President's Budget Proposes AMT Elimination, Tax Reform, LIFO Change
President Barack Obama unveiled his proposed budget for fiscal year 2013 on Monday. Included in its 256 pages are several tax reform proposals, including plans to eliminate the alternative minimum tax (AMT), to repeal LIFO, and to tax dividends of high-income taxpayers at ordinary income rates.
In addition to the tax reform proposals, the budget contains many other specific tax provisions. Among a group labeled “other revenue changes and loophole closers” is a proposal to repeal the LIFO method of accounting for inventories. The Green Book describes this proposal as removing a “possible impediment to the implementation of [IFRS] in the United States” (Green Book, page 130); however, the budget also anticipates that this would generate $73 billion in revenue over 10 years. Under the proposal, LIFO would be unavailable after 2013.
Read more about the President's budget proposal at the Journal of Accountancy.
Updated AICPA Life and Health Insurance Entities A&A Guide
Due to the clarification in the definition of the types of acquisition costs that can be capitalized, as provided by ASU No. 2010-26, Financial Services—Insurance (Topic 944): Accounting for Costs Associated with Acquiring or Renewing Insurance Contracts, the accounting content of Chapter 10 “Commissions, General Expenses, and Deferred Acquisition Costs” of the AICPA’s Audit and Accounting Guide Life and Health Insurance Entities, has been updated.
The revisions incorporate the new guidance and include two illustrative examples of how to determine deferrable acquisition costs. The 2012 edition of the guide won’t be available until later this summer, but you can access the revisions to chapter 10 now through an online subscription.
AICPA Releases Working Drafts of the AICPA Accounting and Valuation Guide Testing Goodwill for Impairment and the AICPA Accounting and Valuation Guide Assets Acquired to Be Used in Research and Development Activities
In November 2011, the AICPA’s Financial Reporting Executive Committee (FinREC) issued working drafts of two AICPA Accounting and Valuation Guides: Testing Goodwill for Impairment and Assets Acquired to Be Used in Research and Development Activities. Feedback was sought on these working drafts to solicit comments from valuation specialists, preparers, auditors, financial statement users and other interested parties to further inform the development of these guides, which will be issued once comments are received, considered, and appropriately acted upon by FinREC for finalization.
Due to requests for additional time from respondents, comments on these two working drafts will be accepted until May 24, 2012.
Access the working drafts of Testing Goodwill for Impairment and Assets Acquired to Be Used in Research and Development Activities and learn how to provide comments.
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