STOP IFRS - Tax Tips
Published: 2011-2-01
I am posting tax tips everyday on my website www diantiecpa com Please visit it for helpful hints and other tax info
STOP IFRS - Tax Tips
Published: 2011-1-30
My tax tip today continued with the earned income credit Please visit my website for details www diantiecpa com
STOP IFRS - Tax Tips
Published: 2011-1-29
My tax tip today is about the Earned Income Credit Please visit my website at www diantiecpa com for details
STOP IFRS - Tax Tips
Published: 2011-1-27
Please visit my website for daily tax tips until April 18 2011 www diantiecpa com
Published: 2011-1-25
Please visit my website www diantiecpa com for daily tax tips
STOP IFRS - Tax Tips
Published: 2011-1-23
Please visit my website at www diantiecpa com for daily tax tips
STOP IFRS - Tax Tips
Published: 2011-1-23
Please visit my website for daily tax tips at www diantiecpa com
STOP IFRS - Tax Tips
Published: 2011-1-22
Please visit my website at www diantiecpa com for my latest tax tips
STOP IFRS - Tax Tips
Published: 2011-1-20
Please visit my website www diantiecpa com for my daily tax tips
STOP IFRS - Tax Tips
Published: 2011-1-18
Please visit my website www diantiecpa com for daily tax tips until April 18 2011
STOP IFRS - Tax Tips
Published: 2011-1-18
Please visit my website for daily tax tips www diantiecpa com
STOP IFRS - Daily Tax Tips
Published: 2011-1-15
I am posting tax tips daily until April 18 2011 Please visit my website at www diantiecpa com
STOP IFRS - New Blog
Published: 2011-1-13
Happy New Year to everyone who have been reading my blog I am continuing my postings on my website - http www diantiecpa com Also if you want to read a good quote or have one to share please check out my daily quotes blog at - http www diantiedaily blogspot com I hope to catchup with my CPE classes soon
STOP IFRS - Ethics And The Bottom Line
Published: 2010-11-18
Another class in Ethics but no confessions in this class Instead the class addressed some of the usual issues we have heard regarding whistle-blowing and the perpetrators of fraud What drives ethical behavior in an organization According to John Felming there have to be appropriate incentives for employees That means pay me or reward me for behaving ethical or else I will do otherwise Interesting take on what drives ethical behavior I m ethical and I don t get an extra reward by my employer for that Perpetrators of fraud - who are these people Research says that about 90 percent of the financial fraud in the US have been perpetrated by the CEO CFO or both CEOs and CFOs are you listening It is a bold statement and based on research has to be true What about public image Imagine you introduce yourself to a group of people as the CEO or CFO of a company What do you think goes off in these people s heads Many years ago the answer could possibly be - wow he she has a great position and it is definitely worth aspiring for Today one of those people could be analyzing in his her head that you are a possible perpetrator of fraud 90 percent is an astounding number Research was done to analyze cases reported for whistle-blowing The results - when the whistle-blowers stand to benefit they were more likely to alleged wrongdoing by a company Naturally whistle-blowing have a negative economic consequence for the companies involved These companies tend to have more earnings restatements and more shareholder lawsuits The good news is that the companies exposed to whistle-blowing improved their governance CEOs were replaced and insiders on boards were reduced Who could be a likely whistle-blower The answer to that was discussed in the class - who is a CPA Whether in public or private practice CPAs become aware of wrongdoings by companies For CPAs in public practice being a whistle-blower is no big deal as the CPA still have many other clients What about the CPA in private or industry practice Who is the client Yes the client would be your employer A dilemma at its best So what do you do In the current economic crisis you don t have the luxury of quitting and finding a job waiting for you If you have solid finances to back you up and put ethics at the top of your list you will probably quit and wait it out to get another job But this option is not available to most people so they ignore it I have earned my four CPE credits for ethics Next challenge here I come
STOP IFRS - IRS Taxing Agencies
Published: 2010-10-14
A few days ago I took another class titled How Much Must You Reveal to IRS and Taxing Agencies One is the issues raised was documentation of uncertain tax positions I recently read that the IRS is requiring companies to disclosure their uncertain tax positions for 2010 and that the schedule UTP has now been finalized The class discussed the work product doctrine which protects documents prepared in anticipation of litigation as it relates to uncertain tax positions Then there is the Kovel Doctrine What is this I never heard of it before In simple words engaging an expert to explain and or interpret documents which are written in a format that a lay person cannot understand and still maintain the attorney client privilege with respect to the documents For example giving a balance sheet to an accountant and asking him her to explain what it is all about so that you can take that document together with its related explanations and make those a part of your privilege documents These issues were raised because of the Textron and Deloitte cases In the Textron case it did not want to produce tax accrual workpapers and IRS argued it should because the papers were not created for use in litigation In the Deloitte case the issue was also tax reserves work papers however the Court ruled in Deloitte s favor that the documents were protected Lessons learnt - know what is Work Product Doctrine Attorney Client Privilege and Tax Practitioner Privilege Documentation is key when resorting to use any of these protections
STOP IFRS - Increased State Business Taxes
Published: 2010-10-07
Catching up with my classes I had time today to do another one This class was titled Increased State Business Taxes Adjusting the Sales Factor In 1957 the Uniform Division of Income for Tax Purposes Act UDITPA recommended the apportionment of business income using a three-factor formula using property payroll and sales The idea was to have a uniform division of income for income tax purposes However based on a survey it was found that three quarters of the states used the receipts based method How does apportionment work Personal property - sales are assigned to the state where the property was shipped Services - assigned to the states based on where the cost to perform the service were incurred Cost of performance is implemented in two different ways Some states uses the proportional method and other states uses a plurality concept i e the state with the most costs gets the entire receipt assigned to it It was noted that the majority of states have now adopted the single receipts factor Other points noted are - it is difficult for out of state businesses to get a fair say in state court acknowledgement of the principle of comity use of the Tax Injunction Act Federal courts have ruled that companies cannot be denied tax benefits resulting from special purpose entities created to encourage economic development Pending bills before Congress are the Business Activity Tax Simplification Act and the Mobile Workforce Tax Fairness Act
STOP IFRS - Reengineering Health Care
Published: 2010-10-06
This is not a good sign that I have not been keeping up with this blog The bad news is that I am also falling behind in my CPE classes which is the reason I started this blog The new resolution has to be to do at least one class per week My class today was about Reengineering Health Care What does that mean In simple terms changing the way we do things related to health care The three pillars identified were technology process and people Technology - Better systems that will enhance the communication process is one example Process - determining the processes and identifying where improvements are required People - The human element to bring everything together The fundamental rethinking and radical redesign of business processes to achieve dramatic improvements in critical contemporary measures of performance such as cost quality service and speed That is the definition from the book Reengineering Health Care by Jim Champy and Harry Greenspun Sorry guys but I like my explanation better A study done by the U S government estimated that almost 70 percent of health care costs in the United States are attributable to chronic diseases that are largely preventable Included in that list are diabetes and cancer According to the American College of Preventative Medicine ACPM approximately 4 600 Americans die each day from these preventable diseases Fact - the most expensive place to deliver health care is at a hospital How can engineering health care be achievable Suggestions are improving health care delivery improving the administrative process wellness programs medication management and safety An interesting fact noted which resulted from having electronic health care records is that the records belong to the patient and not the doctor Speaking of health care - it is time to schedule that annual physical
STOP IFRS - Health Care Reform
Published: 2010-8-19
As promised this blog will be about Health Care Reform It s still a hot topic with lots of emotions attached to it Key highlights are mandatory health insurance for individuals in 2014 Play or Pay a comparative effectiveness fee for group plan health spending accounts caps an increase in Medicare payroll tax for certain employees a Medicare investment tax a new excise tax known as the Cadillac tax and the list goes on Given that health insurance costs have been increasing at the rate of 6 to 8 annually companies are already assessing the impact this law will have on their operations Begining in 2014 companies with 50 or more full-time employees are required to offer health insurance The definition of a full-time employee is one who works more than 30 hours a week under the new law Does this mean that companies will stop offering health insurance to employees who work less than 30 hours Maybe Retirees need to be concern Checks for 250 were being mailed to certain participants covered by the Medicare drug program which is to suppose to assist with bridging the gap the donut hole created the difference between the 2 800 maximum paid by Medicare for drugs and the individual out of pocket expenses of up to 5 000 Each of the key highlights listed above requires its own detailed paragraph I will continue to write about this topic as changes to the various sections of the law goes into effect
STOP IFRS - One Year For Blog
Published: 2010-8-13
Today is exactly one year ago since I started this blog Below is a quote from my first blog But the ten million dollar question is will I be able to keep-up with this blog I just started As my trusted advisor will say to me we shall see Well I did keep it going but I did not post to it as much as I wanted to Actually I started another blog called Diantie s Daily Quote which has been keeping me in-line as this blog requires a posting everyday I will begin writing a Blog for a group of entrepreneurs about accounting and taxation to be included in a community blog I am excited about this and I am sure my audience will be making comments My CPE class today was about Health Care Reform That blog will be written next week
STOP IFRS - Fair Value
Published: 2010-7-23
US GAAP - ASC 820 establishes a three level hierarchy of fair value methods Financial statement presentation requires level 1 level 2 and level 3 discosures The goal is that IFRS and US GAAP will be similar for disclosures US GAAP currently requires more disclosures IFRS generally does not allow net presentation for derivatives hence level 3 disclosures under US GAAP may differ All fair value measurement in IFRSs after initial recognition are recurring
STOP IFRS - IFRS Continued
Published: 2010-7-22
Continuing with IFRS versus US GAAP The first thing some users of financial statements look for is how much cash does the company has And cash was listed as the first item on the US GAAP Balance Sheet Under IFRS you have to search for where cash is listed Under US GAAP current assets were listed in order of liquidity not so with IFRS I have seen a few companies that have a slightly different presentation for the Statement of Financial Position IFRS In a nut shell US GAAP users need to look carefully at the IFRS statements and familiarize themselves with various items are listed
STOP IFRS - IFRS Financial Statements
Published: 2010-7-21
As promised I will starting writing about IFRS and will begin with Financial Statement Presentation As required by IAS 1 A complete set of financial statements must include 1 - Two statements of financial position - formerly known as the balance sheet 2 - Two statement of comprehensive income - formerly known as the income statement 3 - Two statements of cash-flows 4 - Two years of changes in equity Currently there is an exposure draft that would change the statement of comprehensive income to the Statement of Profit or Loss and Other Comprehensive Income when referring to IFRS Companies will still be able to use Statement of Comprehensive Income
STOP IFRS - Ethics
Published: 2010-7-20
I seem to be getting back on track with my CPE classes Today s class was touching and titled The Consequences of Inattention to Ethics In this class Justin Paperny a former broker for UBS talks about how ignoring ethics caused him to go to jail for 18 months Rather than relay his entire story I would list a few actions mentioned and my opinion of what should have been done Justin brought in accounts worth 3 million but was not given commission because he had no production number at that time Advice - get everything in writing when you are dealing with financial transactions especially if you are entitled to receive money Justin was asked to bring his mentor and or senior partner to meetings with him to help close deals Advice - moral support is always good but know who your friends are If you suspect that you are being used that person is not your friend and you are on your own Politely end the friendship tough but it s reality Justin mention ethics and said that it just wasn t discussed even though all the companies he worked for had a code of ethics Advice - have your own set of ethics to work by because you have to live with your actions no matter what Justin said he was asked to send a letter to his friend stating that the friend would get 5 000 shares of Jetblue stock which was not true Advice - when a employee at my current company asked me to sign a report saying that I had audited it even though I did not do so I said NO Do the same thing When people ask you do sign documents or do anything that you know is not true or right or correct say No These people know what they are asking you to do is wrong but they still do it anyway especially when they hold a senior position to you I talked about what happened to me as an auditor in a previous blog Justin said he lied to the FBI Advice - never ever think that you can lie to any government official during an investigation and not be caught I guarantee you that the person or persons that you are trying protect by lying will expose you If you are lying to protect yourself you will be exposed because somewhere down the road you would have made a mistake which will surface to haunt you In Justin s case his former business partner mentor was cooperating with the FBI which helped nailed Justin Good class and a wake call to remember that in the business world ethics is always first money will come later
Published: 2010-7-19
I named this blog STOP IFRS but I have not been writing much about IFRS During the next few weeks I will begin to write about what is happening in the IFRS World as a few of my friends have been asking me for advice
STOP IFRS - Derivatives
Published: 2010-7-16
Derivatives- what are these My class today was titled Accounting for Derivatives Don t Hedge Your Bets A derivative is a financial instrument that is based on an underlying asset Dr Ira Kawaller thinks that They re terrific risk management tools Accounting for Derivatives was originally issued as FAS 133 but now it s ASC Topic 815 There are two accounting treatments for derivatives It has to be recognized as an asset or liability and gains or losses changes in the value of that asset or liability are recorded in current income Also discussed in the class was hedge accounting There are basically three types of hedges that qualify for special accounting treatment - the fair value hedge the cash flow hedge and the currency exposure hedge The objective of a hedge is to match the timing of earnings recognition To use special accounting proper documentation is mandatory or else it it not allowed Noted is that once a company decides that it wants to use hedge accounting and qualifies to do so the company has to continue using it until the company decides that hedge accounting is no longer necessary The hedge must be tested for effectiveness and ineffectiveness What s this Simple answer - if your hedge is ineffective and not doing what it suppose to be doing no special accounting treatment is allowed Words of advice - get expert help if you are not sure about the proper documentation and disclosures required for hedges