Ultimately, being able to effectively navigate the various Roth 5-year rules creates several planning opportunities as well. For some, taking advantage of the Roth conversion 5-year rule is a way for those well under age 59 1/2 to tap their IRA funds "early" without an early withdrawal penalty. For others, the reality is that the Roth conversion 5-year rule is a moot point anyway, because they already meet another exception to the early withdrawal penalty (e.g., already being over age 59 1/2). However, in all cases, the 5-year rule for contributions must be met before any Roth earnings can actually be tapped tax-free; fortunately, though, because any first-time contribution or conversion can start the clock, clients who are concerned about the 5-year rule can make a contribution to a Roth (or to a traditional IRA and then convert it) to start the time window now, and ensure they'll never need to worry about it in the future!
about financial accounting volume 1 4th edition free 59
The bottom line, though, is simply this: it's important to remember that there are two separate 5-year rules, each with their own requirements and stipulations. The Roth conversion 5-year rule is about accessing penalty-free conversion principal (and is irrelevant if the individual already meets one of the other exceptions to the early withdrawal penalty), while the Roth contribution 5-year rule is about accessing tax-free Roth earnings (which are assumed to be extracted last, anyway).
Due Professional Care in the Performance of Work This section describes how the auditor must exercise due professional care in the performance of the audit and the preparation of the report. The section also requires that the auditor exercise professional skepticism and have reasonable assurance that the financial statements are free of material misstatement.
Lack of Conformity With Generally Accepted Accounting Principles This section concerns financial statements of regulated companies that do not conform with generally accepted accounting principles.
This section provides guidance on the procedures an independent auditor should consider for identifying litigation, claims, and assessments and for satisfying himself or herself as to the financial accounting and reporting for such matters when he or she is performing an audit in accordance with generally accepted auditing standards.
Related Parties This section provides guidance on procedures that should be considered by the auditor when he is performing an audit of financial statements in accordance with generally accepted auditing standards to identify related party relationships and transactions and to satisfy himself concerning the required financial statement accounting and disclosure.
Consideration of Omitted Procedures After the Report Date This section provides guidance on the considerations and procedures to be applied by an auditor who, subsequent to the date of his report on audited financial statements, concludes that one or more auditing procedures considered necessary at the time of the audit in the circumstances then existing were omitted from his audit of the financial statements, but there is no indication that those financial statements are not fairly presented in conformity with generally accepted accounting principles or with another comprehensive basis of accounting.
Reporting on Financial Statements Prepared for Use in Other Countries This section provides guidance applicable to reports on financial statements of a company in the United States that are prepared in conformity with the accounting principles generally accepted in another country for use outside the United States.
Auditing Accounting Estimates This section provides guidance to auditors on obtaining and evaluating sufficient appropriate audit evidence to support significant accounting estimates in an audit of financial statements in accordance with generally accepted auditing standards.
Consideration of Fraud in a Financial Statement Audit This section establishes standards and provides guidance to auditors in fulfilling the responsibility to plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement (AU section 110) as it relates to fraud in an audit of financial statements conducted in accordance with generally accepted auditing standards.
Understanding the Entity and Its Environment and Assessing the Risks of Material Misstatement This section describes the second standard of field work, relating to the auditor obtaining a sufficient understanding of the entity and its environment, including its internal control, to assess the risk of material misstatement of the financial statements whether due to error or fraud, and to design the nature, timing, and extent of further audit procedures. This section also discusses risk assessment procedures and sources of information about the entity and its environment.
Performing Audit Procedures in Response to Assessed Risks and Evaluating the Audit Evidence Obtained This section establishes standards and provides guidance on determining overall responses and designing and performing further audit procedures to respond to the assessed risks of material misstatement at the financial statement and relevant assertion levels in a financial statement audit, and on evaluating the sufficiency and appropriateness of the audit evidence obtained. In particular, this section provides guidance about implementing the third standard of field work, which states that the auditor must obtain sufficient appropriate audit evidence by performing audit procedures to afford a reasonable basis for an opinion regarding the financial statements under audit.
This section cited in 52 Pa. Code 59.43 (relating to accounting for merchandising, jobbing and contract work); 52 Pa. Code 59.46 (relating to reclassification of gas plant accounts); and 52 Pa. Code 59.47 (relating to continuing property records). 59.43. Accounting for merchandising, jobbing and contract work. (a) All revenues from and costs and expenses pertaining to merchandising, jobbing and contract work shall be recorded appropriately in Accounts 914 and 915, in the case of Class A, Class B and Class C companies and appropriately in Accounts 780 and 781 in the case of Class D companies in the unified system of accounts prescribed in 59.42 (relating to systems of accounts). (b) The provisions of this section apply to manufactured gas public utilities. 59.44. Retirement unit for gas plant. Each public utility having gas operating revenues of $100,000 or more shall, in accounting for plant retirements, conform its accounting to the ‘‘Units of Property for Use in Accounting for Additions and Retirements of Gas Plant,’’ prescribed by Federal Power Commission Order No. 236, dated October 16, 1961 (18 CFR Part 216). 59.45. Preservation of records. Each gas utility shall keep and preserve its records in conformity with the provisions applicable to it in the most recent publication of the National Association of Regulatory Utility Commissioners, entitled ‘‘Regulations to Govern the Preservation of Records of Electric, Gas and Water Utilities,’’ except as follows when the following retention periods apply:Item No. and Description Retention Period6. (a) Minute books of stockholders’, directors’, and directors’ committee meetings. 25 years 6. (b)(4)Licenses (including amendments thereof) granted by Federal or State authorities for construction and operation of utility plant. 5 years after plant is retired or expiration of license, whichever is shorter. 8. (a) Reports of examinations and audits by accountants and auditors not in the regular employ of the utility (such as reports of public accounting firms and regulatory commission accountants). 5 years after date of report or Commission audit, whichever comes last. 8. (b) Internal audit reports and work papers. 5 years after date of report or Commission audit, whichever comes last. 10. (a)(1) General ledgers. 20 years10. (a)(2)Ledgers subsidiary or auxiliary to general ledgers except ledgers provided for elsewhere. 20 years 10. (b)(1)Indexes to general ledgers. 20 years 10. (b)(2)Indexes to subsidiary ledgers except ledgers provided for elsewhere. 20 years11. (a) Journals, general and subsidiary. 20 years 12. (a)Journal vouchers and journal entries.20 years13. (a)Cash books, general and subsidiary or auxiliary books. 5 years after close of fiscal year. 14. (a) Voucher registers or similar records when used as a source document. 5 years 15. (a) Paid and cancelled vouchers (1 copy analysis sheets showing detailed distribution of charges on individual vouchers and other supporting papers). 5 years 15. (b)Original bills and invoices for materials, services, and the like, paid by vouchers. 5 years 15. (c)Paid checks and receipts for payments by voucher or otherwise. 5 years 15. (d)Authorization for the payment of specific vouchers. 5 years 22.4 (e) Pumping output logs with supporting data. 3 years 26. (a) Authorization for expenditures for maintenance work to be covered by work orders, including memoranda showing the estimates of costs to be incurred. 5 years 26. (b) Work order sheets to which are posted in detail the entries for labor, material and other charges in connection with maintenance and other work pertaining to utility operations. 5 years 26. (c) Summaries of expenditures on maintenance and job orders and clearances to operating and other accounts (exclusive of plant accounts). 5 years 30. (a)Ledgers of utility plant accounts including land and other detailed ledgers showing the costs of utility plant by classes. 30 years 31. (a) Construction work in progress ledgers. 5 years after clearance to the plant account, provided continuing property plant inventory records are maintained; otherwise 6 years after plant is retired. 31. (b) Work order sheets to which are posted in summary form or in detail the entries for labor, materials and other charges for utility plant additions and the entries closing the work orders to utility plant in service at completion. 5 years after clearance to the plant account, provided continuing property plant inventory records are maintained; otherwise 6 years after plant is retired. 31. (f) Analysis or cost reports showing quantities of materials used, unit costs, number of man-hours, and the like, in connection with completed construction project. 5 years after clearance to the plant account, provided continuing property plant inventory records are maintained; otherwise 5 years after plant is retired. 33. Summary sheets, distribution sheets, reports, statements, and papers directly supporting debits and credits to utility plant accounts not covered by construction or retirement work orders and their supporting records. 5 years after clearance to the plant account, provided continuing property plant inventory records are maintained; otherwise 6 years after plant is retired. 41. (a)Ledger sheets and card records of materials and supplies received, issued and on hand. 6 years45. (a)Applications for utility service for which contracts have been executed. 4 years 45. (g)Applications and contracts for extensions covered by refundable deposits or guarantees of revenue, also records pertaining to such contracts. 4 years after entire amount is refunded. 45. (h) Applications and contracts for extensions for which donations or contributions are made by customers or others. 4 years after expiration. 46. (a)General files of published rate sheets and schedules of utility service (including schedules suspended or superseded). 6 years 51. (a) Summaries of monthly operating revenues according to classes of service for entire utility. 5 years 51. (b) Summaries of monthly operating revenues according to classes of service by towns, districts, or divisions (including summaries of forfeited discounts and penalties). 5 years 53. (e) Cashiers’ stubs for merchandise collection. 1 year 57. (a)(1)Federal income tax returns. 5 years after settlement. 57. (a)(5)Agreements between associate companies as to allocation of consolidated income taxes. 5 years after settlement. 57. (c) Filings with taxing authorities to qualify employee benefit plans. 5 years after settlement of Federal return or discontinuance of plan, whichever is later. 59. (f) Check stubs, registers, or other records of checks issued. 5 years 59. (g)Correspondence and memoranda relating to the stopping of payment of bank checks and to the issuance of duplicate checks. 5 years or destroy at option after check is recovered.61. (a) Annual financial, operating and statistical reports regularly prepared in the course of business for internal administrative or operating purposes (and not used as the basis for entries to accounts of the companies concerned) to show the results of operations and the financial condition of the utility. 5 years after date of report. 65. (a) Annual financial, operating and statistical reports. 15 years 65. (c)(1)Transaction with associated companies. 5 years65. (c)(7)Purchases and sales, utility properties. 10 years65. (c)(9)Service interruptions. 5 years 66. (a)Copies of advertisements by the company on behalf of itself or any associate company in newspapers, magazines and other publications including records thereof (excluding advertising of product, appliances, employment opportunities, services, territory, routine notices and invitations for bids for securities, all of which may be destroyed at option). 3 yearsAuthority 2ff7e9595c
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