International tax

The IRS and the Treasury Department issued final regulations containing nondiscrimination and other requirements for cash or deferred arrangements under section 401(k) and for matching and employee contributions under section 401(m) of the Internal Revenue Code ( www.treas.gov/press/releases/reports/401k122804td9169.pdf ). These regulations update and simplify many of the current rules for

According to the 2004 National Management of an Accounting Practice (MAP) survey—conducted by Practice Management for CPA Success (PCPS): the AICPA Alliance for CPA Firms and the Texas Society of CPAs—local and regional firms across the nation reported revenue growth, salary increases and expansion of core services in 2004 and

Barbara A. Henderson, CPA—the first woman appointed to the Governmental Accounting Standards Board (GASB)—died in November at age 67. She was a member of GASB from 1991 until her retirement in 1999 and also of its predecessor, the National Council on Government Accounting.

The Small Business Administration (SBA) issued two rules to help companies in the information technology (IT) and testing laboratory industries qualify for contracting opportunities and federal assistance ( www.sba.gov/news/04-03.pdf ). The SBA expects the changes, which affect limitations on revenue and number of employees, to benefit more than 1,700 small

GASB issued Statement no. 46, Net Assets Restricted by Enabling Legislation, an amendment of GASB Statement no. 34 ( www.gasb.org/news/nr123004A.html ). The subject legislation authorizes the raising of new resources but imposes limits on how they may be used. The guidance, which is effective for periods beginning after June 15,

Larry E. Rittenberg, CPA, was named chair of the Committee of Sponsoring Organizations (COSO) of the Treadway Commission. Rittenberg, who replaced John H. Flaherty, CPA, had previously served as president, as well as vice-president of research, of the Internal Auditors Association Research Foundation. To help CPAs market their practices, the

The International Accounting Standards Board (IASB) amended two international accounting standards (IASs) ( www.iasb.org/news ). One amendment, to IAS 19, Employee Benefits, allows entities to fully recognize actuarial gains and losses (that is, unexpected changes in a benefit plan’s value) in the period in which they occur, outside profit or

FASB issued Statement no. 151 , Inventory Costs ( www.fasb.org/st/index.shtml ), an amendment of Accounting Research Bulletin (ARB) no. 43, chapter 4. The statement clarifies that abnormal amounts of idle facility expense, freight and/or handling costs and wasted materials (that is, spoilage) should be recognized as current-period charges, and it

XBRL International launched a public, Web-based repository ( www.xbrl.org/showcase ) of feasibility studies and XBRL implementation reports, a resource center containing white papers and other reference materials, and a guide to XBRL products and services. Founding sponsors included Ernst & Young LLP, software developer Universal Business Matrix LLC and XBRL

The Governmental Accounting Standards Board (GASB) issued an exposure draft, Accounting for Termination Benefits, that would require employers to recognize—in financial statements they prepare on the accrual basis of accounting—the cost of voluntary termination benefits when employees accept a termination offer, and the cost of involuntary termination benefits when an

The PCAOB proposed rules that identify specific circumstances in which providing tax services impairs auditors’ independence; increase auditors’ responsibility for obtaining audit committee preapproval of tax services rendered to audit clients; prohibit persons associated with an audit firm from causing it to violate relevant laws, rules and regulations; and include

AICPA President and CEO Barry C. Melancon presented the Journal of Accountancy’s 2003 Lawler Award for best article of the year to Stephen A. Scarpati, CPA for “CPAs as Audit Committee Members” (Sep.03, page 32; www.aicpa.org/pubs/jofa/sep2003/scarpati.htm ). In his article Scarpati, president of 180 Management LLC in New York, explained

The Securities and Exchange Commission amended its rules to allow certain larger companies an additional year to comply with internal control requirements mandated by section 404 of the Sarbanes-Oxley Act of 2002 (www.sec.gov/rules/final/33-8507.htm). Such entities, known as “accelerated filers,” must begin to include in the annual report for their first

The Public Company Accounting Oversight Board (PCAOB) issued a third set of questions and answers on Auditing Standard no. 2, An Audit of Internal Control Over Financial Reporting Performed in Conjunction with an Audit of Financial Statements ( www.pcaobus.org/standards/staff_questions_and_answers/index.asp ). The board published the first two in June and December

In response to a Treasury Department request for comments, the AICPA National CPA Financial Literacy Commission encouraged the development of an education strategy for promoting universal financial literacy in the United States ( www.aicpa.org/financialliteracy/download/aicpa_comment_letter_11_04.pdf ) and emphasized the skills CPAs can contribute to such an effort. The Institute established the

Through May 1, 2005, the Institute is accepting applications for committee service from October 2005 through October 2006. Members interested in contributing to the profession and networking with their peers can apply online at http://volunteers.aicpa.org. Volunteers are particularly needed for several new committees and panels. Additional information is available from