Although the release of a long-awaited SEC staff report discussing IFRS adoption is imminent, uncertainty over the issue appears certain to linger. Commission spokesman John Nester said early this week that the report on IFRS adoption for U.S. public companies is expected “soon,” but it will provide an analysis of
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FASB seeks advice on improving financial statement disclosures
FASB released a discussion paper for its disclosure framework project Thursday, a significant step in the effort intended to improve the effectiveness of disclosures in financial statements. The 81-page document, which FASB calls an invitation to comment, came the same day the European Financial Reporting Advisory Group (EFRAG) released a
Tax Court petition challenging a notice of deficiency suspends statute of limitation
The Eleventh Circuit overturned a Tax Court decision and held that a petition filed by taxpayers who had transferee liability for their corporation’s tax liability was a “proceeding in respect of the deficiency” under Sec. 6503(a)(1) that suspended the limitation period for assessment (Shockley, No. 11-13494 (11th Cir. 7/11/12), rev’g
Concerns about Europe, global economy drive down economic optimism
Europe’s debt crisis is contagious. The economic ills of the region have contributed to dampening forecasts in other parts of the world, according to a new survey of management accountants. The second-quarter CGMA Global Economic Index, released Tuesday, retreated, erasing the gain registered in the first quarter. Meanwhile, CGMAs—particularly in
Debtors’ taxes are not discharged in bankruptcy where tax return was filed late
A federal appeals court held that bankrupt debtors who filed their income tax return 17 months after their income taxes were assessed were not entitled to have those taxes discharged in the bankruptcy proceeding (In re Wogoman, No. CO-11-084 (B.A.P. 10th Cir. 7/3/12)). In doing so, the court considered what
Private and public companies report rise in audit fees in 2011
Total external audit fees paid by companies rose in 2011, according to a poll of more than 270 executives. Private companies reported a 7% increase, and publicly held companies reported a 5% increase in external audit fees paid, according to the 2012 Audit Fee Survey, which was conducted by the
JofA Cybersecurity Center
Cybercrime is a significant threat to CPA firms and their clients. For businesses and other organizations, the loss of customer or employee records to a cyberattack can cost millions of dollars and do significant damage to reputation and brand. Data breaches cost organizations $5.5 million per incident, or $194 per
Special focus report: The path to paperless
Sponsored by: Doc.It • SurePayroll • BlackLine In this special report, leaders in the field of paperless solutions talk about where the accounting profession is today on the paperless continuum and the effect going paperless has on the future of the profession. Joining us are Michael Alter, president and CEO
Employers worry about top employees taking their talent elsewhere
Employers in some industries are having a hard time finding the right people to fill vacancies. Increasingly, they’re fretting about keeping the key talent they have. As the economy improves, organizations that are looking to grow or restock their ranks will compete aggressively for top-notch employees—and that could prove costly
Supreme Court upholds health care law
The U.S. Supreme Court on Thursday declared the mandate in Sec. 5000A, requiring U.S. citizens and legal residents to maintain minimum essential health coverage, to be a permissible exercise of Congress’s taxing powers under the Constitution (National Federation of Independent Business v. Sebelius, Sup. Ct. Dkt. No. 11-393 (U.S. 6/28/12)).
IRS releases new FAQs for Offshore Voluntary Disclosure Program, announces other rules
The IRS said Tuesday that it has collected more than $5 billion in its offshore voluntary disclosure programs (IR-2012-64), the third of which was announced in January this year. At the same time, it also released 55 questions and answers updated for the 2012 program. On Jan. 9, the IRS
FASB proposes liquidity risk, interest rate risk disclosures
FASB issued a proposed standard Wednesday that is intended to help financial statement users better understand organizations’ exposure to liquidity risk and interest rate risk. The proposed liquidity risk disclosures would provide information about the risk encountered by the reporting organization when meeting its financial obligations. It would apply to
PCAOB invites additional comments on audit firm rotation
The PCAOB is soliciting further public comment on its concept release on auditor independence and mandatory audit firm rotation in anticipation of a public meeting on the issue Thursday in San Francisco. The comment period for the concept release was reopened Monday and will be extended through July 28. The
Sample text for Sec. 83(b) election released by IRS
On Tuesday, the IRS released a ruling under Sec. 83(b), the election to include property received in connection with the performance of services in income in the year the property is received even if there is a substantial risk that the property will later be forfeited (Rev. Rul. 2012-29). The
GASB vote places unfunded pension liabilities on government balance sheets
Unfunded pension liabilities will begin appearing on the balance sheets of U.S. state and local governments that provide defined benefit pensions under provisions of two GASB standards approved Monday. GASB on Monday approved Statement No. 67, Financial Reporting for Pension Plans, and Statement No. 68, Accounting and Financial Reporting for
GASB proposes standard on nonexchange financial guarantees
GASB on Monday proposed a new standard demonstrating how state and local governments should recognize nonexchange financial guarantees on their financial statements. A nonexchange financial guarantee is a credit enhancement or assurance offered by a guarantor that is provided without receiving consideration of equal value. The guarantor agrees to repay
GASB considers proposals on reporting unfunded pension liabilities
State and local governments would be required for the first time to report unfunded pension liabilities on their balance sheets if GASB approves two proposed standards Monday. Governments would be required to disclose a net pension liability that equals the difference between the total pension liability and the value of
Guidance clarifies when dividends are qualified performance-based compensation
In Rev. Rul. 2012-19, the IRS ruled on whether dividends and dividend equivalents paid on restricted stock were qualified performance-based compensation excluded from the applicable employee remuneration to which the $1 million limitation on the deduction for compensation by publicly held corporations applies. The revenue ruling addressed two situations involving
What to expect from the Supreme Court ruling on health care reform
In the coming days, the U.S. Supreme Court is expected to rule on the constitutionality of portions of the Patient Protection and Affordable Care Act (PPACA), P.L. 111-148. Whatever the justices conclude—whether they uphold the law, rule that Congress doesn’t have the power to require citizens and legal residents to
IRS suspends issuing ITINs without original documentation
Beginning June 22, 2012, and continuing until the IRS issues new rules (which it says it will do by the beginning of the 2013 filing season), the IRS will not issue individual taxpayer identification numbers (ITINs) unless the applicants provide original documents such as passports or birth certificates, or certified
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