MACPA Townhall / PIU Fall 2011
Upcoming SlideShare
Loading in...5
×
 

Like this? Share it with your network

Share

MACPA Townhall / PIU Fall 2011

on

  • 2,359 views

What are the trends and issues facing Maryland CPAs? Tom Hood's legendary roadshows offering 4 hours of free CPE to Maryland CPAs every six months. ...

What are the trends and issues facing Maryland CPAs? Tom Hood's legendary roadshows offering 4 hours of free CPE to Maryland CPAs every six months.

Designed to keep MACPA member abreast of the rapidly changing CPA profession and let them know what they can do to shape their future and the future of their Profession.

You will see updates on the latest accounting standards, federal and state legislative issues, and the macro trends facing businesses and CPAs.

Statistics

Views

Total Views
2,359
Views on SlideShare
824
Embed Views
1,535

Actions

Likes
0
Downloads
11
Comments
1

6 Embeds 1,535

http://www.cpasuccess.com 1430
http://cpasuccess.typepad.com 80
http://www.macpa.org 11
http://feeds.feedburner.com 9
https://twitter.com 3
http://webcache.googleusercontent.com 2

Accessibility

Upload Details

Uploaded via as Adobe PDF

Usage Rights

CC Attribution-NonCommercial-NoDerivs LicenseCC Attribution-NonCommercial-NoDerivs LicenseCC Attribution-NonCommercial-NoDerivs License

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Processing…
  • Hello my dear
    I am Modester by name good day. i just went to your profile this time true this site (www.slideshare.net) and i got your detail and your explanation in fact the way you explain your self shows me that you are innocent and maturity and also understand person i decided to have a contact with you so that we can explain to our self each other because God great everyone to make a friend with each other and from that we know that we are from thism planet God great for us ok my dear please try and reach me through my email address (modester4life4@yahoo.com) so that i can send you my picture true your reply we can know each other ok have a nice day and God bless you yours Modester
    Are you sure you want to
    Your message goes here
    Processing…

Comments are closed.

Edit your comment

MACPA Townhall / PIU Fall 2011 Presentation Transcript

  • 1. MACPA  Professional  Issues   Update  –  Fall,  2011   Tom  Hood,  CPA.CITP   CEO  &  ExecuDve  Director   Maryland  AssociaDon  of  CPAs   Business  Learning  InsDtute  
  • 2. Our  Agenda   •  Economy   •  Future  Trends   •  General   •  Profession   •  What  MACPA  is   doing  about  it   •  Thriving  in  the  chaos  
  • 3. But  first  a  word  from  our  members  
  • 4. What  do  you  think?  
  • 5. CPA  Outlook  
  • 6. AICPA/UNC  Economic  Outlook   Top  Challenges  
  • 7. What  we  do  know…   1.  We’re  geWng  older  -­‐  Age  will  be  biggest  age   cohort  by  2015.   2.  Age  is  impacDng  economy  –  Healthcare  will  be   20%  of  GDP  by  2020.   3.  We’re  creaDng  fewer  jobs  –  From  2000  to   2010  we’ve  created  709  jobs  for  every  100   people,  from  2008  to  2018  that  drops  to  49!   4.  We’re  spending  less  and  saving  more  –   Median  wages  fell  in  2008  to  1983  levels  and   saving  rates  rose  from  .3%  to  6.4%  from  2008   to  2010.  Sales  of  cars  &  homes  have  fallen  off   significantly.   5.  The  government  will  follow  suit.  
  • 8. The  economy  is  in  a  big  downshie  
  • 9. The  next  thing…   Thirty  (30)  years  of  Prosperity?   "Economic  historians  assure  us  that  new   technology  will  eventually  enable  millions  of   ordinary  employees  to  add  more  value  in  the   workplace,  increasing  general  prosperity,"  Snyder   says.  Historically,  he  says,  such  periods  of  economic   prosperity  have  lasted  as  long  as  30  years.      –  Interview  with  Bill  Sheridan  –  MACPA  Chief  Editor  
  • 10. What  has  gone  away  or  been  invented  since  you   have  been  born?  
  • 11. Why we are here? The tornado of changes from CPA Vision Project circa 2000
  • 12. What CPAs have said abut the future:1.  Aging population, loss of wisdom, knowledge transfer2.  Global rules & standards –IFRS – complexity3.  Information overload, complexity (Need for critical thinking & filter)4.  Information Security, Privacy & Data Protection5.  Global Competition, Rise of the Rest6.  Work-Life Balance7.  Diversity – Cultural Fusion – Beiging of America8.  Changing Communication (decline of face-to-face)9.  Increased Globalization10. US Deficit11. Education
  • 13. The  6  C’s  1.  Change  2.  Complexity  3.  Convergence  4.  Compliance  5.  CompeDDon  6.  Competency  
  • 14. “# 1 reason organizations fail isthat they miss the weak signalsof disruptive change.” – Andrew Zolli
  • 15. 4x=18907x=1670
  • 16. Welcome to the Extreme Future!1.  Increased  speed  2.  Increased  complexity    3.  Increased  risk  4.  Faster  pace  of  change  5.  Surprises  everywhere  and  everyday  Dr. James Canton – author of The Extreme Future
  • 17. The single most important trend in the world today "It starts with the fact that globalization and the information technology revolution have gone to a whole new level. Thanks to cloud computing, robotics, 3G wireless connectivity, Skype, Facebook, Google, LinkedIn, Twitter, the iPad, and cheap Internet-enabled smartphones, the world has gone from connected to hyper-connected.” - Thomas Friedman NY Times author The World is Flat
  • 18. IBM’s recent Global study of CEOs foundthateight out of ten CEOs seesignificant change ahead, and yet the gapbetween expected change and the abilityto manage it has almost tripled since ourlast Global CEO Study in 2006.
  • 19. How  is  your  Complexipacity?   All  complex  phenomena  are  systems  of   systems  that  cannot  be  predicted  with   confidence  because  they  involve:   •  EssenDally  infinite  numbers  of   variables  and  linkages  about  which   we  can  never  have  complete  data   •  Incalculable  risk   •  Uncertainty  (the  human  factor)   •  Surprises  –  random  “emergence”  &   Black  Swans   •  Ambiguity  –  Rumsfeld’s  “Things  we   don’t  know  we  don’t  know”  
  • 20. As knowledge moves from stocksto flows, how do we stop our inventory from becoming obsolete?
  • 21. We  can  choose  to  harness  the   winds  of  change   The tornado of changes from CPA Vision Project circa 2000
  • 22. From  feeling  “lonely  at  the  top”  
  • 23. To  the  wisdom  of  the  crowd  
  • 24. Technology  as  Accelerator  of  Change  
  • 25. Speaking  of  Technology  How  the  Tech  guys  are  structured   From  designer  Manu  Cornet  via  Foursquare  product  chief  Alex  Rainert  
  • 26. AICPA  Top  10  Technology  Issues      1.  Control  and  Use  of  Mobile  Devices        2.    InformaDon  Security        3.    Data  RetenDon  Policies  and  Structure        4.    Remote  Access        5.    Staff  and  Management  Training        6.    Process  DocumentaDon  and  improvements        7.    Saving  and  Making  Money  w/Technology        8.    Technology  Cost  Controls        9.    Budget  Processes    10.  Project  Management  &  deployment  of  new  apps    
  • 27. SOC  it  to  me!  
  • 28. The  Cloud  is  geWng  bigger   •  Security   •  MulD-­‐Tenancy   •  Reliability  
  • 29. Social  Media  RevoluDon  
  • 30. The generation gap is widening
  • 31. Eight  ways  you  can  work  Smarter     1.  Recognizes  that  s/he  learns  conDnuously  as   s/he  does  his/her  job.   2.  Wants  immediate  access  to  soluDons  to   his/her  performance.   3.  Is  happy  to  share  what  he/she  knows.   4.  Relies  on  a  trusted  network  of  friends  and   colleagues.   5.  Learns  best  with  and  from  others.   6.  Keeps  up-­‐to-­‐date  with  what  is  happening  in   his/her  industry  or  profession.   7.  Constantly  strives  to  improve  his/her   producDvity.   8.  Thrives  on  autonomy.   from  Jane  Hart  author  of  the  Social  Learning  Handbook    
  • 32. Old  dogs  need  to  learn  some  new  tricks  
  • 33. 5  Forces  of  GlobalizaDon  1.  Growth  of  consumers  in  emerging   economies  2.  Technologies  that  empower   consumers  &  communiDes  3.  Increase  in  labor  producDvity  in   developed  markets  4.  Shie  of  economic  acDvity  between   and  within  regions  5.  Increasingly  global  markets  for   labor  &  talent     The  counter  trend  is  LocalizaDon  or  think  globally,  act  locally  
  • 34. GlobalizaDon  –  Chinese  auditors  visit   MACPA  Towson  CPA  Center  
  • 35. Global  CPA  PosiDoning   CGMA  
  • 36. Compliance  
  • 37. The Year of Changes in StandardsSOC Reports FASB/IASB COSO Integated•  SSAE 16 (SOC convergence Framework 1) •  Major changes •  Comprehensive•  SOC 2, 3 to GAAP Update•  Cloud •  June 30 target •  Exposure Draft computing for priorities Q4 2011 (C2B) •  Final 2012•  2 guides in July American Institute of CPAs
  • 38. The Year of Changes in Standards Clarity Project Ethics •  Finishes late Codification 2011 •  Exposure draft •  Standards by late 2011 effective for •  Complete by 2012 year-end late 2012 audits American Institute of CPAs
  • 39. Convergence  -­‐  IFRS  &  US  GAAP?  •  AdopDon  /  Conversion  -­‐  a  switch  from  local   standards  to  IFRS,  without  converging  them  first.  •  Convergence  -­‐  migraDon  of  local  standards  to   being  closely  aligned  with  IFRS.  •  Endorsement  -­‐  formal  endorsement  of  new  or   amended  IFRS  before  they  become  legally   binding.  •  Condorsement  –  A  liqle  bit  of  2  &  3  above.  Term   Coined  by  SEC  Deputy  Chief  Accountant  Paul   Beswick  in  December,  2010  
  • 40. Small  Business  is  the  liqle  engine  that  could  
  • 41. SMBs  fighDng  against  the  odds   •  Annual  cost  of  Federal  Compliance   $1.75  trillion   •  Federal  burden  exceed  costs  of   health  care  per  person  by  50%   •  Cost  per  employee  =  $8,086   •  For  SMB  <  20  =  $10,500  per   employee      
  • 42. Another way to look at standards & oversight Public Company Private Company Int’l CompanyFinancial SEC FASB IASBReporting FASB PCFRC IFRS & SMEAudit /Attest AICPAPerformanceStandards PCAOB ASB, ARSC, IAASB PRBCode of AICPA AICPAConduct PEEC PEEC IFACCPA State Oversight & Enforcement of CPA LicenseLicensure
  • 43. The PlayersSEC FAF BRP FASB GASB PCFRC & State Boards & State CPA Societies
  • 44. Additional Background Info15,000 issuers and 28.5 million private companiesbut GAAP driven by public company issuesSmall businesses employ more than half of allprivate sector workersPrivate companies and their financial statementusers have information needs that are differentthan public companies
  • 45. Concerns About Private Company Financial Reporting Include:± Too many GAAP-specific requirements not useful or relevant for private companies± Greater FASB emphasis on public companies± Increased cost, complexity, time- consuming using full GAAP± Use of OCBOA raises the issue of what’s “generally accepted”
  • 46. Blue Ribbon Panel’s Conclusions± A problem exists that needs resolution± Recommendation #1 - Enhance GAAP for private companies by making significant modifications, where warranted± Recommendation #2 - FAF should create a separate private entities accounting standards board
  • 47. Other Key BRP RecommendationsFramework for differential decision criteria3-5 year sunset review to determineeffectiveness of new board5-7 board members$4-5 million annual budget
  • 48. 90.87% of MACPA members believe we need Private Company StandardsInsights form the Spring & Fall, 2010 PIU / town hall meetings covering 2,000+ members
  • 49. Judy O’Dell chair of FASB PCFRC shared her perspective
  • 50. MACPA’s response± MACPA sent comment letter to FAF on December, 2010 for initial survey± MACPA Chair Kimberly Ellison-Taylor appoints special Accounting Standards Task Force± Accounting Standards Task Force held meetings from Jan – Mar, 2011
  • 51. Our guiding principles
  • 52. Draft conclusions –Approved by MACPA Board± Private Company Standards need to be addressed (costs, complexity, OCBOA)± Current structure is not working – PCFRC recommendations were not addressed, prior studies indicate issue± Other jurisdictions around the world recognizes needs of private company users are different± MACPA Sent comment letter to FAF (up to 2,554 letters)
  • 53. Our  State  Tax  Commiqee  takes  a  proacDve  posiDon  in  General  Assembly  
  • 54. XBRL  &  MACPA  &  You  •  SEC  Mandate  –  June  15,  2011  -­‐  third  wave  •  Radical  Transparency  (DATA  Act  of  2011)  •  LiberaDon  of  data  for  financial  analysis  •  Reduced  compliance  burden  (SBR)    
  • 55. XBRL  
  • 56. LegislaDve  Advocacy  and  the  Power  of   WE!   CPA  Day  in  Annapolis  –  January  18,  2012  
  • 57. The  Maryland  Story  
  • 58. Maryland Business Agenda - 2011•  Defeated Combined Reporting•  Defeated extension of Millionaire Tax (6.25%)•  Passed Small Business Real Property Tax Payment Plan (2012)•  Defeated Corporate Throwback and Gross Receipts Tax•  New law – Requires MD Employers to notify employees eligible for earned income credit Source: Maryland Chamber of Commerce
  • 59. MACPA 2011 Agenda 5 for 5!  ü Pass 120/150 legislationü Stop Sales Tax on Accounting Servicesü Exempt CPAs from Debt Counseling Billü Stop Trial Lawyers attempts at Tort Liberalization – Comparative Faultü Pass Safe Harbor legislation CPA Day in Annapolis January 18, 2012
  • 60. Maryland  CPA  Agenda  2011   How  we  did  it  
  • 61. Looking ahead to 2012•  Special Session to deal with redistricting (and budget) – will see tax proposals•  Maryland Social Security Privacy Act – AG Opinion•  Sales Tax on Services•  Combined Reporting•  Comparative Fault = increase liability•  Quid Pro Quo for DC mobility
  • 62. Sales Tax on Services•  Should accounting services be taxed?•  We’ve fought and won on this numerous times ---- but times are changing•  19 states are considering taxing services•  Could be an issue in 2012-2013 budget –  Loss of the one-time bailout funding leaves an $8 Billion hole to fill•  QUESTION: Should this continue to be a bedrock issue for MACPA? 65
  • 63. Safe  Harbor  LegislaDon  passes  and  evens  playing  field  for  CPAs  doing  Reviews  &  CompilaDons  
  • 64. 120/150  CPA  Exam  requirements  
  • 65. An  example  -­‐  CPE  RegulaDons  involved  all  levels  –  law,  regulaDons,  and  procedures   Maryland Senate & Maryland Governor A Bill SB 128 Law From State Board House passes bill signs into law Maryland State Board of Public Accountancy Clarify thru regulations And enforce the law
  • 66. CPE  •  CPE  =  CPE  •  Self-­‐study  allowed  hour  for  hour  &  unlimited  •  4  hour  Ethics  Requirement  every  two  years  •  Peer  Review  qualifies  for  CPE  •  CPE  Audits   –  SaDsfactory  Compliance   –  Adjusted  Compliance   –  Audit  Failure  
  • 67. New  CPAs  take  oath  to  Protect  the   Public  Interest   MACPA  CPA  Summit  scheduled  for  June  11th  &  12th,  2012    
  • 68. Record  #s  of  CPAs  take  Exam  in  MD  
  • 69. It  all  adds  up   $  per  partner  /  year   1. CFPA  $250   2. Tax  Prep  $100   3. Debt  $150   4. Mobility  $500     Total                    $1,000  Sales  Tax  est  $22,000  per  partner  
  • 70. Help  us  help  you  –  support  our  PAC  
  • 71. CompeDDon  
  • 72. AICPA  /  PCPS  Survey  Results  
  • 73. AICPA  PCPS  Survey  Results  
  • 74. Why  ERM?  AICPA ThoughtLeadership Area inBusiness, Industryand GovernmentWebsite withBriefs, MAGs,Research andother resources tohelp members withrisk management.    
  • 75. Top  10  Issues  Facing  BizInd  1.  CommunicaDng  effecDvely  (new  tools  vs  face  to  face)  2.  Talent  –  Training  –  Succession  Planning  3.  Economic  environment  4.  GeneraDonal  –  Work/Life  balance  5.  Supply  chain  –  rising  costs  6.  Strategic  planning  in  uncertainty  7.  Financial  literacy  about  business  8.  Increasing  government  regulaDons  9.  IT  security  /  privacy  10. MulD-­‐tasking  and  increasing  workload  
  • 76. What  can  MACPA  do  to  help?   The  group  idenDfied  areas  that   MACPA  could  help  CFOs,   controllers  and  financial   professionals  deal  with  the   pressing  issues.     One  major  idea  was  to  have   quarterly  roundtables  focused   on  one  of  these  main  issues  with   a  facilitated  discussion   aeerwards.  Most  of  the  key   issues  were  already  being  dealt   with  by  MACPA.       The  group  emphasized  the   importance  of  conDnued   advocacy  at  the  federal,  state,   and  state  board  areas.  
  • 77. Sustainability  –  People  –  Planet  –  Profits  and  the  Triple   Boqom  Line   hqp://www.theiirc.org    
  • 78. LeadershipIs this working for you?
  • 79. How  is  leadership  changing?  “What got you here won’t get you there.” – Emmanuel Gobillot - Leadershift
  • 80. Leadership  is  DEAD  • DemocraDc  • ExperDse  • AqenDon  • Diverse  
  • 81. What  hasn’t  changed  about   leadership?  •  Engagement•  Alignment•  Commitment•  Accountability“First I get all of my men facing the same direction.” - Napoleon
  • 82. CLO magazine shows the changing role of leaders
  • 83. Leadership  is…   The  ability  to  gain  insights  and  the   apDtude  to  turn  them  into  acDon  –   Insights  to  AcDon     -­‐  Tom  Hood  &  Gretchen  Pisano     (one  without  the  other  is  either  useless  or  destrucDve)  
  • 84. Five Qualities of Extraordinary Leaders 1.  Sight - Ability to see emerging L≥C patterns and shift perspective when necessary 2.  Insight – Ability to think strategically and critically to gain insights 3.  Create – Seek high leverage opportunities that build on your strengths 4.  Communicate - Ability to make your thinking visible to others and the ability to collaborate inside and outside your organization 5.  Inspire – Ability to mobilize support and engage others involved in doing the work to join you in ACTION
  • 85. Leadership in the new normal Three Critical Competencies Built on strengths Strengths- and positivity Future-minded Based and flexible mindset Self-awareness Leadership In the momentAbility to makeyour thinking Strategicvisible to others Thinking Collaborative and curious with the ability Network to ask powerful questions Leadership Capable of engaging and Inspiring people 92
  • 86. Leadership is Connect & Collaborate!From:  Command  &  Control      To:  Connect  &  Collaborate  
  • 87. Leadership  =  MulDplicaDon  • 15  X  –  ROI  strategy  as   process  &  alignment  • 8  X  –  Strengths  • 6  X  –  Trust  &  Engagement  • 3  X  -­‐  PosiDvity  
  • 88. Finding Your Edge… •  Strategic thinking – all of the time •  Make your thinking visible to others •  The power of We – Collaboration •  Innovate by finding your edge (Strengths, Positivity, Opportunities)
  • 89. The  Great  Hall  at  Oxford  FoundaDon  started  in  1249,  completed  in  1634  according  to  wikipedia  
  • 90. Succession  Planning  for  our  Profession   MACPA  Leadership  Academy  debuts  September  18-­‐20,  2011  
  • 91. The  5  Major  Features  of  the  New  Normal   according  to  David  Pearce-­‐Snyder   1.  Society  will  be  older  (and  hopefully  wiser);   2.  A    “rendezvous  with  austerity”  –  individuals  and   insDtuDons  will  have  to  live  within  their  means;   3.  Technology  will  pervade  every  aspect  of  daily   life,  work  and  play;   4.  3rd  world  growth  will  drive  the  global  economy   5.  The  decision-­‐making  environment  will  be  more   complex  for  everyone  
  • 92. Which  one  is  the  biggest  opportunity  for  CPAs?  
  • 93. Some closing thoughts“It is hard to plan for the long term future when you don’tknow what is going to happen five minutes from now.Today, a competitive edge is thin and temporary; the edgequickly becomes the margin. The ability to define the edge,and the ultimate competitive advantage, is found in thesmarts, heart and ingenuity of your people - thats yourpowerhouse. Tap that, train it, focus it and mobilize it; nowyouve engaged a network and inspired a sustainable shift.Insight to action, one without the other is either useless ordestructive.” -Tom Hood & Gretchen Pisano co-authors of the i2a: Insights to Action Strategic Thinking System http://www.bizlearning.net/live/i2astrategicplanning
  • 94. A leader’s job is to…Provide hope &inspiration!Tom Hood & Gretchen Pisano
  • 95. Links •  Strategic Planning –  http://www.bizlearning.net/live/i2astrategicplanning •  Future Forums –  http://www.bizlearning.net/live/i2afutureforums –  Leadership Development –  http://www/bizlearning.net/live/i2aleadership •  Customized Training –  http://www.bizlearning.net/learningcenter/ •  Search our Catalog –  http://www.bizlearning.net/learningcenter/ customizedtraining/BLI_catalog.cfm
  • 96. Tom  Hood,  CPA.CITP   CEO   Maryland  Associa8on  of  CPAs   Business  Learning  Ins8tute   (443)  632-­‐2301   E-­‐mail  tom@macpa.org   Web  hNp://www.macpa.org  Blog  hNp://www.cpasuccess.com  hNp://www,bizlearningblog.com      
  • 97. = Leadership blogs: www.cpasuccess.com www.bizlearningblog.comFollow me on:ü  Twitter: http://www.Twitter.com/tomhoodü  LinkedIn: http://www.linkedin.com/in/tomhoodü  Facebook: http://www.facebook.com/thoodcpaü Plaxo: http://tomhood.myplaxo.comü Slideshare: http://www.slideshare.net/thoodcpaü Youtube: http://www.youtube.com/thoodcpaü Second Life avatar name: Rocky MaddaloniCheck our Customized Training Catalog out: http://www.bizlearning.net