The appearance of conflict when CPA firms offer consulting services

Article Abstract:

Since almost all major public accounting firms in the U.S. offer both auditing and management consulting services, it is arguable that they are engaged in conflicts of interest and in violation of the American Institute of Certified Public Accountants' Rule 504. The possibility of conflicts of interest when consulting and accounting services are offered by the same organization is examined from the standpoint of asset valuations and tax planning. Also discussed is the Accounting Series Release Number 264 (issued by the Securities and Exchange Commission), which pertains to the legality and ethics of public accounting firms offering both audit and non-audit services.

Analysis, Services, Auditing, Accounting firms, Accounting services, Business consultants, Management consultants, Conflict of interests (Agency), Conflicts of interest

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Tax accounting in an era of tax reform

Article Abstract:

After four years of studying proposed changes to tax accounting methods, the Financial Accounting Standards Board (FASB) has issued an exposure draft recommending that comprehensive tax allocation be retained. The FASB has also recommended that the standard method for reporting deferred tax balances should be the liability method, rather than the deferral method. Although there are shortcomings to comprehensive tax allocation, such as its inconsistency and lack of conformity to international standards, the evolution of government tax policy in the 20th century presents compelling reasons for retaining comprehensive tax allocation.

Standards, Tax accounting

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A cost-benefit analysis of FAS 93

Article Abstract:

A cost-benefit analysis of Financial Accounting Standard (FAS) number 93 gives a useful way of analyzing the issues over whether colleges and other nonprofit business should be required to report depreciation expense on long-lived assets. The Governmental Accounting Standards Board and the Financial Accounting Standards Board currently interprets FAS 93 differently, and the main point revealed in the analysis is that there is a nonconformance of standards for public and private institutions. Both groups should be governed by the same standards.

Management, Universities and colleges, Accounting and auditing, Nonprofit organizations, Depreciation, Governmental Accounting Standards Board

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