AICPA

Technology

Mark Your Calendar: 25th Annual Business & Technology Solutions Show

The Illinois Certified Public Accountants (CPA) Society’s (ICPAS) 2005 Business & Technology Show is being held Tuesday and Wednesday, August 23-24 at the Donald E. Stephens Convention Center in Rosemont, Illinois. The show, now in it’s 25th year, will tackle some of the most pressing issues facing the accounting profession as well as showcasing the latest business technologies and products.
A&A

Flagging Optimism on Economy Among Accountants

What a difference six months can make. In December, 71 percent of Certified Public Accountants (CPAs) serving as chief executive officers (CEOs), chief financial officers (CFOs) and other decision makers had a positive outlook on the state of the economy. According to the latest Business and Industry Economic Outlook Survey, only 57 percent still feel that way.Concerns about rising energy and employee costs, increased regulation and the cascade effect of provision of the Sarbanes-Oxley Act have hurt optimism.

AICPA Issues Fair Value Interpretations

Two Interpretations of Statements on Auditing Standards have been issued by the AICPA. These interpretations concern the auditing of fair values or more specifically Auditing Interests in Trusts Held by a Third-Party Trustee and Reported at Fair Value; and Auditing Investments in Securities Where a Readily Determinable Fair Value Does Not Exist. The interpretations illuminate situations where simply receiving a confirmation of fair value from a third party is not enough audit evidence for a complete valuation.
A&A

AICPA: CPAs Have What it Takes to be CFOs

What does it take to be a good CFO? Expertise in accounting, financial reporting and internal controls, says the AICPA, and CPAs possess the skills to excel in the role.That's the position the AICPA lays out in a new white paper, "CPAs as CFOs: Why You Should Have a CPA in Your C-Suite." The paper outlines the many new demands on the CFO and how CPAs are particularly attuned to handle the variety of operational, financial and compliance challenges."There is a dual role for today's CFO," said AICPA President and CEO Barry C. Melancon, CPA.
Community News

Accounting Across State Lines

Greater client and workforce mobility has presented accountants with a number of unusual challenges. It’s not just the challenge of figuring out who owes what to which taxing authority, complex as that can be. It’s also making sure that the accountant, firm and client are operating legitimately.An easily overlooked footnote in KPMG’s tax shelter problems, demonstrates the challenges facing firms as they grow.
Practice Management

AICPA Extends Comment Period for Business Valuation Standards

The American Institute of Certified Public Accountants (AICPA) announced on Friday, July 22, 2005, that the comment period on proposed Business Valuation Standards has been extended to September 30, 2005.
Practice Management

AICPA Ethics Ruling Addresses Tax Outsourcing

It was easy to overlook on the eve of a long holiday weekend, but new ethics rulings on outsourcing went into effect on July 1, 2005. The rulings adopted by the American Institute of Certified Public Accountants (AICPA) Professional Ethics Executive Committee address a member’s responsibilities when outsourcing services to third-party service providers.According to the Wall Street Journal, the ruling requires the clients be informed before their confidential financial information is shared that their tax returns are being outsourced. For accountants, however, it is that simple.
Tax

AICPA Warns of Possible Pretexting Calls

The American Institute of Certified Public Accountants (AICPA), recently alerted members that someone posing as an AICPA employee has been contacting accounting firms requesting employee lists for various purposes. Depending on the type of information being requested, this type of call may be pretexting and it is illegal.The Federal Trade Commission (FTC) defines “pretexting” as the practice of getting personal information under false pretenses. Pretexters will use a variety of excuses in an attempt to gain personal information.
A&A

AICPA Endorses Bill Extending Benefits to Small Business Employees

The American Institute of Certified Public Accountants (AICPA) has written Senator Olympia Snowe (R-ME) commending her introduction of S. 723, the SIMPLE Cafeteria Plan Act of 2005.
Technology

New Tools for Non-Profits

Charitable giving increased by five percent to an all time high of $248 billion last year. E-charities did even better, growing by 63 percent, driven by Howard Dean’s presidential campaign and tsunami relief efforts. With success, however, comes increased attention and scrutiny. Recently, new tools have been announced helping non-profit organizations achieve accounting and auditing excellence.On Monday, June 13, Sage Software announced the general availability of Peachtree Premium Accounting for Nonprofits 2006.
Tax

Suit Alleges PWC Missed 'Key Warning Signs' at AIG

The decades-long relationship between PricewaterhouseCoopers (PWC) and American International Group (AIG) is being scrutinized as regulators allege the accounting firm overlooked problems and issued false audit reports.Advertisement

AICPA Praises Congress for Introducing Privacy Protection Act of 2005

On May 17, Rep Mark Kennedy (R-MN) and Collin Peterson introduced the Privacy Act of 2005, H. R. 2387. This legislation would amend the privacy provision applicable to CPAs in the Gramm-Leach-Bliley Act (GLB) passed in 1999.“The American Institute of Certified Public Accountants (AICPA) is pleased Congress has taken this important step to support legislation that would exempt CPAs from a redundant requirement,” said Barry Melancon, CPA, President and CEO of the AICPA.
A&A

AICPA & FASB Exploring Changes in GAAP for Private Companies

The accounting profession will work with the Financial Accounting Standards Board (FASB) to evaluate potential changes to generally accepted accounting principles (GAAP) for privately held, for-profit companies the governing council of the American Institute of Certified Public Accountant (AICPA) announced on Monday.The AICPA Council resolution directs AICPA management to work with the Financial Accounting Foundation (FAF) and the Financial Accounting Standards (FASB) in identifying and implementing a process for evaluating potential changes in recognition, measurement and disclosure from G
Tax

Senators Look to Abolish Alternative Minimum Tax

Four senators are hoping to eliminate the alternative minimum tax, which one lawmaker termed a “tax dragnet” that is ensnaring more middle-class taxpayers every year.The alternative minimum tax, or AMT, was created in 1969 to stop wealthy Americans from avoiding taxes, but over time it has been applied to taxpayers with many children or those who live in states with high income and property taxes, the Associated Press reported. The AMT requires figuring taxes both the traditional way and under the AMT system, with taxpayers paying the higher amount.
Community News

AICPA Names Outstanding Educator for 2005

Charles H. Smith, currently KPMG professor of Accounting at Penn State University, is the recipient of the American Institute of Certified Public Accountants’ (AICPA) Distinguished Achievement in Accounting Education for 2005.
Practice

AICPA Business Solutions Expands to Include 401(k)

Paychex 401(k) Recordkeeping services have been added to the Paychex Partner Program from the American Institute of Certified Public Accountants (AICPA) Business Solutions. “The addition of 401(k) to the CPAs’ tool chest offers another great way to professionally serve their clients,” said Tony Tortorella, vice president of Human Resource Services – Sales for Paychex.
A&A

Calendar: Succession Planning Webcast

Succession planning consistently ranks among the top issues facing businesses of all sizes and types. According to a survey conducted by the Private Companies Practice Section (PCPS) of the American Institute of Certified Public Accountants (AICPA) in 2004, 56 percent of CPA firms have at least one partner retiring in the next five years.

Lease Accounting Problems Dominate Restatements

Errors in lease accounting contributed to 22.5 percent of the weaknesses reported to the Securities and Exchange Commission (SEC) in April. During March, less than 10 percent of weaknesses reported were due to errors in lease accounting. According to Compliance Week magazine, many of the disclosures came after Donald Nicolaisen, chief accountant for the SEC, sent a letter clarifying lease accounting rules to Robert Keupers, chairman of the Center for Public Company Audit Firms, an arm of the American Institute of Certified Public Accountants (AICPA).
Education & Careers

AICPA Launches New Education Resource

The Accounting Education Center at www.aicpa.org, provides users with education and curriculum development programs, student recruiting resources, scholarship and award information and a variety of publications, reports and other studies.Information on the site is divided into five categories:Education and Curriculum DevelopmentCareer AwarenessScholarships and AwardsPublications, Reports and StudiesMinority InitiativesWithin the Education and Curriculum Development section, users will fi
A&A

FASB May Re-Open Talks on Derivatives and Hedging Activities

The Financial Accounting Standards Board (FASB) may re-start discussions on one of its most controversial standards–accounting for derivatives.Financial Accounting Standard 133–Accounting for Derivative Instruments and Hedging Activities–took effect in 2000 and angered many business owners.

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