The International Accounting Standards Board (IASB) issued International Financial Reporting Standard (IFRS) 6, Exploration for and Evaluation of Mineral Resources, which provides the first guidance on accounting for expenditures in this area. The standard is effective for annual periods beginning on or after January 1, 2006. Meanwhile the board’s International
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TOPICS
Tax
Selling To Audit Committees
EXECUTIVE SUMMARY SARBANES-OXLEY HAS CHANGED the relationships CPAs have with the entities that employ them. Before, an audit committee was essentially an extension of a company’s board of directors, often rubber-stamping the CFO or CEO’s choice of auditor. Since the act, corporate boards and audit committees have taken
Your Tax Dollars at Work
Source: IRS, www.irs.gov .
Accounting
The AICPA Accounting Standards Executive Committee (AcSEC) issued Statement of Position (SOP) 04-2, Accounting for Real Estate Time-Sharing Transactions , to address diversity in practice caused by a lack of guidance specific to real estate time-sharing transactions. Concurrently the Financial Accounting Standards Board (FASB) issued Statement of Financial Accounting Standards
Save More for 2004
Source: IRS, www.irs.gov .
Partnership Terminations
As the number of partnerships and LLCs taxed as partnerships increases, so too will the number that terminate due to failure or owner disagreement. The Internal Revenue Code contains only a simple statement about partnership terminations, but a recent case expands on that. Robert Collins and several others formed Harbor
Tax Season Defanged
EXECUTIVE SUMMARY WHATEVER CPAs CAN DO TO SYSTEMATIZE the repetitive aspects of individual tax work and spread the workload over the year makes their lives easier and allows their firms to make more money. THE ESSENCE OF A SUCCESSFUL TAX SEASON is effective communication in the office; adherence to procedures
Accumulated Earnings Tax: Deductibility of Paid But Contested Liabilities
To encourage corporations to pay dividends rather than accumulating earnings and allowing shareholders to avoid income taxes, the accumulated earnings tax imposes a penalty tax on earnings accumulated beyond the reasonable needs of a business under IRC section 531. The penalty tax is applied to the corporation’s accumulated taxable income,
Ohio Investment Tax Credit Struck Down
States often try to lure businesses into their borders by offering attractive tax breaks. But beware: The Constitution gave Congress the power to regulate commerce between the states, and the U.S. Supreme Court has interpreted this to mean the states’ power to regulate interstate commerce is limited. Aggressive tax incentive
Uncle Sam Rewards Knowledge
Source: IRS, www.irs.gov .
Government Accounting
The Federal Accounting Standards Advisory Board (FASAB) published Statement of Federal Financial Accounting Standards 26, Presentation of Significant Assumptions for the Statement of Social Insurance: Amending SFFAS 25 ( www.fasab.gov/pdffiles/sffas-26.pdf ). Like its predecessor, SFFAS 26 is effective for periods that began after September 30, 2004. At the same time,
Class-Based Pensions
EXECUTIVE SUMMARY CLASS-BASED PENSIONS, WHICH GROUP EMPLOYEES in different categories for purposes of determining employer plan contributions, are one way companies can reduce pension costs and increase benefits to key employees. Larger organizations often use class-based plans to provide employee incentives or reward productivity. COMPANIES CAN DEFINE CLASSES IN A
Professional Issues
PCPS—the AICPA Alliance for CPA Firms—and the Texas Society of Certified Public Accountants released the results of the 2004 Management of an Accounting Practice (MAP) Survey. The information, gathered from nearly 2,500 firms of all sizes across the nation, includes comprehensive benchmarking data on salaries, billable hours, service offerings and
Tax Notes
In revenue ruling 2004-92 the IRS announced a 1% increase in interest rates for underpayments and overpayments for the calendar quarter beginning October 1, 2004 ( www.irs.gov/pub/irs-drop/rr-04-92.pdf ). The new rate of interest determined under IRC section 6621 is 5% for overpayments (4% in the case of a corporation), 5%
Auditing
The AICPA Employee Benefit Plan Audit Quality Center ( www.aicpa.org/ebpaqc ), launched in March 2004, reported that more than 700 firms—from 48 states, the District of Columbia and Puerto Rico—have enrolled as members. These firms perform more than 55% of the approximately 80,000 audits conducted annually in compliance with the
Commuting Expenses: What Is a Metropolitan Area?
The costs of traveling from one’s residence to a fixed work location generally are considered commuting expenses and are not deductible. However, under revenue ruling 1999-7, such expenses are deductible when the travel is between the taxpayer’s residence and one of the following: A temporary work location outside the metropolitan
Kids Can Keep More
Source: IRS, www.irs.gov .
FYI
The International Federation of Accountants (IFAC) named Graham Ward its president for a two-year term. IFAC represents 157 accountancy bodies and 2.5 million accountants around the world. Two JofA editorial advisers earned honors for their professional achievements. Peggy Scott, CPA, was selected by the Institute of Management Accountants and Robert
International
The International Financial Reporting Interpretations Committee (IFRIC) of the International Accounting Standards Board amended Interpretation 12, Consolidation—Special Purpose Entities ( www.iasb.org/news/iasb.asp ) to remove its scope exclusion of equity compensation plans. Consequently, entities will have to consolidate employee benefit trusts they set up for use in share-based payment arrangements. The
Buying Long-Term-Care Insurance
ong-term-care (LTC) planning focuses on meeting the financial, medical, housing and personal needs of individuals who can no longer function independently. Planning must address the level of care needed, where it best can be provided and how it will be financed. CPAs can assist clients in making decisions about purchasing
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
