Editor’s note: This list of FAQs is a Web-exclusive sidebar to “Changes on Tap for Compilation and Review Standards,” May 2010. Question: To what compilation engagements does SSARS no. 19 apply? Answer: SSARS no. 19 applies to compilations of financial statements and other specified elements, accounts or items
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FASB Guidance Details How to Recognize R&D Milestone Payments
Guidance issued Wednesday by FASB attempts to help companies determine when it’s appropriate to use the milestone method of revenue recognition for research or development transactions. Revenue from R&D deals often hinges in whole or in part on reaching certain milestones, such as completion of phases in a drug study.
IRS Provides Guidance on Health Coverage for Adult Dependents, Addresses Discrepancies in Law
The IRS issued guidance Tuesday on the tax treatment of health coverage for children who have not yet turned 27 (Notice 2010-38). The health care reform legislation enacted in March extended the general exclusion from gross income for reimbursements for medical care under an employer-provided accident or health plan (under
SEC Chief Accountant Says Convergence Need Not Be Completed by June 2011
While FASB and the IASB work to complete an unprecedented 11 standards over the next 14 months, SEC Chief Accountant James Kroeker told the JofA Tuesday that he would support the boards’ cutting the number of projects due in June 2011, provided there was good rationale for a delay. “June
AICPA Submits Comment Letter on IRS PTIN Proposal
The AICPA submitted comments to the IRS Monday on its proposed regulations (REG-134235-08) that would require tax return preparers, including nonsigning preparers, to apply for or renew a preparer tax identification number (PTIN) and exclusively use that PTIN when signing tax returns. (See prior JofA coverage on these proposed regulations,
Project Planning and IT Considerations During an IFRS Conversion Project
This free white paper, “Financial System Considerations in IFRS Conversion Projects,” is provided by the AICPA’s IT Section of the Specialized Communities/Firm Practice Management Group and includes: High level discussion of potential system impacts during an IFRS conversion Highlighting key differences between IFRS and US GAAP as well as
Survey Offers Glimpse at How Americans are Tightening Belts
Citing unemployment, financial emergencies and credit card debt, 54% of respondents in a recent poll reported being unable to save money over the past 12 months, while 46% of respondents had managed to put some money away. Among Americans who were able to save money over the past year, most
IRS Announces Release of Draft Schedule to Report Uncertain Tax Positions
The IRS on Monday announced that it was releasing draft Schedule UTP and draft instructions as part of its initiative to require certain business taxpayers to report uncertain tax positions on their returns (Announcement 2010-30). (See previous JofA coverage of this proposal. The AICPA Tax Division has prepared a briefing
FASB Issues Health Care Proposals
FASB on Friday issued two exposure drafts that would change accounting for health care organizations. One proposal would require that the measurement of charity care for disclosure purposes by health care providers be based on the direct and indirect costs of providing the charity care. The second proposal is aimed
SFFAS 38 Requires Reporting of Federal Oil and Gas Royalties
The Federal Accounting Standards Advisory Board (FASAB) issued Statement of Federal Financial Accounting Standards (SFFAS) no. 38, which requires the value of the federal government’s estimated petroleum royalties from the production of federal oil and gas proved reserves to be reported in a schedule of estimated federal oil and gas
IRS Grants Military Spouses Six-Month Extension to Pay 2009 Tax
On April 15, the IRS issued Notice 2010-30, which gives certain civilian spouses of service members on active duty an extension of time through Oct. 15, 2010, to pay their 2009 federal income taxes. However, civilian spouses were not granted an automatic extension of time to file a return. The
Circular 230 Best Practices
Circular 230, section 10.33, on best practices deals with providing advice and preparing a submission to the IRS. This section affects several aspects of tax practice, including clear client communications, the importance of the conclusions reached, acting fairly and with integrity, and having procedures to ensure best practices. Section 10.33
Survey Shows Few Tapping Stimulus Programs
The overwhelming majority of Americans haven’t taken advantage of the U.S. government’s programs to stimulate the national economy, according to a survey conducted for the AICPA by Harris Interactive. Nine out of 10 respondents (91%) said they haven’t capitalized on the job stimulus plan covered under the American Recovery and
Choice of Entity: Benefits of a Partnership
When starting a new business, one of the first questions an entrepreneur asks is, “What type of entity should I use?” This question is not one that should be taken lightly, nor is there a one-size-fits-all answer. There should be a great deal of discussion with the client and his
Panel Meets to Discuss Private Company Financial Reporting
Members of a blue-ribbon panel established to provide recommendations on the future of accounting standards for private companies met for the first time Monday to discuss their views on the topic, which has been debated for decades. The key portion of the meeting featured the viewpoints of those panel members
Report Assesses Enterprise Risk Management Outlook
Risk management processes within businesses continue to be relatively immature and ad hoc despite increased volume and complexity of risks, according to a study published by N.C. State University’s ERM Initiative in partnership with AICPA’s Business, Industry, & Government Team. The second annual study, 2010 Report on the Current State
Using a Qualified Plan Account to Fund a Roth IRA Conversion
Roth IRAs have become popular retirement savings options since their introduction in 1998. However, high-income individuals have not been able to take advantage of the Roth IRA opportunity. Recent tax law changes expand the Roth IRA to all taxpayers who have or could have traditional IRA accounts. Background Before 2010,
Blue-Ribbon Panel on Private Company Financial Reporting to Meet Monday
A blue-ribbon panel established to provide recommendations on the future of accounting standards for private companies will meet for the first time Monday at the AICPA’s New York office. The public portion of the meeting will take place from 10:30 a.m. to 4:30 p.m. and will be accessible via live
Final Regs Govern Deductibility of State Legislators’ Deemed Living Expenses
The IRS and Treasury released final regulations Thursday on the availability of a special deduction for deemed living expenses of state legislators (TD 9481). The final regulations adopt, with amendments, proposed regulations that were issued in 2008 (REG-119518-07). Under IRC § 162(h), a state legislator who lives more than 50
PCAOB Reminds Auditors of Requirements Related to Unusual Transactions
The PCAOB on Wednesday issued an alert reminding public company auditors of their responsibilities related to the risk of material misstatements stemming from error or fraud associated with significant unusual transactions. “The PCAOB’s message to auditors, in this challenging economic environment, has consistently emphasized attention to audit risk and adherence
Features
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.
