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<br /> www.cpaj.com October 2013<br /> UPDATING THE<br /> ORIGINAL CONCEPTS<br /> FOR TODAY’S ENVIRONMENT<br /> A FLAT TAX MODEL REVENUE RECOGNITION MARITAL STATUS AFTER DOMA DUE CARE<br /> FAE 2013 Web Events<br /> FAE's Upcoming<br /> Live Web Events<br /> Simple. Easy. Convenient.<br /> Experience FAE Web Events from the convenience of<br /> your home or office. Simply attend the Web Event at<br /> the scheduled time and earn your CPE certificate<br /> immediately following the event!<br /> IFRS Conference<br /> Tuesday, October 22, 2013, 8:00 a.m.–5:00 p.m.<br /> Planning Issues Faced with Doing Business Abroad:<br /> U.K. and Canada<br /> Wednesday, October 23, 2013, 5:00–8:00 p.m.<br /> Business & Industry Conference<br /> Thursday, October 24, 2013, 8:00 a.m.–5:00 p.m.<br /> Public Schools Accounting & Auditing Conference<br /> Monday, October 28, 2013, 8:00 a.m.–5:00 p.m.<br /> Annual Tax/Plenary Conference<br /> Wednesday, October 3<a title="The CPA Journal - October 2013 page 1" href="http://viewer.zmags.com/publication/e5c2f3f8?page=1"> www.cpaj.com October 2013 </a> <a title="The CPA Journal - October 2013 page 2" href="http://viewer.zmags.com/publication/e5c2f3f8?page=2"> FAE 2013 Web Events FAE's Upcoming Live Web Even</a> <a title="The CPA Journal - October 2013 page 3" href="http://viewer.zmags.com/publication/e5c2f3f8?page=3"> FAE 2013 Conferences </a> <a title="The CPA Journal - October 2013 page 4" href="http://viewer.zmags.com/publication/e5c2f3f8?page=4"> CONTENTS october 2013 6 PERSPECTIVES 14 IN FOC</a> <a title="The CPA Journal - October 2013 page 5" href="http://viewer.zmags.com/publication/e5c2f3f8?page=5"> vol. LXXXIII/no. 10 22 ESSENTIALS </a> <a title="The CPA Journal - October 2013 page 6" href="http://viewer.zmags.com/publication/e5c2f3f8?page=6"> new york state society of NYSSCPA certif</a> <a title="The CPA Journal - October 2013 page 7" href="http://viewer.zmags.com/publication/e5c2f3f8?page=7"> FAE 2013 Conferences </a> <a title="The CPA Journal - October 2013 page 8" href="http://viewer.zmags.com/publication/e5c2f3f8?page=8"> PERSPECTIVES viewpoint S Should Auditors Opine </a> <a title="The CPA Journal - October 2013 page 9" href="http://viewer.zmags.com/publication/e5c2f3f8?page=9"> publisher's column </a> <a title="The CPA Journal - October 2013 page 10" href="http://viewer.zmags.com/publication/e5c2f3f8?page=10"> (Continued from page 6) n The financial statement</a> <a title="The CPA Journal - October 2013 page 11" href="http://viewer.zmags.com/publication/e5c2f3f8?page=11"> renew a loan or increase one, or whether manageme</a> <a title="The CPA Journal - October 2013 page 12" href="http://viewer.zmags.com/publication/e5c2f3f8?page=12"> standards setting Lease Accounting— Up for R</a> <a title="The CPA Journal - October 2013 page 13" href="http://viewer.zmags.com/publication/e5c2f3f8?page=13"> er that enters into a five-year, fixed-pay- ment </a> <a title="The CPA Journal - October 2013 page 14" href="http://viewer.zmags.com/publication/e5c2f3f8?page=14"> A Rotational Model for Internal Auditors </a> <a title="The CPA Journal - October 2013 page 15" href="http://viewer.zmags.com/publication/e5c2f3f8?page=15"> Accounting Horizons, vol. 26, no. 2, June 2012, p</a> <a title="The CPA Journal - October 2013 page 16" href="http://viewer.zmags.com/publication/e5c2f3f8?page=16"> In Focus</a> <a title="The CPA Journal - October 2013 page 17" href="http://viewer.zmags.com/publication/e5c2f3f8?page=17"> Simulating a Flat Tax Model What Are the Likely O</a> <a title="The CPA Journal - October 2013 page 18" href="http://viewer.zmags.com/publication/e5c2f3f8?page=18"> The term “flat tax” can—and does— Overview in</a> <a title="The CPA Journal - October 2013 page 19" href="http://viewer.zmags.com/publication/e5c2f3f8?page=19"> added tax [VAT], a retail sales tax, a busi- ness</a> <a title="The CPA Journal - October 2013 page 20" href="http://viewer.zmags.com/publication/e5c2f3f8?page=20"> returns processed each year, the SOI program rand</a> <a title="The CPA Journal - October 2013 page 21" href="http://viewer.zmags.com/publication/e5c2f3f8?page=21"> Using the simulated population and 2009 tax r</a> <a title="The CPA Journal - October 2013 page 22" href="http://viewer.zmags.com/publication/e5c2f3f8?page=22"> could substantially change this general trend. </a> <a title="The CPA Journal - October 2013 page 23" href="http://viewer.zmags.com/publication/e5c2f3f8?page=23"> But forming opinions is difficult because mo</a> <a title="The CPA Journal - October 2013 page 24" href="http://viewer.zmags.com/publication/e5c2f3f8?page=24"> ACCOUNTING & AUDITING internal controls</a> <a title="The CPA Journal - October 2013 page 25" href="http://viewer.zmags.com/publication/e5c2f3f8?page=25"> framework for designing, implementing, and conduc</a> <a title="The CPA Journal - October 2013 page 26" href="http://viewer.zmags.com/publication/e5c2f3f8?page=26"> for-profit organizations, and government entities</a> <a title="The CPA Journal - October 2013 page 27" href="http://viewer.zmags.com/publication/e5c2f3f8?page=27"> nization. The following five principles relate to</a> <a title="The CPA Journal - October 2013 page 28" href="http://viewer.zmags.com/publication/e5c2f3f8?page=28"> implement risk assessment mechanisms at appropria</a> <a title="The CPA Journal - October 2013 page 29" href="http://viewer.zmags.com/publication/e5c2f3f8?page=29"> internally and externally, and it provides the or</a> <a title="The CPA Journal - October 2013 page 30" href="http://viewer.zmags.com/publication/e5c2f3f8?page=30"> it should be noted that the five components nents</a> <a title="The CPA Journal - October 2013 page 31" href="http://viewer.zmags.com/publication/e5c2f3f8?page=31"> the framework, but it cautions against using a ch</a> <a title="The CPA Journal - October 2013 page 32" href="http://viewer.zmags.com/publication/e5c2f3f8?page=32"> ACCOUNTING & AUDITING accounting The Nex</a> <a title="The CPA Journal - October 2013 page 33" href="http://viewer.zmags.com/publication/e5c2f3f8?page=33"> dard to be applied to all contracts with cus- tom</a> <a title="The CPA Journal - October 2013 page 34" href="http://viewer.zmags.com/publication/e5c2f3f8?page=34"> pany would account for a promised good or service</a> <a title="The CPA Journal - October 2013 page 35" href="http://viewer.zmags.com/publication/e5c2f3f8?page=35"> the fourth step, a company would allocate the tra</a> <a title="The CPA Journal - October 2013 page 36" href="http://viewer.zmags.com/publication/e5c2f3f8?page=36"> time); on the other hand, the performance obligat</a> <a title="The CPA Journal - October 2013 page 37" href="http://viewer.zmags.com/publication/e5c2f3f8?page=37"> </a> <a title="The CPA Journal - October 2013 page 38" href="http://viewer.zmags.com/publication/e5c2f3f8?page=38"> ACCOUNTING & AUDITING financial reportin</a> <a title="The CPA Journal - October 2013 page 39" href="http://viewer.zmags.com/publication/e5c2f3f8?page=39"> values and away from historical costs. Historical</a> <a title="The CPA Journal - October 2013 page 40" href="http://viewer.zmags.com/publication/e5c2f3f8?page=40"> tized but tested annually for impairment losses. </a> <a title="The CPA Journal - October 2013 page 41" href="http://viewer.zmags.com/publication/e5c2f3f8?page=41"> rent income tax assets and liabilities. (FRF</a> <a title="The CPA Journal - October 2013 page 42" href="http://viewer.zmags.com/publication/e5c2f3f8?page=42"> TAXATION federal taxation Marital St</a> <a title="The CPA Journal - October 2013 page 43" href="http://viewer.zmags.com/publication/e5c2f3f8?page=43"> a state where same-sex marriage was legal. But</a> <a title="The CPA Journal - October 2013 page 44" href="http://viewer.zmags.com/publication/e5c2f3f8?page=44"> deduction are higher for MFJ, a couple with child</a> <a title="The CPA Journal - October 2013 page 45" href="http://viewer.zmags.com/publication/e5c2f3f8?page=45"> clear advantage of filing two separate head of ho</a> <a title="The CPA Journal - October 2013 page 46" href="http://viewer.zmags.com/publication/e5c2f3f8?page=46"> TAXATION international taxation The </a> <a title="The CPA Journal - October 2013 page 47" href="http://viewer.zmags.com/publication/e5c2f3f8?page=47"> The Finance Act of 1997 included the following</a> <a title="The CPA Journal - October 2013 page 48" href="http://viewer.zmags.com/publication/e5c2f3f8?page=48"> of the statute” (http://www.justice.gov/osg/ brie</a> <a title="The CPA Journal - October 2013 page 49" href="http://viewer.zmags.com/publication/e5c2f3f8?page=49"> utilities' “excess profits” based on their sale v</a> <a title="The CPA Journal - October 2013 page 50" href="http://viewer.zmags.com/publication/e5c2f3f8?page=50"> TAXATION state and local taxation </a> <a title="The CPA Journal - October 2013 page 51" href="http://viewer.zmags.com/publication/e5c2f3f8?page=51"> n For tax years beginning on or after January 1, </a> <a title="The CPA Journal - October 2013 page 52" href="http://viewer.zmags.com/publication/e5c2f3f8?page=52"> credits will either remain the same or will grow </a> <a title="The CPA Journal - October 2013 page 53" href="http://viewer.zmags.com/publication/e5c2f3f8?page=53"> reimbursement credit. This credit is avail- able </a> <a title="The CPA Journal - October 2013 page 54" href="http://viewer.zmags.com/publication/e5c2f3f8?page=54"> TAXATION federal taxation Tax Implication</a> <a title="The CPA Journal - October 2013 page 55" href="http://viewer.zmags.com/publication/e5c2f3f8?page=55"> year, the penalty would be $44,000 ([52 - 30] × $</a> <a title="The CPA Journal - October 2013 page 56" href="http://viewer.zmags.com/publication/e5c2f3f8?page=56"> includes net gains from the disposition of proper</a> <a title="The CPA Journal - October 2013 page 57" href="http://viewer.zmags.com/publication/e5c2f3f8?page=57"> WRITE FOR The CPA Journal The editors invite CPA</a> <a title="The CPA Journal - October 2013 page 58" href="http://viewer.zmags.com/publication/e5c2f3f8?page=58"> FINANCE family planning Below-Market Sales to Fa</a> <a title="The CPA Journal - October 2013 page 59" href="http://viewer.zmags.com/publication/e5c2f3f8?page=59"> IRC section 267 and its basis provisions shoul</a> <a title="The CPA Journal - October 2013 page 60" href="http://viewer.zmags.com/publication/e5c2f3f8?page=60"> able from the section 267 cost basis, even Son'</a> <a title="The CPA Journal - October 2013 page 61" href="http://viewer.zmags.com/publication/e5c2f3f8?page=61"> The above distinction between an IRC Related-P</a> <a title="The CPA Journal - October 2013 page 62" href="http://viewer.zmags.com/publication/e5c2f3f8?page=62"> MANAGEMENT human resources Are Pay-for-Performan</a> <a title="The CPA Journal - October 2013 page 63" href="http://viewer.zmags.com/publication/e5c2f3f8?page=63"> responses that the customers receive. This system</a> <a title="The CPA Journal - October 2013 page 64" href="http://viewer.zmags.com/publication/e5c2f3f8?page=64"> amount. A sliding-scale bonus will moti- vate con</a> <a title="The CPA Journal - October 2013 page 65" href="http://viewer.zmags.com/publication/e5c2f3f8?page=65"> result. There is also social pressure to per- for</a> <a title="The CPA Journal - October 2013 page 66" href="http://viewer.zmags.com/publication/e5c2f3f8?page=66"> MANAGEMENT employee benefit plans Evaluat</a> <a title="The CPA Journal - October 2013 page 67" href="http://viewer.zmags.com/publication/e5c2f3f8?page=67"> (Hecker v. Deere & Co., 556 F.3d 575 [7th Cir. 20</a> <a title="The CPA Journal - October 2013 page 68" href="http://viewer.zmags.com/publication/e5c2f3f8?page=68"> MANAGEMENT employee benefit plans One-Participan</a> <a title="The CPA Journal - October 2013 page 69" href="http://viewer.zmags.com/publication/e5c2f3f8?page=69"> Tax professionals should consider sug- Benefit</a> <a title="The CPA Journal - October 2013 page 70" href="http://viewer.zmags.com/publication/e5c2f3f8?page=70"> RESPONSIBILITIES & LEADERSHIP ethics What Du</a> <a title="The CPA Journal - October 2013 page 71" href="http://viewer.zmags.com/publication/e5c2f3f8?page=71"> ley, an engagement is undertaken in “good faith a</a> <a title="The CPA Journal - October 2013 page 72" href="http://viewer.zmags.com/publication/e5c2f3f8?page=72"> (e.g., creditors, governments, investors). These </a> <a title="The CPA Journal - October 2013 page 73" href="http://viewer.zmags.com/publication/e5c2f3f8?page=73"> due care to be the “degree of skill and learn- in</a> <a title="The CPA Journal - October 2013 page 74" href="http://viewer.zmags.com/publication/e5c2f3f8?page=74"> TECHNOLOGY what to bookmark Website of the Month</a> <a title="The CPA Journal - October 2013 page 75" href="http://viewer.zmags.com/publication/e5c2f3f8?page=75"> Many CPAs rightly take pride in their service </a> <a title="The CPA Journal - October 2013 page 76" href="http://viewer.zmags.com/publication/e5c2f3f8?page=76"> CLASSIFIEDMARKETPLACE PROFESSIONAL OPPORTUNITY l </a> <a title="The CPA Journal - October 2013 page 77" href="http://viewer.zmags.com/publication/e5c2f3f8?page=77"> CLASSIFIED Peer Review If you nee</a> <a title="The CPA Journal - October 2013 page 78" href="http://viewer.zmags.com/publication/e5c2f3f8?page=78"> CLASSIFIED NEED TO INCORPORATE? </a> <a title="The CPA Journal - October 2013 page 79" href="http://viewer.zmags.com/publication/e5c2f3f8?page=79"> CLASSIFIED Peer R</a> <a title="The CPA Journal - October 2013 page 80" href="http://viewer.zmags.com/publication/e5c2f3f8?page=80"> CLASSIFIED NOW IS THE SEASON TO ACT… Do your </a> <a title="The CPA Journal - October 2013 page 81" href="http://viewer.zmags.com/publication/e5c2f3f8?page=81"> ECONOMIC & MARKET DATA monthly </a> <a title="The CPA Journal - October 2013 page 82" href="http://viewer.zmags.com/publication/e5c2f3f8?page=82"> EDITORIAL a message from the editor-in-ch</a> <a title="The CPA Journal - October 2013 page 83" href="http://viewer.zmags.com/publication/e5c2f3f8?page=83"> Plans That Fit Your Needs Have you helpe</a> <a title="The CPA Journal - October 2013 page 84" href="http://viewer.zmags.com/publication/e5c2f3f8?page=84"> </a>