Advertisement

NEWS

Obstacles make PCAOB’s Hanson skeptical about mandatory audit firm rotation

PCAOB member Jay Hanson said Tuesday that he struggles to see how the board would ever be able to create a mandatory audit firm rotation requirement for the U.S. public company auditors it regulates. During a question and answer session at the AICPA Conference on SEC and PCAOB Developments in

Nine tips for effective MD&A reporting

Deciding what to include in the management discussion and analysis (MD&A) section of a company’s financial report seldom is an easy task. Although the SEC issued guidance regarding MD&A, a fair amount of judgment is required. Obeying MD&A guidance is a case of complying with the spirit of a rule

PCAOB alert says audits must be conducted with skeptical eye

The PCAOB is reminding auditors to maintain their professional skepticism when they conduct audits. A staff audit practice alert issued Tuesday by the PCAOB said the board has observed continued instances in which auditors did not appropriately apply professional skepticism. Staff Audit Practice Alert No. 10: Maintaining and Applying Professional

IRS issues proposed regs. on 3.8% net investment income tax

On Monday, the IRS released proposed regulations governing the 3.8% net investment income tax imposed under Sec. 1411 that was added to the Code by the Health Care and Education Reconciliation Act of 2010, P.L. 111-152 (REG-130507-11). Taxpayers can rely on the proposed regulations for purposes of complying with the

FASB, IASB union fragile amid SEC indecision on IFRS

The difficulties the world’s most prominent accounting standard setters face in convergence were unmistakable as FASB Chairman Leslie Seidman and International Accounting Standards Board Chairman Hans Hoogervorst spoke on the same stage Tuesday. During a speech at the AICPA Conference on Current SEC and PCAOB Developments in Washington, Hoogervorst pushed

SEC to study what information should be required in broader financial reporting

The SEC plans to study the issue of what information should be required in the financial reporting package outside the financial statements—an examination aimed at providing investors the right information in the right places while preventing overlap in demands on preparers. “We intend to initially focus on whether the issue

Guidance issued on additional Medicare tax

The IRS issued proposed regulations concerning the 0.9% Medicare surtax, which takes effect next year (REG-130074-11). The proposed regulations contain guidance for employers and individuals on the implementation of the tax, including the requirement to file a return reporting the tax, the process for employers to make adjustments of underpayments

All eyes on standards as PCC holds first meeting

After decades of deliberation on the process for deciding accounting standards for private companies, the standards themselves are about to be reviewed by a new council. The new Private Company Council (PCC) created by the Financial Accounting Foundation (FAF) will meet for the first time Thursday in Norwalk, Conn. The

Income from partnership is self-employment income where taxpayer chose not to be a partner

The Eleventh Circuit Court of Appeals held that payments a taxpayer received from a nursing home business were taxable self-employment income despite the taxpayer’s convoluted attempts to characterize them as partnership distributions (Plotkin, No. 12-10620 (11th Cir. 11/27/12), aff’g T.C. Memo. 2011-260). The taxpayer operated nursing homes through various partnerships

New ITIN procedures issued for 2013 filing season

As the IRS promised when it issued the strict new individual taxpayer identification number (ITIN) procedures earlier this year, it has issued slightly easier procedures, effective Jan. 1, 2013, for the 2013 filing season (FS-2012-11). While some requirements have been eased slightly, others have been made more stringent. The IRS

IASB proposes limited classification, measurement changes to financial instruments standard

Limited changes to IFRS standards for classification and measurement of financial instruments were proposed Wednesday in an International Accounting Standards Board (IASB) exposure draft. The proposal would change IFRS 9, Financial Instruments, as part of a larger convergence project with FASB as the boards reform accounting for financial instruments, which

FASB proposes narrowing scope of offsetting disclosures

A new proposal would narrow the definition of financial instruments in FASB’s recently implemented standard on disclosures about offsetting assets and liabilities. FASB on Monday issued a Proposed Accounting Standards Update (ASU), Balance Sheet (Topic 210): Clarifying the Scope of Disclosures About Offsetting Assets and Liabilities. Comments from stakeholders are

Rev. proc. updates guidance on adequate disclosure of return positions

The IRS released its annual update identifying when a taxpayer’s disclosure of an item or position in an income tax return is adequate for purposes of reducing the understatement of tax penalty and the tax return preparer penalty for understatement due to unreasonable positions (Rev. Proc. 2012-51). Rev. Proc. 2012-51

SEC Chairman Schapiro to step down; Walter designated as replacement

SEC Chairman Mary Schapiro, who has led the agency’s response to the financial crisis, announced Monday that she will step down Dec. 14. President Barack Obama designated Elisse Walter, a current SEC commissioner, as chairman upon Schapiro’s departure. Walter can serve without Senate approval through December 2013 because the Senate

Online shopping sends business productivity down the Amazon

With the arrival of the holiday shopping season, the analysis of a particular work email account serves as a cautionary tale to employers. Barb Bowes, a human resources consultant and president of Legacy Bowes Group in Winnipeg, Manitoba, offered the example of a company that found an average of 35

FASB, IASB tentatively change revenue recognition constraint

The cumulative amount of revenue entities recognize under a new converged standard should not be subject to a significant revenue reversal or downward adjustment under guidance tentatively approved this week by FASB and the International Accounting Standards Board (IASB). The boards met Monday by videoconference to discuss elements of the

Standard mileage rates go up a penny in 2013

Optional standard mileage rates for use of a vehicle will go up by 1 cent per mile for 2013, the IRS said Wednesday (Notice 2012-72). Taxpayers can use the optional standard mileage rates to calculate the deductible costs of operating an automobile. For business use of a car, van, pickup

Effective date of tangible property regs. delayed

The IRS announced on Tuesday that it is delaying the effective date of the temporary regulations it issued in December 2011 governing whether tangible property expenses could be deducted or had to be capitalized (T.D. 9564), which were to apply to tax years beginning on or after Jan. 1, 2012.

Former AICPA chairwoman named deputy president on IFAC board

Olivia Kirtley, CPA, CGMA, a member of the AICPA’s governing Council and former chairwoman of the AICPA board of directors, has been named deputy president on the board of the International Federation of Accountants, a global organization dedicated to strengthening the accounting profession. Her term begins immediately, IFAC spokeswoman Laura

SPONSORED REPORT

Tools for finding CAS clients

How to find the right CAS clients

The key to success with CAS is selecting the best clients. Tools like ideal client profiles (ICPs), buyer personas, and even artificial intelligence can help identify the businesses that best fit each CAS practice.

From The Tax Adviser

April 30, 2026

Current developments in taxation of individuals: Part 2

April 30, 2026

Hedge funds: Tax structuring, planning, and compliance

March 31, 2026

Current developments in taxation of individuals: Part 1

March 31, 2026

Current Developments in Taxation of Individuals: Part 1