<br />
Long Arm<br />
of the Law<br />
The Regulatory Reach<br />
of New York’s<br />
Accountancy<br />
Reform<br />
<br />
<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 />
<br />
<br />
<br />
<br />
<br />
<br />
<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 />
<br />
<a title="CPA Journal - October 2009 page 1" href="http://viewer.zmags.com/publication/742328e2?page=1">Long Armof the LawThe Regulatory Reachof New Y</a> Long Armof the LawThe Regulatory Reachof New Y<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 ONTENTSoctober 2009 </a> C ONTENTSoctober 2009 <a title="CPA Journal - October 2009 page 5" href="http://viewer.zmags.com/publication/742328e2?page=5">vol. LXXIX/no.106PERSPEC</a> vol. LXXIX/no.106PERSPEC<a title="CPA Journal - October 2009 page 6" href="http://viewer.zmags.com/publication/742328e2?page=6"> PublisherLOUIS GRUMET Associate Pu</a> PublisherLOUIS GRUMET Associate Pu<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 ERSPECTIVESviewpointFair Value Is Here </a> P ERSPECTIVESviewpointFair Value Is Here <a title="CPA Journal - October 2009 page 9" href="http://viewer.zmags.com/publication/742328e2?page=9">publisher's column Time for Change</a> publisher's column Time for Change<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> (Continued from page 6)were involved in hedging <a title="CPA Journal - October 2009 page 11" href="http://viewer.zmags.com/publication/742328e2?page=11"> Today, a company's desire to hold aposition, </a> Today, a company's desire to hold aposition, <a title="CPA Journal - October 2009 page 12" href="http://viewer.zmags.com/publication/742328e2?page=12"> Growing PEO Industry Continuesto R</a> Growing PEO Industry Continuesto R<a title="CPA Journal - October 2009 page 13" href="http://viewer.zmags.com/publication/742328e2?page=13">trolling person, or an affiliate has haddocument</a> trolling person, or an affiliate has haddocument<a title="CPA Journal - October 2009 page 14" href="http://viewer.zmags.com/publication/742328e2?page=14">technology securityHow Safe Is Your </a> technology securityHow Safe Is Your <a title="CPA Journal - October 2009 page 15" href="http://viewer.zmags.com/publication/742328e2?page=15"> 2. (a)—A plain carrying case will noteasily r</a> 2. (a)—A plain carrying case will noteasily r<a title="CPA Journal - October 2009 page 16" href="http://viewer.zmags.com/publication/742328e2?page=16">inbox: letters to the editorA Profession</a> inbox: letters to the editorA Profession<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> IFnocus The Regulatory Reach<a title="CPA Journal - October 2009 page 19" href="http://viewer.zmags.com/publication/742328e2?page=19">of New York's Accountancy ReformPhotos by Rober</a> of New York's Accountancy ReformPhotos by Rober<a title="CPA Journal - October 2009 page 20" href="http://viewer.zmags.com/publication/742328e2?page=20"> The following are edited excerpts froma brief</a> The following are edited excerpts froma brief<a title="CPA Journal - October 2009 page 21" href="http://viewer.zmags.com/publication/742328e2?page=21">they decided that they would change thelaw and n</a> they decided that they would change thelaw and n<a title="CPA Journal - October 2009 page 22" href="http://viewer.zmags.com/publication/742328e2?page=22">2009Meetings/June2009/0609ppca1.htm].Section 70.</a> 2009Meetings/June2009/0609ppca1.htm].Section 70.<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 methe fo</a> said, “I intend to do this; please send methe fo<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> 16-month year. This is only going to hap-pen onc<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 & AUDITINGinternational accoun</a> A CCOUNTING & AUDITINGinternational accoun<a title="CPA Journal - October 2009 page 27" href="http://viewer.zmags.com/publication/742328e2?page=27">identify 10 or more such differences whichare ma</a> identify 10 or more such differences whichare ma<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> Thus “period” in IFRS 1 means “year”and the t<a title="CPA Journal - October 2009 page 29" href="http://viewer.zmags.com/publication/742328e2?page=29">before that period despite the furtherrequiremen</a> before that period despite the furtherrequiremen<a title="CPA Journal - October 2009 page 30" href="http://viewer.zmags.com/publication/742328e2?page=30">tized amounts under IFRS. Retroactiverestatement</a> tized amounts under IFRS. Retroactiverestatement<a title="CPA Journal - October 2009 page 31" href="http://viewer.zmags.com/publication/742328e2?page=31">of these optional elections does not requireelec</a> of these optional elections does not requireelec<a title="CPA Journal - October 2009 page 32" href="http://viewer.zmags.com/publication/742328e2?page=32">A CCOUNTING & AUDITINGfraud</a> A CCOUNTING & AUDITINGfraud<a title="CPA Journal - October 2009 page 33" href="http://viewer.zmags.com/publication/742328e2?page=33"> To best combat fraud, small-businessowners ne</a> To best combat fraud, small-businessowners ne<a title="CPA Journal - October 2009 page 34" href="http://viewer.zmags.com/publication/742328e2?page=34">Small-business owners mustbe proactive in monito</a> Small-business owners mustbe proactive in monito<a title="CPA Journal - October 2009 page 35" href="http://viewer.zmags.com/publication/742328e2?page=35">Estimated Fraud Losses in EXHIBIT 4Small Bu</a> Estimated Fraud Losses in EXHIBIT 4Small Bu<a title="CPA Journal - October 2009 page 36" href="http://viewer.zmags.com/publication/742328e2?page=36">schemes—check tampering (28.4%) andbilling (23.2</a> schemes—check tampering (28.4%) andbilling (23.2<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> appropriation of asset schemes to occur. Misap<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> should also focus on detection techniques and<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> that they can commit fraud without wor-rying abo<a title="CPA Journal - October 2009 page 40" href="http://viewer.zmags.com/publication/742328e2?page=40">A CCOUNTING & AUDITINGgovernment accountin</a> A CCOUNTING & AUDITINGgovernment accountin<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> of a critical license or patent for business-typ<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> and liquidity to develop his model(Mark E. Zmije<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 AXATIONfederal taxation</a> T AXATIONfederal taxation<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> or separately can exclude up to $250,000.To qual<a title="CPA Journal - October 2009 page 46" href="http://viewer.zmags.com/publication/742328e2?page=46">example, under IRC section 1031, realproperty im</a> example, under IRC section 1031, realproperty im<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> reduction, or both. Boot received can, how-ever,<a title="CPA Journal - October 2009 page 48" href="http://viewer.zmags.com/publication/742328e2?page=48">Mixed-Use Swap Involving IRCSections 121 and 103</a> Mixed-Use Swap Involving IRCSections 121 and 103<a title="CPA Journal - October 2009 page 49" href="http://viewer.zmags.com/publication/742328e2?page=49"> Taxpayer C applies IRC section 121 toexclude </a> Taxpayer C applies IRC section 121 toexclude <a title="CPA Journal - October 2009 page 50" href="http://viewer.zmags.com/publication/742328e2?page=50">T AXATIONstate & local taxationNew Yor</a> T AXATIONstate & local taxationNew Yor<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> 2008, available at www.tax.state.ny.us/press/200<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> The bottom line is that tax profession-als mu<a title="CPA Journal - October 2009 page 53" href="http://viewer.zmags.com/publication/742328e2?page=53"> It means that preparers should ensurethat the</a> It means that preparers should ensurethat the<a title="CPA Journal - October 2009 page 54" href="http://viewer.zmags.com/publication/742328e2?page=54">F INANCEpersonal financial planningCan</a> F INANCEpersonal financial planningCan<a title="CPA Journal - October 2009 page 55" href="http://viewer.zmags.com/publication/742328e2?page=55">offset by larger future taxes paid under thehigh</a> offset by larger future taxes paid under thehigh<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 offuture r</a> tainty surrounding the level and path offuture r<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> vesting gains as part of a strategy of pre-empti<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 ANAGEMENTaccountants' liability Liab</a> M ANAGEMENTaccountants' liability Liab<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> this happens repeatedly, contractors are typ-ica<a title="CPA Journal - October 2009 page 62" href="http://viewer.zmags.com/publication/742328e2?page=62"> This language will be of limited use withthi</a> This language will be of limited use withthi<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> We will not be analyzing cancelled checks t<a title="CPA Journal - October 2009 page 64" href="http://viewer.zmags.com/publication/742328e2?page=64">M ANAGEMENTpractice managementReplacing</a> M ANAGEMENTpractice managementReplacing<a title="CPA Journal - October 2009 page 65" href="http://viewer.zmags.com/publication/742328e2?page=65"> Excess capacity. In order to be able tohandle</a> Excess capacity. In order to be able tohandle<a title="CPA Journal - October 2009 page 66" href="http://viewer.zmags.com/publication/742328e2?page=66">The most common reason for mergersis to deal wit</a> The most common reason for mergersis to deal wit<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 & LEADERSHIPcareer paths</a> R ESPONSIBILITIES & LEADERSHIPcareer paths<a title="CPA Journal - October 2009 page 69" href="http://viewer.zmags.com/publication/742328e2?page=69"> For institutions that have AACSBaccreditation</a> For institutions that have AACSBaccreditation<a title="CPA Journal - October 2009 page 70" href="http://viewer.zmags.com/publication/742328e2?page=70">generation of new hires will work hard buttend v</a> generation of new hires will work hard buttend v<a title="CPA Journal - October 2009 page 71" href="http://viewer.zmags.com/publication/742328e2?page=71">$ FAE’S SPECIAL POP PASS!</a> $ FAE’S SPECIAL POP PASS!<a title="CPA Journal - October 2009 page 72" href="http://viewer.zmags.com/publication/742328e2?page=72">T ECHNOLOGYonline resources 20 Q</a> T ECHNOLOGYonline resources 20 Q<a title="CPA Journal - October 2009 page 73" href="http://viewer.zmags.com/publication/742328e2?page=73"> Most accounting publications nowoffer online </a> Most accounting publications nowoffer online <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> quickly search for and identify organiza-tions b<a title="CPA Journal - October 2009 page 75" href="http://viewer.zmags.com/publication/742328e2?page=75">T ECHNOLOGYwhat to bookmark Website </a> T ECHNOLOGYwhat to bookmark Website <a title="CPA Journal - October 2009 page 76" href="http://viewer.zmags.com/publication/742328e2?page=76">Classified PROFESSIONAL OPPORTUNITY l BUSINESS l</a> Classified PROFESSIONAL OPPORTUNITY l BUSINESS l<a title="CPA Journal - October 2009 page 77" href="http://viewer.zmags.com/publication/742328e2?page=77">LONG ISLAND CPA FIRM IN ROCKVILLE CENTREOpportun</a> LONG ISLAND CPA FIRM IN ROCKVILLE CENTREOpportun<a title="CPA Journal - October 2009 page 78" href="http://viewer.zmags.com/publication/742328e2?page=78">INNOVATIVE STRATEGIESfor sales and use tax compl</a> INNOVATIVE STRATEGIESfor sales and use tax compl<a title="CPA Journal - October 2009 page 79" href="http://viewer.zmags.com/publication/742328e2?page=79">BUSINESS SERVICESBusiness Valuation SoftwareSt</a> BUSINESS SERVICESBusiness Valuation SoftwareSt<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 ATAmonthly update</a> E CONOMIC & MARKET D ATAmonthly update<a title="CPA Journal - October 2009 page 82" href="http://viewer.zmags.com/publication/742328e2?page=82">E DITORIALa message from the editor-in-chie</a> E DITORIALa message from the editor-in-chie<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>