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Perilous Waters:<br />
Will CPAs Become<br />
Madoff's Next Victims?<br />
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GASB 53 • Classifying Leases • IFRS and Liability Traps<br />
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C ONTENTS<br />
April<br />
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22 Accounting & Auditing<br />
❙ Standards Setting<br />
The Missing Concept: What Happened to the<br />
Importance of Matching?<br />
By Harold Bi<a title="The CPA Journal - April 2009 page 1" href="http://viewer.zmags.com/publication/4b68916c?page=1">Perilous Waters:Will CPAs BecomeMadoff's Next V</a> Perilous Waters:Will CPAs BecomeMadoff's Next V<a title="The CPA Journal - April 2009 page 2" href="http://viewer.zmags.com/publication/4b68916c?page=2"></a> <a title="The CPA Journal - April 2009 page 3" href="http://viewer.zmags.com/publication/4b68916c?page=3"></a> <a title="The CPA Journal - April 2009 page 4" href="http://viewer.zmags.com/publication/4b68916c?page=4">C ONTENTSApril 22 Accoun</a> C ONTENTSApril 22 Accoun<a title="The CPA Journal - April 2009 page 5" href="http://viewer.zmags.com/publication/4b68916c?page=5">vol.6PERSPECTIVES6 Per</a> vol.6PERSPECTIVES6 Per<a title="The CPA Journal - April 2009 page 6" href="http://viewer.zmags.com/publication/4b68916c?page=6"> PublisherLOUIS GRUMET Associate Pu</a> PublisherLOUIS GRUMET Associate Pu<a title="The CPA Journal - April 2009 page 7" href="http://viewer.zmags.com/publication/4b68916c?page=7"></a> <a title="The CPA Journal - April 2009 page 8" href="http://viewer.zmags.com/publication/4b68916c?page=8">P ERSPECTIVESviewpointThe Power of Storyt</a> P ERSPECTIVESviewpointThe Power of Storyt<a title="The CPA Journal - April 2009 page 9" href="http://viewer.zmags.com/publication/4b68916c?page=9">publisher's columnNew Law Raises the Bar f</a> publisher's columnNew Law Raises the Bar f<a title="The CPA Journal - April 2009 page 10" href="http://viewer.zmags.com/publication/4b68916c?page=10">(Continued from page 6) Minogue's Protiviti co</a> (Continued from page 6) Minogue's Protiviti co<a title="The CPA Journal - April 2009 page 11" href="http://viewer.zmags.com/publication/4b68916c?page=11">Preparing for IFRS: Great OnlineInformation</a> Preparing for IFRS: Great OnlineInformation<a title="The CPA Journal - April 2009 page 12" href="http://viewer.zmags.com/publication/4b68916c?page=12">available. The PricewaterhouseCoopers IFRShomepa</a> available. The PricewaterhouseCoopers IFRShomepa<a title="The CPA Journal - April 2009 page 13" href="http://viewer.zmags.com/publication/4b68916c?page=13">Paperless Tax Workflow Six Best Practice</a> Paperless Tax Workflow Six Best Practice<a title="The CPA Journal - April 2009 page 14" href="http://viewer.zmags.com/publication/4b68916c?page=14">one of the best scanners for tax profes-sionals,</a> one of the best scanners for tax profes-sionals,<a title="The CPA Journal - April 2009 page 15" href="http://viewer.zmags.com/publication/4b68916c?page=15">Valuation for FinancialReporting: Fair ValueMea</a> Valuation for FinancialReporting: Fair ValueMea<a title="The CPA Journal - April 2009 page 16" href="http://viewer.zmags.com/publication/4b68916c?page=16">FocusIn</a> FocusIn<a title="The CPA Journal - April 2009 page 17" href="http://viewer.zmags.com/publication/4b68916c?page=17">GASB 53:New Standards for Derivativeand Hedging</a> GASB 53:New Standards for Derivativeand Hedging<a title="The CPA Journal - April 2009 page 18" href="http://viewer.zmags.com/publication/4b68916c?page=18">City School District situations, the casesillust</a> City School District situations, the casesillust<a title="The CPA Journal - April 2009 page 19" href="http://viewer.zmags.com/publication/4b68916c?page=19">statements presented using the current finan-cia</a> statements presented using the current finan-cia<a title="The CPA Journal - April 2009 page 20" href="http://viewer.zmags.com/publication/4b68916c?page=20">must be met before a financial instrumentor othe</a> must be met before a financial instrumentor othe<a title="The CPA Journal - April 2009 page 21" href="http://viewer.zmags.com/publication/4b68916c?page=21">reasonable efforts to obtain information tosuppo</a> reasonable efforts to obtain information tosuppo<a title="The CPA Journal - April 2009 page 22" href="http://viewer.zmags.com/publication/4b68916c?page=22">current period or over the instrument'sentire li</a> current period or over the instrument'sentire li<a title="The CPA Journal - April 2009 page 23" href="http://viewer.zmags.com/publication/4b68916c?page=23">gated by type (e.g., receive-fixed swaps,pay-fix</a> gated by type (e.g., receive-fixed swaps,pay-fix<a title="The CPA Journal - April 2009 page 24" href="http://viewer.zmags.com/publication/4b68916c?page=24">A CCOUNTING & AUDITINGstandards setting</a> A CCOUNTING & AUDITINGstandards setting<a title="The CPA Journal - April 2009 page 25" href="http://viewer.zmags.com/publication/4b68916c?page=25">matching concept. Half a dozen of theFASB profes</a> matching concept. Half a dozen of theFASB profes<a title="The CPA Journal - April 2009 page 26" href="http://viewer.zmags.com/publication/4b68916c?page=26"> and revenue, and of income as a differ- en</a> and revenue, and of income as a differ- en<a title="The CPA Journal - April 2009 page 27" href="http://viewer.zmags.com/publication/4b68916c?page=27"> A. Successful R&D is easy. An asset is cr</a> A. Successful R&D is easy. An asset is cr<a title="The CPA Journal - April 2009 page 28" href="http://viewer.zmags.com/publication/4b68916c?page=28"> example, the basic rationale—that the singl</a> example, the basic rationale—that the singl<a title="The CPA Journal - April 2009 page 29" href="http://viewer.zmags.com/publication/4b68916c?page=29">expense or an asset? A coin flip is nearlycompar</a> expense or an asset? A coin flip is nearlycompar<a title="The CPA Journal - April 2009 page 30" href="http://viewer.zmags.com/publication/4b68916c?page=30">A CCOUNTING & AUDITINGinternal controls</a> A CCOUNTING & AUDITINGinternal controls<a title="The CPA Journal - April 2009 page 31" href="http://viewer.zmags.com/publication/4b68916c?page=31"></a> <a title="The CPA Journal - April 2009 page 32" href="http://viewer.zmags.com/publication/4b68916c?page=32"> As shown in Exhibit 1, the companieswith comp</a> As shown in Exhibit 1, the companieswith comp<a title="The CPA Journal - April 2009 page 33" href="http://viewer.zmags.com/publication/4b68916c?page=33">to subject their compensation-related entriesto </a> to subject their compensation-related entriesto <a title="The CPA Journal - April 2009 page 34" href="http://viewer.zmags.com/publication/4b68916c?page=34"> EXHIBIT 3Reme</a> EXHIBIT 3Reme<a title="The CPA Journal - April 2009 page 35" href="http://viewer.zmags.com/publication/4b68916c?page=35">stand the compensation issues the organi-zation </a> stand the compensation issues the organi-zation <a title="The CPA Journal - April 2009 page 36" href="http://viewer.zmags.com/publication/4b68916c?page=36">A CCOUNTING & AUDITINGauditingTh</a> A CCOUNTING & AUDITINGauditingTh<a title="The CPA Journal - April 2009 page 37" href="http://viewer.zmags.com/publication/4b68916c?page=37"> After two years of closely monitoring AS2imp</a> After two years of closely monitoring AS2imp<a title="The CPA Journal - April 2009 page 38" href="http://viewer.zmags.com/publication/4b68916c?page=38">this issue by allowing auditors to tailorthe aud</a> this issue by allowing auditors to tailorthe aud<a title="The CPA Journal - April 2009 page 39" href="http://viewer.zmags.com/publication/4b68916c?page=39">over the three-year period. The accelerat-ed fil</a> over the three-year period. The accelerat-ed fil<a title="The CPA Journal - April 2009 page 40" href="http://viewer.zmags.com/publication/4b68916c?page=40">age audit fees and audit-related fees report-ed </a> age audit fees and audit-related fees report-ed <a title="The CPA Journal - April 2009 page 41" href="http://viewer.zmags.com/publication/4b68916c?page=41"></a> <a title="The CPA Journal - April 2009 page 42" href="http://viewer.zmags.com/publication/4b68916c?page=42">T AXATIONfederal taxation</a> T AXATIONfederal taxation<a title="The CPA Journal - April 2009 page 43" href="http://viewer.zmags.com/publication/4b68916c?page=43">ments made are allocated between inter-est expen</a> ments made are allocated between inter-est expen<a title="The CPA Journal - April 2009 page 44" href="http://viewer.zmags.com/publication/4b68916c?page=44">Bowen). This tax criterion parallels thefourth a</a> Bowen). This tax criterion parallels thefourth a<a title="The CPA Journal - April 2009 page 45" href="http://viewer.zmags.com/publication/4b68916c?page=45">May 12–13, 2009Long Island Marriott Hotel & Conf</a> May 12–13, 2009Long Island Marriott Hotel & Conf<a title="The CPA Journal - April 2009 page 46" href="http://viewer.zmags.com/publication/4b68916c?page=46">T AXATIONcorporate taxationThe Deductibi</a> T AXATIONcorporate taxationThe Deductibi<a title="The CPA Journal - April 2009 page 47" href="http://viewer.zmags.com/publication/4b68916c?page=47">2. This schedule indicates that Mrs.Harrison's s</a> 2. This schedule indicates that Mrs.Harrison's s<a title="The CPA Journal - April 2009 page 48" href="http://viewer.zmags.com/publication/4b68916c?page=48">greater management responsibility on thecorporat</a> greater management responsibility on thecorporat<a title="The CPA Journal - April 2009 page 49" href="http://viewer.zmags.com/publication/4b68916c?page=49">and were attributable to his employment rela-tio</a> and were attributable to his employment rela-tio<a title="The CPA Journal - April 2009 page 50" href="http://viewer.zmags.com/publication/4b68916c?page=50">amounts paid to Elliott were reasonablewas his</a> amounts paid to Elliott were reasonablewas his<a title="The CPA Journal - April 2009 page 51" href="http://viewer.zmags.com/publication/4b68916c?page=51">sent Rapco a deficiency notice for takingexcess </a> sent Rapco a deficiency notice for takingexcess <a title="The CPA Journal - April 2009 page 52" href="http://viewer.zmags.com/publication/4b68916c?page=52">T AXATIONstate & local taxationNew Jers</a> T AXATIONstate & local taxationNew Jers<a title="The CPA Journal - April 2009 page 53" href="http://viewer.zmags.com/publication/4b68916c?page=53">related to services provided by New Jersey. Wi</a> related to services provided by New Jersey. Wi<a title="The CPA Journal - April 2009 page 54" href="http://viewer.zmags.com/publication/4b68916c?page=54">F INANCEpersonal financial planningLif</a> F INANCEpersonal financial planningLif<a title="The CPA Journal - April 2009 page 55" href="http://viewer.zmags.com/publication/4b68916c?page=55">this approach, financial planning consistsof tra</a> this approach, financial planning consistsof tra<a title="The CPA Journal - April 2009 page 56" href="http://viewer.zmags.com/publication/4b68916c?page=56">M ANAGEMENTaccountant's liability</a> M ANAGEMENTaccountant's liability<a title="The CPA Journal - April 2009 page 57" href="http://viewer.zmags.com/publication/4b68916c?page=57"> The change to IFRS may not only causea chang</a> The change to IFRS may not only causea chang<a title="The CPA Journal - April 2009 page 58" href="http://viewer.zmags.com/publication/4b68916c?page=58">includes a much greater degree of qual-itative a</a> includes a much greater degree of qual-itative a<a title="The CPA Journal - April 2009 page 59" href="http://viewer.zmags.com/publication/4b68916c?page=59">as a reasonably prudent and competentaccountant </a> as a reasonably prudent and competentaccountant <a title="The CPA Journal - April 2009 page 60" href="http://viewer.zmags.com/publication/4b68916c?page=60">ment or employee thefts will still have lit-igat</a> ment or employee thefts will still have lit-igat<a title="The CPA Journal - April 2009 page 61" href="http://viewer.zmags.com/publication/4b68916c?page=61">importance of using reasoned judgmentand intelle</a> importance of using reasoned judgmentand intelle<a title="The CPA Journal - April 2009 page 62" href="http://viewer.zmags.com/publication/4b68916c?page=62">M ANAGEMENTpractice managementRules vs.</a> M ANAGEMENTpractice managementRules vs.<a title="The CPA Journal - April 2009 page 63" href="http://viewer.zmags.com/publication/4b68916c?page=63">students in the future as it gravitates awayfrom</a> students in the future as it gravitates awayfrom<a title="The CPA Journal - April 2009 page 64" href="http://viewer.zmags.com/publication/4b68916c?page=64">M ANAGEMENTcpa consultantApplying Sarba</a> M ANAGEMENTcpa consultantApplying Sarba<a title="The CPA Journal - April 2009 page 65" href="http://viewer.zmags.com/publication/4b68916c?page=65">ulation and oversight as a means to an end,bette</a> ulation and oversight as a means to an end,bette<a title="The CPA Journal - April 2009 page 66" href="http://viewer.zmags.com/publication/4b68916c?page=66">designed to determine current and plannedgoverna</a> designed to determine current and plannedgoverna<a title="The CPA Journal - April 2009 page 67" href="http://viewer.zmags.com/publication/4b68916c?page=67"> In 2006, the University of Louisvilleestablis</a> In 2006, the University of Louisvilleestablis<a title="The CPA Journal - April 2009 page 68" href="http://viewer.zmags.com/publication/4b68916c?page=68">■ refinement and development of abusiness code</a> ■ refinement and development of abusiness code<a title="The CPA Journal - April 2009 page 69" href="http://viewer.zmags.com/publication/4b68916c?page=69">cation of sections 406 and 407 is an areawhere m</a> cation of sections 406 and 407 is an areawhere m<a title="The CPA Journal - April 2009 page 70" href="http://viewer.zmags.com/publication/4b68916c?page=70">R ESPONSIBILITIES & LEADERSHIPaccountant's </a> R ESPONSIBILITIES & LEADERSHIPaccountant's <a title="The CPA Journal - April 2009 page 71" href="http://viewer.zmags.com/publication/4b68916c?page=71">as lawsuits have been brought againstErnst & You</a> as lawsuits have been brought againstErnst & You<a title="The CPA Journal - April 2009 page 72" href="http://viewer.zmags.com/publication/4b68916c?page=72">tionship may exist when there is a significantdi</a> tionship may exist when there is a significantdi<a title="The CPA Journal - April 2009 page 73" href="http://viewer.zmags.com/publication/4b68916c?page=73">cy and will have to be covered by theinsurer up </a> cy and will have to be covered by theinsurer up <a title="The CPA Journal - April 2009 page 74" href="http://viewer.zmags.com/publication/4b68916c?page=74">T ECHNOLOGYwhat to bookmark </a> T ECHNOLOGYwhat to bookmark <a title="The CPA Journal - April 2009 page 75" href="http://viewer.zmags.com/publication/4b68916c?page=75"> “Saving and spending” resources aregrouped un</a> “Saving and spending” resources aregrouped un<a title="The CPA Journal - April 2009 page 76" href="http://viewer.zmags.com/publication/4b68916c?page=76">Classified PROFESSIONAL OPPORTUNITY l BUSINESS l</a> Classified PROFESSIONAL OPPORTUNITY l BUSINESS l<a title="The CPA Journal - April 2009 page 77" href="http://viewer.zmags.com/publication/4b68916c?page=77"> CPA PRACTICESSales  Mergers  Va</a> CPA PRACTICESSales  Mergers  Va<a title="The CPA Journal - April 2009 page 78" href="http://viewer.zmags.com/publication/4b68916c?page=78">NYC-based CPA with diversified high net worthta</a> NYC-based CPA with diversified high net worthta<a title="The CPA Journal - April 2009 page 79" href="http://viewer.zmags.com/publication/4b68916c?page=79">Classified Rates Rates & W</a> Classified Rates Rates & W<a title="The CPA Journal - April 2009 page 80" href="http://viewer.zmags.com/publication/4b68916c?page=80"> </a> <a title="The CPA Journal - April 2009 page 81" href="http://viewer.zmags.com/publication/4b68916c?page=81">E CONOMIC & MARKET D ATAmonthly update</a> E CONOMIC & MARKET D ATAmonthly update<a title="The CPA Journal - April 2009 page 82" href="http://viewer.zmags.com/publication/4b68916c?page=82">E DITORIALa message from the editor-in-chie</a> E DITORIALa message from the editor-in-chie<a title="The CPA Journal - April 2009 page 83" href="http://viewer.zmags.com/publication/4b68916c?page=83"></a> <a title="The CPA Journal - April 2009 page 84" href="http://viewer.zmags.com/publication/4b68916c?page=84"></a>