he accounting profession has made remarkable progress since its early days, when practitioners struggled to establish credibility. An examination of some of the most important events during the first nine decades of the 20th century offers a glimpse into what has made the profession what it is today. Although
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Audit & assurance
A Historical Look at Standards
Letters Some Were Omitted “New Rules, New Responsibilities” ( JofA, Aug.00, page 53) deals with questions arising from only some of the important new audit committee rules resulting from the SEC’s “blue ribbon committee” initiative. There are other rules companies might need to consider. For example, the article
SysTrust and Third-Party Risk
EXECUTIVE SUMMARY THE SYSTRUST ASSURANCE SERVICE ALLOWS CPAs to add a level of confidence to the reliability of corporate IT systems, but carries with it litigation exposure, especially from third parties. COURTS HAVE NOT YET SPECIFICALLY addressed the third-party legal ramifications of SysTrust because it is so new; but
Peer Review For Small Firms
EXECUTIVE SUMMARY THE AICPA REVISED ITS STANDARDS FOR PERFORMING and reporting on peer reviews for firms that do not audit SEC registrants. The new rules, which become effective January 1, 2001, are designed to improve the quality of financial reporting and to protect members of the public that use
International
IFAC Issues Reporting Standards for World Governments In May the International Federation of Accountants released the world’s first authoritative set of independent financial reporting standards for public-sector entities. Known as International Public Sector Accounting Standards (IPSASs), the IFAC guidance is derived from the International Accounting Standards Committee’s International Accounting Standards
Those Who Can—Teach.
EXECUTIVE SUMMARY THE TIME IS RIGHT FOR MAKING A MOVE from the business world to academia as increasing enrollment and other factors help create new positions. BEFORE EMBARKING ON AN ACADEMIC CAREER, practicing CPAs should be aware that academic life is very different. It has special rewards—such as flexible
Government Accounting
FASAB Amends Standards for Federal Loans and Loan Guarantees In May, the Federal Accounting Standards Advisory Board issued two pronouncements dealing with federal agency loans and loan guarantees. The intention of Statement of Federal Financial Accounting Standards no. 18, Amendments to Accounting Standards for Direct Loans and Loan Guarantees, is
IRS Adds New Third-Party Letters
In the past, the IRS has been accused of using third-party letters to pressure taxpayers into disclosing certain information or into settling disputes. Afraid that friends, family or business associates would be contacted by the IRS, taxpayers often caved in. The IRS Restructuring and Reform Act of 1998 requires that
When to Deduct Annual Expenditures
Many corporate taxpayers incur expenditures that provide a benefit in both the current and the following tax year. For accounting purposes, a company would simply allocate the expenses between the two periods. The tax treatment, however, is less certain. IRC section 162 permits taxpayers to deduct all ordinary and necessary
Installment Sale Reporting for Accrual-Method Taxpayers—Gone But Not Forgotten
To raise the revenue needed to extend the research and development credit and other tax breaks, Congress repealed installment-sale reporting for accrual-method taxpayers in section 536(a) of the Ticket to Work and Work Incentives Improvement Act of 1999. As a result, IRC section 453(a)(2) now says accrual-method taxpayers must include
Line Items
IRC sections 263(a) and 263A generally require taxpayers to capitalize all costs related to the installation or production of an asset. However, newly issued revenue ruling 2000-7 (IRB 2000-9) allows businesses to currently deduct the costs of retiring and removing old assets even though the costs were incurred while installing
Don’t Be Passive
In the 1980s taxpayers often created losses by structuring transactions to generate accelerated depreciation, interest and other deductions, which they used to offset other earned and unearned income. As a result, Congress enacted the IRC section 469 passive activity loss (PAL) rules, specifically designed to limit a taxpayer’s ability to
Standards for Tax Services Proposed
The AICPA tax executive committee recently published exposure drafts of proposed Statements on Standards for Tax Services (SSTSs) and an interpretation of SSTS no. 1, Tax Return Positions. Although the guidelines, issued by the tax executive committee as Statements on Responsibilities in Tax Practice (SRTPs) between 1964 and 1977, have
More Thoughts About Indexing
While the article, “The Quest to Outperform” ( JofA, Jan.99, page 32) made some valid points about indexing, the author puts the cart before the horse. The investment process does not begin by deciding what funds to invest in or whether or not to index. The process begins by identifying
For Tax-Qualified Long-Term-Care Insurance
I read with interest “Buyer Beware” ( JofA, Aug.99, page 27), but I believe the author’s arguments against tax-qualified long-term-care insurance plans are outdated. Based on my experience in the long-term-care industry, I present the following arguments for tax-qualified plans, which were not mentioned in the article: The IRS considers
Let’s Reassess Accounting Standards
There comes a time for any set of rules when a thorough in-depth review is appropriate and necessary. For the accounting profession, globalization provides both the impetus and the opportunity. The profession needs to step back now and take a good, hard look at accounting standards—specifically those issued by FASB.
Analyzing the Difference
When I read “Hiring Generation X” ( JofA, Feb.00, page 55), I wondered whether Gen-X expectations are really that different. Gen-Xers do want more and will apply the leverage afforded them by a very strong economy and favorable demand vs. supply. So do I—just as I did when I got
An Employee’s Viewpoint.
“Staying Off the Cover of Time” ( JofA, Feb.00, page 31) discussed the recent turmoil surrounding pension plan conversions, with particular emphasis on IBM’s recent difficulties. As a multi-degreed IBMer for more than eighteen years, I’d like to offer an employee’s perspective on what happened and what enraged employees to
About Billing Standards and Fees
Our profession needs to establish “ethical billing standards” that in essence would force accounting professionals to charge a statutory fee for providing assurance services. Barring professionals from underbidding jobs would reward those who conform to the standards of the profession. The current competitive bidding process does not take into account
New AICPA Credential Focuses on IT-Savvy CPAs
The AICPA is introducing the certified information technology professional (CITP) designation, which recognizes CPAs who can provide skilled advice on using IT to implement business strategy. The Institute will begin accepting applications for CITP certification July 1, 2000. At its fall meeting, the AICPA governing council approved the designation, which
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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
March 31, 2026
Current developments in taxation of individuals: Part 1
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Current Developments in Taxation of Individuals: Part 1
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