Want to give something back to the profession? The AICPA examinations team needs CPA volunteers in the Minneapolis, Detroit and San Diego areas to help develop and review CPA exam auditing and attest simulations (that is, case studies) and in the Providence, Rhode Island, Milwaukee and Phoenix areas to construct
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TOPICS
Tax
International
The International Accounting Standards Board (IASB) exposed a draft memorandum of understanding on the role of accounting standard setters and their relationships with the board ( www.iasb.org/uploaded_files/ ). The agreement identifies the responsibilities of the IASB and other standard setters to foster the adoption of, or convergence with, international financial
Accounting
The SEC released guidance to help registered companies improve the presentation of consolidated statements of cash flows in financial statements they file with the commission ( www.sec.gov/divisions/corpfin/guidance/ ). In a letter to CFOs, Chief Accountant Carol A. Stacey of the commission’s Division of Corporation Finance emphasized the importance of accurately
Outrageous Employee Benefits
EXECUTIVE SUMMARY THE PARTNERS AT VITALE CATURANO & CO. (VCC) have listened carefully to what employees and potential hires say matters to them in the workplace—growth, intellectually stimulating and diverse projects, and a sense of being appreciated. VCC ATTRACTS STAFF AND ENCOURAGES LOYALTY by offering a generous work/life incentives program
No Longer an Option
EXECUTIVE SUMMARY IN DECEMBER 2004, FASB ISSUED ITS NEWEST standard, Statement no. 123(R), Share-Based Payment. It is proving to be as controversial as its predecessors. The most significant change is the requirement that companies use the fair value method to account for share-based compensation. STATEMENT NO. 123(R) ELIMINATES THE USE
Investment Research
A joint task force of the Institute of Chartered Financial Analysts and the National Investor Relations Institute released as final voluntary best practice guidelines governing relations between securities analysts and companies they cover ( www.cfainstitute.org ). They address analysts’ independence from corporate issuers’ influence, analysts’ access to issuer executives, disputes
Government Accounting
The Federal Accounting Standards Advisory Board (FASAB) issued immediately effective implementation guidance for Statement of Federal Financial Accounting Standards (SFFAS) 23, Eliminating the Category National Defense Property, Plant, and Equipment ( www.fasab.gov/pdffiles/sig_23_1.pdf ).
Professional Issues
The AICPA released the 2004 edition of its annual report, The Supply of Accounting Graduates and the Demand for Public Accounting Recruits ( www.aicpa.org/members/div/career/edu/sagdpar.htm ), which found the number of bachelor’s degrees awarded rose by 6% and master’s degrees by 30% over the prior year while enrollment in accounting programs
SmartStopsOnTheWeb
Keep Tabs on Their Money www.carsonwealth.com The Carson Wealth Management Group Web site’s Research section offers CPA investment advisers news headlines and market summaries from Dow Jones, the Nasdaq and Standard and Poor’s—with the latest index figures and most recent changes, a stock quote center and a mutual fund lookup.
Tax Pumps Up Gas Prices
Source: American Petroleum Institute, http://api-ec.api.org/frontpage.cfm , 2004.
The Importance of a Valid Disclaimer
hile estate planning normally occurs during life, it also can occur after a taxpayer’s death. In letter ruling (technical advice memorandum) 200437032, the IRS ruled that a bequest to a member of a religious order who had taken a vow of poverty did not qualify for the estate tax charitable
We the People
Source: IRS, www.irs.gov .
Is There a Doctor in the Big House?
Source: IRS, www.irs.gov .
Buy-Sell Agreements
There are numerous legitimate business reasons to establish a buy-sell agreement for a closely-held family business. Many of these agreements set the value for estate tax purposes when one of the shareholders dies. If the IRS rejects the price set to represent the value of the stock, a significant estate
Does Bankruptcy Terminate S Corp Status?
A business that elects to be an S corporation continues to be taxed as such until the election is terminated. It can be terminated in any of three ways: (1) The shareholders revoke the election, (2) the corporation no longer satisfies the eligibility requirements or (3) the corporation has too
Maximize Tax Benefits Under IRC Section 165
nvestment theft losses that result from nonbusiness, for-profit transactions may qualify for advantageous tax treatment. When a client is the victim of fraud or embezzlement, for example, CPAs can reduce the client’s ordinary income, recoup any previously paid taxes and minimize future tax obligations by using IRC section 165(c)(2). Be
Financial Reporting
Financial Executives International CEO and President Colleen Cunningham identified the following topics ( www.fei.org/fei_ceo_top10.cfm ) as 2005’s top 10 financial reporting challenges: accounting for stock options, internal controls reporting, revenue recognition, uncertain tax positions in financial statements, repatriation of foreign earnings, accounting for business combinations, accounting for inventory costs, disclosure
Auditing
The AICPA enhanced the Web site ( www.aicpa.org/EBPAQC ) of its Employee Benefit Plan Audit Quality Center, a firm-based voluntary membership community promoting high-quality audits of pension, health and welfare and 401(k) plans. The center offers practical tools, guidance on audit performance, best practices and information on emerging issues to
Personal Financial Planning
The AICPA and the Department of Labor (DOL) are partnering to educate American women of all ages about personal financial management. Using CPA/PFS (Personal Financial Specialist) volunteers from the Institute’s 360 Degrees of Financial Literacy program ( www.aicpa.org/financialliteracy/index.asp ) and the resources of the DOL Women’s Bureau ( www.dol.gov/wb ),
XBRL: A Multitalented Tool
PAs have a rare opportunity to help the business world take a giant leap forward. The extensible business reporting language (XBRL) can vastly improve the timeliness, accuracy and flexibility of data in financial statements and other business reports. Many experts think it will boost today’s commerce just as double-entry bookkeeping
Features
FROM THIS MONTH'S ISSUE
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
April 30, 2026
Current developments in taxation of individuals: Part 2
April 30, 2026
