The National Public Accountant

Refinancing mortgages involves a popular payment computation known as the payback method. The method, however, has its flaws including the interest that payments earn over a period of time. A refinancing decision model has been constructed using Lotus 1-2-3 spreadsheet software for Windows 95 but may be adapted to other software. The use of a spreadsheet software facilitates the computation of refinancing which can be completed in only a matter of minutes.

Empowering accountants.

Recruiting and retaining accountants involves intrinsic motivation The major crisis experienced by the accounting sector is the loss of the best accountants to other fields. The best way to address the problem of recruiting and then retaining accountants is addressed by internal motivation or empowerment. Empowerment involves the freedom of choice in the performance of tasks, a sense of competence in having satisfactorily performed chosen tasks, the feeling that the task they perform is worthwhile, and the feeling that they are moving forward.

How to be a good boss.

An employer can successfully handle his relationship with his employees by following three simple rules of behavior. First, an employer should be capable of accepting constructive criticisms and admitting his mistakes. Second, words of encouragement and appreciation of an employee's achievements will arouse an employee's enthusiasm towards his job. Third, kind and truthful words are satisfying to employees who crave for appreciation.

Nailing down the investment interest deduction.

The Internal Revenue Code permits the deduction of investment interest based only on the annual net investment income. A net investment income is determined by deducting investment expenses from the gross investment expenses. The taxpayer should be able to distinguish business interests from investment interests which is an itemized deduction from adjusted gross income. Home equity loans provide taxpayers with the funds necessary to invest in business without being classified under investment...

Packaging your gifts carefully: lifetime gifts as an estate planning tool.

Analysis of gift taxation - Cover Story Taxpayers and tax advisers should carefully plan estate and financial transfers, or lifetime gifts, to avail of tax exclusions. The most utilized tax exclusion is the gift tax annual exclusion where birthday gifts and Christmas gifts are exempted from gift taxation. The gift tax exclusion also applies to the first $10,000 of annual gifts awarded to a donee. Minor donees should apply for annual exclusion until such time that direct estate transfer is possible. A Crummey Trust should be availed...

Red flags of management fraud.

The commission of a fraud involves the theft of assets, the conversion of the assets to a more accessible form and the cover-up of the theft. Most frauds are discovered only accidentally because auditors find it difficult to detect them. Several professionals have proposed ways to detect fraud including an evaluation questionnaire that can be used during auditing. Tabular lists of fraud indicators, red flag indicators, fraud cases and the top 10 red flags are presented.

SOP 94-6 addresses the need for improved Disclosure of Significant Risks & Uncertainties.

Statement of Position The American Institute of Certified Public Accountants (AICPA) created a task force to conduct a research on risks and uncertainties that companies face. It was concluded that warning disclosures should be attached by companies to their financial statements. In a recent development, AICPA Accounting Standards Executive Committee issued the Statement of Position 94-6 which states that disclosure statements are required in the following areas: nature of business, use of management's estimates, ...

The Internet: a world of opportunity for accountants.

Latest technology provides a competitive advantage Using the Internet provides an accountant access to different sources of information and a competitive advantage over others in his field. It gives an accountant the chance for global connection and communication and updated information on international or domestic issues. The use of the Internet involves the following features: the electronic mail, the file transfer protocol, the Internet gopher and the World Wide Web.