illustrative examples of the kinds of issues our inspection program has uncovered during the past three years as a result of the
Young CPAs Learn From Leaders in the Profession
CPAs under the age of 36 gathered for the second annual AICPA Leadership Academy. The young CPAs spent three days in workshops and discussions with leaders in the profession. Following graduation from the academy, participants received either an appointment to an AICPA volunteer committee or a state CPA society committee
Proposed Changes to GAO’s Yellow Book Promote Harmonization of Auditing Standards
In August, the Government Accountability Office (GAO) issued proposed standards revising Generally Accepted Government Auditing Standards (GAGAS), commonly known as the “Yellow Book.” The update revises the July 2007 Yellow Book and is expected to be effective for audits beginning after Dec. 15, 2011, with the exception of the financial
FYI
The SEC’s Office of the Chief Accountant is accepting applications for Professional Accounting Fellow positions. Fellows will be involved in the study and development of rule proposals under the federal securities laws; will work with accounting, auditing and other professional standard-setting bodies; and will consult with registrants on reporting matters.
International
The IASB published for public comment an exposure draft, Deferred Tax: Recovery of Underlying Assets (tinyurl.com/37dtuo4), that would amend one aspect of IAS 12, Income Taxes. The IASB said it set an exposure period of 60 days—shorter than its normal 120 days—because the amendments address a problem that needs to
Expanded Form 1099 Reporting “A Nightmare”
The article “The Coming 1099 Revolution: Are You and Your Clients Ready?” (Aug. 2010, page 40) provided much useful information on the tremendous increase in burdensome paperwork that will be imposed on American businesses by section 9006 of the Patient Protection and Affordable Care Act. As the largest coin and
Excel Shortcuts
Ctrl+Shift+) unhides any hidden columns within the selection. Ctrl+Shift+( unhides any hidden rows. Ctrl+Shift+& applies the outline border to the selected cells. Ctrl+Shift+_ removes the outline border from the selected cells. Ctrl+Shift+~ applies the general number format. Ctrl+Shift+$ applies the currency format with two decimal places (negative numbers in parentheses).
Marcella LoCastro, CPA/CITP
I always tell people don’t forget your roots. I don’t care how successful you are, how much you’ve accomplished. Don’t forget to give back to people who have helped you along the way. I was supposed to be a teacher. I was always good at math. My father, Tony LoCastro,
Authors Contributing to the November 2010 Issue
Kim Nilsen is the JofA’s editorial director. She manages content development for the magazine and its website, journalofaccountancy.com. She also oversees coverage of accounting and auditing. Prior to joining the AICPA in 2007 she worked for American City Business Journals. Alistair M. Nevius, J.D., is the editor-in-chief of The
Government
FASAB’s Accounting and Auditing Policy Committee (AAPC) issued Statement of Federal Financial Accounting Technical Release (TR) 12, Accrual Estimates for Grant Programs, guidance that the board says provides a cost-effective framework for developing reasonable estimates of accrued grant liabilities. TR 12 applies to grants that are paid by a federal
Line Items
FOREIGN TAX CREDIT RESTRICTIONS ENACTED New restrictions on the use of foreign tax credits (FTCs), along with other revenue-raising international tax provisions, were enacted Aug. 10, 2010, as part of the so-called Education Jobs Act (PL 111-226). The legislation adds IRC § 909, which provides generally that in the case
How to Be a Better Mentor
A mentor’s job is to foster one-to-one relationships that challenge people to rise to higher levels of competence and responsibility. This article discusses three key characteristics of an effective mentor: 1. An effective mentor asks challenging questions that help people expand their scope of responsibilities. 2. An effective mentor is
Accounting Firm M&As: A Market Update
The market for mergers and acquisitions in the accounting profession has changed dramatically over the past 18 months. Before the financial crisis in 2008, M&As were viewed more as a tool for acquiring experienced talent and less as a means for growing the top line. The economic shift has contributed
BAP Members Participate in Community Service Day
More than 900 members of Beta Alpha Psi, along with 50 employees from KPMG LLP, helped clean up the Guadalupe River Trail in San Jose, Calif., during BAP’s annual Community Service Day. BAP members were in San Jose in August to attend the organization’s 2010 Annual Meeting. KPMG and the
Deferring COD Income: Burden May Outweigh Benefit
The election provided in the American Recovery and Reinvestment Act of 2009 (ARRA) to defer until 2014 and spread over five years cancellation of debt income (CODI) has been touted as an attractive relief option for taxpayers struggling with cash flow problems. However, partnerships and S corporations and their owners
Student Overcomes Adversity to Earn BAP Medal of Inspiration
Michael Plengrat, a spring 2010 graduate of the University of Washington, received the Beta Alpha Psi Medal of Inspiration Award. The award recognizes a student who has experienced extreme hardships and has demonstrated an unusually high level of success despite that adversity. The award, sponsored by the AICPA, includes a
Features
FROM THIS MONTH'S ISSUE
4 ways solo practitioners can stand out
Five years ago, a grieving Angel Zhen started his own CPA firm with no clients and no revenue. Today, he has 300 clients, $600,000 in revenue and 12 weeks of annual vacation. In this JofA article, he shares how he set up his firm and how you could do the same.
From The Tax Adviser
April 30, 2026
Current developments in taxation of individuals: Part 2
April 30, 2026
