The IRS is requesting comments to proposed changes to Form 1118, Foreign Tax Credit—Corporations . U.S. corporate taxpayers use the form to compute the foreign tax credit for certain taxes paid or accrued to foreign countries or U.S. possessions. As noted in IRS Announcement 2007-62; 2007-29 IRB 1, the changes
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TOPICS / TAX
International tax
AICPA Criticizes Foreign Currency Regs
Proposed regulations amending IRC section 987 may frustrate the intent of the Tax Reform Act of 1986 and place an undue burden on taxpayers, the AICPA said. The new regulations establish a “foreign exchange exposure pool” method of reporting gain and loss transacted in a foreign currency. Comments developed by
IFRS: Coming to America
EXECUTIVE SUMMARY International Financial Reporting Standards (IFRS) are destined to be the lingua franca of the international accounting world. Approximately 100 countries already require, allow or are in the process of converging their national accounting standards with IFRS. FASB and the IASB have agreed to converge
Taxing International Transactions: A World of Difference
Globalization has brought many new opportunities for U.S. businesses. By pursuing broader horizons, however, your clients can find themselves in unfamiliar shoals of the tax code. Here are 10 of the leading situations in which clients might need help navigating through international transactions. A “person,” in these
Highlights
HIGHLIGHTS The SEC enhanced the Internet-based search capability of its EDGAR database of company filings. Users now can search the contents of disclosure documents with a full-text search tool. The newly searchable information includes registration statements, annual and quarterly reports and other filings by companies and
Education
For news from the AICPA and state societies, visit www.cpa2biz.com, which also offers online CPE, AICPA professional literature, practice management aids and links to state society Web sites. State CPA societies and individuals are invited to nominate an accounting educator for the 2007 AICPA Distinguished Achievement in Accounting Education
The Risks of Being Global
EXECUTIVE SUMMARY Increased international trade regulations have led to greater risks for companies that do business abroad. How CPAs help companies manage these risks will vary based on the countries and products involved, the size of the company, the potential penalties and the company’s import/export structure. In going global, companies
Government Accounting
The Financial Accounting Foundation, the parent body of the Governmental Accounting Standards Board (GASB), commissioned the first in a series of periodic surveys asking its stakeholders to share their views on how effectively GASB fulfills its mission. Overall, the 1,200 respondents said GASB has been carrying out its standard-setting charge
Professional Issues
The AICPA, under the leadership of immediate past Chair Leslie Murphy, launched the Young CPA Network, to address the needs of professionals early in their careers. The network offers a monthly electronic newsletter, The Edge, and a dedicated Web site ( www.aicpa.org/YoungCPANetwork ) that provide tools and resources to help
Banking
The Federal Reserve Board, the Federal Deposit Insurance Corp., the Office of the Comptroller of the Currency and the Office of Thrift Supervision jointly proposed rules that would implement new risk-based capital requirements in the United States for large, internationally active banking organizations ( www.fdic.gov/news/news/press/2006/pr06082.html ). In addition the agencies
Financial Reporting
The SEC issued Staff Accounting Bulletin (SAB) no. 108, which provides guidance on quantifying financial statement misstatements, including the consideration of the effects of the carryover and reversal of prior-year misstatements ( www.sec.gov/interps/account/sab108.pdf ). Typically, entities have quantified such errors in one of two ways—as the amount by which the
Auditing
For news from the AICPA and state societies, visit www.cpa2biz.com , which also offers online CPE, AICPA professional literature, practice management aids and links to state society Web sites.
FYI
The AICPA’s annual National Healthcare Industry Conference will take place November 2–3 in New Orleans. “This is another important part of our ongoing commitment, which includes organizing a Disaster Recovery Resource Center and an AICPA volunteer center to provide pro bono tax assistance to Katrina’s victims,” said AICPA President and
International
The International Federation of Accountants (IFAC) issued an exposure draft and several information papers on education in ethics, corporate sustainability and internal control. IFAC’s International Accounting Education Standards Board released an exposure draft of an International Education Practice Statement, Approaches to Developing and Maintaining Professional Values, Ethics and Attitudes (
Risk Management
On October 19 and November 16, 2006, the AICPA will offer free Infocasts presented by specialists who have authored titles in the Institute’s series of Management Accounting Guidelines (MAGs). Business Continuity Management will be the subject of the October 19 Infocast presented by author Eric Krell. The November 16 Infocast
Government Accounting
The Federal Accounting Standards Advisory Board issued an exposure draft of a proposed Interpretation, “Items Held for Remanufacture” ( www.fasab.gov/pdffiles/edinterpretation.pdf ), that would provide guidance for the classification, valuation and reporting of items held for remanufacture prior to sale or issuance, such as items being inspected, disassembled, evaluated, cleaned, rebuilt,
XBRL
AICPA President and CEO Barry C. Melancon and SEC Chairman Christopher Cox will be keynote speakers at the 14th International XBRL Conference & Exhibition in Philadelphia on December 4–6, 2006. “XBRL’s potency as a business tool is recognized worldwide,” Melancon said. “It facilitates the transmission and analysis of financial information
Accounting
For news from the AICPA and state societies, visit www.cpa2biz.com , which also offers online CPE, AICPA professional literature, practice management aids and links to state society Web sites. FASB posted on its Web site a compilation of all changes made through July 10, 2006, to the guidance in Accounting
Financial Reporting
The SEC granted relief from a Sarbanes-Oxley Act section 404(b) auditor attestation requirement to foreign private issuers that are accelerated filers (but not large accelerated filers) that file their annual reports on forms 20-F or 40-F ( www.sec.gov/news/press/2006/2006-136.htm ). They will not have to comply with the section 404(b) requirement
Auditing
The Public Company Accounting Oversight Board (PCAOB) issued Staff Audit Practice Alert no. 1, Matters Relating to Timing and Accounting for Options Grants, which advises auditors of emerging risks to consider during audits of financial statements or of internal controls over financial reporting ( www.pcaobus.org/news_and_events/ ). The alert was prompted
Features
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How a CPA beat burnout after strokes, depression
Randy Crabtree, CPA, suffered two strokes in four days and struggled with his mental health for years before he learned to recognize, address, and prevent chronic stress. Learn from his insights on how CPAs can avoid professional burnout.
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