The global financial crisis transformed corporate priorities, pushing financial risk management high up the list—a shift that has elevated the profile and broadened the role of the executive who is often responsible for managing that risk: the corporate treasurer. Treasurers have become more involved in big-picture strategy, working closely with
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Per diem rates updated
The IRS issued the annual update of special per diem rates for use in substantiating certain business expenses taxpayers incur when traveling away from home (Notice 2012-63). The notice provides the transportation industry meal and incidental expenses rates, the rate for the incidental- expenses-only deduction, and the rates and list
Year-end tax planning: Preparing for the tax cliff
Rarely has there been such a major difference between the laws in effect in one year and the next. The maximum income tax rates next year could be as high as 43.4% on ordinary income (44.6% if the potential impact of reinstated limitations on itemized deductions is taken into account)
No extended assessment period for innocent S shareholder
The Office of Chief Counsel (OCC) advised in Chief Counsel Advice (CCA) 201238026 that the assessment period is not extended for the personal tax liability of a shareholder who did not take part in the fraud reflected on his S corporation’s Form 1120S, U.S. Income Tax Return for an S
Instructions address portability election
The IRS posted revised instructions to Form 706, United States Estate (and Generation-Skipping Transfer) Tax Return, with guidance for electing the portability of a deceased spouse’s unused estate and gift tax exclusion amount. The instructions also address an executor’s use of a checkbox to opt out of electing portability of
News highlights for December 2012
The first item of business for the Private Company Council (PCC), which will be chaired by Billy Atkinson, will be working with FASB to continue developing a framework for making decisions about whether and when U.S. GAAP should be modified for private companies. The PCC—created by the Financial Accounting Foundation
What’s your fraud IQ?
Trying to uncover evidence of fraud in a data set of millions of records is somewhat akin to searching for a needle in a haystack. Fortunately, the successful employment of data analysis techniques can clear away most of the “hay” and leave the fraud examiner or auditor with a much
A quest for relevance
The recent efforts by the accounting profession to improve private company financial reporting revealed a clear and strong demand by small and medium-size entities, the CPAs who serve them, and those who use their financial statements for a more robust and reliable financial reporting framework when GAAP is not required.
Auditing
Change apparently is coming to the auditor’s report, but views vary over the appropriate content and structure for reports, and particularly over the issue of “auditor commentary.” The question of appropriate content and structure for the auditor’s report was the subject of an International Auditing and Assurance Standards Board
Business etiquette in China
Faux pas and misunderstandings can easily doom a U.S. business deal in China. To improve chances of a successful venture in China, Len Jui, CPA, a partner at KPMG in Beijing who was educated in the United Kingdom and the United States and worked for the SEC, and Jiake Brownbill,
Snyder’s challenge: Reinvigorating Michigan
When Rick Snyder saw the cover of the first comprehensive annual financial report for Michigan produced on his watch as the state’s governor, he smiled and reacted with feigned horror. “So what am I?” he asked State Budget Director John Nixon. “Chicken feed?” The report mentioned Nixon’s CPA credential, but
The games people play
Q: I have an employee who plays social media games on his lunch break. Will playing these games slow down his computer or cause other harm? A: The vast majority of computer performance issues and crashes occur when a computer runs out of available memory. Because many computer games involve
Financial reporting
Adjustments for the time value of money, which have generated some opposition from stakeholders, are likely to remain a part of the converged revenue recognition standard that is being jointly developed by FASB and the International Accounting Standards Board (IASB). The boards tentatively affirmed a proposal in the 2011
Professional issues
U.S. accounting and finance starting salaries will rise in 2013, according to a recently published salary guide. Average starting salaries for corporate accounting employees in the United States are projected to increase between 2.7% and 4.5% compared with 2012, depending on the position and the size of the company,
2012 MAP Survey: Signs of recovery
Accounting firms aren’t all the way back to where they were before the Great Recession, but they are making progress. That’s one of the many findings of note in the 2012 National Management of an Accounting Practice (MAP) survey, sponsored by the AICPA Private Companies Practice Section in association with
Documenting charitable contributions
At this time of year, many charities see an upsurge in donations, and the federal tax deduction for charitable contributions is a significant incentive. The Tax Court recently highlighted how an apparently slight oversight in documentation can upend the interdependent relationship between donee and donor. General Substantiation Requirements The substantiation
Spousal payments are not child support
The Tax Court held that spousal support payments received by a taxpayer from her ex-husband prior to the fourth and final support reduction were alimony payments, not child support, since the final reduction was not clearly associated with a contingency related to a child. Generally, cash payments received by a
New D.C. director of media relations
Jay Hyde was appointed director of media relations in the AICPA’s Washington office. In his new position, Hyde is responsible for communicating the Institute’s views on legislative and regulatory issues of importance to the accounting profession. He previously served as the Institute’s director of communications for the Center for Audit
Dave Marberger, CPA
I’m incredibly proud of working for Godiva. I have a lot of pride around the brand, because I think it’s the best. I can go to parties and talk to people, and they know the brand. There’s definitely a very strong positive reaction to the brand, and I love that
Line items
FICA Exemption for SUB Payments Affirmed The Sixth Circuit affirmed a bankruptcy and district courts’ determinations that severance payments by a bankrupt company to its former employees were supplemental unemployment benefit (SUB) payments not subject to FICA tax (In re Quality Stores, Inc., No. 10-1563 (6th Cir. 9/7/12); see previous
Features
FROM THIS MONTH'S ISSUE
Flip out with the latest Tech Q&A
The September Technology Q&A column shows how to create dynamic to-do lists with Excel's checkboxes and also how to set up multifactor authentication texts that don't rely on phones. Flip through both items and view a video walkthrough in our digital format.
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