The Financial Crimes Enforcement Network (FinCEN), a unit of the U.S. Treasury Department, reported the first year-to-year decline in suspicious activity reports (SARs) since 1996, dropping from 1.29 million in 2008 to 1.28 million in 2009, but SARs indicating terrorist financing activity increased for the first time since 2004 after
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NEWS
Big Changes Proposed for Revenue Recognition
FASB and the IASB on Thursday released a proposal that would create a single revenue recognition standard for both U.S. GAAP and IFRS. The standard is designed to streamline accounting for revenue across industries and correct inconsistencies in existing standards and practices. The new standard would also require businesses to
GASB Outlines Potential Improvements to Pension Standards
GASB issued a Preliminary Views document, Pension Accounting and Financial Reporting by Employers, listing what it believes are the most fundamental issues related to recognition and measurement of pension obligations by state and local government employers. The approach presented would move governmental pension accounting and reporting away from the current
Health Care Regulations Issued
The IRS and Treasury Department issued proposed regulations (TD 9491, REG-120399-10) Tuesday implementing rules for health care insurance coverage and group health plans under the Patient Protection and Affordable Care Act (PL 111-148) and the Health Care and Education Reconciliation Act (PL 111-152). The text of the proposed regulations is
Go Easy on E-File Mandate, Committee Suggests
The IRS should phase in over the next three years a requirement that tax return preparers filing more than 10 returns do so electronically—a mandate that otherwise will take effect next year, an advisory panel said Friday. The recommendation was among nine by the Electronic Tax Administration Advisory Committee in
Regulations Issued on Grandfathered Health Plans
The IRS, the Department of Labor, and the Department of Health and Human Services issued interim final regulations on June 14 regarding grandfathered health plans under the health reform legislation enacted in March (TD 9489). The Patient Protection and Affordable Care Act (PL 111-148) incorporated the provisions of part A
IRS Issues Regulations on New Indoor Tanning Tax
On Friday, the IRS issued final, temporary and proposed regulations to provide guidance on the new 10% indoor tanning services excise tax (TD 9486; REG-112841-10). The Patient Protection and Affordable Care Act (PL 111-148) created a new 10% excise tax on amounts paid for indoor tanning services after June 30,
IRS Issues Partnership Anti-Abuse Rule Regulations
The IRS and the Treasury Department issued final regulations on June 8 to provide that the IRC § 704(c) anti-abuse rule takes into account the tax liabilities of both partners and certain owners of partners (TD 9485). The regulations also provide that partnerships cannot use an allocation method to achieve
Supreme Court Expected to Rule Soon on PCAOB’s Constitutionality
A decision is expected soon in Free Enterprise Fund v. Public Company Accounting Oversight Board, a Supreme Court case that calls into question the future of Sarbanes-Oxley (SOX) and the PCAOB. So what happens if the court rules against the PCAOB? “A key question is how far an adverse ruling would go,”
FASAB Aims for Consistent Reporting on Asbestos-Related Liabilities, Equipment Cleanup Costs
The Accounting and Auditing Policy Committee (AAPC) of the Federal Accounting Standards Advisory Board (FASAB) issued a pair of technical releases intended to achieve consistent reporting among federal entities of asbestos-related liabilities and cleanup costs associated with equipment. Each technical release is effective immediately. Statement of Federal Financial Accounting Technical
Data Security Remains Top Concern for CPAs, Survey Shows
Data security will remain the most pressing concern for CPAs and their clients over the next 12 to 18 months, according to the AICPA’s 21st annual Top Technology Initiatives Survey, which was unveiled this week. This is the eighth consecutive year the issue has made the top of the list.
AICPA Submits Comments on IRS Uncertain Tax Position Proposal
On June 1, the AICPA submitted comments to the IRS on the Service’s proposal to require certain business taxpayers to disclose their uncertain tax positions on their tax returns. The comments raise concerns the AICPA has with the proposal and make several recommendations to the IRS. In its comments, the
Audit Committee Considerations for Whistleblower Hotlines
Audit committees should consider the following questions when assessing the design effectiveness of a hotline: Does the hotline have a dedicated hotline number, fax number, website, e-mail address, and regular mail or post office box address to expedite reports of suspected incidents of misconduct? Does the hotline demonstrate confidentiality,
FAQ Outlines New Service Organization Standards
The AICPA has developed a set of questions and answers to help explain the changes resulting from the recent issuance of Statement on Standards for Attestation Engagements No. 16, Reporting on Controls at a Service Organization, by the AICPA’s Auditing Standards Board. SSAE No. 16 is applicable when an entity
IRS Revises Section 179 Expensing Amounts to Reflect HIRE Act Changes
On June 1, the IRS issued revised inflation-adjusted numbers to reflect the extension of the increased section 179 expensing amount for 2010 (Revenue Procedure 2010-24). On March 18, 2010, the Hiring Incentives to Restore Employment Act of 2010, PL 111-147 (the HIRE Act), extended for 2010 the increased amounts that
House Passes Tax Extenders Bill
On Friday, the House of Representatives passed the American Jobs and Closing Tax Loopholes Act (HR 4213) by a vote of 215–204. The bill now goes to the Senate, which will not take it up for consideration until after it returns from its Memorial Day recess on June 7. The
IASB Asks Constituents to Comment on FASB Proposal
The International Accounting Standards Board (IASB) on Thursday asked its constituents to comment on the financial instruments accounting proposals FASB released Wednesday. The IASB said that because FASB’s proposal is part of the global convergence project, it is important for FASB to receive feedback on the proposed model from the
FASB Proposes Comprehensive Changes to Financial Instruments Accounting
FASB on Wednesday issued a much anticipated exposure draft intended to improve accounting for financial instruments. Among other changes under the proposed Accounting Standards Update (ASU), financial statements would incorporate both amortized cost and fair value information about financial instruments held for collection or payment of cash flows. The proposal
Jobs Key to Consumer Confidence
Job growth is at the heart of increasing consumer confidence and growing the economy, Quincy Krosby, chief market strategist for Prudential Financial, told AICPA Council members Tuesday in San Diego. “If we don’t bring the word ‘confidence’ in, small business owners will be afraid to hire. They are worried about
Election Analyst Questions Whether Republicans Can Take House
Republicans may not be able to secure a majority in the House this November despite the potential for a tidal wave election, political analyst Charlie Cook told AICPA Council members Monday at a meeting in San Diego. Cook addressed the Council, providing his view of the political environment in light
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FROM THIS MONTH'S ISSUE
Accountancy in America: Meeting the moment for 250 years
As the United States celebrates its semiquincentennial, explore the history of the accountancy profession’s essential role in the U.S. economy.
