AccountingWEB Weekly News Wrap-Up - Issue 142

AccountingWEB Weekly News Wrap-Up - Issue 142

April 19, 2002

This News Wrap-Up Sponsored By:

Mangosoft, Inc.

Oracle E-Business

NEWS FOR ACCOUNTINGWEB MEMBERS

1. Andersen Will Not Plead Guilty - Firm Heads for Trial
2. Small Corporations Say Good-bye to Schedules L and M
3. Andersen U.S. Audit Practice May Splinter Into Pieces
4. Big Five Merger Will Create Canada's Largest Accountancy
5. IRS, States Begin Crackdown on Partners' Tax Returns
6. Deloitte Returns to New York Offices After Terrorist Attacks
7. IFAC Leads Auditors Into the Internet Age
8. GRI Issues Guidelines for Triple-Bottom-Line Reporting
9. Fortune Cites Creative Accounting, Blames the Auditor
10.SEC Releases Proposal to Modernize Reporting Rules

EDITORIAL

Managing a group of professionals, as everyone knows, is a difficult skill to master, and has been likened to the unenviable task of "herding cats." But most consultants and profitability experts agree that there is no better way to increase the productivity of a professional practice than to better manage the staff working for you.

On Thursday, May 2, AccountingWEB Members will have a unique opportunity to hear from two of the world's renowned experts on managing the professional services firm. Mr. David Maister and Mr. Patrick McKenna will join AccountingWEB via a teleconference to discuss the principles they uncovered while researching and writing their new book, "First Among Equals" and to answer your questions on the art of managing a group of professionals. You may bring your managers together in your office for this hour-long session to learn from the experts and to gain some ideas to assist your organization in managing your staff.

Secure your spot today; attendance is limited to the first 50 registrants. Go to http://www.accountingweb.com/item/77230 to register today.

Michael Platt, CEO
mailto:editor@accountingweb.com

NEWS FOR ACCOUNTINGWEB MEMBERS

1. Andersen Will Not Plead Guilty - Firm Heads for Trial

After weeks of discussions, Big Five firm Andersen walked away from the Department of Justice's negotiating table Thursday and headed for the courtroom. "We are no longer in talks with DOJ and nothing is planned in the immediate future," said Andersen lawyer Rusty Hardin. Andersen lawyers were unable to agree on acceptable settlement language and ultimately left the negotiations. Trial on the obstruction of justice charge is set for May 6.

2. Small Corporations Say Good-Bye to Schedules L and M

The IRS announced last week that beginning with tax year 2002, companies with less than $250,000 in gross receipts and less than $250,000 in assets can bypass filling out the Schedules L, M-1, and M-2 on their corporate income tax returns. Corporations who file Form 1120-A and who are under the $250,000 threshold no longer have to prepare Parts III and IV of their 1120-A.

3. Andersen U.S. Audit Practice May Splinter Into Pieces

The hope of merging Andersen's U.S. practice as a unit into another Big Five firm has all but disappeared, scattering the firm into several pieces both in the U.S. and overseas. Andersen has reached a tentative agreement to turn over some of its U.S. audit practice to Big Five firm KPMG, and a spokesman for PricewaterhouseCoopers told the Washington Post that they are in discussions with Andersen to acquire particular territories in the United States.

Mangosoft, Inc.

Improve Your Productivity - Affordable Solutions

"Mangomind" enables you to access and share files such as Microsoft Office for Windows, accounting software files such as QuickBooks, Peachtree and more with your staff and clients. Instantly access up-to-date documents from your home, remote offices, or that vacation hideaway from a secure, central Internet workspace and share them with multiple people in real time. Eliminate mail delays and improve your overall productivity. Only authorized users can access files. This easy-to-use and affordable solution starts at just $29.95 per month for up to five unique users.

AccountingWEB Members can try it Free for 30 days just click on the Free 30-Day Trial button or call toll free 888-886-2646 and mention Code AWEB for your Free 30-Day Trial.

4. Big Five Merger Will Create Canada's Largest Accountancy

Big Five firms Deloitte & Touche and Andersen inked an agreement last Friday to combine operations in Canada, forming Canada's largest accounting firm. Currently, Deloitte & Touche is the country's second largest firm behind PricewaterhouseCoopers.

5. IRS, States Begin Crackdown on Partners' Tax Returns

The New York Times reported last week that the Internal Revenue Service is sharing information to help state tax authorities crack down on underreporting of income by partners and other participants in pass-through tax entities. Some states are waiting until the IRS is geared up to handle the crackdown at the federal level. However, New York, New Jersey, Massachusetts, Wisconsin and nine other states now have the information needed to identify partners who underreport income.

Oracle E-Business

Manage By Fact, Not Fantasy

Manage by fact, not fantasy, with Daily Business Close. When quarterly information isn’t good enough, get real-time facts about your business. Daily Business Close gives you portal views of enterprise-wide information, for real-time decision-making support. Get the latest in sales, leads, and inventory, plus expense and headcount metrics. Only with Oracle E-Business Suite. Get your Free Success Kit today.

6. Deloitte Returns to New York Offices After Terrorist Attacks

Undeterred by the acts of evil and violence that marked September 11, 2001 as a day of infamy, Deloitte & Touche has begun returning its partners and employees to refurbished offices in the lower Manhattan financial district. The offices at One World Financial Center that served as the firm's regional headquarters since 1993 were destroyed in the terrorist attacks.

7. IFAC Leads Auditors Into the Internet Age

Years ago, white collar criminals broke into computer files for such old-fashioned reasons as greed and misappropriation of funds. In those days, controls were as simple as putting a lock on the computer room door. Today, hackers may bring down a Web site just for the fun of it, and assessments of internal controls often require a unique combination of technological and cross-border expertise. These changing dynamics add a whole new dimension of risk to audits of financial statements, and it is precisely these risks that are addressed in a new practice statement issued by the International Federation of Accountants.

Credit Markets Likely To Improve

Members of The Association for Corporate Growth anticipate greater availability of credit in the second half of '02. At the annual Intergrowth conference meeting in Orlando, it was reported that the business credit markets will likely be more favorable because of the improving general economic outlook, a build-up of cash among banks and institutional lenders and the formation of new lending groups.

To learn more about who these new sources are and how to help your clients improve profitability and maximize value, plan to attend the SuperConference for CPAs on July 17-19 in Chicago. Learn more today

8. GRI Issues Guidelines for Triple-Bottom-Line Reporting

While some in the profession may question the long-term viability of audit-only accounting firms, proposed guidelines issued recently by the Global Reporting Initiative may help make the vision more feasible. The GRI's guidelines for "triple-bottom-line reporting" would broaden financial reporting into a three-dimensional model for economic, social and environmental reporting.

9. Fortune Cites Creative Accounting, Blames the Auditor

When Fortune magazine published its listing of the 500 largest U.S. companies this year, it listed Enron as No. 5 based on nine-month revenue figures. Next to Enron's name were a question mark, exclamation point, and a cross-reference to a separate article about the Revenue Games People (like Enron) Play. "No question about it," the article concludes, "the creativity of corporate accounting knows no bounds." But corporate accountants didn't catch the brunt of the magazine's criticism. Auditors did.

95% of respondents agree that criminal penalties should be levied against corporate directors who deliberately mislead auditors. What's your view? Take AccountingWEB's survey "The Impact of Enron: How Far Will It Go."
http://www.accountingweb.com/survey/auditsurvey2002.html

10. SEC Releases Proposal to Modernize Reporting Rules

Last week, the Securities and Exchange Commission approved the release for public comment of proposed rules that would modernize and improve the timeliness of its system of corporate disclosures. The proposed changes recognize the importance of the Internet and move companies closer to real-time reporting. Some see these changes as long overdue. Despite widespread improvements in information technology, the shorter filing deadlines proposed by the Commission would represent the first change in more than 30 years.

ADVERTISE WITH ACCOUNTINGWEB

AccountingWEB has a variety of promotional opportunities available for you to market your company, services and products to our targeted audience of accounting professionals. Brand awareness and lead generation are the main reasons for an ongoing and targeted marketing campaign. Contact us today for more information.

ACCOUNTINGWEB Q&A FORUM

Visit our Q&A Forum to post your questions and share your ideas with the members of AccountingWEB! Simply click on the "Add Comments" option at the bottom of any question to add your response and comments.

Here is a sample of the questions that have been posted this week. Post your own questions or see if you can lend a hand to others looking for help.
http://www.accountingweb.com/help/anyanswers.html

1. Depreciation 30% Stimulus Package: If building improvements such as renovating a façade or lobby on a residential rental building are made after 9/11/01, is the owner entitled to a 30% reduction under the new rules?

2. NOLs: Must an NOL be carried back for five years, or can it be carried back for three years?

3. Employer-Provided Living Accommodation for Inpatriates: Are tax savings possible in the U.S. for company provided accommodation where an inpatriate goes to the US on assignment for a few years?

* * * * * * * * * * * *

Copyright (C) 2002 AccountingWEB, Inc. All rights reserved.

"To inform, to enrich, to enlighten, to entertain."


Already a member? log in here.

Upcoming CPE Webinars

Sep 24
In this jam-packed presentation Excel expert David Ringstrom, CPA will give you a crash-course in creating spreadsheet-based dashboards. A dashboard condenses large amounts of data into a compact space, yet enables the end user to easily drill down into details when warranted.
Sep 30
This webcast will include discussions of important issues in SSARS No. 19 and the current status of proposed changes by the Accounting and Review Services Committee in these statements.
Oct 21
Kristen Rampe will share how to speak and write more effectively by understanding your own and your audience's communication style.
Oct 23
Amber Setter will show the value of leadership assessments as tools for individual and organizational leadership development initiatives.