SEC chair Christopher Cox recently announced that almost one-third of the material weaknesses discovered during the initial SOX Section 404 audits of internal controls related to accounting for
"A lot of what we are trying to do right now is maintain the status quo on accounting for
insurance contracts," he said.
144, Accounting for
the Impairment or Disposal of Long-Lived Assets, and International Accounting Standard (IAS) 35, Discontinuing Operations--and jointly concluded that Statement no.
In Brennan's opinion, accounting for
many kinds intangibles will probably have to take place outside the current accounting model.
Under this option, the taxpayer's method of accounting is unchanged, but the taxpayer agrees to pay the government a non-deductible, noncapitalizable "specified amount" that approximates the time-value-of-money benefit the taxpayer has received by using its method of accounting for
the years under consideration by Appeals or government counsel.
Local institutions are the dominant providers of household financial services, accounting for
84 percent (2.29 of 2.72) of all institutions used.
16 and 17 on accounting for
business combinations and goodwill.
97-27, which relates to the conditions and procedures for obtaining the Commissioner's consent for a change in a taxpayer's method of accounting for
federal tax purposes.
1.446-1(e)(2)(ii)(a) defines a change in accounting method as a change in the overall plan of accounting for
gross income or deductions or a change in the treatment of any material item used in such overall plan.
133, Accounting for
Derivative Instruments and Hedging Activities, illustrates how this works.
However, some who disagree with the FASB's premise maintain that mergers are fundamentally different from acquisitions, and that accounting for
true mergers of equals requires using a different method than purchase accounting.
92-20 provides that if the taxpayer timely files a Form 3115 with the National Office, an examining agent may not propose that a taxpayer change the same method of accounting for
a year prior to the year of change prescribed under the procedure.
133, Accounting for
Derivative Instruments and Hedging Activities in June 1998 (see "The Decision on Derivatives," JofA, Nov.
Therefore, a taxpayer otherwise using the overall accrual method that fails to accrue a deduction or income until paid or received (i.e., the cash method), could be eligible to automatically change its method of accounting for
We now have Financial Accounting Standard 123, "Accounting for
Stock-Based Compensation," which encourages, but doesn't require, employers to charge compensation expense to income based on the estimated fair value of employee stock options, a condition that clearly could result in different treatment of the same condition in the financial statements of U.S.