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IRA Choices<br />
To Convert or Not to Convert?<br />
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• Deductibility of Rental Expenses • 10 Lessons from the Financial Crisis<br />
• Accounting Software Satisfaction<br />
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C ONTENTS<br />
january 2010<br />
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24 Accounting & Auditing<br />
❙ Standards Setting<br />
Fair Value Changes Ahead<br />
By Linda A. MacDonald<br />
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❙ Management Accounting<br />
Variance Analysis Using Throughput Accounting:<br />
Better Management Approach to Measuring Results<br />
<a title="The CPA Journal - January 2010 page 1" href="http://viewer.zmags.com/publication/c949c4ae?page=1">IRA ChoicesTo Convert or Not to Convert?</a> IRA ChoicesTo Convert or Not to Convert?<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 ONTENTSjanuary 201024 Accounting &</a> C ONTENTSjanuary 201024 Accounting &<a title="The CPA Journal - January 2010 page 5" href="http://viewer.zmags.com/publication/c949c4ae?page=5">vol. LXXX/no.16PERSPECTI</a> vol. LXXX/no.16PERSPECTI<a title="The CPA Journal - January 2010 page 6" href="http://viewer.zmags.com/publication/c949c4ae?page=6"> PublisherLOUIS GRUMET Associate Pu</a> PublisherLOUIS GRUMET Associate Pu<a title="The CPA Journal - January 2010 page 7" href="http://viewer.zmags.com/publication/c949c4ae?page=7">Don't let the JANUARY TEMPERATURESkeep you from </a> Don't let the JANUARY TEMPERATURESkeep you from <a title="The CPA Journal - January 2010 page 8" href="http://viewer.zmags.com/publication/c949c4ae?page=8">P ERSPECTIVESviewpointIs the Truth the Pr</a> P ERSPECTIVESviewpointIs the Truth the Pr<a title="The CPA Journal - January 2010 page 9" href="http://viewer.zmags.com/publication/c949c4ae?page=9">publisher's columnHigh-School Accounting N</a> publisher's columnHigh-School Accounting N<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> (Continued from page 6)2007, and interim periods<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,” Journalof Accounta</a> Regulatory Reform Proposals,” Journalof Accounta<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> The Value of Fair Value The fundamental chang<a title="The CPA Journal - January 2010 page 14" href="http://viewer.zmags.com/publication/c949c4ae?page=14">A Fraud Case Study: The Skim SistersBy Adam </a> A Fraud Case Study: The Skim SistersBy Adam <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. Sameproces</a> I moved on to the next room: 110. Sameproces<a title="The CPA Journal - January 2010 page 16" href="http://viewer.zmags.com/publication/c949c4ae?page=16">over $10,000 in restitution to PremierProperties</a> over $10,000 in restitution to PremierProperties<a title="The CPA Journal - January 2010 page 17" href="http://viewer.zmags.com/publication/c949c4ae?page=17">repeatedly held that diversification is anelemen</a> repeatedly held that diversification is anelemen<a title="The CPA Journal - January 2010 page 18" href="http://viewer.zmags.com/publication/c949c4ae?page=18">inbox: letters to the editorEthics and A</a> inbox: letters to the editorEthics and 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> acquire on a perpetual basis for the suc-cessful<a title="The CPA Journal - January 2010 page 20" href="http://viewer.zmags.com/publication/c949c4ae?page=20">InFocus IRATo Convert18 </a> InFocus IRATo Convert18 <a title="The CPA Journal - January 2010 page 21" href="http://viewer.zmags.com/publication/c949c4ae?page=21">Choicesor Not to Convert?Roth IRA Conversions </a> Choicesor Not to Convert?Roth IRA Conversions <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> Taxpayers with modified AGI over $100,000 are all<a title="The CPA Journal - January 2010 page 23" href="http://viewer.zmags.com/publication/c949c4ae?page=23">Roth IRA increases AGI by the amountconverted in</a> Roth IRA increases AGI by the amountconverted in<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> the same traditional IRA's value, discount- <a title="The CPA Journal - January 2010 page 25" href="http://viewer.zmags.com/publication/c949c4ae?page=25"> As noted above, taxable accounts are animpor</a> As noted above, taxable accounts are animpor<a title="The CPA Journal - January 2010 page 26" href="http://viewer.zmags.com/publication/c949c4ae?page=26">A CCOUNTING & AUDITINGstandards setting</a> A CCOUNTING & AUDITINGstandards setting<a title="The CPA Journal - January 2010 page 27" href="http://viewer.zmags.com/publication/c949c4ae?page=27">and its current market price objective onlyapply</a> and its current market price objective onlyapply<a title="The CPA Journal - January 2010 page 28" href="http://viewer.zmags.com/publication/c949c4ae?page=28">■ FSP FAS 157-3, Determining the FairValue of </a> ■ FSP FAS 157-3, Determining the FairValue of <a title="The CPA Journal - January 2010 page 29" href="http://viewer.zmags.com/publication/c949c4ae?page=29">orderly transactions representative of fairvalue</a> orderly transactions representative of fairvalue<a title="The CPA Journal - January 2010 page 30" href="http://viewer.zmags.com/publication/c949c4ae?page=30">A CCOUNTING & AUDITINGmanagement accountin</a> A CCOUNTING & AUDITINGmanagement accountin<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 growthopportunit</a> what you'd never want. It hides growthopportunit<a title="The CPA Journal - January 2010 page 32" href="http://viewer.zmags.com/publication/c949c4ae?page=32">will help us increase sales” overruled “wedidn't</a> will help us increase sales” overruled “wedidn't<a title="The CPA Journal - January 2010 page 33" href="http://viewer.zmags.com/publication/c949c4ae?page=33">inventories are held to a minimum. Sellingand ad</a> inventories are held to a minimum. Sellingand ad<a title="The CPA Journal - January 2010 page 34" href="http://viewer.zmags.com/publication/c949c4ae?page=34"> EXHIBIT 3Analysis of Sales V</a> EXHIBIT 3Analysis of Sales V<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 toindivi</a> attempt is made to allocate these costs toindivi<a title="The CPA Journal - January 2010 page 36" href="http://viewer.zmags.com/publication/c949c4ae?page=36"> Sales price variance. Changes in salesprice a</a> Sales price variance. Changes in salesprice 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> nomic conditions whipsaw back and forth.In this <a title="The CPA Journal - January 2010 page 38" href="http://viewer.zmags.com/publication/c949c4ae?page=38">A CCOUNTING & AUDITINGinternational accoun</a> A CCOUNTING & AUDITINGinternational accoun<a title="The CPA Journal - January 2010 page 39" href="http://viewer.zmags.com/publication/c949c4ae?page=39">■ judgments made by management inapplying acco</a> ■ judgments made by management inapplying acco<a title="The CPA Journal - January 2010 page 40" href="http://viewer.zmags.com/publication/c949c4ae?page=40">Under U.S. GAAP, one depreciation rateis general</a> Under U.S. GAAP, one depreciation rateis general<a title="The CPA Journal - January 2010 page 41" href="http://viewer.zmags.com/publication/c949c4ae?page=41">asset increases. Under IFRS, InternationalAccoun</a> asset increases. Under IFRS, InternationalAccoun<a title="The CPA Journal - January 2010 page 42" href="http://viewer.zmags.com/publication/c949c4ae?page=42">T AXATIONfederal taxation</a> T AXATIONfederal taxation<a title="The CPA Journal - January 2010 page 43" href="http://viewer.zmags.com/publication/c949c4ae?page=43">deductibility of expenses associated with ataxpa</a> deductibility of expenses associated with ataxpa<a title="The CPA Journal - January 2010 page 44" href="http://viewer.zmags.com/publication/c949c4ae?page=44">the taxpayer for personal purposes on anyday tha</a> the taxpayer for personal purposes on anyday tha<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, thatgen</a> es, such as interest and property taxes, thatgen<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> taxes between personal and business (rental)use <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> 280A(e)(1) ($24,000 × 88%) ($22,080)Disallowe<a title="The CPA Journal - January 2010 page 48" href="http://viewer.zmags.com/publication/c949c4ae?page=48">T AXATIONcompliance & enforcementReal-T</a> T AXATIONcompliance & enforcementReal-T<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 forlarge a</a> average audit cycle time of 60 months forlarge a<a title="The CPA Journal - January 2010 page 50" href="http://viewer.zmags.com/publication/c949c4ae?page=50">F INANCEmarkets & investmentsOverseein</a> F INANCEmarkets & investmentsOverseein<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> straints, assess client suitability, and cus-tom<a title="The CPA Journal - January 2010 page 52" href="http://viewer.zmags.com/publication/c949c4ae?page=52">investment plan and expectations for futureperfo</a> investment plan and expectations for futureperfo<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> will not be able to achieve the diversifica-tion<a title="The CPA Journal - January 2010 page 54" href="http://viewer.zmags.com/publication/c949c4ae?page=54">M ANAGEMENTpractice managementAddressin</a> M ANAGEMENTpractice managementAddressin<a title="The CPA Journal - January 2010 page 55" href="http://viewer.zmags.com/publication/c949c4ae?page=55">its quality control policies and procedures toal</a> its quality control policies and procedures toal<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 YellowBook a</a> firm has not had experience and all YellowBook 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'sleade</a> ■ Consideration of findings by the firm'sleade<a title="The CPA Journal - January 2010 page 58" href="http://viewer.zmags.com/publication/c949c4ae?page=58">M ANAGEMENTinformation securityIs Outsou</a> M ANAGEMENTinformation securityIs Outsou<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 thesecur</a> their companies have in place to ensure thesecur<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> ies around the world. For instance, BSI(British <a title="The CPA Journal - January 2010 page 61" href="http://viewer.zmags.com/publication/c949c4ae?page=61">policies, such as having employees swipetheir id</a> policies, such as having employees swipetheir id<a title="The CPA Journal - January 2010 page 62" href="http://viewer.zmags.com/publication/c949c4ae?page=62">R ESPONSIBILITIES & LEADERSHIPfraudT</a> R ESPONSIBILITIES & LEADERSHIPfraudT<a title="The CPA Journal - January 2010 page 63" href="http://viewer.zmags.com/publication/c949c4ae?page=63">client (“Fraud Risk Factors and AuditPlanning,” </a> client (“Fraud Risk Factors and AuditPlanning,” <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> Companies,” March 1999, www.coso.org/publication<a title="The CPA Journal - January 2010 page 65" href="http://viewer.zmags.com/publication/c949c4ae?page=65">R ESPONSIBILITIES & LEADERSHIPeducation</a> R ESPONSIBILITIES & LEADERSHIPeducation<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> are “It uses my skill in giving presenta-tions” <a title="The CPA Journal - January 2010 page 67" href="http://viewer.zmags.com/publication/c949c4ae?page=67">essay on a current accounting topic andan oral p</a> essay on a current accounting topic andan oral p<a title="The CPA Journal - January 2010 page 68" href="http://viewer.zmags.com/publication/c949c4ae?page=68">T ECHNOLOGYsoftware</a> T ECHNOLOGYsoftware<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> important in selecting accounting soft-ware, whi<a title="The CPA Journal - January 2010 page 70" href="http://viewer.zmags.com/publication/c949c4ae?page=70"> EXHIBIT 2Software UsagePANEL ASoftware Pa</a> EXHIBIT 2Software UsagePANEL ASoftware Pa<a title="The CPA Journal - January 2010 page 71" href="http://viewer.zmags.com/publication/c949c4ae?page=71">functionality/capability was rated mostimportant</a> functionality/capability was rated mostimportant<a title="The CPA Journal - January 2010 page 72" href="http://viewer.zmags.com/publication/c949c4ae?page=72"> EXHIBIT 4Fea</a> EXHIBIT 4Fea<a title="The CPA Journal - January 2010 page 73" href="http://viewer.zmags.com/publication/c949c4ae?page=73">hardware compatibility as key areas forimproveme</a> hardware compatibility as key areas forimproveme<a title="The CPA Journal - January 2010 page 74" href="http://viewer.zmags.com/publication/c949c4ae?page=74"> EXHIBIT 6Key</a> EXHIBIT 6Key<a title="The CPA Journal - January 2010 page 75" href="http://viewer.zmags.com/publication/c949c4ae?page=75">T ECHNOLOGYwhat to bookmarkWebsite of t</a> T ECHNOLOGYwhat to bookmarkWebsite of t<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> Classified PROFESSIONAL OPPORTUNITY l BUSINESS l<a title="The CPA Journal - January 2010 page 77" href="http://viewer.zmags.com/publication/c949c4ae?page=77">SPACE FOR RENTAAA PROFESSIONAL OFFICES FOR RENT</a> SPACE FOR RENTAAA PROFESSIONAL OFFICES FOR RENT<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> Woodbury-CPA firm has 4th floor windowed &non-w<a title="The CPA Journal - January 2010 page 79" href="http://viewer.zmags.com/publication/c949c4ae?page=79">FINANCIAL ACCOUNTING &AUDITING SERVICESCPA Fi</a> FINANCIAL ACCOUNTING &AUDITING SERVICESCPA Fi<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 ATAmonthly update</a> E CONOMIC & MARKET D ATAmonthly update<a title="The CPA Journal - January 2010 page 82" href="http://viewer.zmags.com/publication/c949c4ae?page=82">E DITORIALa message from the editor-in-chie</a> E DITORIALa message from the editor-in-chie<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>