October 2012

October 10, 2012

Cohn-Reznick deal closes as market pressures portend more mergers

J.H. Cohn LLP and the Reznick Group have closed on their previously disclosed merger, a transaction that creates the 11th-largest U.S. accounting firm and represents the second marriage of top 20 firms consummated this year. The Cohn-Reznick combination, first announced in May, creates a firm with 2,000 employees, 25 offices,

October 10, 2012

Whistleblower’s claim is not entitled to Tax Court review

In a case of first impression, the Tax Court held that it could not order the IRS to reopen an individual’s whistleblower claim under Sec. 7623(b), and the court dismissed his petition (Cohen, 139 T.C. No. 12 (2012)). Sec. 7623(b) authorizes an award to a whistleblower if the IRS proceeds

October 9, 2012

ASB recommends scoping nonissuers out of “auditor commentary” requirements

An AICPA committee is weighing in on a recent International Auditing and Assurance Standards Board (IAASB) proposal that would require expanded commentary in auditors’ reports. Nonissuers, such as private companies and nonprofits, should be scoped out of requirements for “auditor commentary” when the IAASB’s proposed standard is developed, according to a

October 9, 2012

Investors aware of issues before goodwill impairment announcements, study shows

By the time a company announces that goodwill is impaired, investors have been aware for months that the company is facing problems, a new study indicates. One objective of the fourth annual Financial Executives International (FEI) Goodwill Impairment Study was to compare the stock price performance of companies that recorded goodwill

October 5, 2012

Former comptroller general urges fiscally responsible reforms

The giant red digits on the “U.S. Burden Barometer” outside the auditorium where David Walker spoke Friday provided the numbers behind this prominent CPA’s message: The United States urgently needs significant government financial reform. Counting upward at a feverish pace, the barometer represented an estimate of what Walker, a former

October 4, 2012

IRS issues interim ITIN procedures for 2011 tax returns on extension

The IRS has posted special instructions for certifying acceptance agents (CAAs) to use in certifying identification documents for 2011 tax year filers who are filing on extension—returns that are due by Oct. 15, 2012. The identification number issued under these special instructions will be valid until Oct. 15, 2013. A

October 4, 2012

Succession planning on the rise, but about half of CPA firms haven’t implemented a plan

With Baby Boomers nearing retirement, the number of succession plans in place for CPA firms is on the rise. But fewer than half of multiowner practices have succession plans ready, mentoring is largely informal, and the development of future partners is in decline, new research shows. Forty-four percent of multiowner

October 3, 2012

FASB, IASB keep time value of money in revenue recognition standard

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 last week tentatively affirmed a proposal in the

October 2, 2012

GASB Chairman Attmore retiring in June

Robert Attmore, who has been chairman of GASB since July 2004, will retire from the post in June. Attmore, a former auditor and deputy comptroller for the state of New York, also has served as president of the National State Auditors Association. His retirement was announced Tuesday by the Financial

October 1, 2012

Google Play making serious run at Apple’s App Store

The battle for control of the mobile device market is heating up in an area long dominated by Apple—mobile application downloads. Google, developer of the Android operating system for smartphones and tablets, announced in a blog post Sept. 26 that users have downloaded mobile apps from the Google Play store

October 1, 2012

CPA mobility law takes effect in Washington

A new District of Columbia law makes it easier for CPAs from other jurisdictions to practice in the nation’s capital. The Accountant Mobility Act of 2011, which took effect on Monday, grants CPAs with valid licenses in U.S. states the ability to practice in the city without obtaining a reciprocal

FROM THIS MONTH'S ISSUE

AI risks CPAs should know

Are you ready for the AI revolution in accounting? This JofA Technology Q&A article explores the top risks CPAs face—from hallucinations to deepfakes—and ways to mitigate them.