0
Erin P. Hardwick, CAE Executive Director SC Association of CPAs Professional   Issues Update
Message from the  SCACPA President Charles M. Redfern, CPA Rock Hill, SC
 
What We’ll Cover Today <ul><li>News Headlines  </li></ul><ul><li>The Economy  </li></ul><ul><li>Top Profession Issues </li...
News Headlines
 
 
 
First African American president elected on platform of change
 
What’s in the Headlines? <ul><li>Obama vows to  reform tax code </li></ul><ul><ul><li>&quot;We need to simplify a monstrou...
 
Unemployment Statistics -SC <ul><li>At 11.5% in August 2009 </li></ul><ul><li>June 2008 was 6.5% </li></ul><ul><li>SC is 4...
 
 
 
 
Ralph Nadar calls CPAs “MIA” <ul><li>“ Where were the giant accounting firms ,  the CPAs , and the rest of the accounting ...
 
<ul><li>Are you  ready  for the  New Normal </li></ul><ul><li>? </li></ul>
A Month to Remember U.S. Bails Out Fannie Mae & Freddie Mac Lehman bankrupt; Merrill Lynch sold Dow Jones plunges 504 pts ...
“ It is increasingly clear that the current downturn is fundamentally different from recessions of recent decades.  We are...
What did we discover when the tide receded?
What the Downturn Exposed <ul><li>Bernie Madoff </li></ul><ul><li>Ponzi Scheme </li></ul><ul><li>$50+ billion </li></ul><u...
Who is this man? David Friehling, CPA – Partner – Friehling & Horowitz, CPAs
David Friehling, CPA <ul><li>Audited Bernie Madoff funds </li></ul><ul><li>Currently free on $2.5 million bail </li></ul><...
 
 
Emergency Economic  Stabilization Act <ul><li>Signed into law on October 3, 2008 </li></ul><ul><li>Championed by Hank Paul...
Historic Move To Recover  The Economic Stabilization Act <ul><li>$700 billion to allow  Treasury to purchase troubled asse...
American Recovery &  Reinvestment Act of 2009 <ul><li>$787 billion total  </li></ul><ul><li>$8 billion to SC </li></ul><ul...
Where’s Your $ Going?
 
American Recovery &  Reinvestment Act of 2009 <ul><li>In South Carolina (August 09) – top 5 agencies: </li></ul><ul><li>$3...
Should Ma & Pa Kettle  Help Explain  Financial Mess  to Congress?
 
Top  Profession  Issues
The Fair Value Controversy Fair Value accounting relies on marking asset valuations to market prices <ul><li>Intense lobby...
Congress wrestles with  Mark-to-Market Accounting Standard
 
“ We Will Never Legislate Accounting” <ul><li>Asked about a congressional hearing in March in which FASB board chairman Ro...
The Fair Value Ride <ul><li>Was the standard-setting process “influenced” by Congress and outside lobbying? </li></ul><ul>...
<ul><li>Mark-to-Market Resources  from AICPA www.journalofaccountancy.com/Web/FairValueResources.htm </li></ul>
 
CPA Practice Mobility
Practice Mobility <ul><li>The challenge: Seamless movement across state borders to provide services to clients </li></ul><...
Practice Mobility <ul><li>Status in 2006 = 4 states </li></ul><ul><li>Status in 2008 = 31 states </li></ul><ul><li>Status ...
NC Passes Practice Mobility <ul><li>Effective July 27, 2009 </li></ul><ul><li>Eliminates the requirements to pay a fee for...
WA OR CA NV ID MT ND SD WY UT CO AZ NM AK HI TX OK KS NE MN IA MO AR LA MS AL GA* FL WI IL MI IN KY TN SC NC VA WV OH PA* ...
The Reliability Project
AICPA’s Reliability Project <ul><li>Most significant change to  compilation and reviews  since 1978 </li></ul><ul><ul><li>...
 
The  Codification Project
FASB Codification Project <ul><li>FASB Accounting Standards Codification launched on July 1, 2009 </li></ul><ul><li>FASB d...
FASB Codification Project <ul><li>FASB’s effort to  reorganize thousands  of GAAP pronouncements under about 90 accounting...
 
FASB GAAP Codification <ul><li>7/1/09 – FASB release  </li></ul><ul><li>Combines FASB, the Emerging Issues Task Force and ...
XBRL
What is XBRL? <ul><li>Extensible Business Reporting Language </li></ul><ul><li>A new reporting model based on “interactive...
Are we ready? <ul><li>86% of accountants polled in 2008 said their company was  not prepared  to implement XBRL </li></ul>...
SEC’s Phase-in Schedule DATE ISSUER DESCRIPTION June 15, 2009 Domestic and Foreign Large Accelerated Filers  Using U.S. GA...
XBRL Resources <ul><li>www.XBRL.org </li></ul><ul><li>http://www.sec.gov/spotlight/xbrl.shtml </li></ul><ul><li>http://the...
Sustainability – the CPA Role
International Issues
The Road to IFRS in the U.S.
IASB/FASB Convergence <ul><li>Hope to complete convergence by 2011 </li></ul><ul><li>Outstanding Issues: </li></ul><ul><ul...
Hurry up and Wait? <ul><li>Sir David Tweedie – “ Where is the USA ?” </li></ul><ul><li>CFOs support single set of global f...
New Momentum Underway <ul><li>Aug. 25 Mary Schapiro named James Kroeker as the SEC’s new chief accountant  </li></ul><ul><...
Convergence ≠ Sameness <ul><li>US GAAP   </li></ul><ul><ul><li>Rules based </li></ul></ul><ul><ul><li>Based on a GAAP hier...
IFRS Preparedness in the USA <ul><li>Best in class articles on what a U.S. CPA needs to understand IFRS right now </li></u...
New  IFRS  Certificate of Accomplishment
Positioning of the U.S. CPA in the Global Environment <ul><li>International marketplace dependency </li></ul><ul><li>Globa...
International Mobility
Internationalizing the  CPA Exam <ul><li>Expanding locations for U.S. CPA Exam outside of U.S. </li></ul><ul><li>Applicati...
Legislative and Regulatory Issues
There’s A New  Sheriff In Town <ul><li>Past CEO of the Financial Industry Regulatory Authority, the securities industry se...
Congress Works on  Financial Services Reform <ul><li>Congress is preparing to undertake a sweeping  overhaul of financial ...
Financial Services Oversight Council
Financial Services Reform <ul><li>H.R. 3126  introduced in summer 2009. House Financial Services Committee holding hearing...
Financial Services Reform <ul><li>Until recently H.R. 3126 gave regulatory power to the Consumer Financial Protection Agen...
Financial Services Reform <ul><li>H.R. 3126  </li></ul><ul><ul><li>adds another layer of regulation on the accounting prof...
 
Tax Strategy Patents <ul><li>1998 court case allowed business method patents </li></ul><ul><li>Patent and Trademark Office...
House bill to stop tax strategy patents reintroduced in May <ul><li>Current cosponsors (8):  </li></ul><ul><li>Rick Bouche...
Red Flag Rules <ul><li>Fair and Accurate Credit Transactions Act of 2003 ( FACTA) – FTC to develop  guidelines for financi...
Red Flag Rules <ul><li>8/4/09 – AICPA letter to Jonathan Leibowitz, Chairman of FTC </li></ul><ul><ul><li>Applauding delay...
Tax Preparer Registration
Regulating Tax Preparers <ul><li>IRS is holding public forums now </li></ul><ul><li>Considering registration, exam, CPE an...
 
Federal Tax Code Reform TF <ul><li>Created by Pres. Barack Obama </li></ul><ul><ul><li>Led by former Federal Reserve Chair...
State Legislative Issues Jason Sweatt, Chairman, SCACPA Legislative/Advocacy Committee Todd Dailey, Chairman, SCACPA  Stat...
 
<ul><li>Grassroots/KPCs </li></ul><ul><li>CPA PAC ($) </li></ul><ul><li>SCACPA lobbyists </li></ul>Advocacy for the CPA Pr...
SC Board of Accountancy <ul><li>Nine member board (5 CPAs, 2 APs, 2 public members) </li></ul><ul><li>Serves as the regula...
SC Board of Accountancy <ul><li>Bi-annual license renewal </li></ul><ul><li>Emeritus status for retiring CPAs </li></ul><u...
The Image the Profession
Attitudes toward  CPA Credential More confident in a job done by a CPA  than if it were done by an accountant not a CPA. C...
 
<ul><li>The  Economist  magazine calls this  the year of the CFO . A year where CFO's are more critical than ever to their...
Perceptions of CPAs Are Largely Consistent Across All Audiences BDMs Large Biz BDMs Sm-Med Biz Investors CPAs YPs 1 Has in...
Values  Positioning <ul><li>CPA Brand = What CPAs Stand For </li></ul><ul><ul><li>Integrity:   </li></ul></ul><ul><ul><ul>...
10 Things I Have Learned  from Being an Accountant!
 
The People Side of Things
Does Money Change Things? <ul><li>When the economy is good, the top three priorities for leaders are recruiting and retain...
Raising Staff’s Spirits <ul><li>Most companies are taking steps to boost employee morale </li></ul><ul><li>68% of CFOs sur...
Motivating Employees  Max Messmer, Accountemps Chairman <ul><li>Professionals crave information about their  company’s per...
Motivating Employees  Max Messmer, Accountemps Chairman <ul><li>There are many cost-free ways to improve the mood in the o...
<ul><li>It Goes  Beyond the Best and the  Brightest </li></ul>
 
Private Company Practice Section Tools and Resources Valued Far Beyond the Investment
Supply & Demand <ul><li>In 2007-08: </li></ul><ul><ul><li>66,000+ accounting degrees  </li></ul></ul><ul><ul><li>Up 3.5% f...
<ul><li>Decrease at all degree levels </li></ul><ul><li>Hiring strong in fall of 2007 and deteriorated in spring 2008 </li...
New Site Offers  More Interaction for Students
Investing in the Future <ul><li>Scholarships for college students majoring in accounting </li></ul><ul><li>$19,000 in 2009...
 
What’s New at SCACPA
A Vision for 2010 <ul><li>CPE Innovation </li></ul><ul><li>Membership Relevancy </li></ul><ul><li>Advocacy </li></ul><ul><...
<ul><li>Contact me: </li></ul><ul><li>Erin Hardwick, CAE </li></ul><ul><li>[email_address] </li></ul><ul><li>803-791-4181 ...
Upcoming SlideShare
Loading in...5
×

2009 PIU Presentation Final - Erin Hardwick

652

Published on

Published in: Business
0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total Views
652
On Slideshare
0
From Embeds
0
Number of Embeds
0
Actions
Shares
0
Downloads
9
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide
  • http://www.stimulus.sc.gov/
  •  
  • .
  • Gresham Barrett from SC serves on this committee
  • Transcript of "2009 PIU Presentation Final - Erin Hardwick"

    1. 1. Erin P. Hardwick, CAE Executive Director SC Association of CPAs Professional Issues Update
    2. 2. Message from the SCACPA President Charles M. Redfern, CPA Rock Hill, SC
    3. 4. What We’ll Cover Today <ul><li>News Headlines </li></ul><ul><li>The Economy </li></ul><ul><li>Top Profession Issues </li></ul><ul><ul><li>Fair Value </li></ul></ul><ul><ul><li>Practice Mobility </li></ul></ul><ul><ul><li>Reliability Project </li></ul></ul><ul><ul><li>FASB Codification </li></ul></ul><ul><ul><li>XBRL </li></ul></ul><ul><ul><li>Sustainability </li></ul></ul><ul><li>International Matters </li></ul><ul><li>Legislative and Regulatory Issues </li></ul><ul><li>The Image of the CPA Profession </li></ul><ul><li>The People Side of Things </li></ul><ul><li>SCACPA: A Vision for 2010 </li></ul>
    4. 5. News Headlines
    5. 9. First African American president elected on platform of change
    6. 11. What’s in the Headlines? <ul><li>Obama vows to reform tax code </li></ul><ul><ul><li>&quot;We need to simplify a monstrous tax code that is far too complicated for most Americans to understand, but just complicated enough for the insiders who know how to work the system“ </li></ul></ul><ul><li>Obama crafts legislation to create Consumer Financial Protection Agency </li></ul><ul><li>National Health Care Reform </li></ul>
    7. 13. Unemployment Statistics -SC <ul><li>At 11.5% in August 2009 </li></ul><ul><li>June 2008 was 6.5% </li></ul><ul><li>SC is 48 th highest in the nation </li></ul><ul><li>All-time historical high unemployment </li></ul><ul><li>Historical low: 3.1% in March 1998 </li></ul><ul><li>US Bureau of Labor Statistics </li></ul>
    8. 18. Ralph Nadar calls CPAs “MIA” <ul><li>“ Where were the giant accounting firms , the CPAs , and the rest of the accounting profession while the Wall Street towers of fraud, deception and cover-ups were fracturing our economy, looting and draining trillions of dollars of other peoples’ money?” </li></ul><ul><li>This is the licensed profession that is paid to exercise independent judgment with independent standards to give investors, pension funds, mutual funds, and the rest of the financial world accurate descriptions of corporate financial realities. </li></ul><ul><li>It is now obvious that the accountants collapsed their own skill, integrity and self-respect faster and earlier than the collapse of Wall Street and the corporate barons.” </li></ul>
    9. 20. <ul><li>Are you ready for the New Normal </li></ul><ul><li>? </li></ul>
    10. 21. A Month to Remember U.S. Bails Out Fannie Mae & Freddie Mac Lehman bankrupt; Merrill Lynch sold Dow Jones plunges 504 pts Fed rescues AIG Dow plunges again; gold sees biggest one-day gain in 10 years Goldman and Morgan Stanley become bank holding companies Washington Mutual seized Rescue package fails; Dow takes record plunge Rescue package goes to Congress; Wachovia for sale Fed proposes bailout package 9/7 9/14 9/15 9/16 9/17 9/18 9/21 9/25 9/29 9/30 10/1
    11. 22. “ It is increasingly clear that the current downturn is fundamentally different from recessions of recent decades. We are experiencing not merely another turn of the business cycle, but a restructuring of the economic order.” ~Ian Davis, McKinsley Quarterly, March 2009
    12. 23. What did we discover when the tide receded?
    13. 24. What the Downturn Exposed <ul><li>Bernie Madoff </li></ul><ul><li>Ponzi Scheme </li></ul><ul><li>$50+ billion </li></ul><ul><li>150 years of jail time </li></ul>
    14. 25. Who is this man? David Friehling, CPA – Partner – Friehling & Horowitz, CPAs
    15. 26. David Friehling, CPA <ul><li>Audited Bernie Madoff funds </li></ul><ul><li>Currently free on $2.5 million bail </li></ul><ul><li>Accused of filing false reports with the SEC </li></ul><ul><li>Faces a maximum sentence of 105 years in prison </li></ul><ul><li>Since 1994 the firm has annually asserted that it performed no audits & was exempt from peer review! </li></ul><ul><li>AICPA statement: The AICPA concluded its ethics investigation of David Friehling's conduct as an auditor of a broker-dealer, resulting in expulsion from membership for failure to cooperate. </li></ul>
    16. 29. Emergency Economic Stabilization Act <ul><li>Signed into law on October 3, 2008 </li></ul><ul><li>Championed by Hank Paulson, Treasury Secretary </li></ul><ul><li>$750 Billion </li></ul><ul><li>Called a “bail-out” </li></ul><ul><li>TARP – Troubled Assets Relief Program </li></ul>
    17. 30. Historic Move To Recover The Economic Stabilization Act <ul><li>$700 billion to allow Treasury to purchase troubled assets </li></ul><ul><li>Restricts executive compensation in companies selling troubled assets </li></ul><ul><li>Requires Treasury to provide details of purchases within 2 days and to create oversight boards </li></ul><ul><li>Gives taxpayers ownership stakes in companies whose bad assets are purchased. </li></ul><ul><li>Will enable banks to buy government insurance to cover the principal and interest on certain troubled assets </li></ul>
    18. 31. American Recovery & Reinvestment Act of 2009 <ul><li>$787 billion total </li></ul><ul><li>$8 billion to SC </li></ul><ul><li>Lawsuit in SC to force governor to accept Federal funds </li></ul><ul><li>www.Recovery.gov </li></ul><ul><li>In SC, comptroller general monitoring </li></ul><ul><li>www.stimulus.sc.gov </li></ul>
    19. 32. Where’s Your $ Going?
    20. 34. American Recovery & Reinvestment Act of 2009 <ul><li>In South Carolina (August 09) – top 5 agencies: </li></ul><ul><li>$333.3 million — Department of Health and Human Services (Medicaid) </li></ul><ul><li>$78.3 million — Employment Security Commission </li></ul><ul><li>$42 million — Department of Social Services </li></ul><ul><li>$23.1 million — Department of Public Safety </li></ul><ul><li>$17.8 million — Department of Education </li></ul>
    21. 35. Should Ma & Pa Kettle Help Explain Financial Mess to Congress?
    22. 37. Top Profession Issues
    23. 38. The Fair Value Controversy Fair Value accounting relies on marking asset valuations to market prices <ul><li>Intense lobbying of Congress, starting last fall </li></ul><ul><li>House Financial Services Subcommittee hearing on March 12 </li></ul><ul><li>FASB chairman promised fast action to further clarify FAS 157 on fair value measurements </li></ul><ul><li>FASB acted and issued 3 clarifying standards </li></ul>
    24. 39. Congress wrestles with Mark-to-Market Accounting Standard
    25. 41. “ We Will Never Legislate Accounting” <ul><li>Asked about a congressional hearing in March in which FASB board chairman Robert Herz was told that he needed to revise mark-to-market and fair value accounting standards in three weeks’ time, Frank said the subcommittee was only exerting pressure, but not trying to legislate standards. </li></ul>
    26. 42. The Fair Value Ride <ul><li>Was the standard-setting process “influenced” by Congress and outside lobbying? </li></ul><ul><li>Was there a rush to a solution? </li></ul><ul><li>AICPA statement: We strongly support an independent FASB </li></ul>
    27. 43. <ul><li>Mark-to-Market Resources from AICPA www.journalofaccountancy.com/Web/FairValueResources.htm </li></ul>
    28. 45. CPA Practice Mobility
    29. 46. Practice Mobility <ul><li>The challenge: Seamless movement across state borders to provide services to clients </li></ul><ul><li>Requirements: </li></ul><ul><ul><li>No registration </li></ul></ul><ul><ul><li>No fee </li></ul></ul><ul><ul><li>No escape </li></ul></ul>
    30. 47. Practice Mobility <ul><li>Status in 2006 = 4 states </li></ul><ul><li>Status in 2008 = 31 states </li></ul><ul><li>Status in 2009 = 45 states </li></ul><ul><li>New Tool: Clickable Map </li></ul>
    31. 48. NC Passes Practice Mobility <ul><li>Effective July 27, 2009 </li></ul><ul><li>Eliminates the requirements to pay a fee for a practice privilege </li></ul><ul><li>Eliminates the requirements to provide a notice for that privilege </li></ul><ul><li>Notification required for audits, PCAOB inspections </li></ul><ul><li>NC State Board of CPA Examiners (919) 733-4222. </li></ul>
    32. 49. WA OR CA NV ID MT ND SD WY UT CO AZ NM AK HI TX OK KS NE MN IA MO AR LA MS AL GA* FL WI IL MI IN KY TN SC NC VA WV OH PA* NY VT ME RI * Legislation Pending - 1 Mobility Enacted Only for Other Mobility States -2 (GA , PA) Mobility Enacted - 43 GU PR 2010 Anticipated Legislative Activity - 2 In process - 6 CPA Mobility Legislative Activity VI MA NH MD DC DE NJ CT
    33. 50. The Reliability Project
    34. 51. AICPA’s Reliability Project <ul><li>Most significant change to compilation and reviews since 1978 </li></ul><ul><ul><li>The proposed standards would allow an accountant who performs internal control services for a client also to review that client’s financial statements </li></ul></ul><ul><li>Exposure draft issued April 28: comments were due by July 31 </li></ul>
    35. 53. The Codification Project
    36. 54. FASB Codification Project <ul><li>FASB Accounting Standards Codification launched on July 1, 2009 </li></ul><ul><li>FASB declares the Codification as the official single source of authoritative non-governmental U.S. GAAP </li></ul><ul><li>A great resource - http://asc.fasb.org/home </li></ul><ul><li>SCACPA seminar </li></ul>
    37. 55. FASB Codification Project <ul><li>FASB’s effort to reorganize thousands of GAAP pronouncements under about 90 accounting headings </li></ul><ul><li>A fully online filing cabinet </li></ul><ul><li>Available in “ basic view” – free to all </li></ul><ul><li>“ Professional” view that includes cross-referencing, search functionality archiving, etc. Cost $850 annually . </li></ul>
    38. 57. FASB GAAP Codification <ul><li>7/1/09 – FASB release </li></ul><ul><li>Combines FASB, the Emerging Issues Task Force and AICPA pronouncements </li></ul><ul><li>Dedicated Web site: http://asc.fasb.org </li></ul>
    39. 58. XBRL
    40. 59. What is XBRL? <ul><li>Extensible Business Reporting Language </li></ul><ul><li>A new reporting model based on “interactive data” </li></ul><ul><li>Implementation could require a sizable financial investment of time and money to implement the data-tagging strategy </li></ul><ul><li>CFOs & finance executives must ask “are we ready?” </li></ul>
    41. 60. Are we ready? <ul><li>86% of accountants polled in 2008 said their company was not prepared to implement XBRL </li></ul><ul><ul><li>~ Study by IMA & Ajilon </li></ul></ul><ul><li>68% said finding & training staff to make the implementation successful was more of an obstacle than the IT component </li></ul>
    42. 61. SEC’s Phase-in Schedule DATE ISSUER DESCRIPTION June 15, 2009 Domestic and Foreign Large Accelerated Filers  Using U.S. GAAP with Worldwide Public Common Equity Float above $5 Billion as of the End of the Second Fiscal Quarter of Their Most Recently Completed Fiscal Year June 15, 2010 All Other Domestic and Large Accelerated Filers Using U.S. GAAP June 15, 2011 All Remaining Filers Using U.S. GAAP, including Smaller Reporting Companies June 15, 2011 Foreign Private Issuers with Financial Statements Prepared in Accordance with IFRS as Issued By the IASB
    43. 62. XBRL Resources <ul><li>www.XBRL.org </li></ul><ul><li>http://www.sec.gov/spotlight/xbrl.shtml </li></ul><ul><li>http://thecaq.aicpa.org/Resources/XBRL/ </li></ul>
    44. 63. Sustainability – the CPA Role
    45. 64. International Issues
    46. 65. The Road to IFRS in the U.S.
    47. 66. IASB/FASB Convergence <ul><li>Hope to complete convergence by 2011 </li></ul><ul><li>Outstanding Issues: </li></ul><ul><ul><li>Revenue recognition </li></ul></ul><ul><ul><li>Financial statement presentation </li></ul></ul><ul><ul><li>Leases </li></ul></ul><ul><ul><li>Financial instruments </li></ul></ul><ul><ul><li>Liabilities and equity distinctions </li></ul></ul><ul><ul><li>Consolidations </li></ul></ul><ul><ul><li>De-recognition </li></ul></ul><ul><ul><li>Post-employment benefits </li></ul></ul>
    48. 67. Hurry up and Wait? <ul><li>Sir David Tweedie – “ Where is the USA ?” </li></ul><ul><li>CFOs support single set of global financial reporting standards </li></ul><ul><li>They want SEC to provide direction before they commit time and resources to preparedness </li></ul>
    49. 68. New Momentum Underway <ul><li>Aug. 25 Mary Schapiro named James Kroeker as the SEC’s new chief accountant </li></ul><ul><li>Kroeker tells NY CPAs on Sept. 17: </li></ul><ul><li>“… turning back to the roadmap will be an important priority for us this fall.&quot; </li></ul><ul><li>It is &quot;resoundingly clear&quot; that people agree there should be a single set of global high-quality accounting standards, but there were striking differences in how different groups wanted to accomplish that goal. </li></ul>
    50. 69. Convergence ≠ Sameness <ul><li>US GAAP </li></ul><ul><ul><li>Rules based </li></ul></ul><ul><ul><li>Based on a GAAP hierarchy (level A – D) </li></ul></ul><ul><ul><li>Primary accounting standard setting body is the FASB </li></ul></ul><ul><ul><li>Accounting guidance and interpretation is provided by FASB, SEC, AICPA and EITF </li></ul></ul><ul><li>IFRS </li></ul><ul><ul><li>Principles based </li></ul></ul><ul><ul><li>No hierarchy, consists of IASs, IFRSs & interpretations </li></ul></ul><ul><ul><li>Standards and interpretations approved by the IASB </li></ul></ul><ul><ul><li>Interpretations of IFRIC and its predecessor the SIC </li></ul></ul>25,000 pages vs 2,000 pages
    51. 70. IFRS Preparedness in the USA <ul><li>Best in class articles on what a U.S. CPA needs to understand IFRS right now </li></ul><ul><li>Articles framed with commentary by accounting professors </li></ul><ul><li>Exam to test IFRS in 2012 </li></ul><ul><li>SCACPA Seminars </li></ul>
    52. 71. New IFRS Certificate of Accomplishment
    53. 72. Positioning of the U.S. CPA in the Global Environment <ul><li>International marketplace dependency </li></ul><ul><li>Global speed of business </li></ul><ul><li>International reciprocity </li></ul><ul><li>Mobility and Mutual Recognition Agreements </li></ul><ul><li>International Administration of CPA Exam </li></ul><ul><li>Competition </li></ul><ul><li>IFRS adoption </li></ul><ul><li>Next tier firms </li></ul>
    54. 73. International Mobility
    55. 74. Internationalizing the CPA Exam <ul><li>Expanding locations for U.S. CPA Exam outside of U.S. </li></ul><ul><li>Application, security & licensure emphasis will model U.S. requirements </li></ul><ul><li>Next Steps </li></ul><ul><ul><ul><li>NASBA consensus </li></ul></ul></ul><ul><ul><ul><li>Parallel implementation planning </li></ul></ul></ul><ul><ul><ul><li>Contract/Plan approval targeted for August </li></ul></ul></ul><ul><ul><ul><li>Launch targeted for mid-2010 </li></ul></ul></ul>
    56. 75. Legislative and Regulatory Issues
    57. 76. There’s A New Sheriff In Town <ul><li>Past CEO of the Financial Industry Regulatory Authority, the securities industry self-regulatory organization for broker-dealers </li></ul><ul><li>Former SEC Commissioner (1988-1994) </li></ul><ul><li>Former chairman of the Commodity Futures Trading Commission </li></ul>Mary Shapiro
    58. 77. Congress Works on Financial Services Reform <ul><li>Congress is preparing to undertake a sweeping overhaul of financial services regulation </li></ul><ul><li>The recession, tight credit, and a growing awareness of regulatory shortcomings will lead to government action </li></ul><ul><li>Gaps in the existing regulatory structure and policymakers are evaluating </li></ul>
    59. 78. Financial Services Oversight Council
    60. 79. Financial Services Reform <ul><li>H.R. 3126 introduced in summer 2009. House Financial Services Committee holding hearings. </li></ul><ul><li>Legislation would create a “Consumer Financial Protection Agency” - CFPA </li></ul><ul><li>Authority to issue rules and guidance, initiate enforcement, limit use of arbitration, etc. </li></ul><ul><li>As written originally, it would cover CPAs </li></ul>
    61. 80. Financial Services Reform <ul><li>Until recently H.R. 3126 gave regulatory power to the Consumer Financial Protection Agency (CFPA) to cover the CPA – client relationship including; </li></ul><ul><ul><li>tax preparation </li></ul></ul><ul><ul><li>tax planning </li></ul></ul><ul><ul><li>personal financial planning services </li></ul></ul><ul><ul><li>pro bono financial literacy work of CPAs  </li></ul></ul><ul><li>Latest draft of bill excludes CPAs! </li></ul>
    62. 81. Financial Services Reform <ul><li>H.R. 3126 </li></ul><ul><ul><li>adds another layer of regulation on the accounting profession </li></ul></ul><ul><ul><li>does not consolidate any CPA regulation </li></ul></ul><ul><li>Not asking for CPA exemption when offering consumer financial products, such as loan or investment products. </li></ul><ul><ul><li>Areas of potential abuse, such as refund anticipation loans, are covered by other provisions of H.R. 3126. </li></ul></ul>
    63. 83. Tax Strategy Patents <ul><li>1998 court case allowed business method patents </li></ul><ul><li>Patent and Trademark Office (PTO) now grants tax strategy patents </li></ul><ul><li>Almost 80 issued and over 120 pending </li></ul><ul><li>Problem is growing and extending into new areas of the tax code </li></ul><ul><li>Supreme Court is considering the Bilski case which addresses business patents, but decision unlikely to stop tax strategy patents </li></ul><ul><li>AICPA supports legislative efforts to prohibit tax planning methods from being patented. </li></ul>
    64. 84. House bill to stop tax strategy patents reintroduced in May <ul><li>Current cosponsors (8): </li></ul><ul><li>Rick Boucher (D-VA) - lead </li></ul><ul><li>Bob Goodlatte (R-VA) - lead </li></ul><ul><li>Mike Conaway (R-TX) - CPA </li></ul><ul><li>Lynn Jenkins (R-KS) - CPA </li></ul><ul><li>Walter Jones, Jr. (R-NC) </li></ul><ul><li>Brad Sherman (D-CA) – CPA </li></ul><ul><li>John Spratt, Jr. (D-SC) </li></ul><ul><li>Don Young (R-AK) </li></ul><ul><li>  </li></ul><ul><li>  </li></ul><ul><li>Committed to sign on during </li></ul><ul><li>this September session (9): </li></ul><ul><li>Rob Bishop (R-UT) </li></ul><ul><li>Dave Camp (R-MI) </li></ul><ul><li>John Campbell (R-CA)-CPA </li></ul><ul><li>Louie Gohmert (R-TX) </li></ul><ul><li>Shelley Moore Capito (R-WV) </li></ul><ul><li>Vern Ehlers (R-MI) </li></ul><ul><li>Mike Pence (R-IN) </li></ul><ul><li>Vic Snyder (D-AR) </li></ul><ul><li>Charlie Wilson (D-OH) </li></ul>
    65. 85. Red Flag Rules <ul><li>Fair and Accurate Credit Transactions Act of 2003 ( FACTA) – FTC to develop guidelines for financial institutions/creditors to combat ID theft </li></ul><ul><li>11/9/07 – If covered, rules require written ID theft program </li></ul><ul><ul><li>- Enforcement delayed until 11/1/09 </li></ul></ul><ul><li>Most CPAs covered if “ extend, renew or continue credit” </li></ul><ul><ul><li>- Includes monthly billings </li></ul></ul><ul><li>Rules allow flexibility depending on risk </li></ul><ul><ul><li>- High Risk = elaborate program </li></ul></ul><ul><ul><li>- Low Risk = less complex program </li></ul></ul><ul><li>Civil Penalties per single violation $3,500 </li></ul>
    66. 86. Red Flag Rules <ul><li>8/4/09 – AICPA letter to Jonathan Leibowitz, Chairman of FTC </li></ul><ul><ul><li>Applauding delay and asking for CPA exemption </li></ul></ul><ul><li>SCACPA sent similar letters to FTC and SC Congressional delegation </li></ul><ul><li>Outlook : </li></ul><ul><ul><li>Coalition building with impacted parties, i.e. small business, associations, etc. </li></ul></ul><ul><ul><li>ABA lawsuit filed on 8/27/09 </li></ul></ul><ul><ul><li>Possible legal and/or legislative action </li></ul></ul>
    67. 87. Tax Preparer Registration
    68. 88. Regulating Tax Preparers <ul><li>IRS is holding public forums now </li></ul><ul><li>Considering registration, exam, CPE and certificate </li></ul><ul><li>IRS has the authority to regulate federal tax return preparers through the current penalty structure, Circular 230 </li></ul><ul><li>Agree with efforts to ensure preparers are qualified, ethical, and provide quality services </li></ul><ul><li>But…Would this “legitimize” the competition? </li></ul>
    69. 90. Federal Tax Code Reform TF <ul><li>Created by Pres. Barack Obama </li></ul><ul><ul><li>Led by former Federal Reserve Chair Paul Volcker </li></ul></ul><ul><li>Report due by Dec. 4, 2009 </li></ul><ul><li>Provide recommendation on tax simplification, tax evasion, reducing “corporate welfare,” streamlining tax credits & decreasing the tax gap </li></ul><ul><li>No increase on taxes for families earning less than $250K per year </li></ul><ul><li>No tax increases in 2009 or 2010 </li></ul>
    70. 91. State Legislative Issues Jason Sweatt, Chairman, SCACPA Legislative/Advocacy Committee Todd Dailey, Chairman, SCACPA State & Local Tax Task Force
    71. 93. <ul><li>Grassroots/KPCs </li></ul><ul><li>CPA PAC ($) </li></ul><ul><li>SCACPA lobbyists </li></ul>Advocacy for the CPA Profession
    72. 94. SC Board of Accountancy <ul><li>Nine member board (5 CPAs, 2 APs, 2 public members) </li></ul><ul><li>Serves as the regulator of the profession </li></ul><ul><li>Manages licensing and renewals </li></ul><ul><li>Housed under the state agency -- Labor, Licensing and Regulation (LLR) </li></ul><ul><li>Concerns about BOA operational structure </li></ul>
    73. 95. SC Board of Accountancy <ul><li>Bi-annual license renewal </li></ul><ul><li>Emeritus status for retiring CPAs </li></ul><ul><li>Facilitated State BOA access to peer review reports (opt-out option) </li></ul><ul><li>New rules being written this fall </li></ul>
    74. 96. The Image the Profession
    75. 97. Attitudes toward CPA Credential More confident in a job done by a CPA than if it were done by an accountant not a CPA. CPA requires more rigorous training and testing than any other financial credential Accountants certified by non-U.S. organizations , such as the Association of Chartered Certified Accountants (ACCA), are just as qualified as CPAs.
    76. 99. <ul><li>The Economist magazine calls this the year of the CFO . A year where CFO's are more critical than ever to their organizations.  </li></ul><ul><li>&quot;As financial skills are valued more highly, CFOs will make it to the corner office in greater numbers than before. Recession, credit crunch and the increasingly complex nature of global companies will all play directly into the bean counter’s hands.&quot;   </li></ul>
    77. 100. Perceptions of CPAs Are Largely Consistent Across All Audiences BDMs Large Biz BDMs Sm-Med Biz Investors CPAs YPs 1 Has integrity Competent Competent Has integrity Competent 2 Competent Has integrity Has integrity Competent Has integrity 3 Able to synthesize information from multiple sources Objective Objective Objective Able to synthesize information from multiple sources 4 Objective Able to synthesize information from multiple sources Able to synthesize information from multiple sources Able to synthesize information from multiple sources Able to see the big picture 5 Focused on client needs Focused on client needs Focused on client needs Focused on client needs Objective 6 Able to identify potential problems before they happen Able to identify potential problems before they happen Able to identify potential problems before they happen Able to see the big picture Focused on client needs 7 Technologically adept Technologically adept Technologically adept Demonstrates leadership Able to identify potential problems before they happen 8 Communicates effectively Able to see the big picture Able to see the big picture Able to identify potential problems before they happen Demonstrates leadership 9 Able to see the big picture Communicates effectively Communicates effectively Technologically adept Technologically adept 10 Demonstrates leadership Demonstrates leadership Creative and innovative Communicates effectively Communicates effectively 11 Creative and innovative Creative and innovative Demonstrates leadership Creative and innovative Creative and innovative
    78. 101. Values Positioning <ul><li>CPA Brand = What CPAs Stand For </li></ul><ul><ul><li>Integrity: </li></ul></ul><ul><ul><ul><li>They are scrupulous, objective, unbiased, ethical seekers of truth </li></ul></ul></ul><ul><ul><li>Competence: </li></ul></ul><ul><ul><ul><li>They are disciplined, responsible, highly skilled and trained, careful professionals </li></ul></ul></ul>
    79. 102. 10 Things I Have Learned from Being an Accountant!
    80. 104. The People Side of Things
    81. 105. Does Money Change Things? <ul><li>When the economy is good, the top three priorities for leaders are recruiting and retaining talent, pursuing growth opportunities and maintaining a competitive edge. </li></ul><ul><li>When the economy is bad, leaders' top challenges are doing more with less, motivating the workforce and pursuing growth opportunities </li></ul><ul><li>Source: Ajilon Finance and the Institute of Management Accountants </li></ul>
    82. 106. Raising Staff’s Spirits <ul><li>Most companies are taking steps to boost employee morale </li></ul><ul><li>68% of CFOs surveyed say they’re implementing strategies to buoy the mood of their teams </li></ul><ul><li>26% said they aren’t doing anything to improve morale </li></ul>
    83. 107. Motivating Employees Max Messmer, Accountemps Chairman <ul><li>Professionals crave information about their company’s performance & their own job stability </li></ul><ul><li>When there is little communication, employees are more likely to fill in the blanks themselves </li></ul><ul><ul><li>-- Perhaps jumping to negative conclusions </li></ul></ul>
    84. 108. Motivating Employees Max Messmer, Accountemps Chairman <ul><li>There are many cost-free ways to improve the mood in the office: </li></ul><ul><ul><li>Public praise </li></ul></ul><ul><ul><li>Flexible work schedules </li></ul></ul><ul><ul><li>Soliciting employees for business development and cost-saving ideas </li></ul></ul>
    85. 109. <ul><li>It Goes Beyond the Best and the Brightest </li></ul>
    86. 111. Private Company Practice Section Tools and Resources Valued Far Beyond the Investment
    87. 112. Supply & Demand <ul><li>In 2007-08: </li></ul><ul><ul><li>66,000+ accounting degrees </li></ul></ul><ul><ul><li>Up 3.5% from 2006-07 </li></ul></ul><ul><ul><li>4.7% increase in enrollments </li></ul></ul><ul><ul><li>Record number </li></ul></ul>
    88. 113. <ul><li>Decrease at all degree levels </li></ul><ul><li>Hiring strong in fall of 2007 and deteriorated in spring 2008 </li></ul><ul><li>Study looks at public accounting firms - not business, industry and government </li></ul>New Grads Hired
    89. 114. New Site Offers More Interaction for Students
    90. 115. Investing in the Future <ul><li>Scholarships for college students majoring in accounting </li></ul><ul><li>$19,000 in 2009 </li></ul><ul><li>18 scholarships statewide </li></ul>
    91. 117. What’s New at SCACPA
    92. 118. A Vision for 2010 <ul><li>CPE Innovation </li></ul><ul><li>Membership Relevancy </li></ul><ul><li>Advocacy </li></ul><ul><li>Financial Literacy </li></ul><ul><li>People </li></ul>
    93. 119. <ul><li>Contact me: </li></ul><ul><li>Erin Hardwick, CAE </li></ul><ul><li>[email_address] </li></ul><ul><li>803-791-4181 x 104 </li></ul>Thanks for joining us!
    1. A particular slide catching your eye?

      Clipping is a handy way to collect important slides you want to go back to later.

    ×