Economy

Nearly four years after its debut, CPA2Biz, the online portal of the American Institute of CPAs, is projecting that the Web vehicle will turn a profit in 2006.

The American Institute of CPAs bestowed awards upon two members and an accounting firm during its Spring Meeting of Council here this week.

Expressing optimism that the bipartisan bickering over a litany of Capitol Hill issues would be suspended at least temporarily, Treasury Secretary John W. Snow said that a finding a solution for the wheezing 70-year-old Social Security program would be the test of lawmakers from both sides of the aisle to come together.

Three years after the spate of scandals that led to the passage of the Sarbanes-Oxley Act, the accounting profession's reputation has bounced back in a big way, an American Institute of CPAs executive told Council members here.

Members of the ruling Council of the American Institute of CPAs at their meeting here passed a resolution supporting the development of generally accepted accounting principles for privately held, for-profit entities and instructing the institute's management to work with accounting rule makers to develop a process for developing such standards.

Reiterating the Financial Accounting Standards Board's 2005 goal of simplification, FASB Chairman Robert Herz told attendees at the American Institute of CPAs Spring Meeting of Council that the regulatory climate has reopened such issues as differential standards and the codification of generally accepted accounting principles, thus intensifying the need to hone standards and reduce the number of accounting guidance outlets.

The American Institute of CPAs and Paychex have expanded their partner program -- where Paychex provides payroll services to AICPA members -- to include 401(k) recordkeeping services.

The Private Companies Practice Section membership section of the American Institute of CPAs has launched an initiative aimed at helping CPA firms address succession planning issues that includes a number of resources slated to debut within the next two months.

A crackdown on abusive tax shelters that includes codifying the economic substance doctrine would create legal booby traps for small businesses and open the door for new abuses by unscrupulous tax shelter promoters, the American Institute of CPAs warned Congress.

The number of internal controls weaknesses related to lease accounting issues jumped more than 10 percent in April, according to a report released this week.

In response to the Financial Accounting Standards Board's recent proposal on the Hierarchy of GAAP, the American Institute of CPAs has issued an exposure draft introducing a proposed Statement on Auditing Standards that would apply only to nongovernmental entities.

The Financial Accounting Standards Board has published an exposure draft to rank generally accepted accounting principles.

Complexity is eroding voluntary compliance with U.S. tax laws, a member of the American Institute of CPAs Tax Executive Committee told the House of Representatives Small Business Committee this week.

The Internal Revenue Service, in partnership with stakeholder groups, has set up a new Web-based list of frequently asked questions aimed at helping corporate taxpayers understand the requirements of the new Schedule M-3.

Ajilon Finance and the American Institute of CPAs are seeking nominees for the 7th annual AICPA Business & Industry Hall of Fame Awards program.

The American Institute of CPAs, the AICPA Foundation, the National Endowment for Financial Education and the American Red Cross have launched a new, broad-based disaster preparedness and planning guide for consumers.

The Professional Ethics Executive Committee of the American Institute of CPAs has proposed in an exposure draft a new ethics interpretation of rules to determine whether financial interests held by a company's external auditor impair independence.

New York - The American Institute of CPAs has introduced a new Web site for the information technology community. The site, at www.aicpa.org/infotech, is a portal containing resources, tools and guidance for CPAs interested in or performing IT functions.

American accounting contains an awkward contradiction. Though 99.7 percent of the country's 4.9 million corporations are privately held, a good deal of the country's generally accepted accounting principles are primarily relevant to the financial conditions of public companies traded on equities markets.

The American Institute of CPAs released an exposure draft of proposed business valuation standards that would be applicable to institute members performing valuation standards in tax, mergers and acquisitions, litigation, and financial reporting. Once the standards become finalized, members would be required to comply with them when performing valuation engagements that reach a conclusion of value or an indication of value. Roughly 25,000 institute members currently provide business valuation and forensic and litigation services. For further information, go to www.aicpa.org/bvfls.