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Accounting Across Borders<br />
 N.Y. Legislation Delivers Reform, Mobility<br />
 IFRS on the Horizon<br />
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PLUS<br />
Madoff Victims' Tax Questions for 2008 Returns<br />
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C ONTENTS<br />
march 2009<br />
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26 Accounting & Auditing<br />
❙ International Accounting<br />
The Economic Effects of IFRS Adoption:<br />
Investigating the Expected Benefits<br />
<a title="The CPA Journal - March 2009 page 1" href="http://viewer.zmags.com/publication/417412e3?page=1">Accounting Across Borders N.Y. Legislation Deli</a> Accounting Across Borders N.Y. Legislation Deli<a title="The CPA Journal - March 2009 page 2" href="http://viewer.zmags.com/publication/417412e3?page=2"></a> <a title="The CPA Journal - March 2009 page 3" href="http://viewer.zmags.com/publication/417412e3?page=3"></a> <a title="The CPA Journal - March 2009 page 4" href="http://viewer.zmags.com/publication/417412e3?page=4">C ONTENTSmarch 2009 26 A</a> C ONTENTSmarch 2009 26 A<a title="The CPA Journal - March 2009 page 5" href="http://viewer.zmags.com/publication/417412e3?page=5">vol. LXXIX/no. 36 PERSPECTIVES16 INFOCUS </a> vol. LXXIX/no. 36 PERSPECTIVES16 INFOCUS <a title="The CPA Journal - March 2009 page 6" href="http://viewer.zmags.com/publication/417412e3?page=6"> PublisherLOUIS GRUMET Associate Pu</a> PublisherLOUIS GRUMET Associate Pu<a title="The CPA Journal - March 2009 page 7" href="http://viewer.zmags.com/publication/417412e3?page=7"></a> <a title="The CPA Journal - March 2009 page 8" href="http://viewer.zmags.com/publication/417412e3?page=8">P ERSPECTIVESviewpoint`Excelsior'The Pu</a> P ERSPECTIVESviewpoint`Excelsior'The Pu<a title="The CPA Journal - March 2009 page 9" href="http://viewer.zmags.com/publication/417412e3?page=9">publisher's columnNew Law Addresses Mobili</a> publisher's columnNew Law Addresses Mobili<a title="The CPA Journal - March 2009 page 10" href="http://viewer.zmags.com/publication/417412e3?page=10">(Continued from page 6)argument to include tax s</a> (Continued from page 6)argument to include tax s<a title="The CPA Journal - March 2009 page 11" href="http://viewer.zmags.com/publication/417412e3?page=11">vices, or other professional services involv-ing</a> vices, or other professional services involv-ing<a title="The CPA Journal - March 2009 page 12" href="http://viewer.zmags.com/publication/417412e3?page=12">not in good standing—or if final disci-plinary a</a> not in good standing—or if final disci-plinary a<a title="The CPA Journal - March 2009 page 13" href="http://viewer.zmags.com/publication/417412e3?page=13">without a principal place of business inNew York</a> without a principal place of business inNew York<a title="The CPA Journal - March 2009 page 14" href="http://viewer.zmags.com/publication/417412e3?page=14"> AccountingAssociations NeedSynergies, N</a> AccountingAssociations NeedSynergies, N<a title="The CPA Journal - March 2009 page 15" href="http://viewer.zmags.com/publication/417412e3?page=15">value, spur economic development, andbenefit soc</a> value, spur economic development, andbenefit soc<a title="The CPA Journal - March 2009 page 16" href="http://viewer.zmags.com/publication/417412e3?page=16">Extraordinary Circumstances:The Journey of aCor</a> Extraordinary Circumstances:The Journey of aCor<a title="The CPA Journal - March 2009 page 17" href="http://viewer.zmags.com/publication/417412e3?page=17">inbox: letters to the editorConfronting </a> inbox: letters to the editorConfronting <a title="The CPA Journal - March 2009 page 18" href="http://viewer.zmags.com/publication/417412e3?page=18">FocusInBy Jos</a> FocusInBy Jos<a title="The CPA Journal - March 2009 page 19" href="http://viewer.zmags.com/publication/417412e3?page=19">I n December 2007, the SEC eliminated the </a> I n December 2007, the SEC eliminated the <a title="The CPA Journal - March 2009 page 20" href="http://viewer.zmags.com/publication/417412e3?page=20">Background Why is IFRS back in the news? TheF</a> Background Why is IFRS back in the news? TheF<a title="The CPA Journal - March 2009 page 21" href="http://viewer.zmags.com/publication/417412e3?page=21"></a> <a title="The CPA Journal - March 2009 page 22" href="http://viewer.zmags.com/publication/417412e3?page=22">ulators around the world have influencedand will</a> ulators around the world have influencedand will<a title="The CPA Journal - March 2009 page 23" href="http://viewer.zmags.com/publication/417412e3?page=23">the adoption of the FASB online codifica-tion of</a> the adoption of the FASB online codifica-tion of<a title="The CPA Journal - March 2009 page 24" href="http://viewer.zmags.com/publication/417412e3?page=24">ences. Although there are differences inpresenta</a> ences. Although there are differences inpresenta<a title="The CPA Journal - March 2009 page 25" href="http://viewer.zmags.com/publication/417412e3?page=25"> Leases. The IFRS criteria for distin-guishing</a> Leases. The IFRS criteria for distin-guishing<a title="The CPA Journal - March 2009 page 26" href="http://viewer.zmags.com/publication/417412e3?page=26">companies occurred in June 2002 andwas effective</a> companies occurred in June 2002 andwas effective<a title="The CPA Journal - March 2009 page 27" href="http://viewer.zmags.com/publication/417412e3?page=27"></a> <a title="The CPA Journal - March 2009 page 28" href="http://viewer.zmags.com/publication/417412e3?page=28">A CCOUNTING & AUDITINGinternational accoun</a> A CCOUNTING & AUDITINGinternational accoun<a title="The CPA Journal - March 2009 page 29" href="http://viewer.zmags.com/publication/417412e3?page=29">capital flows and the lowering of the costof cap</a> capital flows and the lowering of the costof cap<a title="The CPA Journal - March 2009 page 30" href="http://viewer.zmags.com/publication/417412e3?page=30">Bahnson, whose Quality FinancialReporting (McGra</a> Bahnson, whose Quality FinancialReporting (McGra<a title="The CPA Journal - March 2009 page 31" href="http://viewer.zmags.com/publication/417412e3?page=31">value is defined as related to the futureearning</a> value is defined as related to the futureearning<a title="The CPA Journal - March 2009 page 32" href="http://viewer.zmags.com/publication/417412e3?page=32">Nonetheless, based on a review of the lit-eratur</a> Nonetheless, based on a review of the lit-eratur<a title="The CPA Journal - March 2009 page 33" href="http://viewer.zmags.com/publication/417412e3?page=33">■ Extent and nature of governmentinvolvement i</a> ■ Extent and nature of governmentinvolvement i<a title="The CPA Journal - March 2009 page 34" href="http://viewer.zmags.com/publication/417412e3?page=34">A CCOUNTING & AUDITINGinternational accoun</a> A CCOUNTING & AUDITINGinternational accoun<a title="The CPA Journal - March 2009 page 35" href="http://viewer.zmags.com/publication/417412e3?page=35">papers for Phases C and B are expectedin the thi</a> papers for Phases C and B are expectedin the thi<a title="The CPA Journal - March 2009 page 36" href="http://viewer.zmags.com/publication/417412e3?page=36">9. What Are the Major DifferencesBetween U.S. GA</a> 9. What Are the Major DifferencesBetween U.S. GA<a title="The CPA Journal - March 2009 page 37" href="http://viewer.zmags.com/publication/417412e3?page=37">at fair value or on the basis of its propor-tion</a> at fair value or on the basis of its propor-tion<a title="The CPA Journal - March 2009 page 38" href="http://viewer.zmags.com/publication/417412e3?page=38"> There are differences in unrecognizedcontinge</a> There are differences in unrecognizedcontinge<a title="The CPA Journal - March 2009 page 39" href="http://viewer.zmags.com/publication/417412e3?page=39">dards, which are available for free on theFASB w</a> dards, which are available for free on theFASB w<a title="The CPA Journal - March 2009 page 40" href="http://viewer.zmags.com/publication/417412e3?page=40">A CCOUNTING & AUDITINGbusiness valuation</a> A CCOUNTING & AUDITINGbusiness valuation<a title="The CPA Journal - March 2009 page 41" href="http://viewer.zmags.com/publication/417412e3?page=41">tion of the fair value of an earn-out underthis </a> tion of the fair value of an earn-out underthis <a title="The CPA Journal - March 2009 page 42" href="http://viewer.zmags.com/publication/417412e3?page=42">amount of goodwill finally recorded underprior G</a> amount of goodwill finally recorded underprior G<a title="The CPA Journal - March 2009 page 43" href="http://viewer.zmags.com/publication/417412e3?page=43">a liability only if it is more likely than not(i</a> a liability only if it is more likely than not(i<a title="The CPA Journal - March 2009 page 44" href="http://viewer.zmags.com/publication/417412e3?page=44">information would limit the counterparty'sabilit</a> information would limit the counterparty'sabilit<a title="The CPA Journal - March 2009 page 45" href="http://viewer.zmags.com/publication/417412e3?page=45"> Register Now Onlineat www.nycpashow.com</a> Register Now Onlineat www.nycpashow.com<a title="The CPA Journal - March 2009 page 46" href="http://viewer.zmags.com/publication/417412e3?page=46">T AXATIONfederal taxation</a> T AXATIONfederal taxation<a title="The CPA Journal - March 2009 page 47" href="http://viewer.zmags.com/publication/417412e3?page=47">the IRS issues guidance or audit guidelinescontr</a> the IRS issues guidance or audit guidelinescontr<a title="The CPA Journal - March 2009 page 48" href="http://viewer.zmags.com/publication/417412e3?page=48"> EXHIBIT 1Reinvested Income----------Reim</a> EXHIBIT 1Reinvested Income----------Reim<a title="The CPA Journal - March 2009 page 49" href="http://viewer.zmags.com/publication/417412e3?page=49">tax basis at the beginning of the year;f) taxabl</a> tax basis at the beginning of the year;f) taxabl<a title="The CPA Journal - March 2009 page 50" href="http://viewer.zmags.com/publication/417412e3?page=50"> EXHIBIT 2Current-Pay Income----------Re</a> EXHIBIT 2Current-Pay Income----------Re<a title="The CPA Journal - March 2009 page 51" href="http://viewer.zmags.com/publication/417412e3?page=51">and CCA 200451030). The IRS citesRevenue Ruling </a> and CCA 200451030). The IRS citesRevenue Ruling <a title="The CPA Journal - March 2009 page 52" href="http://viewer.zmags.com/publication/417412e3?page=52">THE GOOD, THE BAD, AND THE MADOFF THEFT LOSS</a> THE GOOD, THE BAD, AND THE MADOFF THEFT LOSS<a title="The CPA Journal - March 2009 page 53" href="http://viewer.zmags.com/publication/417412e3?page=53">returns. Phantom income for 2005 to 2007represen</a> returns. Phantom income for 2005 to 2007represen<a title="The CPA Journal - March 2009 page 54" href="http://viewer.zmags.com/publication/417412e3?page=54">T AXATIONfraudDeductibility of Theft Loss</a> T AXATIONfraudDeductibility of Theft Loss<a title="The CPA Journal - March 2009 page 55" href="http://viewer.zmags.com/publication/417412e3?page=55">court-ordered restitution. This was furthersuppo</a> court-ordered restitution. This was furthersuppo<a title="The CPA Journal - March 2009 page 56" href="http://viewer.zmags.com/publication/417412e3?page=56">T AXATIONstate & local taxationUsing C</a> T AXATIONstate & local taxationUsing C<a title="The CPA Journal - March 2009 page 57" href="http://viewer.zmags.com/publication/417412e3?page=57">Federal Child and Dependent CareTax Credit Th</a> Federal Child and Dependent CareTax Credit Th<a title="The CPA Journal - March 2009 page 58" href="http://viewer.zmags.com/publication/417412e3?page=58"> This squeeze is evident from childcarestatist</a> This squeeze is evident from childcarestatist<a title="The CPA Journal - March 2009 page 59" href="http://viewer.zmags.com/publication/417412e3?page=59">expenses qualifies for the New YorkDCTC, so the </a> expenses qualifies for the New YorkDCTC, so the <a title="The CPA Journal - March 2009 page 60" href="http://viewer.zmags.com/publication/417412e3?page=60"> Oregon has a nonrefundable child anddependent</a> Oregon has a nonrefundable child anddependent<a title="The CPA Journal - March 2009 page 61" href="http://viewer.zmags.com/publication/417412e3?page=61"> In the abstract, it might make some sense </a> In the abstract, it might make some sense <a title="The CPA Journal - March 2009 page 62" href="http://viewer.zmags.com/publication/417412e3?page=62">T AXATIONfederal taxationNew Real Estate </a> T AXATIONfederal taxationNew Real Estate <a title="The CPA Journal - March 2009 page 63" href="http://viewer.zmags.com/publication/417412e3?page=63">conversion, or transfers between spouses oras a </a> conversion, or transfers between spouses oras a <a title="The CPA Journal - March 2009 page 64" href="http://viewer.zmags.com/publication/417412e3?page=64">F INANCEpersonal financial planningRet</a> F INANCEpersonal financial planningRet<a title="The CPA Journal - March 2009 page 65" href="http://viewer.zmags.com/publication/417412e3?page=65">2009, the rate of increase for upper-incomeindiv</a> 2009, the rate of increase for upper-incomeindiv<a title="The CPA Journal - March 2009 page 66" href="http://viewer.zmags.com/publication/417412e3?page=66"> EXHIBIT 2Part B P</a> EXHIBIT 2Part B P<a title="The CPA Journal - March 2009 page 67" href="http://viewer.zmags.com/publication/417412e3?page=67">Possible Adjustments There are occasions when</a> Possible Adjustments There are occasions when<a title="The CPA Journal - March 2009 page 68" href="http://viewer.zmags.com/publication/417412e3?page=68">F INANCEpersonal financial planningTax</a> F INANCEpersonal financial planningTax<a title="The CPA Journal - March 2009 page 69" href="http://viewer.zmags.com/publication/417412e3?page=69">requires the teacher to spread the nine-month sal</a> requires the teacher to spread the nine-month sal<a title="The CPA Journal - March 2009 page 70" href="http://viewer.zmags.com/publication/417412e3?page=70">M ANAGEMENTpractice managementTax Plann</a> M ANAGEMENTpractice managementTax Plann<a title="The CPA Journal - March 2009 page 71" href="http://viewer.zmags.com/publication/417412e3?page=71">■ Failure by Magassy to make a goodfaith, reas</a> ■ Failure by Magassy to make a goodfaith, reas<a title="The CPA Journal - March 2009 page 72" href="http://viewer.zmags.com/publication/417412e3?page=72">R ESPONSIBILITIES & LEADERSHIPdiversity of</a> R ESPONSIBILITIES & LEADERSHIPdiversity of<a title="The CPA Journal - March 2009 page 73" href="http://viewer.zmags.com/publication/417412e3?page=73">with several highly successful minorityaccountin</a> with several highly successful minorityaccountin<a title="The CPA Journal - March 2009 page 74" href="http://viewer.zmags.com/publication/417412e3?page=74">T ECHNOLOGYwhat to bookmarkWebsite of </a> T ECHNOLOGYwhat to bookmarkWebsite of <a title="The CPA Journal - March 2009 page 75" href="http://viewer.zmags.com/publication/417412e3?page=75">America. From the historical summary page,users </a> America. From the historical summary page,users <a title="The CPA Journal - March 2009 page 76" href="http://viewer.zmags.com/publication/417412e3?page=76">Classified PROFESSIONAL OPPORTUNITY l BUSINESS l</a> Classified PROFESSIONAL OPPORTUNITY l BUSINESS l<a title="The CPA Journal - March 2009 page 77" href="http://viewer.zmags.com/publication/417412e3?page=77"> CPA PRACTICESSales  Mergers  Va</a> CPA PRACTICESSales  Mergers  Va<a title="The CPA Journal - March 2009 page 78" href="http://viewer.zmags.com/publication/417412e3?page=78">LEGAL SERVICES PROFESSIONAL CONDUCT EXPERT</a> LEGAL SERVICES PROFESSIONAL CONDUCT EXPERT<a title="The CPA Journal - March 2009 page 79" href="http://viewer.zmags.com/publication/417412e3?page=79">Classified Rates Rates & W</a> Classified Rates Rates & W<a title="The CPA Journal - March 2009 page 80" href="http://viewer.zmags.com/publication/417412e3?page=80"> </a> <a title="The CPA Journal - March 2009 page 81" href="http://viewer.zmags.com/publication/417412e3?page=81">E CONOMIC & MARKET D ATAmonthly update</a> E CONOMIC & MARKET D ATAmonthly update<a title="The CPA Journal - March 2009 page 82" href="http://viewer.zmags.com/publication/417412e3?page=82">E DITORIALa message from the editor-in-chie</a> E DITORIALa message from the editor-in-chie<a title="The CPA Journal - March 2009 page 83" href="http://viewer.zmags.com/publication/417412e3?page=83"></a> <a title="The CPA Journal - March 2009 page 84" href="http://viewer.zmags.com/publication/417412e3?page=84"></a>