On Wednesday, the IRS issued Notice 2009-41, providing guidance to manufacturers and consumers on satisfying the requirements of the residential energy efficient property credit. The notice outlines procedures manufacturers must follow to certify that property satisfies the credit’s conditions. Taxpayers received guidance on when they may rely on a manufacturer’s
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ASB Issues Proposed Standard on Subsequent Events
The Auditing Standards Board has issued Proposed Statement on Auditing Standards, Subsequent Events and Subsequently Discovered Facts. The proposal would supersede AU sections 530, Dating of the Independent Auditor’s Report, 560, Subsequent Events, 561, Subsequent Discovery of Facts Existing at the Date of the Auditor’s Report, and paragraphs .71–.73 of
FBAR Penalties Reduced for Six Months
The IRS has provided a framework for voluntary disclosure requests containing offshore issues, such as previously undisclosed foreign financial accounts and entities (March 23, 2009, memo from Deputy Commissioner Linda Stiff to the commissioners of the Large and Mid-Size Business Division and the Small Business/Self-Employed Division). The policy will remain
IFAC President: U.S. Needs SEC Commitment to Global Standards
The time is now to implement global accounting and auditing standards, said International Federation of Accountants (IFAC) President Robert L. Bunting, CPA, in a speech last week at the World Bank in Washington. In a JofA interview, Bunting, a partner in Seattle-based Moss Adams LLP and a former chairman of
“Differential Wage Payments” During Active Military Service Subject to Income Tax But Not FICA, FUTA
Payments by employers to employees while they are on active military duty for more than 30 days are subject to withholding for federal income tax but are not taxed under the Federal Insurance Contributions Act (FICA) or Federal Unemployment Tax Act (FUTA), the IRS said in Revenue Ruling 2009-11, issued
SEC Amends Accounting Guidance on Other-Than-Temporary Impairment
The SEC’s Office of the Chief Accountant and Division of Corporation Finance on Tuesday announced the release of Staff Accounting Bulletin (SAB) no. 111 that amends Topic 5.M. in the SEC’s Staff Accounting Bulletin Series titled Other Than Temporary Impairment of Certain Investments in Debt and Equity Securities. The release
IRS Issues Proposed Regs on Determining Partners’ Distributive Shares
The IRS has issued proposed regulations on determining partners’ distributive shares of partnership items of income, gain, loss, deduction and credit when a partner’s interests vary during a partnership tax year (REG-144689-04). The proposed regulations also modify the existing regulations regarding a partnership’s required tax year. The proposed regulations provide
IFAC Publishes Guide to Quality Control For Small- and Medium-Sized Practices
IFAC has published a Guide to Quality Control for Small- and Medium-Sized Practices. This nonauthoritative implementation guide is intended to help SMPs understand and efficiently apply International Standard on Quality Control (ISQC) 1, Quality Control for Firms that Perform Audits and Reviews of Financial Statements, and Other Assurance and Related
U.S. Comptroller of the Currency: Change Banks’ “Incurred Loss” Model
U.S. Comptroller of the Currency John Dugan said the “incurred loss” model banks use to account for loan losses may need to be changed to a more counter-cyclical approach that would allow provisions to be made earlier in the credit cycle when times are good. Dugan, who is the administrator
GASB, CAQ Offer Research Grants
GASB and the Center for Audit Quality (CAQ) are each reaching out to the academic community with grant proposals. GASB is offering a $5,000 research grant to encourage academic support for its standard-setting activities, while the CAQ separately plans to give out a combined $200,000 in grants for multiple research
IRS Issues Inflation Updates for Automobile Depreciation Deduction Limits
The IRS issued Revenue Procedure 2009-24 on Thursday that provides 2009 inflation adjustments to the depreciation limitations and lease inclusion amounts for certain automobiles under IRC §§ 280F and 168. For passenger automobiles (other than trucks or vans) placed in service during calendar 2009, the 2009 depreciation limit under IRC
FASB Releases Final Versions of New Mark-to-Market Guidance
FASB on Thursday released final versions of authoritative guidance on the application and disclosure of fair value measurements and impairments of securities. FASB Staff Position (FSP) FAS 157-4, Determining Fair Value When the Volume and Level of Activity for the Asset or Liability Have Significantly Decreased and Identifying Transactions That
AICPA Supports IFRS Adoption, Recommends Changes to SEC Road Map
The AICPA on Thursday submitted comments on the SEC’s proposed road map for the use of IFRS by U.S. public companies. The Institute recommended additional changes to financial reporting regulations, a push to minimize dual recordkeeping requirements, and a call for optional early adoption to be expanded to include smaller
Guidance Released on Registration of Auditors of Nonpublic Broker-Dealers
The PCAOB and SEC issued guidance on the registration of auditors of nonpublic broker-dealers. Until recently, auditors of nonpublic broker-dealers were not required to register with the PCAOB as a result of a series of SEC exemptions dating back to 2003. The latest SEC order, issued in December 2006, extended
IRS Grants Relief to Midwest Flood Victims
The IRS said victims of the severe floods in Minnesota and North Dakota will have an extra month, until May 15, to file their 2008 individual tax returns and pay any tax due. The relief applies to flood victims and relief workers who are assisting in the affected areas. The
G-20 Committed to Global GAAP, Independence of Standard Setters
Meeting in London, the Group of 20 on Thursday reaffirmed its commitment to strengthening the financial system and again weighed in on accounting issues as it did last November in Washington. The primary communiqué released at the end of Thursday’s summit said the G-20 would “call on the accounting standard
FDIC Orders Bank to Modify RAL Program
Republic Bank & Trust Co. has consented to the issuance of a cease and desist order with the FDIC for its refund anticipation loan (RAL) program. The order gives the bank 120 days to establish an adequate compliance management system for its RAL program and sets various deadlines of up
FASB to Take Up Fair Value Proposals
FASB board members meet today to consider proposed fair value guidance. On the agenda for the meeting are two proposed FASB Staff Positions (FSPs): FAS 157-e, Determining Whether a Market Is Not Active and a Transaction Is Not Distressed, and FAS 115-a, FAS 124-a, and EITF 99-20-b, Recognition and Presentation
FASB Approves New Mark-to-Market Guidance
Exactly three weeks after FASB Chairman Robert Herz’s March 12 testimony before a rancorous House Financial Services subcommittee, the independent standard-setting board voted Thursday to release three new pieces of guidance to address concerns over the application of fair value accounting standards in current market conditions. All three new pronouncements
President Signs Bill Extending Aviation Taxes
On March 30, President Obama signed into law the Federal Aviation Administration Extension Act of 2009, PL 111-12. This act extends the taxes that fund the Airport and Airway Trust Fund through the end of September. The taxes had been scheduled to expire on March 31. Specifically, the fuel excise
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Start in high school to strengthen the accounting profession
A practitioner-led outreach program, born of a university, accounting professionals, and local community collaboration, shows how to successfully engage high school students with the modern accounting profession.
