Economy

Technology

Dotcom Disasters Keep Insolvency Practitioners Busy

Loss of investor confidence in dotcom companies has created a mini-boom for insolvency practitioners, according to British financial recovery and restructuring specialists, Kroll Buchler Phillips.The firm, known for its high-profile work with ailing British football clubs, has been at the forefront of the Internet insolvency boom."We've moved on from football," said Kroll Buchler Phillips business recovery partner Lee Manning.

Intuit's Loss is Good(?) News for Investors

Intuit, maker of TurboTax, Quicken, and QuickBooks software, posted a fourth quarter loss from operations of 4 cents per share, but overall earnings for the fiscal year ended July 31 are up 35%, and shareholders are cheering. The stock surged to $49 per share Tuesday, after languishing at around $35-$40 per share in recent months. Stock in the software company has risen 73% in the past 12 months.Forecasters had predicted a loss of 8 to 9 cents per share for Intuit's fourth quarter, so the final news was encouraging.

FASB Ruling May Stifle Mergers and Acquisitions

In a letter to the Financial Accounting Standards Board (FASB) signed by members of the Association for Financial Professionals, the Association warned that an impending FASB ruling will cause a dangerous slowdown to merger activity and may restrict U.S. economic growth. The warning is based on results of a survey conducted by AFP of its members.
Community News

AICPA Chair Discloses Plans for Accountants of Tomorrow

Speaking to tomorrow's accountants, the assembled attendees of the Beta Alpha Psi annual meeting last weekend, Bob Elliott, Chairman of the AICPA, presented a glimpse into the very near future.

'Pay Envy' Leads to Hostile Work Environment

AccountingWEB has run several stories over the past few months on compensation methods, ways to hire and retain employees, and other facets of the HR process. Now, a story from USA Today goes into the psychological aspects of some new recruits being paid more than seasoned professionals.Known as 'Pay Envy,' workers in companies throughout N.
A&A

The new CFO: Beyond Salary and Benefits in a Start-Up

Jumping ship to a dotcom is commonplace in today's online marketplace, but in a time when jobs are plentiful, what is the real attraction to go work for one of these start-ups?It's certainly not salary - many salaries are below what typical CFOs and finance professionals have been paid. It's certainly not the stock options either.

Economy Slows Down; Rates not Likely to Change

Reports gathered from the Federal Reserve Bank's 12 regional banks indicate that the economy slowed down during the spring and early summer periods.However, analysts predict this, combined with a projected slower pace in the late summer/early fall, will not be enough to convince the Fed to increase the interest rate.During June and July, the Fed specifically recorded slower pace in consumer spending, manufacturing and construction.This report comes on the heels of a story publish

Employees Just Wanna Have Fun

How does an accounting firm keep up with the times? Descriptions of the accounting industry often produce terms like down to earth, levelheaded, studious, etc. Face it, "fun" isn’t exactly the first term that comes to mind. However, in today’s job market, fun is a valuable feature to offer.

Accountants Struggle to Measure Human Worth

Traditional methods of accounting don't begin to capture the value of knowledge, relationships, and intellectual property that exist in today's business environment. Employees are hired and retained, not just for the hours of robotic-type service spent on an assembly line, but for the intrinsic value they bring to a company through their brain power, connections, skills, and personal resources. Barry Libert, a director with Arthur Andersen, sees the traditional accounting methods as being outdated for the New Economy.

Mortgages – More than Just a loan!

Purchasing a home is one of the most important investments an accountant’s client will ever make. Choosing the right mortgage and mortgage vendor is critical. With today’s innovative investment opportunities and complex tax environment, choosing the right mortgage financing can optimize your client’s portfolio, and decrease his or her tax liabilities. Each client’s mortgage needs must be integrated into their overall financial plan.

Women Rule as Bloomberg’s Women.com 30 Index Soars

Led by Hewlett-Packard (Carly Florina, CEO), the nation’s 13th largest company, the Bloomberg list of 30 top women-run companies has far exceeded the Dow and demonstrates that women executives are in no danger of not being taken seriously.The list of the top 30 companies run by women also includes such notables as Avon (Andrea Jung, CEO), World Wrestling Federation Entertainment (Linda McMahon, CEO), Martha Stewart Living Omnimedia (Martha Stewart, CEO), eBay (Meg Whitman, CEO), and Advent Software (Stephanie DiMarco, CEO).The Dow Jones Industrial Average is made up of 30 companies whi

Microsoft Puts 'Stock' in its Stock

Microsoft will be in a position to initiate a buy-back of its own stock next week, when a six-month waiting period ends following the purchase of Visio software by Microsoft. Analysts agree that this is a positive sign for Microsoft, which in the last year has been plagued by many troubles with regulators and antitrust.Microsoft bought the Visio program in January 2000 for $1.5 billion in stock. Visio is a program used primarily for drawings and diagrams, organizational charts, flow charts, and site maps.

Analyzing the Fed's Rate Hike: Words Speak Volumes

By now, it's old hat that Alan Greenspan of the Federal Reserve will recommend a half-point hike in the interest rate, but how he conveys the news is more likely to be news than the interest rate hike itself.For example, if the Fed were to communicate that this hike is the last one in the current monetary cycle, that would be a signal to Wall Street that there may be a rally.Instead, the Fed will be more cautious and not reveal any information as to what it may do in the future - and that they are not through with raising rates.At the same time, if the Fed says the rate hike is to hea
A&A

Analyst Fields CPA/Financial Services Conflicts

One of the most debated and discussed issues in the accounting profession is the one about commissions and contingent fees, and whether CPAs should be in the business of taking them.What would you do if you were faced with a situation involving accounting and consulting?Industry analyst Wilbur L. Ross Jr. recently sat down with a reporter from The New York Times to answer questions like this one, along with funding Internet start-ups, restatements of corporate earnings and the economy.You can find the full interview at the link below.

24 Principles of Globalization

Reprinted with permission from The Financial Management Network.A New Decade For Business: Twenty-Four Principles Of Globalization by Marvin Zonis Globalization may be the most significant development of our time. Driven by the spread of technology, the collapse of communism, and the ever-wider adoption of market economies, companies are spreading their operations across countries while peoples are interacting as never before.

Financial Executives Predict Inflation Increase

Results of a new poll of 304 companies report that CFOs are predicting inflation will increase by 3.5 percent during 2000. This and other observations were made by financial officers in a survey conducted by the Financial Executives Institute and the Duke University School of Business.The basis for this increase, up from 2.2 percent predicted at the beginning of the year, is the rising cost for oil.

Economy no Roadblock for Consumer Goods

Despite rising interest rates, increases in fuel prices and a mixed group of other factors, the outlook for second quarter 2000 remains strong in the consumer good arena, particularly electronics.And although growth rates have slowed somewhat, appliance manufacturers continue to see valid gains in sales after last year's record-setting sales.General Electric, for example, experienced no real break in deliverables despite fewer than expected housing starts and existing home sales.

Analyzing the Andersen Consulting/Microsoft Partnership

By now, it's old news that Andersen Consulting and Microsoft joined to form Avanade, a new venture to help the software giant implement solutions for e-Commerce.

Tax Cut Implications from Capitol Hill

The fight is on (again) in Washington, D.C. as Republicans rally to invoke a 10-year, $182 billion tax cut.Among the issues addressed is the often-discussed Internet tax, a tax on goods and services sold over the 'Net.
A&A

Good Advice for Home-Equity Loans

Clients often ask their accounting professionals to dispense advice on home-equity loans, the somewhat "panacea" to get out of credit card debt, college loans and other drains.Based on financial situations, the home equity loan is not all its cracked up to be. All too often, if a person borrows against the equity in their home to pay off credit card debit or college loans, then he or she may not have even learned how to avoid debt in the first place.

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