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Final regs. clarify who is subject to 50% limit on meal and entertainment expenses

On Wednesday, the IRS issued final regulations clarifying which party is subject to the 50% limit on deductible meal and entertainment expenses under Sec. 274(n) (T.D. 9625). The final rules adopt proposed regulations issued in July 2012 (REG-101812-07) without substantive change.   As the IRS emphasized in the preamble to the

Public, private companies report rise in audit fees in FY 2012

Fees for external audits of financial statements paid by U.S. public and private companies rose in fiscal year 2012 over the previous year, according to a new survey report. Audit fees paid by 87 public companies averaged $4.5 million in FY 2012, according to a Financial Executives International (FEI) report.

Comments requested on proposed net investment income tax form

On Monday, the IRS published a notice and request for comments from taxpayers on a new dual-purpose form that will be used by individuals (using Form 1040, U.S. Individual Income Tax Return) and trusts and estates (using Form 1041, U.S. Income Tax Return for Estates and Trusts) to compute the

Leases: What should companies do now?

When important new accounting standards are under development, forward-thinking companies often look ahead to anticipate possible changes and work ahead so they don’t have to scramble when the standard takes effect. Some companies already are doing some of that work with leases, experts say. But the lease accounting proposal—a joint

FASB, IASB creating team to aid revenue recognition transition

FASB and the International Accounting Standards Board (IASB) plan to create a joint transition resource group to aid in implementation of the upcoming, converged standard on revenue recognition. The standard will have wide-ranging implications for many businesses, and the transition group will be tasked with keeping the boards up to

ASB proposes clarifying attestation standards

The AICPA Auditing Standards Board (ASB) is proposing changes to its attestation standards as a part of its clarity project. An exposure draft issued Wednesday would clarify and recodify certain Statements on Standards for Attestation Engagements (SSAEs) in the AICPA’s Professional Standards. The ASB has undertaken the clarity project to

Proposed international standard would change auditor reports

International auditor reporting guidelines would change significantly and require more communication from auditors under standards proposed Thursday by the International Auditing and Assurance Standards Board (IAASB). The IAASB’s exposure draft includes a new proposed international auditing standard, Communicating Key Audit Matters in the Independent Auditor’s Report, which directs auditors to

Court upholds SEC’s conflict minerals rule

A federal judge on Tuesday ruled against business groups’ court challenge to new conflict mineral rules, which require U.S. issuers to monitor their supply chains in an effort to curtail human rights abuses in Africa where the raw materials are mined. Judge Robert Wilkins of the U.S. District Court for

Rules for deferral of income from gift card sales clarified

The IRS issued guidance clarifying that taxpayers that sell gift cards can defer recognizing income from the sale of gift cards redeemable by an unrelated third party until the year after the payment is received (Rev. Proc. 2013-29, clarifying and modifying Rev. Proc. 2011-18). With the rapid growth in the

Former SEC chief accountant Kroeker joins FASB as vice chairman

Former SEC Chief Accountant Jim Kroeker is joining FASB in a new vice chairman position designed to reduce the burden on board Chairman Russell Golden. Kroeker fills a vacancy on the board created by the June 30 retirement of Leslie Seidman, who was FASB’s chairman. FASB had a vice chairman

Three reasons finance should focus more on business intelligence

Many organizations recognize the value in harvesting data, whether the information is about customers’ buying habits or workers’ performance measures. But some of those companies haven’t been able to tap into the full potential of business intelligence, i.e., getting the right information from the data to make better business decisions.

IASB seeks feedback on conceptual framework revision

The International Accounting Standards Board (IASB) has begun a consultation process with the objective of issuing a revised conceptual framework for financial reporting. The conceptual framework establishes the concepts that underlie the preparation and presentation of financial statements. The IASB follows the principles in the conceptual framework when developing and

Embrace uncertainty to develop more business acumen

A mere accounting professional is not the same as a full-fledged finance professional. At least that’s how consultant David Axson sees it. The more evolved finance professional, Axson says, considers the business environment, embracing its volatility, and then adapting to it. “Being comfortable with uncertainty is, to me, the difference

U.K. proposal a second blow to mandatory audit firm rotation

Mandatory audit firm rotation was not among the measures the U.K. Competition Commission (CC) proposed Monday to promote competition in the statutory audit services market. But the CC did include mandatory tendering every five years for the United Kingdom’s largest companies in its proposal, a significant shift from the 10-year

Can you succeed in finance without international experience?

As commerce increasingly transcends borders, international experience is becoming a valuable asset for accounting and finance professionals. Almost seven in 10 (69%) of more than 2,100 CFOs in large U.S. metropolitan areas said international experience will be at least somewhat necessary for accounting and finance staff five years from now,

Increased cooperation builds momentum for integrated reporting

An agreement between the International Integrated Reporting Council (IIRC) and two organizations devoted to corporate environmental impact disclosures is the latest advancement in the growing momentum for integrated reporting worldwide. The IIRC on Thursday announced that it has reached a Memorandum of Understanding (MoU) for cooperation with CDP, an international

Identity theft protection process at IRS needs improvements, TIGTA says

Identity theft was the number one type of consumer complaint in 2011, according to the Federal Trade Commission, and some practitioners have asked if tax-related identity theft has become an epidemic. In light of the growing problem, the Treasury Inspector General for Tax Administration (TIGTA) recently audited the IRS’s Taxpayer

July 22 IRS furlough day canceled

The IRS canceled its scheduled furlough day for Monday, July 22, acting IRS chief Danny Werfel announced on Tuesday. Instead of closing and sending IRS workers home for a day of unpaid leave, “[t]he IRS will be open for taxpayers that day as scheduled,” he said in a message to

GASB impairment of capital assets, insurance recoveries standard to be reviewed

GASB’s standard regarding the impairment of capital assets and insurance recoveries will be the subject of a Financial Accounting Foundation (FAF) post-implementation review. A FAF team will review GASB Statement No. 42, Accounting and Financial Reporting for Impairment of Capital Assets and for Insurance Recoveries, according to a FAF news

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