AICPA News Update Vol. 14 No. 27 

    Published July 01, 2011

    AICPA

    AICPA News Update

    A Weekly Email Newsletter on Issues & Events Surrounding the CPA Profession

    In This Update:

    July 01, 2011 - Volume 14 No. 27

    House Approves Patent Reform Bill That Deems Tax Strategies Not Patentable
    IRS Finalizes Shorter Extensions for Partnership, Trust Returns
    AICPA Releases Updated Revenue Recognition Project Brief
    AICPA Survey Provides Picture of IFRS Readiness
    New Service Organization Reporting Options Available to Address Clients' Needs
    Working Draft of Guide to Property and Liability Insurance Entities Released For Comment
    House Approves Patent Reform Bill That Deems Tax Strategies Not Patentable

    The House of Representatives on June 23 passed the America Invents Act by a vote of 304-117. The bill, which would reform the patent system, includes a provision that would stop the granting of tax strategy patents. The bill goes back to the Senate, which passed a different version in March. The AICPA has opposed the granting of patents for tax strategies. An AICPA-opposed amendment that would have allowed pending tax patent applications to continue was not included in the bill. Read AICPA President and CEO Barry Melancon’s statement for more information.

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    IRS Finalizes Shorter Extensions for Partnership, Trust Returns

    The Internal Revenue Service (IRS) issued final regulations setting the period for automatic extension of partnership Forms 1065 and trust and estate Forms 1041 at five months, meaning that they will generally be due September 15. This allows partners and beneficiaries enough time after receiving their Schedules K-1 to prepare their own extended individual or corporate income tax returns, generally due October 15. The AICPA advocated for the September 15 due date for partnership returns. Read this JournalofAccountancy.com article for more information.

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    AICPA Releases Updated Revenue Recognition Project Brief

    In June 2011, the AICPA published an Accounting and Auditing Brief -- The FASB/IASB Revenue Recognition Accounting Project -- to keep its members informed about the revenue recognition project and its impact on members, their clients and employers. On June 15, the International Accounting Standards Board and the Financial Accounting Standards Board agreed to re-expose their revised proposals for a common revenue recognition standard in the third quarter of 2011 for a comment period of 120 days. The updated AICPA brief discusses the more significant changes the boards have tentatively agreed to make to the exposure drafts, to give readers a better idea of the current thinking of the boards on the revenue recognition project. Download the brief today.

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    AICPA Survey Provides Picture of IFRS Readiness

    A recent AICPA survey shows a large majority of U.S. CPAs have some knowledge of International Financial Reporting Standards (IFRS)—the emerging, globally accepted set of accounting rules. The survey also found that many CPAs have begun to develop greater IFRS expertise. Learn more about the results of the AICPA’s quarterly IFRS Readiness Survey in this press release.

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    New Service Organization Reporting Options Available to Address Clients' Needs

    The AICPA developed the Service Organization Control (SOC) reporting framework to help service organizations, their customers and CPAs understand the types of examination reports a CPA can issue related to service organization controls. The AICPA also has published new guidance for attestation reports to help meet this growing demand for internal control reporting. For more information, including a marketing toolkit for AICPA members, visit aicpa.org/SOC and read this Journal of Accountancy article.

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    Working Draft of Guide to Property and Liability Insurance Entities Released For Comment
     The Financial Reporting Executive Committee of the AICPA has issued a working draft of the accounting content of a proposed “Audit and Accounting Guide: Property and Liability Insurance Entities.” This proposed guide addresses many new accounting issues that have emerged over the years and includes guidance dedicated specifically to property and liability insurance entities. The AICPA invites comments on all matters in the proposed guide. Comments on the working draft should be sent by electronic mail to kkushmerick@aipca.org by August 26, 2011. 
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