Optimism about the U.S. economy’s prospects improved sharply in the second quarter, but compensation freezes, layoffs and capital spending cuts are still on the horizon for about half of companies, according to a new survey of CPA financial executives. Nearly one-fifth of respondents were optimistic or very optimistic about the
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Management accounting
Economic Outlook—CPA Executive Participants
The JofA interviewed CPA financial executives in multiple industries and regions of the country for “Economic Outlook Remains Uncertain,” May 09. Below are profiles of the financial executives who participated in the article. Ralph Bender, CPACFO, Manship Media GroupBaton Rouge, La. Business: 100-year-old family-owned business that includes the daily newspaper
Government
To address a lack of consistency in fund balance reporting, GASB’s new Statement no. 54, Fund Balance Reporting and Governmental Fund Type Definitions, establishes a hierarchy of fund balance classifications based primarily on the extent to which a government is bound to observe spending constraints imposed upon how resources reported
Loan Covenants Tighten Up
In the first quarter of 2009, 22% of CPA financial executives said previous sources of credit had dried up, according to the AICPA/UNC Kenan-Flagler Economic Outlook Survey. As a result, many businesses are shopping for new loan sources. Consider the following before you talk to a lender: For operating capital
Economic Outlook Remains Uncertain
Recessions—roughly two per decade—have occurred quite regularly since World War II. Most last less than four quarters, according to International Monetary Fund data. But the depth and breadth of recessions are notoriously difficult to predict. This article focuses on what CPA financial executives have experienced in the current recession, using
Compliance Tests
A fundamental requirement for every qualified retirement plan is that the benefits or contributions be provided in a manner that does not discriminate in favor of highly compensated employees (HCEs). The IRC requires a qualified plan to demonstrate its compliance with this nondiscrimination requirement by satisfying a particular test. Some
Introducing the New Principles-Based Peer Review Standards
Editor’s note: G. William Graham is the AICPA Peer Review Board chair. The effects of the newly revised AICPA Standards on Performing and Reporting on Peer Reviews (Standards) will be far-reaching. They directly impact more than 30,000 firms enrolled in the AICPA’s practice-monitoring program. In addition, the revised standards
Small Retirement Plans Face Funding Dilemma
Many traditional defined benefit pension plans are underfunded due to market declines. As a result, barring congressional action, they could face future excise taxes ranging from 10% to 100% of the underfunded amounts as mandated by the Pension Protection Act of 2006 (PPA). Funding liabilities are especially difficult for smaller
International
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
CPAs Head to the Hill to Discuss Reform, Economy, Taxes
CPAs wrapped up the 2009 AICPA Spring Meeting of Council in Washington on Tuesday with visits to Capitol Hill to discuss regulatory reform, the economic crisis and tax issues. Before heading into discussions with legislators, the group heard briefings from members of Congress. “We have a lot of work before
AICPA Passes Budget With No Dues Increase
Members of the AICPA Council on Monday unanimously approved an operating budget for 2009-2010 with no increase in member dues. The budget calls for $174.4 million in total net revenue and $172.3 million in total expenses for the fiscal year beginning Aug. 1—an outlook that is basically flat compared to
Regulatory Reform Tops Agenda at Opening of AICPA Council Meeting
Talk of financial regulatory reform took center-stage as CPAs from across the country gathered Sunday in Washington to open the AICPA’s 2009 Spring Meeting of Council. The agenda for the three-day meeting includes speeches by AICPA leadership, Congressional lawmakers and political pundits. The meeting concludes Tuesday with visits by CPAs
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
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
Back to the Future
The article “The Firm of the Future” (Nov. 08, page 68) suggests that time sheets and productivity tracking are relics of the past. However, the article actually shows time tracking and productivity management to be absolutely essential. For instance, the Ohio firm cited requires 13.5 full-time equivalent employees to achieve
IFRS Converges to U.S. GAAP on Segment Reporting
As part of the convergence effort between IFRS and U.S. GAAP, the International Accounting Standards Board published IFRS 8, Operating Segments, which became effective Jan 1. IFRS 8 supersedes IAS 14, Segment Reporting, and closely resembles the “through the eyes of management” approach of FASB Statement no. 131, Disclosures about
Tax Considerations for Buying and Selling Property With a Burdensome Lease
An economic downturn like the current one can cause fixed lease obligations to become burdensome and trigger a significant negative impact on leasing in many markets. Real property and other business assets may have been leased in a sale-leaseback transaction, or the lessee may have simply desired use but not
Retired Professor and Researcher Honored for Lifetime Contribution to Management Accounting
Jacob G. Birnberg, Ph.D., was awarded the 2008 Lifetime Contribution Award from the Management Accounting Section of the American Accounting Association. The award, sponsored by the AICPA, recognizes individuals who have made an important mark on management accounting, education, research and practice. Birnberg was honored for his research and teachings
A Path to Financial Stability
A sound business strategy is important no matter what the state of the economy. As you work with clients to determine the best methods of surviving the recession, be sure to discuss the following critical points for seizing opportunities to refocus, contain expenses and reassure customers. Take a fresh look
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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.
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