September 2007 - Journal of Accountancy

   EXECUTIVE SUMMARY CPAs can help their clients determine what is a reasonable salary to pay shareholder employees (SEs) of S corporations, thus satisfying an IRS priority to collect proper amounts of employment taxes. Distributions, including “disguised distributions” such as a loan to an SE by the corporation or in-kind

         EXECUTIVE SUMMARY CPAs perform valuation services for numerous purposes, including transactions, financings, taxation planning and compliance, intergenerational wealth transfer, ownership transition, financial accounting, bankruptcy, management information, and planning and litigation support . SSVS1 applies to all members and is effective for engagements to estimate value accepted

         EXECUTIVE SUMMARY The Pension Protection Act of 2006 changed tax valuation matters that affect how appraisals of non-cash contributions are considered by the IRS. The IRS now has greater authority to impose penalties on appraisers who value property at an amount that the IRS later disputes.

       EXECUTIVE SUMMARY To ensure that your committee is up to its mission, you must first define the mission by drafting a strong charter that identifies audit committee functions, authority and responsibilities, along with the skills and experience its members must possess. Success is not automatic. Specify critical

       EXECUTIVE SUMMARY Section 407 of SOX requires public company disclosure of “financial expert” participation on an audit committee but stops short of requiring one. Reasons for not including one must be disclosed. CPAs have become prime candidates to serve in this capacity because they generally meet the

       Business valuation is an integral part of a number of CPA practice areas and many groups within the AICPA will be affected by the standard, AICPA Statement on Standards for Valuation Services no. 1, Valuation of a Business, Business Ownership Interest, Security, or Intangible Asset. The Business

         EXECUTIVE SUMMARY Zions Bancorporation developed Employee Stock Option Appreciation Rights Securities (ESOARS) as a market-based pricing technique for expensing stock options under FASB Statement no. 123(R). ESOARS auctions may be able to achieve a lower expense for Statement no. 123(R) purposes than other option-pricing models such