Culminating two years of study and insights from teams representing diverse viewpoints in practice and academia, the Pathways Commission released its final report Tuesday on the future of higher education in accounting. The report, titled “Charting a National Strategy for the Next Generation of Accountants,” is available on the commission’s
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FASB releases recommendations for private company framework
FASB on Tuesday released its initial staff recommendations on whether and when it will be appropriate to adjust financial reporting requirements for private companies. The recommendations are contained in a paper, Private Company Decision-Making Framework: A Framework for Evaluating Financial Accounting and Reporting Guidance for Private Companies. FASB on Tuesday
Prop. regs. would clarify who is subject to Sec. 274(n) limit on meal expenses
The IRS released proposed regulations under Sec. 274 clarifying which party is subject to the rule under Sec. 274(n)(1)(A) that limits the deduction for meals to 50% of the expenses incurred (REG-101812-07). As the IRS emphasized, only one party is intended to be subject to the limitation, and there has
Regulations finalize rules on entertainment use of business aircraft
On Tuesday, the IRS issued final regulations relating to the disallowance under Sec. 274 of deductions for the use of business aircraft for entertainment (T.D. 9597). The final regulations adopt, with some modifications, proposed regulations issued in 2007 (REG-147171-05), which in turn followed principles first expressed in Notice 2005-45. In
FASB simplifies impairment testing of indefinite-lived intangible assets
The guidance for testing the impairment of intangible assets such as indefinite-lived trademarks, licenses and distribution rights has been simplified by FASB. FASB on Friday issued Accounting Standards Update (ASU) no. 2012-02, Intangibles—Goodwill and Other (Topic 350): Testing Indefinite-Lived Intangible Assets for Impairment. The standard applies to testing the decline
IASB to develop IFRS guidance for ‘micro-sized entities’
Very small companies are expected to receive IFRS financial reporting guidance tailored to their needs. The staff of the International Accounting Standards Board (IASB) will develop guidance to help so-called “micro-sized entities” apply IFRS for Small and Medium-sized Entities (IFRS for SMEs) in their financial reporting. The IASB staff will
False internet rumors about “real estate transaction tax” worry taxpayers
The National Association of Realtors has some tax advice for users of the internet: Don’t believe everything you read. There has been a recent flare-up of chain emails purporting that, come Jan. 1, all real estate transactions will be subject to a 3.8% federal sales tax. The problem: That’s not
Lawmakers reflect on Sarbanes-Oxley’s effect on corporate culture
Former U.S. Sen. Paul Sarbanes and former U.S. Rep. Michael Oxley say the regulations they sponsored and saw signed into law a decade ago are not perfect, but led to changes in the corporate culture in the United States and abroad. Sarbanes, a Maryland Democrat, and Oxley, an Ohio Republican,
SOX’s anniversary marked with congressional debate on benefits and costs
A U.S. House of Representatives subcommittee on Thursday debated the benefits and costs of the Sarbanes-Oxley Act of 2002 (SOX)—and a bill that would decrease its scope—as the corporate governance law approached its 10th anniversary. The House Subcommittee on Capital Markets and Government Sponsored Enterprises heard sharply divided opinions from
Treasury releases model intergovernmental agreement for FATCA
The Treasury Department on Thursday released a model intergovernmental agreement designed to implement the information-reporting and withholding-tax provisions in the Foreign Account Tax Compliance Act (FATCA), which was enacted by Congress in 2010 to require foreign financial institutions (FFIs) to report to the IRS information about financial accounts held by
IFRS constitution change formally splits IASB chair, foundation CEO roles
The IFRS Foundation is changing its constitution to reflect the separation of the roles of the foundation’s CEO and the chairman of the International Accounting Standards Board (IASB). This move formalizes a separation that previously was implemented following an internal structure reorganization at the end of 2011. The chair of
Taxpayers who did not establish insolvency must recognize COD income
Taxpayers who settled a credit card debt for $4,412 less than they owed in 2008 had to include that amount in income because they did not prove they were insolvent under Sec. 108(a)(1)(B) at the time of the debt discharge (Shepherd, T.C. Memo. 2012-212). Sec. 108(a)(1)(B) excludes cancellation of debt
Employers hiring managers from outside more often than promoting from within
Management job seekers in accounting and finance may need to get away from their current employers to get ahead in their careers. CFOs are filling management roles in their departments with candidates from outside the company far more often than they are promoting internal candidates, according to a new survey
Health Care Guide and Emerging GAAP Issues webinar to be rebroadcast on July 30
A rebroadcast of the webinar, “An Up Close Look at the Health Care Guide Including Emerging GAAP Issues,” will take place on July 30. The original broadcast, hosted by select members of the Health Care Expert Panel on June 7, delves into the revised AICPA Audit and Accounting Guide—Health Care
“More than insignificant” is key judgment in leases proposal
CPAs may have difficulty at times determining what constitutes “more than insignificant” consumption of a leased asset by a lessee under a proposed standard being jointly developed by FASB and the International Accounting Standards Board (IASB), according to a webcast conducted by the boards on Thursday. On rare occasions, a
PCAOB to conduct joint audit inspections with Spain’s regulator
The PCAOB, which has been working to establish international partnerships for the purposes of conducting joint audit inspections, has entered a cooperative arrangement with the Accounting and Auditing Institute of Spain. The partnership will allow joint inspections in the oversight of audit firms subject to the jurisdictions of both regulators.
Tax Court upholds regulation requiring dependents be citizens in year tax benefits are claimed
On Thursday, the Tax Court upheld Regs. Sec. 1.152(a)(1), which requires that children be U.S. citizens at some time during the calendar year for which the children are claimed as dependents, as a valid interpretation of Sec. 152(b)(3)(A) (Carlebach, 139 T.C. No. 1 (2012)). The taxpayers and their six children
New FASAB mission statement emphasizes service to public interest
The Federal Accounting Standards Advisory Board (FASAB) has adopted a new mission statement that notes its service to the public interest. “The FASAB serves the public interest by improving federal financial reporting through issuing federal financial accounting standards and providing guidance after considering the needs of external and internal users
Eight questions for a holistic risk assessment
Internal control has emerged from isolation. In recent years, according to an International Federation of Accountants (IFAC) report, internal control has come to be viewed as an integral part of risk management and governance rather than a separate concept unto itself. This integration demands that individual risks be assessed holistically
American Institute of CPAs recommends changes to tangible property guidance
On July 16, 2012, the AICPA submitted a comment letter to the IRS recommending various changes and simplifications to the voluminous and complex regulations regarding the treatment of expenditures incurred in selling, acquiring, producing, or improving tangible assets (T.D. 9564 and REG-168745-03) and the revenue procedures governing the accounting method
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