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<br /> IRA Choices<br /> To Convert or Not to Convert?<br /> • Deductibility of Rental Expenses • 10 Lessons from the Financial Crisis<br /> • Accounting Software Satisfaction<br /> <br /> <br /> C ONTENTS<br /> january 2010<br /> 24 Accounting & Auditing<br /> ❙ Standards Setting<br /> Fair Value Changes Ahead<br /> By Linda A. MacDonald<br /> ❙ Management Accounting<br /> Variance Analysis Using Throughput Accounting:<br /> Better Management Approach to Measuring Results<br /> By David Bukovinsky and John C. Talbott<br /> ❙ International Accounting<br /> A New Paradigm of Reporting: The Basics<br /> of International Financial Reporting Standards<br /> By Deborah L. Lindberg and Deborah L. Seifert<br /> 40 Taxation<br /> <a title="The CPA Journal - January 2010 page 1" href="http://viewer.zmags.com/publication/c949c4ae?page=1"> IRA Choices To Convert or Not to Convert? </a> <a title="The CPA Journal - January 2010 page 2" href="http://viewer.zmags.com/publication/c949c4ae?page=2"> </a> <a title="The CPA Journal - January 2010 page 3" href="http://viewer.zmags.com/publication/c949c4ae?page=3"> </a> <a title="The CPA Journal - January 2010 page 4" href="http://viewer.zmags.com/publication/c949c4ae?page=4"> C ONTENTS january 2010 24 Accounting &</a> <a title="The CPA Journal - January 2010 page 5" href="http://viewer.zmags.com/publication/c949c4ae?page=5"> vol. LXXX/no.1 6PERSPECTI</a> <a title="The CPA Journal - January 2010 page 6" href="http://viewer.zmags.com/publication/c949c4ae?page=6"> Publisher LOUIS GRUMET Associate Pu</a> <a title="The CPA Journal - January 2010 page 7" href="http://viewer.zmags.com/publication/c949c4ae?page=7"> Don't let the JANUARY TEMPERATURES keep you from </a> <a title="The CPA Journal - January 2010 page 8" href="http://viewer.zmags.com/publication/c949c4ae?page=8"> P ERSPECTIVES viewpoint Is the Truth the Pr</a> <a title="The CPA Journal - January 2010 page 9" href="http://viewer.zmags.com/publication/c949c4ae?page=9"> publisher's column High-School Accounting N</a> <a title="The CPA Journal - January 2010 page 10" href="http://viewer.zmags.com/publication/c949c4ae?page=10"> (Continued from page 6) 2007, and interim periods</a> <a title="The CPA Journal - January 2010 page 11" href="http://viewer.zmags.com/publication/c949c4ae?page=11"> </a> <a title="The CPA Journal - January 2010 page 12" href="http://viewer.zmags.com/publication/c949c4ae?page=12"> Regulatory Reform Proposals,” Journal of Accounta</a> <a title="The CPA Journal - January 2010 page 13" href="http://viewer.zmags.com/publication/c949c4ae?page=13"> The Value of Fair Value The fundamental chang</a> <a title="The CPA Journal - January 2010 page 14" href="http://viewer.zmags.com/publication/c949c4ae?page=14"> A Fraud Case Study: The Skim Sisters By Adam </a> <a title="The CPA Journal - January 2010 page 15" href="http://viewer.zmags.com/publication/c949c4ae?page=15"> I moved on to the next room: 110. Same proces</a> <a title="The CPA Journal - January 2010 page 16" href="http://viewer.zmags.com/publication/c949c4ae?page=16"> over $10,000 in restitution to Premier Properties</a> <a title="The CPA Journal - January 2010 page 17" href="http://viewer.zmags.com/publication/c949c4ae?page=17"> repeatedly held that diversification is an elemen</a> <a title="The CPA Journal - January 2010 page 18" href="http://viewer.zmags.com/publication/c949c4ae?page=18"> inbox: letters to the editor Ethics and A</a> <a title="The CPA Journal - January 2010 page 19" href="http://viewer.zmags.com/publication/c949c4ae?page=19"> acquire on a perpetual basis for the suc- cessful</a> <a title="The CPA Journal - January 2010 page 20" href="http://viewer.zmags.com/publication/c949c4ae?page=20"> In Focus IRA To Convert 18 </a> <a title="The CPA Journal - January 2010 page 21" href="http://viewer.zmags.com/publication/c949c4ae?page=21"> Choices or Not to Convert? Roth IRA Conversions </a> <a title="The CPA Journal - January 2010 page 22" href="http://viewer.zmags.com/publication/c949c4ae?page=22"> Taxpayers with modified AGI over $100,000 are all</a> <a title="The CPA Journal - January 2010 page 23" href="http://viewer.zmags.com/publication/c949c4ae?page=23"> Roth IRA increases AGI by the amount converted in</a> <a title="The CPA Journal - January 2010 page 24" href="http://viewer.zmags.com/publication/c949c4ae?page=24"> the same traditional IRA's value, discount- </a> <a title="The CPA Journal - January 2010 page 25" href="http://viewer.zmags.com/publication/c949c4ae?page=25"> As noted above, taxable accounts are an impor</a> <a title="The CPA Journal - January 2010 page 26" href="http://viewer.zmags.com/publication/c949c4ae?page=26"> A CCOUNTING & AUDITING standards setting </a> <a title="The CPA Journal - January 2010 page 27" href="http://viewer.zmags.com/publication/c949c4ae?page=27"> and its current market price objective only apply</a> <a title="The CPA Journal - January 2010 page 28" href="http://viewer.zmags.com/publication/c949c4ae?page=28"> ■ FSP FAS 157-3, Determining the Fair Value of </a> <a title="The CPA Journal - January 2010 page 29" href="http://viewer.zmags.com/publication/c949c4ae?page=29"> orderly transactions representative of fair value</a> <a title="The CPA Journal - January 2010 page 30" href="http://viewer.zmags.com/publication/c949c4ae?page=30"> A CCOUNTING & AUDITING management accountin</a> <a title="The CPA Journal - January 2010 page 31" href="http://viewer.zmags.com/publication/c949c4ae?page=31"> what you'd never want. It hides growth opportunit</a> <a title="The CPA Journal - January 2010 page 32" href="http://viewer.zmags.com/publication/c949c4ae?page=32"> will help us increase sales” overruled “we didn't</a> <a title="The CPA Journal - January 2010 page 33" href="http://viewer.zmags.com/publication/c949c4ae?page=33"> inventories are held to a minimum. Selling and ad</a> <a title="The CPA Journal - January 2010 page 34" href="http://viewer.zmags.com/publication/c949c4ae?page=34"> EXHIBIT 3 Analysis of Sales V</a> <a title="The CPA Journal - January 2010 page 35" href="http://viewer.zmags.com/publication/c949c4ae?page=35"> attempt is made to allocate these costs to indivi</a> <a title="The CPA Journal - January 2010 page 36" href="http://viewer.zmags.com/publication/c949c4ae?page=36"> Sales price variance. Changes in sales price a</a> <a title="The CPA Journal - January 2010 page 37" href="http://viewer.zmags.com/publication/c949c4ae?page=37"> nomic conditions whipsaw back and forth. In this </a> <a title="The CPA Journal - January 2010 page 38" href="http://viewer.zmags.com/publication/c949c4ae?page=38"> A CCOUNTING & AUDITING international accoun</a> <a title="The CPA Journal - January 2010 page 39" href="http://viewer.zmags.com/publication/c949c4ae?page=39"> ■ judgments made by management in applying acco</a> <a title="The CPA Journal - January 2010 page 40" href="http://viewer.zmags.com/publication/c949c4ae?page=40"> Under U.S. GAAP, one depreciation rate is general</a> <a title="The CPA Journal - January 2010 page 41" href="http://viewer.zmags.com/publication/c949c4ae?page=41"> asset increases. Under IFRS, International Accoun</a> <a title="The CPA Journal - January 2010 page 42" href="http://viewer.zmags.com/publication/c949c4ae?page=42"> T AXATION federal taxation </a> <a title="The CPA Journal - January 2010 page 43" href="http://viewer.zmags.com/publication/c949c4ae?page=43"> deductibility of expenses associated with a taxpa</a> <a title="The CPA Journal - January 2010 page 44" href="http://viewer.zmags.com/publication/c949c4ae?page=44"> the taxpayer for personal purposes on any day tha</a> <a title="The CPA Journal - January 2010 page 45" href="http://viewer.zmags.com/publication/c949c4ae?page=45"> es, such as interest and property taxes, that gen</a> <a title="The CPA Journal - January 2010 page 46" href="http://viewer.zmags.com/publication/c949c4ae?page=46"> taxes between personal and business (rental) use </a> <a title="The CPA Journal - January 2010 page 47" href="http://viewer.zmags.com/publication/c949c4ae?page=47"> 280A(e)(1) ($24,000 × 88%) ($22,080) Disallowe</a> <a title="The CPA Journal - January 2010 page 48" href="http://viewer.zmags.com/publication/c949c4ae?page=48"> T AXATION compliance & enforcement Real-T</a> <a title="The CPA Journal - January 2010 page 49" href="http://viewer.zmags.com/publication/c949c4ae?page=49"> average audit cycle time of 60 months for large a</a> <a title="The CPA Journal - January 2010 page 50" href="http://viewer.zmags.com/publication/c949c4ae?page=50"> F INANCE markets & investments Overseein</a> <a title="The CPA Journal - January 2010 page 51" href="http://viewer.zmags.com/publication/c949c4ae?page=51"> straints, assess client suitability, and cus- tom</a> <a title="The CPA Journal - January 2010 page 52" href="http://viewer.zmags.com/publication/c949c4ae?page=52"> investment plan and expectations for future perfo</a> <a title="The CPA Journal - January 2010 page 53" href="http://viewer.zmags.com/publication/c949c4ae?page=53"> will not be able to achieve the diversifica- tion</a> <a title="The CPA Journal - January 2010 page 54" href="http://viewer.zmags.com/publication/c949c4ae?page=54"> M ANAGEMENT practice management Addressin</a> <a title="The CPA Journal - January 2010 page 55" href="http://viewer.zmags.com/publication/c949c4ae?page=55"> its quality control policies and procedures to al</a> <a title="The CPA Journal - January 2010 page 56" href="http://viewer.zmags.com/publication/c949c4ae?page=56"> firm has not had experience and all Yellow Book a</a> <a title="The CPA Journal - January 2010 page 57" href="http://viewer.zmags.com/publication/c949c4ae?page=57"> ■ Consideration of findings by the firm's leade</a> <a title="The CPA Journal - January 2010 page 58" href="http://viewer.zmags.com/publication/c949c4ae?page=58"> M ANAGEMENT information security Is Outsou</a> <a title="The CPA Journal - January 2010 page 59" href="http://viewer.zmags.com/publication/c949c4ae?page=59"> their companies have in place to ensure the secur</a> <a title="The CPA Journal - January 2010 page 60" href="http://viewer.zmags.com/publication/c949c4ae?page=60"> ies around the world. For instance, BSI (British </a> <a title="The CPA Journal - January 2010 page 61" href="http://viewer.zmags.com/publication/c949c4ae?page=61"> policies, such as having employees swipe their id</a> <a title="The CPA Journal - January 2010 page 62" href="http://viewer.zmags.com/publication/c949c4ae?page=62"> R ESPONSIBILITIES & LEADERSHIP fraud T</a> <a title="The CPA Journal - January 2010 page 63" href="http://viewer.zmags.com/publication/c949c4ae?page=63"> client (“Fraud Risk Factors and Audit Planning,” </a> <a title="The CPA Journal - January 2010 page 64" href="http://viewer.zmags.com/publication/c949c4ae?page=64"> Companies,” March 1999, www.coso.org/ publication</a> <a title="The CPA Journal - January 2010 page 65" href="http://viewer.zmags.com/publication/c949c4ae?page=65"> R ESPONSIBILITIES & LEADERSHIP education </a> <a title="The CPA Journal - January 2010 page 66" href="http://viewer.zmags.com/publication/c949c4ae?page=66"> are “It uses my skill in giving presenta- tions” </a> <a title="The CPA Journal - January 2010 page 67" href="http://viewer.zmags.com/publication/c949c4ae?page=67"> essay on a current accounting topic and an oral p</a> <a title="The CPA Journal - January 2010 page 68" href="http://viewer.zmags.com/publication/c949c4ae?page=68"> T ECHNOLOGY software </a> <a title="The CPA Journal - January 2010 page 69" href="http://viewer.zmags.com/publication/c949c4ae?page=69"> important in selecting accounting soft- ware, whi</a> <a title="The CPA Journal - January 2010 page 70" href="http://viewer.zmags.com/publication/c949c4ae?page=70"> EXHIBIT 2 Software Usage PANEL A Software Pa</a> <a title="The CPA Journal - January 2010 page 71" href="http://viewer.zmags.com/publication/c949c4ae?page=71"> functionality/capability was rated most important</a> <a title="The CPA Journal - January 2010 page 72" href="http://viewer.zmags.com/publication/c949c4ae?page=72"> EXHIBIT 4 Fea</a> <a title="The CPA Journal - January 2010 page 73" href="http://viewer.zmags.com/publication/c949c4ae?page=73"> hardware compatibility as key areas for improveme</a> <a title="The CPA Journal - January 2010 page 74" href="http://viewer.zmags.com/publication/c949c4ae?page=74"> EXHIBIT 6 Key</a> <a title="The CPA Journal - January 2010 page 75" href="http://viewer.zmags.com/publication/c949c4ae?page=75"> T ECHNOLOGY what to bookmark Website of t</a> <a title="The CPA Journal - January 2010 page 76" href="http://viewer.zmags.com/publication/c949c4ae?page=76"> Classified PROFESSIONAL OPPORTUNITY l BUSINESS l</a> <a title="The CPA Journal - January 2010 page 77" href="http://viewer.zmags.com/publication/c949c4ae?page=77"> SPACE FOR RENT AAA PROFESSIONAL OFFICES FOR RENT</a> <a title="The CPA Journal - January 2010 page 78" href="http://viewer.zmags.com/publication/c949c4ae?page=78"> Woodbury-CPA firm has 4th floor windowed & non-w</a> <a title="The CPA Journal - January 2010 page 79" href="http://viewer.zmags.com/publication/c949c4ae?page=79"> FINANCIAL ACCOUNTING & AUDITING SERVICES CPA Fi</a> <a title="The CPA Journal - January 2010 page 80" href="http://viewer.zmags.com/publication/c949c4ae?page=80"> </a> <a title="The CPA Journal - January 2010 page 81" href="http://viewer.zmags.com/publication/c949c4ae?page=81"> E CONOMIC & MARKET D ATA monthly update</a> <a title="The CPA Journal - January 2010 page 82" href="http://viewer.zmags.com/publication/c949c4ae?page=82"> E DITORIAL a message from the editor-in-chie</a> <a title="The CPA Journal - January 2010 page 83" href="http://viewer.zmags.com/publication/c949c4ae?page=83"> </a> <a title="The CPA Journal - January 2010 page 84" href="http://viewer.zmags.com/publication/c949c4ae?page=84"> </a>