Article Reviews Essay Example

List of Articles

Abrams, A. (2018). AICPA report: Seniors increasingly targeted for investment fraud. Retrieved from https://www.journalofaccountancy.com/news/2018/jun/aicpa-report-seniors-targeted-investment-fraud-201819138.html

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Lynch, N., & Pryor, C. (2018). The Impact of the New Revenue Recognition Guidance on Cloud Computing Arrangements - The CPA Journal. Retrieved from https://www.cpajournal.com/2018/06/25/the-impact-of-the-new-revenue-recognition-guidance-on-cloud-computing-arrangements/

Ovaska-Few, S. (2018). How 65 became the default retirement age. Retrieved from https://www.journalofaccountancy.com/issues/2018/mar/how-65-became-default-retirement-age.html

The AICPA and the ongoing tax reform process. (2018). Retrieved from https://www.journalofaccountancy.com/issues/2018/mar/tax-reform-process-aicpa.html

Tillery, S. (2018). Bring more value to your clients with charitable planning. Retrieved from https://www.journalofaccountancy.com/issues/2018/feb/charitable-planning-cpa-services.html

AICPA Report: Seniors Increasingly Targeted For Investment Fraud

Section 1: The Summary of the Article

The article represents AICPA report on the investment fraud. According to this article, many American retirees are anxious that they would not have adequate money for investments, saving, or social security. Therefore, the majority of them opt for fraudulent investment plans as the alternative means of earning after their retirement. According to this article, individuals aged 65 years and above constitute the fastest-growing population of the U.S. Since most of these seniors have diminishing reasoning ability, they are highly vulnerable to investment fraud are profoundly become victims of fraudulent. CPAs are deemed to have a broad view of these clients' finance and thus can advise and protect them from elder financial abuse. Accordingly, "self-directed Individual Retirement Accounts (IRAs)" have become susceptible for fraudulent. These accounts allow a comprehensive set of investment, thus, highly targeted by dealers and brokers for deceitful. In conclusion, the article emphasizes the importance of both CPAs, families, and citizens to work as a community to protect the seniors from investment investments. CPAs are challenged to be more vigilant on wealth management of their clients to protect them from suspicious interactions.

Section 2: Comments and Opinions

Protecting seniors from investment fraudulent should be viewed as one of the critical issues of the time. As discussed in this article, the vulnerability of this population to financial scams and frauds can be attributed to their diminishing mental faculties. Sometimes, financial predators, apply their tactics to deceive seniors that failure to invest, they will fall bankrupt and hence become a burden to their families. Similarly, investment fraud could profoundly hurt seniors than the other segment of the population since once they lose their savings, seniors have no other time to rebuild it. Typically, investments which promise or with the surety of high returns for minimal risk are signals of fraudulent. Therefore, protection of senior's finance should be grappled as a pressing issue at both personal and national level.

The Impact of the New Revenue Recognition Guidance on Cloud Computing

Section 1: The Summary of the Article

This journal discusses how the new guideline on revenue recognition would influence the cloud computing plans. The journal acknowledges that most companies are struggling with the implementation of these FAB standards that have been made active. Accordingly, cloud computing industry is identified as one of the sectors that may be affected by the application of this revenue recognition guidance. The new impacts will be felt in both private and public sectors. For instance, private companies have limited infrastructure and resources, and therefore, their managers have to first learn on how the guidance is implemented in public companies. Besides, this article also states that planners, the board of management and the new firms entering into the industry should prepare themselves to face these challenges. Financial information users, such as creditors and investors should also have adequate knowledge concerning the effect of the new standard of revenue recognition on their decision making.

Section 2: Comments and Opinions

Cloud computing enables the users of the licensed software to access and use their software over the internet. Therefore, with the reformed FASB'S accounting standards, the provider of the cloud service will be compelled to revamp and revisit policies and practices concerning their revenue recognition. Providers of the service must decide how to "account for internal use of software in hosting plan". Under the new recognition principle, public and private companies will have to recognize revenues only when goods and services are moved to the customers. The company will record the amount receivable for the exchange of goods and services. In applying the recognition principles, the company will have to establish the contract and perform obligations as stated in the agreement. Then the price for the transaction will be determined, and allocation made to each of the commitments. All revenue will be recognized upon the satisfaction of the performance obligation. In my opinion, all these new procedures have embedded challenge in the provision of cloud computing services.

How 65 Became the Default Retirement Age

Section 1: The Summary of the Article

This article traces the history of the universal acceptance of the 65 years as the retirement age for the member of the labor force. Historically, sixty-five is recognized as the age when social security contributions were for the first time distributed to beneficiaries. At this age, many private corporations also make payment for pension plans while the Federal government begins to make payment for medical health care coverage. According to this article, sixty-five years was chosen as default retirement age since August 14, 1935, when President Franklin Roosevelt signed the Social Security Act. The determination was made based on German as the benchmark, as the first country to initiate national pension program. Although Germany initially intended the program to benefit only employees aged seventy years and older, the default age was later lower to sixty-five after continuous pressure from civic groups and influential politicians.

Section 2: Comments and Opinions

In October 2011, when the government U.K. confirmed to phase out the default retirement age (DRA), a lot of debate and controversies arose between the proponents and opponents of the move. According to the government announcement, the new law was designed to protect employees from forceful retirement on reaching sixty-five years. Just like many commentators could argue, in my opinion, phasing out was a grand celebration to aging older labor force but a severe hurt to the millions of young people who are looking to secure jobs. Perhaps, on one hand, the increased flexibility for the aged people to continue serving the labor market would boost the overall job markets, while conversely, the reform will lock out the unemployed youth, who constitute the most productive population, from entering the job market.

The AICPA and the Ongoing Tax Reform Process

Section 1: Summary of the Article

This article discusses some of the effects of the tax reform bill named as "Tax Cuts and Jobs Act, P.L. 115-97." that was enacted by the Congress and signed by President Donald Trump on December 22, 2017, to become the law. The articled document a detailed conversation held between Mark Peterson, Ed Karl, and Kim Nilsen. Peterson is the Advocacy vice president while Karl is vice president of the taxation and a CPA. Nilsen is working with JoFA publisher. According to this article, the new law will have wide-ranging impacts on practitioners, CPAs, and, businesses, and individuals. According to Peterson and Karl, the AICPA, in collaboration with the Tax Executive Committee, played a critical role in the implementation of the new tax bill reform. When asked about some of the components of the tax cut bill, Peterson confirmed that their fundamental objective as AICPA was to ease the administration of the tax code policy for the benefit of practitioners and taxpayers. However, Peterson and Karl could not hesitate to highlight some of the challenges affecting the implementation process. These challenges include maintenance of cash method in tax accounting, the effect of deductions in interest, the deferred compensation, and the complication of the law.

Section 2: Comments and Opinions

Members of the Congress, from the Republican affiliation, have frequently been condemned for what many claims to be a rush through the tax bill. Perhaps, it may be argued that, although the supporters of TCJA bill have repeatedly claimed that this bill aimed at relieving tax burden for the middle-class, in reality, instead, the bill sought to provide for a corporate tax cut. For instance, the targeted family tax cuts are just temporal and designed to benefit high-income households. I am convinced that supporters of this bill are aware that reductions in corporate tax are implausible unpopular. Therefore, the claim that corporate tax cuts will decline with the growth of workers' wage is outlandish and cannot be supported by any economic evidence. Unfortunately, current evidence has indicated a low increase in wages as corporate reaps high profits. Workers have not adequate bargaining power to lobby for their fair share from their employers.

Bring More Value to Your Clients with Charitable Planning

Section 1: The Summary of the Article

This article acknowledges the fact that charitable planning is increasingly offering an opportunity for value addition to a CPA's clients. According to the article, many clients and potential clients are seeking advice on charity planning the aspect that majority of CPA have neglected. This article underscores the relevance of offering charitable planning to clients, particularly among the CPAs. Accordingly, healthy relationship between CPAs and their clients fosters loyalty and business connections. CPAs are described as the best professions who are well-positioned to offer a piece of advice to their clients on charitable strategy. The articles assert that average clients are concerned in the discussion related to giving and will always look for pieces of advice on goals of charitable planning. Clients are also a concern in deepening the level of their value-based conversation regarding the charitable plan. These discussions may go beyond own passions, values, and life goals. Therefore, CPAs should focus on helping their clients to become agents of their resources.

Section 2: Comments and Opinions

Helping clients to make philanthropic choices enables them to realize the meaning of their generosity as well as the impact it has in future. As discussed in this journal, developing a healthy relationship with clients create a strong desire for them to talk openly with their advisors, particularly their intentions for charitable giving. Clients mostly require advisors to understand their motivations for charitable planning better. They are determined to have conversations concerning charitable giving that are anchored in their values. Thus, it is worthwhile to discuss charitable-related issues in CPA-client relationship. According to this journal, although giving is considered a personal act, advisory from professionals, such as CPAs, play a critical role in identifying and proposing the best options.