October Features


The CPA Journal Millennium Series

  Goodwill Convergence

  By Robert N. Waxman

   Introduced in July 2001, SFAS 142 marked a new direction for accounting for goodwill in the United States. FASB decided to treat goodwill as a non-wasting asset that would periodically be tested for impairment. This treatment moves U.S. GAAP on goodwill further away from U.K. and international GAAP and does not works against the long-sought goal of global convergence. (Article)


The CPA Journal Millennium Series

  Users' Comments on SFAS 141 and 142 on Business Combinations and Goodwill 
  By Eric E. Lewis, Jeffrey W. Lippitt, and Nicholas J. Mastracchio, Jr.

  Under Edmund Jenkins, FASB has placed a premium on the needs of financial report users--analysts, investment bankers, lenders, and investors. This user orientation is reflected in the changes made to SFASs 141 and 142 as they went from exposure draft to statement. The authors analyzed comment letters against the changes made to the exposure drafts and conclude that a user orientation could be the next step in standards setting. (Article)


  Accounting Changes for the Film Industry 

  By Marc H. Levine and Joel G. Siegel

  AICPA Statement of Position 00-2, Accounting by Producers or Distributors of Films, presented new accounting, reporting, and disclosure requirements for the motion picture industry. The position was codified in SFAS 53, Financial Reporting by Producers and Distributors of Motion Picture Films, which became effective on December 15, 2000. The standard is aimed at codifying the practice of timing revenue recognition, classifying film costs, and estimating future financial performance. (Article)


   Component Unit Reporting in the New Reporting Model 
  By Randall L. Kinnersley and G. Robert Smith, Jr.

  The new reporting approach required by GASB 34 has created a number of challenges in its interpretation and implementation. Based on an analysis of more than 200 comprehensive annual financial reports, the authors conclude that GASB should modify the definition of and reporting options for major discretely present component units. They believe a revised approach will not only accord with current practice but also provide more information to users. (Article)


    Management Fraud Risk Factors: Ratings by Forensic Experts 
  By Barbara Apostolou, John M. Hassell, and Sally A. Webber 

     SAS 82, Consideration of Fraud in a Financial Statement Audit, identifies 25 risk factors that auditors should consider when assessing the risk of management fraud in a financial statement audit. It does not, however, offer any guidance on how much weight to assign to each factor. The authors surveyed fraud experts in order to develop a model that provides guidance on how to weight each of the risk factors. (Article)


  October Departments

   Comprehensive income disclosures (Article)
    Corporate Taxation 

   The corporate AMT in review (Article)

    The CPA in Industry 

   Motivating employees during tough times (Article)
   Controlling the costs of mismanagement and turnover (Article)

  The CPA and the Computer 

   Security issues on the Internet (Article)

   Estates and Trusts
   Common estate planning myths (Article)
   Personal Financial Planning
   Providing for elder care (Article)
  Federal Taxation
    Income tax issues facing divorced or separated individuals (Article)
   The SEC Advisor
   SEC grants relief for repriced stock options (Article)
  Guest Editorial
    A lifetime of rewards for the trusted professional, by Stuart Kessler (Article)

October News & Views

    Global convergence: Two steps forward, but in what direction?
  A membership at the crossroads of disenfranchisement       
   A nation united--enduring and resilient
   The rise and fall of the ISB
   Website of the month: AccountingWeb
   MDP update: The empire state strikes back
   Book Review: Transnational Accounting, Second Edition
   IMA, AICPA, AAA chiefs on profession's top issues

  Letters to the Editor
   Yes, CPA review course are useful, but ... 
   CPE for professors as one bridge across the education gap
   From the Good Book to web clutter

 Coming Soon

  November is technology month 
  Internet security and e-business
  Choosing accounting software

  Implementation of SFAS 138
The CPA in Industry  
  Electronic service disruptions
The CPA Consultant
  Online privacy


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The CPA Journal is broadly recognized as an outstanding, technical-refereed publication aimed at public practitioners, management, educators, and other accounting professionals. It is edited by CPAs for CPAs. Our goal is to provide CPAs and other accounting professionals with the information and news to enable them to be successful accountants, managers, and executives in today's practice environments.

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