CalCPA BUZZ
Keeping CalCPA Members Connected and Informed
Archive for the ‘CalCPA Buzz’ Category
January 13th, 2012
A formal, post-implementation review of FASB Interpretation No. 48, Accounting for Uncertainty in Income Taxes (FIN 48), found that the accounting standard generally achieved its goal of increasing relevance and comparability in reporting information about income tax uncertainties. However, some stakeholders believe the standard could be improved. The report concluded that:
- FIN 48 has resulted in more information about uncertain income tax positions being reported than had been the case before its implementation.
- Financial statement preparers are accounting for and reporting income tax uncertainties more consistently and such information is more relevant than it had been prior to FIN 48.
- On balance, the benefits that FIN 48 provides to investors in the form of improved consistency and reporting of income tax uncertainties outweigh its costs.
Learn more.
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January 13th, 2012
Improve standards so information about intragovernmental financing is understandable; determine whether the existing financial reporting model meets user needs and reporting objectives; and consider how financial reporting objectives are met with regard to public private partnerships are among the top issues included in the Federal Accounting Standards Advisory Board’s recently released three-year plan.
You are encouraged to submit ideas and comments by Feb 7. Comments should be directed to FASAB Executive Director Wendy Payne.
The FASAB is a federal advisory committee charged with developing generally accepted accounting principles for federal financial reporting entities.
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January 13th, 2012
CPA-PAC is the member-focused political action committee that serves as CalCPA’s independent, voluntary and nonprofit political action arm supporting legislative and statewide candidates—regardless of political affiliation—based on their ability to make a difference for California CPAs and businesses. CPA-PAC provides the means for CPAs to participate in the public policy process and voice their concerns about issues affecting the accounting profession. Stop by our updated CPA-PAC Q&A to learn more and find out how you can get involved and help speak out for the profession.
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January 13th, 2012
- Advanced Estate Planning Institute: Jan. 19-20, O.C. South and webcast
- Tax Consequences of S Corps Termination, Liquidation and Sale: Jan. 19, San Fernando Valley
- Revised Auditing Standards: Jan. 20, East Bay Area
- Staff Tax Training—S Corporations (Form 1120S): Jan. 23, L.A. Airport
- Form 709—Gift Tax Returns and Basis: Jan. 24, O.C. South
- ESOPs—Uses, Strategies, Benefits and Pitfalls: Jan. 24, Burbank Area
- Buying and Selling S Corporations—Tax Planning Opportunities: Jan. 27, San Francisco
- Health Care Conference: Jan. 27, Burbank Area and webcast
- Staff Training—Supervisory: Jan. 30-Feb. 1, S.F. Peninsula
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December 30th, 2011
New this year, the 2012 U.S. Master Tax Guide and Guidebook to California Taxes are available in ebook format.
The U.S. Master Tax Guide provides helpful and practical guidance on today’s federal tax law that reflects all pertinent federal taxation changes that affect 2011 returns, and provides fast and reliable answers to tax questions affecting individuals and business income tax.
The Guidebook to California Taxes is a source for quick reference to all taxes levied by the state, including personal and corporate income, property taxes, and inheritance and gift, sales and use. This edition also reflects significant new legislation, regulations, court decisions and California Board of Equalization through press time in December.
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December 30th, 2011
Did you know there’s a proposal to overhaul California’s tax system to impose a sales tax on professional services? Or that California is one of only two states that have not adopted mobility provisions consistent with the Uniform Accountancy Act?
The issues that are important to you and the CPA profession are important to CalCPA. Can we count on you to attend CPA Day at the Capitol Jan. 18? You will meet face-to-face with key decision makers who develop and implement public policy that affects you, your business, your profession and your community.
How can your presence help? Take a look at our successful 2011 advocacy efforts for an idea and read the experience of past participants.
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December 30th, 2011
The AICPA has recommended that the PCAOB refrain from imposing mandatory audit firm rotation. AICPA Chair Greg Anton and AICPA President and CEO Barry Melancon signed a comment letter sent to the PCAOB stating that mandatory audit firm rotation is costly and has the potential to hinder audit quality rather than enhancing it.
In August, the PCAOB issued a concept release on auditor independence and audit firm rotation seeking comment. The release noted that proponents of rotation contend term limits could decrease client pressure on auditors and create opportunity for a fresh look at a company’s financial reporting.
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December 30th, 2011
The word “employer” appeared in 346 bills introduced in the 2010-11 legislative session. While many failed to pass, several significant bills made it through the process. California regulation regarding how workers are hired, paid and treated is on the rise, including:
- Limits on employer use of employee credit reports;
- Increased risks to employers and their advisers for misclassification of employees as independent contractors; and
- Required written wage notices and contracts for employees paid commissions.
In case you missed it, this California CPA article—written by our labor law expert Mark Terman, Esq.—gives you the rundown of important labor law changes you might need to know for 2012.
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December 30th, 2011
The Preparer Tax Identification Number system for new registrants will be down for maintenance through Jan. 9. If you’re a new preparer and want to prepare returns before Jan. 9, and you’re unable to get a PTIN because the registration system is down, here’s what you need to do:
- Create and use an interim PTIN using the following format and the last 4 digits of your social security number: P9999XXXX (XXXX is where you enter the last 4 of your SSN). You must sign every return you prepare and use this interim PTIN until you’re issued a regular PTIN.
- Go online on Jan. 9 but no later than Jan. 18, and get a PTIN using the electronic PTIN application at www.irs.gov/ptin. Stop using your interim PTIN as soon as you obtain your actual PTIN.
Note that the system will be up for people renewing existing PTINs.
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December 30th, 2011
The Financial Accounting Standards Board issued Accounting Standards Update No. 2011-12, Comprehensive Income (Topic 220): Deferral of the Effective Date for Amendments to the Presentation of Reclassifications of Items Out of Accumulated Other Comprehensive Income in Accounting Standards Update No. 2011-05.
The Update defers the specific requirement to present items that are reclassified from accumulated other comprehensive income to net income separately with their respective components of net income and other comprehensive income. FASB decided to reconsider whether it is necessary to require companies to present reclassification adjustments by component in both the statement where net income is presented and the statement where other comprehensive income is presented for both interim and annual financial statements.FASB did not defer the requirement to report comprehensive income either in a single continuous statement or in two separate but consecutive financial statements.
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