A&A news May 2007

A&A

Profits To Be Lost Under New Accounting Rules

Accounting-rule makers are planning to unveil a draft plan to rework financial statements, the data that millions of investors use every day when deciding whether to buy or sell stocks, bonds and other financial instruments, the Wall Street Journal reports. One possible result will be the elimination of net income or net profit, the bottom-line figure showing what is left after expenses have been met and taxes paid. It is the item many investors look to as a key gauge of corporate performance and one measure used to determine executive compensation.
A&A

IMA Statement on ERM Implementation

The Institute of Management Accountants released a statement, as part of its series of practitioner guides, that covers specific practices and techniques for enterprise risk management (ERM) implementation. ERM is a concept used by organizations to identify, assess and manage risks to meet objectives and remain accountable to their stakeholders. It approaches risk from a holistic view across the enterprise.
Tax

New Electronic Filing Requirement for Small Tax-Exempt Organizations

Beginning in 2008, small tax-exempt organizations that previously were not required to file returns may be required to file an annual electronic notice, Form 990-N, Electronic Notice (e-Postcard) for Tax-Exempt Organizations not Required To File Form 990 or 990-EZ. This filing requirement applies to tax periods beginning after December 31, 2006.Small tax-exempt organizations, whose gross receipts are normally $25,000 or less, are not required to file Form 990, Return of Organization Exempt From Income Tax, or Form 990-EZ, Short Form Return of Organization Exempt from Income Tax.
A&A

People Skills Help Controllers Rise to CFO

Controllers who want to rise to chief financial officer need to move beyond finance expertise and become leaders with strong people skills, according to a new report.The results of a Korn/Ferry International survey reveal that controllers seem to have an advantage when competing for the CFO position. As many as one-third (33 percent) of Fortune 500 CFOs had been promoted from a controller post. But, just four percent of external hires were controllers, while 58 percent originated from CFO posts elsewhere, and 17 percent came from a CEO or general manager position elsewhere.
A&A

President Vetos Small Business Tax Breaks

President Bush vetoed the supplemental appropriations bill Congress narrowly passed last week. The bill, which primarily would have provided money necessary to continue military operations in Iraq, also included a set of tax breaks for small businesses.
Tax

Issues Spouse-owned Businesses Should Consider

One of the advantages of operating your own business is hiring family members. However, the employment tax requirements for family employees may vary from those that apply to other employees. How Spouses Earn Social Security BenefitsA spouse is considered an employee if there is an employer/employee type of relationship, i.e., the first spouse substantially controls the business in terms of management decisions and the second spouse is under the direction and control of the first spouse.
Practice Management

Retaining the Start-up Spirit

Despite being almost 20 years old, Cobra Beer still very much retains an entrepreneurial attitude in the United Kingdom. Dynshaw Italia, for instance, is not only the firm's finance director but also heads up its HR and IT departments.

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