Discover news about Accounting
- Tickmarks
How Will the Financial Reform Act Affect Bank Customers?
An analysis of the Financial Reform Act by AccountingWeb shows a variety of impacts on financial activity--some clearcut, such as the elimination of SOX for certain small public companies and a significant tightening of interest-only loans and prepayment penalties on mortgages while others are more subtle--some unclear degree of limits on hedge fund and derivative trading by banks. The Consumer Financial Protection Agency has been given a sizable amount of power and banks are likely to need to have additional legal compliance officers.Mon, 26 Jul 2010 17:22:00 +0000
As indicated in previous posts, any increase in government regulations given the present weak economy makes me somewhat nervous; having said that, I also recognize that only BP stands in lower public regard than the large banks today within the business community. Hopefully, the tighter regulations will not dry up the willingness of banks to lend to individual consumers of middle-quality credit; however, don't be surprised to see "tight money"; which would further endanger the shaky recovery.$50 to Register with US Government as Tax Preparer
Recently issued IRS proposed regulations include a $50 technology fee to register with the IRS as a tax preparer. Additionally, a smaller fee appears likely for online access. While the link to the actual proposed regulation was broken, it APPEARS that the fee is a one-time fee.Thu, 22 Jul 2010 20:27:00 +0000
While this fee on the face is fairly innoculous, an equity question is raised. Traditionally, the IRS has limited direct preparer representation of taxpayers to self, spouse, business "partner", officers of a business or appropriate representative of estate or trust, direct preparer in some cases, enrolled agent, CPA or licensed attorney. Given that tax preparers who not EAs, CPAs or JDs will be paying this fee, equity suggests that they should now be eligible to directly represent taxpayers. Whether this should happen from a professional perspective is likely to generate similar debate to that raised by the testing requirements of the new taxpayer PIN registration--I look forward to seeing the tax bloggers comment on this issue.SOX Undarned--$75 Million Exemption for Smaller Public Companies Likely
The North (San Francisco) Bay Business Journal is predicting that Congress will exempt public companies with capitalization of less than $75 million from certain audit requirements--including an audit of internal control. The provision, intended to be "permanent", is likely to be included in Congress's financial reform legislation.Thu, 22 Jul 2010 20:11:00 +0000
I have mixed feelings about this decision. The first facet involves government regulation. As stated in earlier posts, I believe that the federal government generally overregulates business and that overregulation has slowed economic growth and perhaps even led some companies to list in non-US exchanges. On this facet, Congress deserves commendation. On a second facet, Clark Keeler (interviewed in the article) raises a good point--Sarbanes-Oxley has effectively become "best practices" in internal control development and disclosure and companies failing to reach the SOX standards stand at risk of higher interest rates, lower bond ratings and/or lower stock market prices. Therefore, I hope that "small" public companies which opt out of explicit SOX compliance will still attempt to achieve SOX compliance on auditing issues, especially internal control.An Appeal to Slow IRS 1099 Regulations
Democratic Senators Evan Bayh (IN), Paul Begich (AK), Ben Nelson (NE) and Jeanne Shaheen (NH) have called on the IRS to find ways to keep the new health-care (often called Obamacare) reporting regulations from overwhelming small businesses. A particular concern is a provision which requires the filing of 1099s to vendors which have sales of over $600 to healthcare providers during the year. The Senators encourage the IRS to find ways to reduce the paperwork burden; perhaps by allowing healthcare providers to consolidate this information with other paperwork.Wed, 14 Jul 2010 15:52:00 +0000
We applaud these predominately moderate Senators for taking important first steps toward realizing the damage that heavy Federal regulation has done to American economic activity--including employment levels. Sadly, many Democrats and no small number of Republicans still need to get this "memo."PCAOB Attempts to Upgrade Confirmation Standard
The Public Companies Accounting Oversight Board has proposed a confirmation standard to supercede present AU 330. Daniel Goelzer of PCAOB says that the new standard would modernize confirmation requirement, increase the focus on confirming with independent third parties and more explicity address risks of errors and frauds. Interested parties have about 60 days for public comment before the new standard is sent to the SEC for consideration.Wed, 14 Jul 2010 15:33:00 +0000
Confirmations have been a hallmark of audits for decades now. While it is not clear how the new guidelines will put greater emphasis on independent parties; the increased focus on fraud and errors is consistent with recent auditing standards such as SAS 99.10 Commandments [??] for CPA Practice
Connecticut CPA William Brighenti gives his insights into how to succeed in the business practices of a CPA--though at times it is hard to tell whether the advice is spoof or serious. The first five edicts: hire good-looking accountants, pay a salary rather than hourly wage to avoid overtime costs, keep the hope of partnership alive to keep the accountants eager, try to take jobs on a retainer and quote an hourly cost rather than a total cost. The final five assertions: let the hired staff handle the telephone, charge the maximum possible, be vigilant against fraud and deceptive financials, avoid sitting on charitable boards and pay only for results, not promises.Wed, 07 Jul 2010 20:39:00 +0000
Specific topics (reducing telephone use and being vigilant against fraud stand out) are of value and admittedly Brighenti's ideas will increase profitability--but probably only in the short run. If serious, Brighenti is too cynical by half; if spoof, the piece is well executed.Some Love for Kay Bell and the Carnival of Taxes and a Warning to Those with Spam Posts
[1] I dropped the ball and did not submit this month, but Kay Bell deserves commendation for continuing to publish Don't Mess with Taxes which presently is on a monthly basis. The carnival will probably be out this afternoon and includes a variety of tax tips of legal, policy and personal finance natures. Kay has been kind enough to link to several dozen of my posts during the Carnival and I believe that reading today's carnival will be worth your time.Mon, 05 Jul 2010 14:04:00 +0000
[2] As strongly as I can make this point, I want to discourage spammers in the comments section (have I been too lenient on close calls in the past?--perhaps). At the risk of appearing to be a xenophobe, I ESPECIALLY will pull posts written in languages other than English (unless an English translation is included--I still may pull it anyway if I am dissatisfied). With non-English language posts, I literally do not know whether the commenters have a valid point or whether they are promoting a spam, pornographic or phishing site.
UPDATE (July 22)--I have now required word verification to reduce spam. My apologies for inconvenience to legitimate commenters.The Homebuyer Credit: What [Else] Could Go Wrong?
The Treasury Inspector General for Tax Administration (TIGTA) just reported that about $9 million in homebuyer tax credits were claimed by prisoners. Additionally, over 80 IRS employees made errant or fraudulent homebuyer credit claims. Overall, over 14,000 inappropriate credits have been allowed, including 2,500 for purchases prior to the credit's inception. TIGTA said that this development was "very troubling" but did give the IRS credit for working to reduce some abuses from the earlier stages of the credit. One example: no minors claiming the credit were found in this investigation.Wed, 23 Jun 2010 17:41:00 +0000
At best, the Homebuyer's credit had marginal justification in attempting to stabilize the housing market and put brakes on the depths of the recession on 2009. With the economy doing slightly better and evidence that the IRS is having difficulty policing abuses of the credit; it appears that the only significant remaining beneficiaries of the credit are realtors and certain politicians.Father's Day
For the last several days I have been "batching" it with two dogs while my wife has spent time with her mom. One of the dogs, "Maggie," is a ten-week-old golden retriever and still has many things to learn. I'm afraid that I have not had much patience with her; making me wonder whether I would have been much good as a dad.Sun, 20 Jun 2010 15:23:00 +0000
Dads do not have the easiest role in society today--and certainly one not nearly as respected as in my younger years. The dad is the most common butt of jokes in family sit-coms (Cliff Huxtable nonwithstanding), marketers surely put less effort into Father's Day vs. Mother's Day and elements within the feminist movement are quick to point out the failures of some dads and in effect spread the brush to others (not that this excuses parental neglignece or abuse--whether from dad or mom).
Yes, there may be some among my readers who need to get off their rump and start trying to reconcile themselves to sons, daughters or both. To the larger portion of my father readership and the tens of millions of men throughout the country who at least try (if not always succeed) to take Dadship seriously, Happy Father's Day and may God bless--especially Don Meyer, my own dad.When to Carry Debt--Not Necessarily Approved by Dave Ramsey
Yahoo's Jeff Brown contrasts concerns with the Federal Budget with personal budgeting issues in this article. Brown points out that one lesson to learn from the Feds is to NOT use ahort-term debt to cover long-term responsibilities. Brown also argues that while an emergency situation can justify serious debt, "emergency" must be carefully defined so that vacations aren't defined as emergencies. Brown argues that only homes and education justify debt and that credit cards should only be used for convenience and timing, not as a source of funding.Thu, 17 Jun 2010 04:06:00 +0000
I am generally satisfied with Brown's commentary, though he may be slightly more willing than I to borrow for a basic automobile. One additional point--do not borrow for education unless you have a specific plan--including both course of study/major and plan for employment after your education.
- Smartbrief: CPA Letter Daily
White House plans to address Fannie, Freddie in August meeting
28 Jul 2010 07:57:30 CDT
A conference at the U.S. -More-Award Winning Practice CS — Practice CS gives you the power to manage your firm from anywhere and scales easily to fit your needs. Start simple with time and billing, then add project due date tracking, staff availability, and more. Combined with web-hosted and mobile solutions, your practice goes wherever you go. Learn more and register for a free webinar.
Stimulus saved the U.S. from a second Great Depression, study shows
28 Jul 2010 07:57:30 CDT
Without the government's broad intervention in the economy beginning in 2008, the U.S. -More-The basics of negotiating loan covenants
28 Jul 2010 07:57:30 CDT
The right strategies can help keep critical capital flowing to your company or clients without undue constraints, and minimiz -More-Americans' trust in the financial sector improves
28 Jul 2010 07:57:30 CDT
The Financial Trust Index published by the Chicago Booth/Kellogg School shows that trust in the financial sector as a whole h -More-Homeownership in U.S. is lowest since 1999, Census Bureau says
28 Jul 2010 07:57:30 CDT
During the second quarter of this year, homeownership in the U.S. declined to 66.9%, a Census Bureau survey found. -More-Start and finish a CPE course on your lunch hour!
CPExpress, the AICPA's popular online learning library, gives you unlimited online access to over 1,200 hours (900+ courses) of high-quality CPE for one low subscription price. Start and finish most CPE courses in as little as 1 to 2 hours. > Order Now
Paychecks will get smaller if tax credit isn't extended
28 Jul 2010 07:57:30 CDT
Middle-class workers will see their take-home pay shrink at the end of this year if Congress doesn't act on President Barack -More-Rule making is not a forum for more debate, SEC's Schapiro says
28 Jul 2010 07:57:30 CDT
Securities and Exchange Commission Chairman Mary Schapiro told a business gathering that the process of writing rules for the -More-The decade's 25 highest-earning CEOs
28 Jul 2010 07:57:30 CDT
The Wall Street Journal breaks down the business world's biggest earners for the past decade. -More-Financial-reform law's diversity provision garners attention
28 Jul 2010 07:57:30 CDT
Financial companies that don't hire enough women and minority employees might find themselves losing government contracts und -More-PFS exam and exam-review sponsorships are now available
28 Jul 2010 07:57:30 CDT
The Association of CPA Financial Planners has funded sponsorships to help offset the cost for the 2010 AICPA PFS exam and exa -More-
- Topix: Accounting News
Race dominates IRT project debate
Thu, 29 Jul 2010 10:04:58 GMT
Metro Writer Race dominated Wednesday's council meeting when opposition parties tore into the city's Integrated Rapid Transit project in a heated debate saying the project's first phase was unconstitutional as it would benefit those already privileged.
Indian film biz to grow by 12% a year
Thu, 29 Jul 2010 06:00:25 GMT
The Indian film biz is set to grow by 12.4% a year to reach Rupees 170.5 billion by 2014 from $2 billion in 2009, according to a report released by PricewaterhouseCoopers.
Free tax checkup
Thu, 29 Jul 2010 01:50:46 GMT
Jackson Hewitt Tax Services is offering a free, mid-year tax checkup to help taxpayers make sure they're on the right course.
Al khaliji looking to complete IBQ due diligence in 8 weeks
Wed, 28 Jul 2010 21:46:12 GMT
Al khaliji expects due diligence on International Bank of Qatar to be completed in eight weeks, according to its top official.
H&R Block Taps Fallon as Lead Agency
Wed, 28 Jul 2010 18:41:30 GMT
H&R Block has confirmed hiring Publicis Groupe's Fallon in Minneapolis as its lead creative agency.
Let's champion our business successes
Wed, 28 Jul 2010 14:31:57 GMT
Arriva headed the Journal Top 200 list of the biggest companies in the North East by turnover for the second year running.
China leads emerging markets in investment opportunities
Wed, 28 Jul 2010 11:27:16 GMT
China's investment opportunity index ranks first among 27 emerging economies, according to a report released by Grant Thornton LLP, a well-known accounting firm.
Virtual Filesystems Are Virtual Office Documents
Wed, 28 Jul 2010 07:22:40 GMT
Use libferris, XML and XSLT to create virtual filesystems and virtual documents.
Bruce Rohde, former CEO of ConAgra, joins board of H&R Block
Wed, 28 Jul 2010 05:22:54 GMT
Bruce Rohde, former chairman and chief executive of ConAgra Foods Inc., has been named a director at H&R Block.
Leaving Big Accounting Firm for Hollywood
Wed, 28 Jul 2010 01:07:58 GMT
John Finn loves accounting so much that he co-wrote a song about it for his band, Pispoure, in which he plays bass guitar when not busy with his main gig: running a small accounting firm and software company for the television and film industry.
- Accounting tagged flickr pictures
- eBay Accounting tagged auctions
- Accounting tagged videos
Loading...
Bookmark and Share this page