The Governmental Accounting Standards Board’s (GASB) new Guide to Implementation of GASB Statements 43 and 45 on Other Postemployment Benefits can help preparers and auditors implement recent GASB standards on accounting and reporting for health care and other nonpension benefits provided to retirees. To order the guide (# GQA43/45), go
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Tax
Money Laundering
The Treasury Department’s Financial Crimes Enforcement Network released two sets of questions and answers on completing Form 104, Currency Transaction Report ( www.fincen.gov/faq08122005.pdf ), and on the applicability of Bank Secrecy Act requirements to new accounts opened by people displaced by Hurricane Katrina ( www.fincen.gov/faqkatrinalead.pdf ).
Compliance
The Office of Management and Budget (OMB) issued the Circular A-133 2005 Compliance Supplement ( www.whitehouse.gov/omb/financial/2005_compliance_supp.html ), which is not a complete reissuance of the 2004 edition. The circular governs audits of entities that receive federal funds. The 2005 supplement addresses only new or significantly changed information on agency program
Conservation Easements
Do you have a client who’s interested in protecting the environment as well as getting a tax break? Recently, the Tax Court considered the deductibility of a conservation easement to a charity. In 1988 Mr. and Mrs. Charles Glass purchased property on the shore of Lake Michigan. In the 1990s
Professional Issues
A white paper prepared by the AICPA’s Business and Industry Executive Committee reported that CPAs’ skills and values are well-suited to meet new demands facing chief financial officers. CPAs as CFOs: Why You Should Have a CPA in Your C-Suite says CPAs are particularly qualified to manage the unprecedented operational,
What Makes It Alimony?
When do family support payments constitute alimony? CPAs advising clients about their tax status in a divorce need to know the rules. Alimony payments are deductible for tax purposes for a payor spouse but represent gross income to the payee. Under a divorce or separation agreement, payments are considered alimony
Audit And Attest
The Institute’s Accounting and Review Services Committee (ARSC) released three statements on standards for accounting and review services (SSARSs) and an interpretation (see Official Releases, page 109). SSARS no. 12, Omnibus Statement on Standards for Accounting and Review Services—2005 (# 060650JA); SSARS no. 13, Compilation of Specified Elements, Accounts, or
Employee Benefits
The Institute and the Department of Labor’s Employee Benefit Security Administration (EBSA) are conducting seminars with state CPA societies for small business clients on how to establish and administer pension, health and other employee benefit plans. Ian MacKay, director of the AICPA Employee Benefit Plan Audit Quality Center ( http://ebpaqc.aicpa.org
Good News From the SSA
Source: Social Security Administration, www.ssa.gov .
Financial Reporting
The SEC invited mutual funds to join other registrants already voluntarily submitting their filings electronically in extensible business reporting language (XBRL) format ( www.sec.gov/spotlight/xbrl.htm ). The commission will assess registrants’ ability to properly tag their data in XBRL and will weigh the benefits of tagged data. Information on XBRL is
Rate Changes Bring Record Drop
Source: Social Security Administration, www.ssa.gov .
Internal Controls
The AICPA Audit Committee Effectiveness Center issued “SOX Section 404: Responding to an Adverse Report—A Checklist for the Audit Committee,” which can be downloaded free at www.aicpa.org/audcommctr . The checklist provides an overview of the Sarbanes-Oxley Act’s internal control evaluation requirements and specifies actions audit committees should take in response
FYI
The Institute launched the AICPA Tax Center ( www.aicpa.org/tax ), offering news related to taxation, information on tax professional standards and the Institute’s tax advocacy activities, and access to premium resources, including The Tax Adviser magazine, tax practice guides and checklists, and discussion forums focused on specific aspects of taxation.
No Marketability Discount for Lottery Winnings
The Massachusetts District Court held in Estate of Donovan v. United States that, for estate tax purposes, the value of a stream of lottery payments due to a decedent must be based on the annuity valuation tables in IRC section 7520 without a discount for lack of marketability. The decedent,
International
The International Accounting Standards Board (IASB) issued one standard and amended three others ( www.iasb.org ). International Financial Reporting Standard (IFRS) 7, Financial Instruments: Disclosures, introduces requirements to improve information on financial instruments in entities’ financial statements, replacing International Accounting Standard (IAS) 30, Disclosures in the Financial Statements of Banks
Take a Seat in the Boardroom
CPAs are beginning to see some familiar faces in corporate boardrooms—including their own. Until recently, most boards were made up largely of CEOs of other organizations. In the past few years though, board members’ backgrounds have become more diverse, and more CPAs are serving as directors, in part because of
Playing a Leadership Role in International Convergence
Convergence of international financial reporting standards has received enormous attention over the last decade and particularly over the last few years. Earlier this year, the leaders of the International Accounting Standards Board and the Financial Accounting Standards Board and key regulators from the European Commission and the SEC agreed on
A Tour of Tomorrows Technology
Imagine you’re a CPA from 100 years ago who’s just been zapped into 2005. Would you understand even half of the technology the profession now uses to conduct business? Probably not. But that’s just a fantasy, you might say. Well, think again. Today’s lightning-quick rate of technological innovation could turn
Exploring the Global Marketplace
Walking through the spice markets of Tashkent or down the Champs-Elyses in search of something unique that I can’t find at home, I am struck by two things: Nothing has changed in hundreds of years. Marco Polo, Christopher Columbus and other explorers couldn’t resist the urge to trade in goods
The Value Proposition
CYNTHIA HARRINGTON is a freelance business writer. Her e-mail address is cynharrington@mindspring.com . or most large companies, the setup work to comply with the Sarbanes-Oxley Act is history. While no one says the process was easy or cheap, some companies are seeing added benefits from the enormous compliance effort. For
Features
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4 ways solo practitioners can stand out
Five years ago, a grieving Angel Zhen started his own CPA firm with no clients and no revenue. Today, he has 300 clients, $600,000 in revenue and 12 weeks of annual vacation. In this JofA article, he shares how he set up his firm and how you could do the same.
From The Tax Adviser
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Current developments in taxation of individuals: Part 2
April 30, 2026
