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<br /> Long Arm<br /> of the Law<br /> The Regulatory Reach<br /> of New York’s<br /> Accountancy<br /> Reform<br /> Plus<br /> •Small-Business Fraud Risks<br /> •Initial Adoption Under IFRS 1<br /> •Teaching Opportunities for Practitioners<br /> <br /> <br /> C ONTENTS<br /> october 2009<br /> 24 Accounting & Auditing<br /> ❙ International Accounting<br /> Planning Ahead for IFRS 1: Initial Adoption of IFRS<br /> by U.S. Companies<br /> By Joseph M. Langmead and Jalal Soroosh<br /> ❙ Fraud<br /> Small Businesses: Know Thy Enemy<br /> and Their Methods<br /> By Ronald J. Daigle, Philip W. Morris,<br /> and David C. Hayes<br /> <a title="CPA Journal - October 2009 page 1" href="http://viewer.zmags.com/publication/742328e2?page=1"> Long Arm of the Law The Regulatory Reach of New Y</a> <a title="CPA Journal - October 2009 page 2" href="http://viewer.zmags.com/publication/742328e2?page=2"> </a> <a title="CPA Journal - October 2009 page 3" href="http://viewer.zmags.com/publication/742328e2?page=3"> </a> <a title="CPA Journal - October 2009 page 4" href="http://viewer.zmags.com/publication/742328e2?page=4"> C ONTENTS october 2009 </a> <a title="CPA Journal - October 2009 page 5" href="http://viewer.zmags.com/publication/742328e2?page=5"> vol. LXXIX/no.10 6PERSPEC</a> <a title="CPA Journal - October 2009 page 6" href="http://viewer.zmags.com/publication/742328e2?page=6"> Publisher LOUIS GRUMET Associate Pu</a> <a title="CPA Journal - October 2009 page 7" href="http://viewer.zmags.com/publication/742328e2?page=7"> </a> <a title="CPA Journal - October 2009 page 8" href="http://viewer.zmags.com/publication/742328e2?page=8"> P ERSPECTIVES viewpoint Fair Value Is Here </a> <a title="CPA Journal - October 2009 page 9" href="http://viewer.zmags.com/publication/742328e2?page=9"> publisher's column Time for Change </a> <a title="CPA Journal - October 2009 page 10" href="http://viewer.zmags.com/publication/742328e2?page=10"> (Continued from page 6) were involved in hedging </a> <a title="CPA Journal - October 2009 page 11" href="http://viewer.zmags.com/publication/742328e2?page=11"> Today, a company's desire to hold a position, </a> <a title="CPA Journal - October 2009 page 12" href="http://viewer.zmags.com/publication/742328e2?page=12"> Growing PEO Industry Continues to R</a> <a title="CPA Journal - October 2009 page 13" href="http://viewer.zmags.com/publication/742328e2?page=13"> trolling person, or an affiliate has had document</a> <a title="CPA Journal - October 2009 page 14" href="http://viewer.zmags.com/publication/742328e2?page=14"> technology security How Safe Is Your </a> <a title="CPA Journal - October 2009 page 15" href="http://viewer.zmags.com/publication/742328e2?page=15"> 2. (a)—A plain carrying case will not easily r</a> <a title="CPA Journal - October 2009 page 16" href="http://viewer.zmags.com/publication/742328e2?page=16"> inbox: letters to the editor A Profession</a> <a title="CPA Journal - October 2009 page 17" href="http://viewer.zmags.com/publication/742328e2?page=17"> </a> <a title="CPA Journal - October 2009 page 18" href="http://viewer.zmags.com/publication/742328e2?page=18"> IFnocus The Regulatory Reach </a> <a title="CPA Journal - October 2009 page 19" href="http://viewer.zmags.com/publication/742328e2?page=19"> of New York's Accountancy Reform Photos by Rober</a> <a title="CPA Journal - October 2009 page 20" href="http://viewer.zmags.com/publication/742328e2?page=20"> The following are edited excerpts from a brief</a> <a title="CPA Journal - October 2009 page 21" href="http://viewer.zmags.com/publication/742328e2?page=21"> they decided that they would change the law and n</a> <a title="CPA Journal - October 2009 page 22" href="http://viewer.zmags.com/publication/742328e2?page=22"> 2009Meetings/June2009/0609ppca1.htm]. Section 70.</a> <a title="CPA Journal - October 2009 page 23" href="http://viewer.zmags.com/publication/742328e2?page=23"> said, “I intend to do this; please send me the fo</a> <a title="CPA Journal - October 2009 page 24" href="http://viewer.zmags.com/publication/742328e2?page=24"> 16-month year. This is only going to hap- pen onc</a> <a title="CPA Journal - October 2009 page 25" href="http://viewer.zmags.com/publication/742328e2?page=25"> </a> <a title="CPA Journal - October 2009 page 26" href="http://viewer.zmags.com/publication/742328e2?page=26"> A CCOUNTING & AUDITING international accoun</a> <a title="CPA Journal - October 2009 page 27" href="http://viewer.zmags.com/publication/742328e2?page=27"> identify 10 or more such differences which are ma</a> <a title="CPA Journal - October 2009 page 28" href="http://viewer.zmags.com/publication/742328e2?page=28"> Thus “period” in IFRS 1 means “year” and the t</a> <a title="CPA Journal - October 2009 page 29" href="http://viewer.zmags.com/publication/742328e2?page=29"> before that period despite the further requiremen</a> <a title="CPA Journal - October 2009 page 30" href="http://viewer.zmags.com/publication/742328e2?page=30"> tized amounts under IFRS. Retroactive restatement</a> <a title="CPA Journal - October 2009 page 31" href="http://viewer.zmags.com/publication/742328e2?page=31"> of these optional elections does not require elec</a> <a title="CPA Journal - October 2009 page 32" href="http://viewer.zmags.com/publication/742328e2?page=32"> A CCOUNTING & AUDITING fraud </a> <a title="CPA Journal - October 2009 page 33" href="http://viewer.zmags.com/publication/742328e2?page=33"> To best combat fraud, small-business owners ne</a> <a title="CPA Journal - October 2009 page 34" href="http://viewer.zmags.com/publication/742328e2?page=34"> Small-business owners must be proactive in monito</a> <a title="CPA Journal - October 2009 page 35" href="http://viewer.zmags.com/publication/742328e2?page=35"> Estimated Fraud Losses in EXHIBIT 4 Small Bu</a> <a title="CPA Journal - October 2009 page 36" href="http://viewer.zmags.com/publication/742328e2?page=36"> schemes—check tampering (28.4%) and billing (23.2</a> <a title="CPA Journal - October 2009 page 37" href="http://viewer.zmags.com/publication/742328e2?page=37"> appropriation of asset schemes to occur. Misap</a> <a title="CPA Journal - October 2009 page 38" href="http://viewer.zmags.com/publication/742328e2?page=38"> should also focus on detection techniques and</a> <a title="CPA Journal - October 2009 page 39" href="http://viewer.zmags.com/publication/742328e2?page=39"> that they can commit fraud without wor- rying abo</a> <a title="CPA Journal - October 2009 page 40" href="http://viewer.zmags.com/publication/742328e2?page=40"> A CCOUNTING & AUDITING government accountin</a> <a title="CPA Journal - October 2009 page 41" href="http://viewer.zmags.com/publication/742328e2?page=41"> of a critical license or patent for business- typ</a> <a title="CPA Journal - October 2009 page 42" href="http://viewer.zmags.com/publication/742328e2?page=42"> and liquidity to develop his model (Mark E. Zmije</a> <a title="CPA Journal - October 2009 page 43" href="http://viewer.zmags.com/publication/742328e2?page=43"> </a> <a title="CPA Journal - October 2009 page 44" href="http://viewer.zmags.com/publication/742328e2?page=44"> T AXATION federal taxation </a> <a title="CPA Journal - October 2009 page 45" href="http://viewer.zmags.com/publication/742328e2?page=45"> or separately can exclude up to $250,000. To qual</a> <a title="CPA Journal - October 2009 page 46" href="http://viewer.zmags.com/publication/742328e2?page=46"> example, under IRC section 1031, real property im</a> <a title="CPA Journal - October 2009 page 47" href="http://viewer.zmags.com/publication/742328e2?page=47"> reduction, or both. Boot received can, how- ever,</a> <a title="CPA Journal - October 2009 page 48" href="http://viewer.zmags.com/publication/742328e2?page=48"> Mixed-Use Swap Involving IRC Sections 121 and 103</a> <a title="CPA Journal - October 2009 page 49" href="http://viewer.zmags.com/publication/742328e2?page=49"> Taxpayer C applies IRC section 121 to exclude </a> <a title="CPA Journal - October 2009 page 50" href="http://viewer.zmags.com/publication/742328e2?page=50"> T AXATION state & local taxation New Yor</a> <a title="CPA Journal - October 2009 page 51" href="http://viewer.zmags.com/publication/742328e2?page=51"> 2008, available at www.tax.state.ny.us/ press/200</a> <a title="CPA Journal - October 2009 page 52" href="http://viewer.zmags.com/publication/742328e2?page=52"> The bottom line is that tax profession- als mu</a> <a title="CPA Journal - October 2009 page 53" href="http://viewer.zmags.com/publication/742328e2?page=53"> It means that preparers should ensure that the</a> <a title="CPA Journal - October 2009 page 54" href="http://viewer.zmags.com/publication/742328e2?page=54"> F INANCE personal financial planning Can</a> <a title="CPA Journal - October 2009 page 55" href="http://viewer.zmags.com/publication/742328e2?page=55"> offset by larger future taxes paid under the high</a> <a title="CPA Journal - October 2009 page 56" href="http://viewer.zmags.com/publication/742328e2?page=56"> </a> <a title="CPA Journal - October 2009 page 57" href="http://viewer.zmags.com/publication/742328e2?page=57"> tainty surrounding the level and path of future r</a> <a title="CPA Journal - October 2009 page 58" href="http://viewer.zmags.com/publication/742328e2?page=58"> vesting gains as part of a strategy of pre- empti</a> <a title="CPA Journal - October 2009 page 59" href="http://viewer.zmags.com/publication/742328e2?page=59"> </a> <a title="CPA Journal - October 2009 page 60" href="http://viewer.zmags.com/publication/742328e2?page=60"> M ANAGEMENT accountants' liability Liab</a> <a title="CPA Journal - October 2009 page 61" href="http://viewer.zmags.com/publication/742328e2?page=61"> this happens repeatedly, contractors are typ- ica</a> <a title="CPA Journal - October 2009 page 62" href="http://viewer.zmags.com/publication/742328e2?page=62"> This language will be of limited use with thi</a> <a title="CPA Journal - October 2009 page 63" href="http://viewer.zmags.com/publication/742328e2?page=63"> We will not be analyzing cancelled checks t</a> <a title="CPA Journal - October 2009 page 64" href="http://viewer.zmags.com/publication/742328e2?page=64"> M ANAGEMENT practice management Replacing</a> <a title="CPA Journal - October 2009 page 65" href="http://viewer.zmags.com/publication/742328e2?page=65"> Excess capacity. In order to be able to handle</a> <a title="CPA Journal - October 2009 page 66" href="http://viewer.zmags.com/publication/742328e2?page=66"> The most common reason for mergers is to deal wit</a> <a title="CPA Journal - October 2009 page 67" href="http://viewer.zmags.com/publication/742328e2?page=67"> </a> <a title="CPA Journal - October 2009 page 68" href="http://viewer.zmags.com/publication/742328e2?page=68"> R ESPONSIBILITIES & LEADERSHIP career paths</a> <a title="CPA Journal - October 2009 page 69" href="http://viewer.zmags.com/publication/742328e2?page=69"> For institutions that have AACSB accreditation</a> <a title="CPA Journal - October 2009 page 70" href="http://viewer.zmags.com/publication/742328e2?page=70"> generation of new hires will work hard but tend v</a> <a title="CPA Journal - October 2009 page 71" href="http://viewer.zmags.com/publication/742328e2?page=71"> $ FAE’S SPECIAL POP PASS! </a> <a title="CPA Journal - October 2009 page 72" href="http://viewer.zmags.com/publication/742328e2?page=72"> T ECHNOLOGY online resources 20 Q</a> <a title="CPA Journal - October 2009 page 73" href="http://viewer.zmags.com/publication/742328e2?page=73"> Most accounting publications now offer online </a> <a title="CPA Journal - October 2009 page 74" href="http://viewer.zmags.com/publication/742328e2?page=74"> quickly search for and identify organiza- tions b</a> <a title="CPA Journal - October 2009 page 75" href="http://viewer.zmags.com/publication/742328e2?page=75"> T ECHNOLOGY what to bookmark Website </a> <a title="CPA Journal - October 2009 page 76" href="http://viewer.zmags.com/publication/742328e2?page=76"> Classified PROFESSIONAL OPPORTUNITY l BUSINESS l</a> <a title="CPA Journal - October 2009 page 77" href="http://viewer.zmags.com/publication/742328e2?page=77"> LONG ISLAND CPA FIRM IN ROCKVILLE CENTRE Opportun</a> <a title="CPA Journal - October 2009 page 78" href="http://viewer.zmags.com/publication/742328e2?page=78"> INNOVATIVE STRATEGIES for sales and use tax compl</a> <a title="CPA Journal - October 2009 page 79" href="http://viewer.zmags.com/publication/742328e2?page=79"> BUSINESS SERVICES Business Valuation Software St</a> <a title="CPA Journal - October 2009 page 80" href="http://viewer.zmags.com/publication/742328e2?page=80"> </a> <a title="CPA Journal - October 2009 page 81" href="http://viewer.zmags.com/publication/742328e2?page=81"> E CONOMIC & MARKET D ATA monthly update</a> <a title="CPA Journal - October 2009 page 82" href="http://viewer.zmags.com/publication/742328e2?page=82"> E DITORIAL a message from the editor-in-chie</a> <a title="CPA Journal - October 2009 page 83" href="http://viewer.zmags.com/publication/742328e2?page=83"> </a> <a title="CPA Journal - October 2009 page 84" href="http://viewer.zmags.com/publication/742328e2?page=84"> </a>