Significant changes in July will affect the way CPAs perform accounting research and reference accounting literature in day-to-day work. On July 1, FASB is expected to issue the FASB Accounting Standards Codification (ASC) as authoritative. The ASC will become the single source of authoritative U.S. accounting and reporting standards for nongovernmental entities,
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Revenue Ruling Gives Guidance on S Elections for Partnerships Converting to Corporations
The IRS issued Revenue Ruling 2009-15, which addresses the question of whether, when a partnership becomes a corporation for federal tax purposes, it is eligible to elect to be taxed as an S corporation in its first tax year. The ruling, issued Thursday, clarifies that a partnership that converts to
The Long View on IFRS: Gerhard Mueller
Gerhard G. Mueller helped popularize the field of international accounting among academics and their students. His contributions have spanned many areas of accountancy, including teaching, research and professional service. Mueller, who is retired, has been a professor at the University of Washington, served as a FASB board member from 1996
Administration’s International Tax Proposals Plan to Raise $210B Over 10 Years
President Obama released his plan to raise $198.3 billion from 2011–2019 by overhauling international taxes, which will affect multinational corporations. When combined with further international tax reforms that will be described in the administration’s full budget proposal, the proposed international tax reform package would raise $210 billion over the next
ARSC Issues Proposals in Response to Reliability Task Force Recommendations
The AICPA’s Accounting and Review Services Committee (ARSC) issued an exposure draft that would revise the standards for compilation and review engagements. The changes would affect the interplay between the standards and independence rules, permitting an accountant to issue a review report on financial statements when the accountant’s independence is
Virtual Business Valuation Round Table: Definitions
Editor’s note: This is a Web-exclusive sidebar for “Valuations for Financial Reporting in Today’s Market,” May 09. The following definitions from the International Glossary of Business Valuation Terms or Glossary of Additional Terms may help readers who are not active business valuation analysts. Standard of Value—the identification of the type
Additional Comments From the Business Valuation Virtual Round Table
The JofA hosted a virtual round-table discussion with valuation professionals from the financial reporting sector to gauge how they are handling critical valuation issues in today’s climate and what their outlook is for the near future. Excerpts from that discussion were published in the JofA’s May 2009 issue (see “Valuations
Economic Outlook—CPA Executive Participants
The JofA interviewed CPA financial executives in multiple industries and regions of the country for “Economic Outlook Remains Uncertain,” May 09. Below are profiles of the financial executives who participated in the article. Ralph Bender, CPACFO, Manship Media GroupBaton Rouge, La. Business: 100-year-old family-owned business that includes the daily newspaper
IRS Issues Proposed Regs on Graduated Retained Interests Under Sec. 2036
The IRS issued proposed regulations Thursday providing guidance on the portion of trust property includible in the grantor’s gross estate if the grantor has retained certain interests in the property (REG-119532-08). The retained interests covered include the use of the property and the right to an annuity, unitrust, graduated retained
IRS Strategic Plan Focuses on Compliance and Service
The IRS released its strategic plan on Tuesday for 2009–2013. Not surprisingly, the plan says that the Service will focus on improved taxpayer service as well as increased compliance. The plan also discusses challenges that the IRS anticipates facing over the next few years and how it hopes to meet
CPAs Head to the Hill to Discuss Reform, Economy, Taxes
CPAs wrapped up the 2009 AICPA Spring Meeting of Council in Washington on Tuesday with visits to Capitol Hill to discuss regulatory reform, the economic crisis and tax issues. Before heading into discussions with legislators, the group heard briefings from members of Congress. “We have a lot of work before
AICPA Passes Budget With No Dues Increase
Members of the AICPA Council on Monday unanimously approved an operating budget for 2009-2010 with no increase in member dues. The budget calls for $174.4 million in total net revenue and $172.3 million in total expenses for the fiscal year beginning Aug. 1—an outlook that is basically flat compared to
Regulatory Reform Tops Agenda at Opening of AICPA Council Meeting
Talk of financial regulatory reform took center-stage as CPAs from across the country gathered Sunday in Washington to open the AICPA’s 2009 Spring Meeting of Council. The agenda for the three-day meeting includes speeches by AICPA leadership, Congressional lawmakers and political pundits. The meeting concludes Tuesday with visits by CPAs
IRS Provides Guidance on the Residential Energy Efficient Property Credit
On Wednesday, the IRS issued Notice 2009-41, providing guidance to manufacturers and consumers on satisfying the requirements of the residential energy efficient property credit. The notice outlines procedures manufacturers must follow to certify that property satisfies the credit’s conditions. Taxpayers received guidance on when they may rely on a manufacturer’s
ASB Issues Proposed Standard on Subsequent Events
The Auditing Standards Board has issued Proposed Statement on Auditing Standards, Subsequent Events and Subsequently Discovered Facts. The proposal would supersede AU sections 530, Dating of the Independent Auditor’s Report, 560, Subsequent Events, 561, Subsequent Discovery of Facts Existing at the Date of the Auditor’s Report, and paragraphs .71–.73 of
FBAR Penalties Reduced for Six Months
The IRS has provided a framework for voluntary disclosure requests containing offshore issues, such as previously undisclosed foreign financial accounts and entities (March 23, 2009, memo from Deputy Commissioner Linda Stiff to the commissioners of the Large and Mid-Size Business Division and the Small Business/Self-Employed Division). The policy will remain
IFAC President: U.S. Needs SEC Commitment to Global Standards
The time is now to implement global accounting and auditing standards, said International Federation of Accountants (IFAC) President Robert L. Bunting, CPA, in a speech last week at the World Bank in Washington. In a JofA interview, Bunting, a partner in Seattle-based Moss Adams LLP and a former chairman of
“Differential Wage Payments” During Active Military Service Subject to Income Tax But Not FICA, FUTA
Payments by employers to employees while they are on active military duty for more than 30 days are subject to withholding for federal income tax but are not taxed under the Federal Insurance Contributions Act (FICA) or Federal Unemployment Tax Act (FUTA), the IRS said in Revenue Ruling 2009-11, issued
SEC Amends Accounting Guidance on Other-Than-Temporary Impairment
The SEC’s Office of the Chief Accountant and Division of Corporation Finance on Tuesday announced the release of Staff Accounting Bulletin (SAB) no. 111 that amends Topic 5.M. in the SEC’s Staff Accounting Bulletin Series titled Other Than Temporary Impairment of Certain Investments in Debt and Equity Securities. The release
IRS Issues Proposed Regs on Determining Partners’ Distributive Shares
The IRS has issued proposed regulations on determining partners’ distributive shares of partnership items of income, gain, loss, deduction and credit when a partner’s interests vary during a partnership tax year (REG-144689-04). The proposed regulations also modify the existing regulations regarding a partnership’s required tax year. The proposed regulations provide
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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.
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