EXECUTIVE SUMMARY A CPA FIRM WITH A CLIENT filing for bankruptcy has a responsibility to serve the client as well as an opportunity to compete for some of the work on the case—and through it develop a specialty. The need for bankruptcy services is expected to grow for a while.
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Smart Stops on the Web
BUSINESS CONSULTING SITES Business Advice for Mom and Pop www.efamilybusiness.com This site offers information about off-site presentations on topics such as succession and continuity, and strategy, planning and family-business policies. Free articles written by internal staff include these titles: “Supporting the Successor” and “Estate Fairness for Children In and Out
Modeling and Discounting Future Damages
EXECUTIVE SUMMARY IN LITIGATION INVOLVING FUTURE ECONOMIC damages, experts’ calculations must discount the amounts to present value. The courts have offered little guidance on appropriate discount rates. BUSINESS DAMAGES MAY BE FOR THE TERM of a contract, the technological life of a product or until the plaintiff could reasonably be
Teaming Up for the Bottom Line
EXECUTIVE SUMMARY FOR A MODEST INVESTMENT within reach of any small to midsize firm, a 48-member, seven-partner office of J.H. Cohn drew on football as a model for a team incentive program (TIP). THE FIRM’S GOALS WERE to bring in new business and develop a team approach, encourage nonpartners to
Taking the Temperature of Health Care Valuations
EXECUTIVE SUMMARY THE HEALTH CARE INDUSTRY HAS UNDERGONE significant change over the last decade, affecting delivery of services, payment mechanisms and providers’ organizational structure. Throughout a company’s lifecycle, certain events or business necessities—such as ownership transition, compliance with legal and regulatory issues and strategic planning—may require an independent appraisal of
Business Valuation Sites on the Web
BUSINESS VALUATION Valuators must use a broad picture approach. Taking the Temperature of Health Care Valuations BY LOREN GARRUTO AND OLIVER LOUD EXECUTIVE SUMMARY THE HEALTH CARE INDUSTRY HAS UNDERGONE significant change over the last decade, affecting delivery of services, payment mechanisms and providers’ organizational structure. Throughout a company’s
A Nice Niche—If You Minimize Liability Risk
EXECUTIVE SUMMARY INCREASED ACTIVITY IN ESTATE and succession planning and mergers or acquisitions involving small to midsize businesses has fueled demand for business valuation (BV) services. BV malpractice claims arise most often from a tax planning or consulting engagement that—at the client’s request—morphs into a BV in mid-transaction. THE PREDOMINANT
Smart Stops on the Web
Articles of Interest www.bvs-inc.com The Business Valuation Services site offers more than two dozen articles, with titles such as “A Lender’s Business Valuation Option,” “Alphabet Soup: Making Sense of Professional Designations” and “Mediating Valuation Differences.” Advice From AmEx [No www designation is required to access this site.] home3.americanexpress.com/smallbusiness//resources/starting/valbiz.shtml On
IFAC Issues Standard on Assurance Engagements
The International Federation of Accountants (IFAC) released in July its first international standard on assurance engagements. Developed by IFAC’s international auditing practices committee, its objective is to help accountants worldwide provide assurance on an increasing range of information, including data, systems and processes and behavior. Wherever specific standards do not
The Downside of Good Times
EXECUTIVE SUMMARY A PRACTITIONER FOUND ONE RISK OF A STRONG economy is that small business clients may loosen their internal controls, discovering fraud or theft only long after it has happened. THE MOST VULNERABLE ARE PRIVATE COMPANIES in the $10 million to $30 million range because they are large
Taking Account: Key Dates for the Profession
he accounting profession has made remarkable progress since its early days, when practitioners struggled to establish credibility. An examination of some of the most important events during the first nine decades of the 20th century offers a glimpse into what has made the profession what it is today. Although
The SEC’s Proposed Auditor Rule Threatens Our Profession and the Public.
SEPTEMBER 2000 VOLUME 190, NUMBER 3 Editorial Staff Publisher/Editor-in-Chief Colleen Katz Executive Editor Barbara J. Shildneck Managing Editor Elizabeth Uva Senior Editors Katharine W. Coveleski Peter D. Fleming Michael Hayes Raj Rangarajan Robert Tie Cynthia Waller Vallario Stanley Zarowin Assistant Editors Sarah Cobb Vincent Nolan Contributing Editors Maria
Line Items
Too Late to Transfer A married couple owned assets in excess of twice the unified credit “exemption equivalent.” The husband had a terminal illness. Through his will he wanted to establish a unified credit shelter trust, but he owned insufficient assets to fund the trust. However, he jointly owned with
IRS States Position on Hybrid Plan Arrangement
The IRS released a coordinated issue paper for all industries on the use of pension plan distributions to pay for certain benefits. The paper says the portion of pension plan distributions former employees use to purchase benefits in their employer’s cafeteria plan under a tax-free salary reduction does not reduce
Self-Rental Income Considered Active
IRC section 469 states that a taxpayer can use losses from a passive activity only to offset passive activity income. In other words, passive losses cannot shelter active income such as salaries, commissions, wages or portfolio income such as interest, dividend or annuity income. Under IRC sections 469(c)(2) and (c)(4),
Determination of a Profit Motive
Tax Matters TAX NEWS IRS States Position on Hybrid Plan Arrangements T he IRS released a coordinated issue paper for all industries on the use of pension plan distributions to pay for certain benefits. The paper says the portion of pension plan distributions former employees use to
Mortgage Interest and Bankruptcy
Individual taxpayers often engage in more than one business venture. However, when a business also involves personal pleasure or recreation, the IRS may take notice. If the operation generates large losses that offset income from other sources, a taxpayer should consider all facts and circumstances before deciding to deduct the
Automatic Consent to Change Accounting Method Available
Under IRC section 446, taxpayers generally can choose any method of accounting to compute taxable income as long as that method clearly reflects income. However, many small business taxpayers who wish to use the cash method are prevented from doing so because of Treasury regulations section 1.446-1(c)(2)(i), which states a
Profitable Communication
hat a difference a decade makes: Just 10 years ago, most managing partners didn’t consider marketing key to their business plans. Now firms not only employ marketing professionals but also expect them to deliver value beyond traditional functions. Yet many firms need to realize that one area still requires their
Business Valuation
SSARS ED Issued on Business Valuation Financial Statements The accounting and review services committee issued in late December a proposed Statement on Standards for Accounting and Review Services (SSARS) titled Financial Statements Included in Written Business Valuations. The proposed SSARS exempts “normalized financial statements”—which it defines—and historical financial statements from
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SPONSORED REPORT
Preparing clients for new provisions next tax season
As the 2025 filing season approaches, H.R. 1 introduces significant tax reforms that CPAs must be prepared to navigate. These legislative changes represent some of the most comprehensive tax updates in recent years, affecting both individual and corporate taxpayers. This report provides in-depth analysis and guidance on H.R. 1.
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