CPA Observation Post

Tax and spending cut issues will likely extend into 2013

Congress and the White House will almost certainly have to extend temporary tax cuts and delay the automatic "sequester" spending cuts into 2013. However, high-profile announcements from both parties are making it more difficult for the two sides to work out their differences. Read More>>

FASB moving forward in project to combat disclosure overload (via @AICPA_JofA)

After almost two years of development, the Financial Accounting Standards Board is scheduled to invite the public to comment on its project on a disclosure framework in June or July, FASB Chairman Leslie Seidman said Thursday. The framework project is designed to reduce disclosure overload. Its objectives are to determine which information is essential to investors; to get preparers to think about relevance; and to organize financial statements more sensibly. Read More>>

Auditing and Accounting Standards in Transition (via @AccountingToday)

A group of high-ranking officials in accounting and auditing standard-setting organizations discussed the changing standards for mandatory audit firm rotation, private company accounting and other controversial issues at the American Institute of CPAs’ Spring Meeting of Council. Read More>>

New Jersey jobs grow in April, so does unemployment (via @njdotcom)

The job market in New Jersey inched forward in April, and dire numbers from March were revised upwards as the state continues its long, slow employment comeback. Read More>>

GASB Releases School District Finance Guide (via @AccountingToday)

The Governmental Accounting Standards Board has published a new user guide to help taxpayers understand the financial statements of local school districts. Read More>>

Supreme Court Rules Couple Must Pay Taxes on Sale of Bankrupt Farm (via @AccountingToday)

The Supreme Court has handed down a decision in favor of the Internal Revenue Service collecting capital gains taxes from a couple who sold their family farm during bankruptcy. Read More>>

AICPA Presses for Passage of Mobile Workforce Bill (via @AccountingToday)

The American Institute of CPAs is urging the House to pass legislation this week to establish a uniform national standard governing the withholding of state income taxes for nonresident employees. Read More>>

AICPA to IRS: Capitalization Rules ‘Too Complex’ For Taxpayers

Many taxpayers will lack the resources to comply with the overly complex Internal Revenue Service (IRS) capitalization rules that govern the deduction and capitalization of tangible property expenditures are too complex and many taxpayers, especially small businesses, will not have the resources to comply, Carol Conjura, chair of the American Institute of CPAs Tax Methods & Periods Technical Resource Panel, said at an IRS hearing. Read More>>

Center for Audit Quality workshop addresses auditor's changing role

Management discussion and analysis, earnings releases, and key performance indicators were among the topics discussed at a workshop held by the Center for Audit Quality, which is affiliated with the AICPA, on the evolving role of the public company auditor. Workshop attendees noted that some investors would like a requirement that the auditor discuss the earnings release with the audit committee. Read More>>

Transatlantic Divide Grows Over Audit Rotation (via @CFOpub)

Although audit firms on both sides of the Atlantic are locked in arms against mandatory audit term rotation, they’re clearly split on how best to maintain auditors’ objectivity and skepticism. While alternatives to mandatory rotation are gaining ground in Europe, the United States may be headed in a different direction. Read More>>