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New<br />
Ideas<br />
Improving Regulation,<br />
Standards, and Education<br />
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Plus<br />
· Subprime Lending and Reliable Reporting<br />
· Lottery Tax Issues · Changes to 529 Plans<br />
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C ONTENTS<br />
april 2010<br />
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<br /><a title="CPAJ April 2010 page 1" href="http://viewer.zmags.com/publication/900c8238?page=1">NewIdeasImproving Regulation,Standards, and Ed</a> NewIdeasImproving Regulation,Standards, and Ed<a title="CPAJ April 2010 page 2" href="http://viewer.zmags.com/publication/900c8238?page=2"></a> <a title="CPAJ April 2010 page 3" href="http://viewer.zmags.com/publication/900c8238?page=3"></a> <a title="CPAJ April 2010 page 4" href="http://viewer.zmags.com/publication/900c8238?page=4">C ONTENTSapril 2010 </a> C ONTENTSapril 2010 <a title="CPAJ April 2010 page 5" href="http://viewer.zmags.com/publication/900c8238?page=5">vol. LXXX/no.46PERSPECTI</a> vol. LXXX/no.46PERSPECTI<a title="CPAJ April 2010 page 6" href="http://viewer.zmags.com/publication/900c8238?page=6"> PublisherLOUIS GRUMET Associate Pu</a> PublisherLOUIS GRUMET Associate Pu<a title="CPAJ April 2010 page 7" href="http://viewer.zmags.com/publication/900c8238?page=7">FAE's Discount Programs Can Save You MoneyF</a> FAE's Discount Programs Can Save You MoneyF<a title="CPAJ April 2010 page 8" href="http://viewer.zmags.com/publication/900c8238?page=8">P ERSPECTIVESviewpointProposed Tax Gap Le</a> P ERSPECTIVESviewpointProposed Tax Gap Le<a title="CPAJ April 2010 page 9" href="http://viewer.zmags.com/publication/900c8238?page=9">publisher's columnWill the Estate Tax Beco</a> publisher's columnWill the Estate Tax Beco<a title="CPAJ April 2010 page 10" href="http://viewer.zmags.com/publication/900c8238?page=10">serious problems and propose possiblesolutions b</a> serious problems and propose possiblesolutions b<a title="CPAJ April 2010 page 11" href="http://viewer.zmags.com/publication/900c8238?page=11"> The Treasury proposes that the generalthree-y</a> The Treasury proposes that the generalthree-y<a title="CPAJ April 2010 page 12" href="http://viewer.zmags.com/publication/900c8238?page=12">Creating Compelling Client Comm</a> Creating Compelling Client Comm<a title="CPAJ April 2010 page 13" href="http://viewer.zmags.com/publication/900c8238?page=13">can be convenient, a lengthy game of phonetag ma</a> can be convenient, a lengthy game of phonetag ma<a title="CPAJ April 2010 page 14" href="http://viewer.zmags.com/publication/900c8238?page=14">value, quality, and overall satisfaction withthe</a> value, quality, and overall satisfaction withthe<a title="CPAJ April 2010 page 15" href="http://viewer.zmags.com/publication/900c8238?page=15">practice managementSuccess Starts with a </a> practice managementSuccess Starts with a <a title="CPAJ April 2010 page 16" href="http://viewer.zmags.com/publication/900c8238?page=16">InFocus New Ideas Regulation,1</a> InFocus New Ideas Regulation,1<a title="CPAJ April 2010 page 17" href="http://viewer.zmags.com/publication/900c8238?page=17">for ImprovingStandards, andEducationAn An</a> for ImprovingStandards, andEducationAn An<a title="CPAJ April 2010 page 18" href="http://viewer.zmags.com/publication/900c8238?page=18"> TAC's report furnished 18 recommen-dations, w</a> TAC's report furnished 18 recommen-dations, w<a title="CPAJ April 2010 page 19" href="http://viewer.zmags.com/publication/900c8238?page=19">Specifically, CIFR recommended addi-tional inves</a> Specifically, CIFR recommended addi-tional inves<a title="CPAJ April 2010 page 20" href="http://viewer.zmags.com/publication/900c8238?page=20">use of these indicators in published finan-cial </a> use of these indicators in published finan-cial <a title="CPAJ April 2010 page 21" href="http://viewer.zmags.com/publication/900c8238?page=21">The cochairs further recommended thatCongress co</a> The cochairs further recommended thatCongress co<a title="CPAJ April 2010 page 22" href="http://viewer.zmags.com/publication/900c8238?page=22">A CCOUNTING & AUDITINGfinancial reporting</a> A CCOUNTING & AUDITINGfinancial reporting<a title="CPAJ April 2010 page 23" href="http://viewer.zmags.com/publication/900c8238?page=23">as a “fair value hierarchy” that prioritizesthe </a> as a “fair value hierarchy” that prioritizesthe <a title="CPAJ April 2010 page 24" href="http://viewer.zmags.com/publication/900c8238?page=24"> pronouncements relating to fair value meas</a> pronouncements relating to fair value meas<a title="CPAJ April 2010 page 25" href="http://viewer.zmags.com/publication/900c8238?page=25">support of fair value may be difficult andcostly</a> support of fair value may be difficult andcostly<a title="CPAJ April 2010 page 26" href="http://viewer.zmags.com/publication/900c8238?page=26">2007 (Stephen G. Ryan, “Accounting in andfor the</a> 2007 (Stephen G. Ryan, “Accounting in andfor the<a title="CPAJ April 2010 page 27" href="http://viewer.zmags.com/publication/900c8238?page=27">returns in 2007 (in the midst of the lendingcris</a> returns in 2007 (in the midst of the lendingcris<a title="CPAJ April 2010 page 28" href="http://viewer.zmags.com/publication/900c8238?page=28">A CCOUNTING & AUDITINGfinancial reporting</a> A CCOUNTING & AUDITINGfinancial reporting<a title="CPAJ April 2010 page 29" href="http://viewer.zmags.com/publication/900c8238?page=29">pany if that company has future financialreporti</a> pany if that company has future financialreporti<a title="CPAJ April 2010 page 30" href="http://viewer.zmags.com/publication/900c8238?page=30">each accounting issue into one of fourgroups: 1)</a> each accounting issue into one of fourgroups: 1)<a title="CPAJ April 2010 page 31" href="http://viewer.zmags.com/publication/900c8238?page=31">Because stealth restatements can be con-strued a</a> Because stealth restatements can be con-strued a<a title="CPAJ April 2010 page 32" href="http://viewer.zmags.com/publication/900c8238?page=32">T AXATIONfederal taxation</a> T AXATIONfederal taxation<a title="CPAJ April 2010 page 33" href="http://viewer.zmags.com/publication/900c8238?page=33">ence” of gambling to political pressure fromothe</a> ence” of gambling to political pressure fromothe<a title="CPAJ April 2010 page 34" href="http://viewer.zmags.com/publication/900c8238?page=34"> EXHIBIT 1Participants in Mult</a> EXHIBIT 1Participants in Mult<a title="CPAJ April 2010 page 35" href="http://viewer.zmags.com/publication/900c8238?page=35"> States are required to give the winner 60day</a> States are required to give the winner 60day<a title="CPAJ April 2010 page 36" href="http://viewer.zmags.com/publication/900c8238?page=36"> EXHIBIT 2State</a> EXHIBIT 2State<a title="CPAJ April 2010 page 37" href="http://viewer.zmags.com/publication/900c8238?page=37">■ Ohio—multiple winners are allowed;they shoul</a> ■ Ohio—multiple winners are allowed;they shoul<a title="CPAJ April 2010 page 38" href="http://viewer.zmags.com/publication/900c8238?page=38"> EXHIBIT 3Anonymity for WinnersState </a> EXHIBIT 3Anonymity for WinnersState <a title="CPAJ April 2010 page 39" href="http://viewer.zmags.com/publication/900c8238?page=39">Anonymity Most states do not allow a lotteryw</a> Anonymity Most states do not allow a lotteryw<a title="CPAJ April 2010 page 40" href="http://viewer.zmags.com/publication/900c8238?page=40">T AXATIONfederal taxationLike-Kind 1031 </a> T AXATIONfederal taxationLike-Kind 1031 <a title="CPAJ April 2010 page 41" href="http://viewer.zmags.com/publication/900c8238?page=41">given in the exchange. Thus, if the valueof the </a> given in the exchange. Thus, if the valueof the <a title="CPAJ April 2010 page 42" href="http://viewer.zmags.com/publication/900c8238?page=42">Generally, property that is listed under a prod-</a> Generally, property that is listed under a prod-<a title="CPAJ April 2010 page 43" href="http://viewer.zmags.com/publication/900c8238?page=43">leases of real property are not considered to be </a> leases of real property are not considered to be <a title="CPAJ April 2010 page 44" href="http://viewer.zmags.com/publication/900c8238?page=44">T AXATIONcorporate taxationTax Benefits </a> T AXATIONcorporate taxationTax Benefits <a title="CPAJ April 2010 page 45" href="http://viewer.zmags.com/publication/900c8238?page=45">IRC section 331(a) apply, and sharehold-ers A an</a> IRC section 331(a) apply, and sharehold-ers A an<a title="CPAJ April 2010 page 46" href="http://viewer.zmags.com/publication/900c8238?page=46">Formless Conversion If the shareholders use t</a> Formless Conversion If the shareholders use t<a title="CPAJ April 2010 page 47" href="http://viewer.zmags.com/publication/900c8238?page=47"></a> <a title="CPAJ April 2010 page 48" href="http://viewer.zmags.com/publication/900c8238?page=48">T AXATIONfederal taxationNew Federal Tax</a> T AXATIONfederal taxationNew Federal Tax<a title="CPAJ April 2010 page 49" href="http://viewer.zmags.com/publication/900c8238?page=49">of 2009, will help both those who are buy-ing an</a> of 2009, will help both those who are buy-ing an<a title="CPAJ April 2010 page 50" href="http://viewer.zmags.com/publication/900c8238?page=50">F INANCEpersonal financial planningSec</a> F INANCEpersonal financial planningSec<a title="CPAJ April 2010 page 51" href="http://viewer.zmags.com/publication/900c8238?page=51"> Prepaid tuition plans. A prepaid tuitionplan </a> Prepaid tuition plans. A prepaid tuitionplan <a title="CPAJ April 2010 page 52" href="http://viewer.zmags.com/publication/900c8238?page=52">securities. As a result, investors often havedif</a> securities. As a result, investors often havedif<a title="CPAJ April 2010 page 53" href="http://viewer.zmags.com/publication/900c8238?page=53">ciary of accounts holding millions of dol-lars. </a> ciary of accounts holding millions of dol-lars. <a title="CPAJ April 2010 page 54" href="http://viewer.zmags.com/publication/900c8238?page=54">F INANCEpersonal financial planningThe</a> F INANCEpersonal financial planningThe<a title="CPAJ April 2010 page 55" href="http://viewer.zmags.com/publication/900c8238?page=55">in taxable income any pretax assets that areconv</a> in taxable income any pretax assets that areconv<a title="CPAJ April 2010 page 56" href="http://viewer.zmags.com/publication/900c8238?page=56">of the year as the numerator, and the totalvalue</a> of the year as the numerator, and the totalvalue<a title="CPAJ April 2010 page 57" href="http://viewer.zmags.com/publication/900c8238?page=57">tax contributions and their earnings are con-sid</a> tax contributions and their earnings are con-sid<a title="CPAJ April 2010 page 58" href="http://viewer.zmags.com/publication/900c8238?page=58">a Roth IRA or simply decides that he doesnot wan</a> a Roth IRA or simply decides that he doesnot wan<a title="CPAJ April 2010 page 59" href="http://viewer.zmags.com/publication/900c8238?page=59">All conferencesnow being webcast—visit our webs</a> All conferencesnow being webcast—visit our webs<a title="CPAJ April 2010 page 60" href="http://viewer.zmags.com/publication/900c8238?page=60">M ANAGEMENTpractice management Attrac</a> M ANAGEMENTpractice management Attrac<a title="CPAJ April 2010 page 61" href="http://viewer.zmags.com/publication/900c8238?page=61">■ The office was pretty plain and dark.It didn</a> ■ The office was pretty plain and dark.It didn<a title="CPAJ April 2010 page 62" href="http://viewer.zmags.com/publication/900c8238?page=62"> Prepare for new staff's first day onthe job. </a> Prepare for new staff's first day onthe job. <a title="CPAJ April 2010 page 63" href="http://viewer.zmags.com/publication/900c8238?page=63">R ESPONSIBILITIES & LEADERSHIPeducation</a> R ESPONSIBILITIES & LEADERSHIPeducation<a title="CPAJ April 2010 page 64" href="http://viewer.zmags.com/publication/900c8238?page=64"> Importance is defined here as the extent to</a> Importance is defined here as the extent to<a title="CPAJ April 2010 page 65" href="http://viewer.zmags.com/publication/900c8238?page=65">Certified Management Accountant (CMA)designation</a> Certified Management Accountant (CMA)designation<a title="CPAJ April 2010 page 66" href="http://viewer.zmags.com/publication/900c8238?page=66">so that the changes do not result in an exam-ina</a> so that the changes do not result in an exam-ina<a title="CPAJ April 2010 page 67" href="http://viewer.zmags.com/publication/900c8238?page=67">Impact of Academics Academic respondents repr</a> Impact of Academics Academic respondents repr<a title="CPAJ April 2010 page 68" href="http://viewer.zmags.com/publication/900c8238?page=68">T ECHNOLOGYthe cpa & the computerFor</a> T ECHNOLOGYthe cpa & the computerFor<a title="CPAJ April 2010 page 69" href="http://viewer.zmags.com/publication/900c8238?page=69">able over the past several months. It showsthe m</a> able over the past several months. It showsthe m<a title="CPAJ April 2010 page 70" href="http://viewer.zmags.com/publication/900c8238?page=70"> EXHIBIT 2Matrix of Transition </a> EXHIBIT 2Matrix of Transition <a title="CPAJ April 2010 page 71" href="http://viewer.zmags.com/publication/900c8238?page=71"> After calculating these transition and col-l</a> After calculating these transition and col-l<a title="CPAJ April 2010 page 72" href="http://viewer.zmags.com/publication/900c8238?page=72">cast the future collection of the accountsreceiv</a> cast the future collection of the accountsreceiv<a title="CPAJ April 2010 page 73" href="http://viewer.zmags.com/publication/900c8238?page=73">time-series methods to improve the fore-casting </a> time-series methods to improve the fore-casting <a title="CPAJ April 2010 page 74" href="http://viewer.zmags.com/publication/900c8238?page=74">T ECHNOLOGYwhat to bookmark </a> T ECHNOLOGYwhat to bookmark <a title="CPAJ April 2010 page 75" href="http://viewer.zmags.com/publication/900c8238?page=75">Accounting Standards Updates, ConceptsStatements</a> Accounting Standards Updates, ConceptsStatements<a title="CPAJ April 2010 page 76" href="http://viewer.zmags.com/publication/900c8238?page=76">Classified PROFESSIONAL OPPORTUNITY l BUSINESS l</a> Classified PROFESSIONAL OPPORTUNITY l BUSINESS l<a title="CPAJ April 2010 page 77" href="http://viewer.zmags.com/publication/900c8238?page=77">SPACE FOR RENTAAA PROFESSIONAL OFFICES FOR REN</a> SPACE FOR RENTAAA PROFESSIONAL OFFICES FOR REN<a title="CPAJ April 2010 page 78" href="http://viewer.zmags.com/publication/900c8238?page=78">FINANCIAL ACCOUNTING &AUDITING SERVICESExperi</a> FINANCIAL ACCOUNTING &AUDITING SERVICESExperi<a title="CPAJ April 2010 page 79" href="http://viewer.zmags.com/publication/900c8238?page=79">Classified Rates Rates</a> Classified Rates Rates<a title="CPAJ April 2010 page 80" href="http://viewer.zmags.com/publication/900c8238?page=80"> </a> <a title="CPAJ April 2010 page 81" href="http://viewer.zmags.com/publication/900c8238?page=81">E CONOMIC & MARKET D ATAmonthly update</a> E CONOMIC & MARKET D ATAmonthly update<a title="CPAJ April 2010 page 82" href="http://viewer.zmags.com/publication/900c8238?page=82">E DITORIALa message from the editor-in-chie</a> E DITORIALa message from the editor-in-chie<a title="CPAJ April 2010 page 83" href="http://viewer.zmags.com/publication/900c8238?page=83"></a> <a title="CPAJ April 2010 page 84" href="http://viewer.zmags.com/publication/900c8238?page=84"></a>