EXECUTIVE SUMMARY NEW FASB STANDARDS prohibit the pooling-of-interests method of accounting for business combinations and require a purchase accounting method that does not allow goodwill amortization. The standards are a radical change, and management accountants, auditors and financial executives must understand and work with a very different accounting process.
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TOPICS / AUDIT & ASSURANCE
Audit
A New Look at the Attestation Standards
EXECUTIVE SUMMARY CHANGES IN THE BUSINESS WORLD are creating more opportunities for CPAs to provide assurance on nonfinancial information. Practitioners are expanding their services by trading on the skills they’ve traditionally used to provide assurance on historical financial statements. TO BROADEN THE APPLICABILITY of the attestation standards, the Auditing
Outsourcing a 401(k) Plan
EMPLOYEE BENEFITS How to make the right choices. Outsourcing a 401(k) Plan BY MAUREEN NEVIN DUFFY EXECUTIVE SUMMARY WITH 401(k) BALANCES GROWING, SMALL AND MEDIUM- sized companies are finding themselves burdened with myriad responsibilities of operating a retirement plan for employees. Many companies are choosing to outsource the plan to
Want to Add to Your Professional Portfolio? The Proposed Global Credential—An Option for CPAs
Businesses today expect professional service providers to offer a broad business perspective and deliver value-added solutions to an expanding array of opportunities. There is a clear market need for professionals who can manage a rapidly changing business environment and provide solutions that integrate broad strategic business issues. Many CPAs have
CFOs in Europe Favor International Accounting Standards
Judging by a November survey of financial executives in Europe, there is considerable business community support for the European Commission’s (EC) June 2000 proposal to implement the IASC’s international accounting standards (IASs). The EC’s tentative plan to foster “comparable, transparent” reporting would, if approved by the European Union (EU), require
Auditing
The ASB issued Statement on Auditing Standards no. 93 in November (see Official Releases, page 116). Titled Omnibus Statement on Auditing Standards—2000, it discusses the following changes to three existing SASs: Withdrawal of SAS no. 75, Engagements to Apply Agreed-Upon Procedures to Specified Elements, Accounts, or Items of
Using Money Managers
EXECUTIVE SUMMARY ONE WAY CPAs CAN UPGRADE THEIR INVESTMENT advisory services is to offer their clients the services of individual money managers. Managed portfolios permit the CPA to gain more control over the investment process vs. mutual funds and to develop customized investment and tax strategies to meet clients’ special
Another Tax Saving Vehicle
I appreciated the article highlighting the tax impact of investment returns (“A Taxing Problem,” JofA, May00, page 51). My clients have also benefited from the tax efficiency of unit investment trusts (UITs). Typically targeted toward specific themes, such as worldwide wireless or Glass-Steagall companies, they have a buy-and-hold strategy to
News or Views?
The special report “ABA Gives Thumbs Down to Lawyers’ Fee-Sharing,” ( JofA, Sept.00, page 22) purports to be a news item, but in my opinion the editorial intent of the article cannot be mistaken. The House of Delegates of the American Bar Association, which may be referred to as the
More About Standards
I agree with the assessment of the letter writer regarding the FASB (“Agrees with Need for Change,” JofA, Sept.00, page 14). Some of the pronouncements are prime material for the repertoire of the Theatre of the Absurd. However, I do not believe the AICPA should be allowed to participate in
ISB Issues Employment Standard
In July the Independence Standards Board reaffirmed its earlier (June 1) approval of ISB Standard no. 3, Employment with Audit Clients. The guidance addresses independence concerns and updates rules for situations in which a professional or partner of an audit firm decides to join an audit client. According to the
JofA Not Just for Accountants Anymore
I recently spent a couple of hours in an after-hours medical clinic, waiting to see a doctor. There, I found a copy of the JofA. Even though I’m not in the accounting field, I really enjoyed the magazine. In particular, I recall reading a useful article describing how to generate
Charities and Form 990
As a specialist in the not-for-profit industry, I found “Selecting the Right Charity ( JofA, Sept.00, page 19) most interesting. However, there are two issues mentioned I would like to address. The article suggests that the annual information statement, IRS form 990, “doesn’t break down fundraising and operational costs.” Although
A New Standard of Tax Practice
EXECUTIVE SUMMARY THE AICPA HAS ISSUED EIGHT STATEMENTS on Standards for Tax Services as enforceable standards for AICPA members. Effective October 31, they replaced the advisory Statements on Responsibilities in Tax Practice. COMMENT LETTERS RAISED QUESTIONS ABOUT the necessity of enforceable tax practice standards. The strongest argument for enforceable
Paying the Piper: Some Tax Rules for Daytraders
TAX BRIEF INDIVIDUAL One of the new vocations of the Internet age is day trading; it is characterized by traders’ rapidly buying and selling securities to take advantage of small movements in their value and liquidating the portfolios by the end of the trading day. Coverage in the news media
Another Look at FASB Interpretation 44
A comment in “FASB Offers More Guidance on Stock Options” ( JofA, July00, page 18) suggests that the inability to reprice options could cause a company to lose all its employees if the value of its stock declines and is not likely to go up in the near future. I
Tax Services Standards Issued
TAX NEWS In late July the AICPA tax executive committee approved as final eight Statements on Standards for Tax Services (SSTSs), which superseded and replaced Statements on Responsibilities in Tax Practice. (See “Standards for Tax Services Proposed,” JofA, June00, page 77.) Although the substance of the rules contained in each
Additional Concerns
“Beyond Section 1031” ( JofA, July00, page 61) was an excellent summary of some of the complexities surrounding this code section and provided practical solutions to construction and reverse exchanges. I offer two other concerns for advisers to consider: State taxation. While California and Idaho, for example, allow a replacement
Corporate Acquisition Issues
TAX CASE In today’s economy, many business owners—both large and small—are considering buying other companies or selling the one they own. A recent case addresses some of the issues that may arise when the acquisition is structured to take advantage of opportunities in the financial market. Jordan Co. negotiated the
LMSB Deputy Commissioner Stresses Fairness for Taxpayers
TAX NEWS In a recent interview with the JofA, Deborah M. Nolan, CPA, IRS Deputy Commissioner of the Large and Mid-Size Business (LMSB) division, spoke of the service’s strategic goals that would make filing returns easier and increase fairness of compliance enforcement. When asked specifically how she planned to improve
Features
FROM THIS MONTH'S ISSUE
Drafting an AI policy that actually works
As AI use accelerates, many firms are discovering their policies haven’t kept pace. This article breaks down what CPAs and finance leaders should consider when drafting an AI policy that’s practical, flexible, and fit for real world use.
