In Brief At the root of over a decade of regulation and best practices is the premise that the structure and independence of a company’s…
ICYMI | Accounting in the Public Interest
An Historical Perspective on Professional Ethics
In Brief The commitment to serve the public interest in accounting has eroded, as personal and business relationships with clients and client management increasingly create…
ICYMI | Overcoming Disclosure Overload and Achieving Greater Disclosure Effectiveness
A Status Report
Although still in the proposal stage, there has been substantial movement by both FASB and the SEC on major issues discussed by this author in…
In Brief The current upward trend of CPA firm merger and acquisition activity shows no signs of slowing down. CPA firms and individual professionals must…
Treasury Yield Curve Markets are looking to new Federal Reserve Chairman Jerome Powell for signals about the direction of interest rates. Expectations for three more…
Tax & Accounting Update is provided by Thomson Reuters and based on material published on Checkpoint, its online news and research platform. The Update is…
CPAs all share a common background. Each CPA must complete some type of education program that includes a minimum number of accounting credits; unfortunately, practice…
Changes are coming on the international front for the Code of Ethics for Professional Accountants and Non-Compliance with Laws and Regulations (NOCLAR) standards. While the international code…
Every CPA has probably dealt with this scenario: an initial meeting with a potential client who, while explaining their business or tax situation, asks a…
Shaping Financial Reporting Across the Globe
The Journey to Rediscovering a Passion
When I first enrolled for an undergraduate degree in electrical engineering at the University of Nairobi, Kenya, in 1987, I never would have envisioned a…
In a time when houses can turn on their own lights and cars can almost drive themselves, it is no wonder that new technologies are…
Update on Hedge Accounting Rules
FASB Addresses Effectiveness Concerns
In 1996, FASB underwent a major overhaul of its accounting rules pertaining to derivative instruments and hedging transactions; except for some minor tinkering, those rules…
The birth or adoption of a child brings joy to parents, grandparents, and other family members and friends. It also means financial challenges for families.…
In Brief The current upward trend of CPA firm merger and acquisition activity shows no signs of slowing down. CPA firms and individual professionals must…
A new series of cyber-related class action claims against at least 15 law firms could have serious implications into how CPA firms, and many of…
Changes to Accounting for Employee Share-Based Payment
ASU 2016-09 May Increase Volatility of Diluted EPS
In March 2016, FASB issued Accounting Standards Update (ASU) 2016-09, Improvements to Employee Share-Based Payment Accounting. The new guidance [codified under Accounting Standards Codification (ASC) Topic 718,…
Changes to the New York City Commercial Rent Tax
A Victory for Small Business Owners
A new law, passed by the New York City Council on November 30, 2017, made significant changes to the New York City Commercial Rent Tax…
Clarifying Auditors’ Responsibility for Fraud
Commercial Lenders’ Perceptions of Changes to the Audit Report
In Brief The PCAOB recently issued changes to the audit report, one of which explicitly clarifies auditors’ responsibilities for fraud by adding the phrase “whether…
The Importance of Independence
Considerations for Growing Firms
The “urge to merge” has profoundly affected the public accounting profession in recent years, as firms combine, acquire smaller boutique firms, expand service lines, and…
In November 2014, FASB issued Accounting Standards Update (ASU) 2014-17, Business Combinations (Topic 805): Pushdown Accounting, which became effective immediately. Topic 805 requires that in business combinations…
U.S. Tax Residency
Some Black-and-White Rules, Some Gray
When advising taxpayers or preparing returns, bright-line rules are generally the easiest to explain and to handle. In contrast, tax outcomes that depend on facts…
Questioning the Effectiveness of Independent Audit Committees
Does the Current Regulatory Regime Improve Reporting Quality?
In Brief At the root of over a decade of regulation and best practices is the premise that the structure and independence of a company’s…
The idea that CPA firms would allow non-CPAs to own a minority stake in a CPA firm and then refer to these non-licensees as “partners”…
Considering the Tax Benefits of Medical Tourism
Additional Savings for Taxpayers Seeking Care Abroad
In Brief Medical tourism refers to travelling to a foreign destination for the purpose of receiving medical treatment. Americans are traveling abroad in record numbers…
Although still in the proposal stage, there has been substantial movement by both FASB and the SEC on major issues discussed by this author in…
First Look at the Tax Cuts and Jobs Act
Impact on Employee Compensation and Benefits
On December 22, 2017, H.R. 1, commonly referred to as the Tax Cuts and Jobs Act (TCJA), was enacted into law. The TCJA contains numerous…
First Look at the Tax Cuts and Jobs Act
Questions and Answers on the Qualified Business Income Deduction
The Tax Cuts and Jobs Act of 2017 (TCJA) introduced a new write-off for owners of pass-through entities that runs from 2018 through 2025. This…
Accounting in the Public Interest
An Historical Perspective on Professional Ethics
In Brief The commitment to serve the public interest in accounting has eroded, as personal and business relationships with clients and client management increasingly create…