Piu Keeping Up With Accounting Fall, 2009 Draft

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Fall, 2009 1st draft Professional Issues Update for CPAs - focusing on Top 5 Trends: Economy, Regulations/Standards, Globalization, Workforce, Technology

Fall, 2009 1st draft Professional Issues Update for CPAs - focusing on Top 5 Trends: Economy, Regulations/Standards, Globalization, Workforce, Technology

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  • http://financialexecutives.blogspot.com/2009/03/levitt-beresford-on-congress-fasb-and.html
  • http://www.clomedia.com/take-five/brandon-hall/2009/January/2503/index.php1. Mobile learning: Mobile learning has advanced in significant ways and now is on the edge of widespread use in the corporate environment. Microsoft has been using its Academy Mobile product internally to reduce costs associated with traditional content development and delivery. Phil Morel, director of sales enablement at Microsoft, said the company’s podcast series — a monthly on-demand, on-the-go audio briefing — features interviews with product experts and top salespeople to help the sales staff effectively sell Microsoft products to enterprise customers. 2. Do-it-yourself (DIY) learning: Learning in the workplace increasingly will provide more options to create learning. Allison Anderson, manager of learning innovations and technology at Intel Corp., explained that her company works in globe-spanning virtual teams at an ever-increasing speed that leaves little time for formal learning. “Because of this immediacy, learners must have access to dynamic content from the best experts, whether they are in the next cube or half a world away. To get to the best content and the right expert, employees must be contributors, as well as consumers, of learning content. The training group no longer can be the only funnel for knowledge or dictate the way each individual employee learns.” The technologies that foster DIY learning at Intel include employee blogs, Intelpedia (an internal Wiki), social networks and collaborative tagging and sharing. 3. Flexible learning environments: Driven by Web 2.0 tools such as social networks and the expectations of Millennial workers, we will continue to see more LMSs transitioning from 1.0 to 2.0 platforms. KarieWillyerd, CLO of Sun Microsystems, said the flip side of a workforce that arrives already tech savvy is its expectation that the corporate world will meet them on their turf with widget-driven interfaces to access and manage their learning. “In their online travels, they’ve experienced both the cool and the kludge, and they know the difference. It is not just about content but how it is designed and consumed.” Sun Microsystems’ new environment for Web 2.0 learning removes the LMS as the central player and provides more collaborative, modern mash-up features that combine search, formal and informal learning assets, training plans, comments, tagging and ratings. 4. Virtual worlds: This year, we’ll see more feasibility testing on the use of virtual worlds for workplace learning. Chuck Hamilton, learning and new media program manager of the IBM 3D Internet Team, said virtual landscapes form a new type of learning infrastructure. “We need to embrace some of the new virtual social environments now forming,” he said. IBM’s Green Data Center in Second Life demonstrates how technology can reduce the energy consumption of a corporate data center. A Nursing Education Simulation in Second Life allows nursing students to measure blood pressure and vital signs, administer drugs and make other interventions on a virtual patient. This is a much more affordable way to train without the cost and risks associated with real-life situations. 5. Games and simulations: Games have moved beyond “edutainment” into complex topics that require higher-order thinking. Learning designers are realizing the potential for games to provide a realistic, interactive experience that draws people in, as well as to address the gaming culture associated with younger workers. Accenture, a management consulting, technology services and outsourcing company created a computer-based business simulation game designed to give senior managers the opportunity to experience managing in a competitive market. Participants form management teams of five to six people, each of which compete against each other during the two-and-a-half day simulation game. Each team is responsible for a company’s goals and financial performance over a number of
  • Facebook: A free, online, social utility that helps people communicate more efficiently with their friends, family and coworkers. Capabilities include status updates, picture and “note” posts, a news feed of network activity, event invitations, fan followings and “causes” participation in social activism.LinkedIn: A free, online, interconnected network of experienced professionals from around the world, with an emphasis on the professional as opposed to the social. Includes tools for resume building, professional Q&A, and communication with colleagues, friends, etc. Can be linked to a variety of e-mail services with convenient toolbars.TypePad: A blog service offering premium formatting, content and optimization features with advertising de-emphasized.WordPress: A free, open source blogging software allowing users great freedom of formatting and site placement, WordPress.com.Blogger: Google’s free blog service, most beginner-blogger friendly and with best optimization (since Google owns it).Twitter: Self-described as a “real-time short messaging service” that is free. Used primarily as a “status update” style microblog, posts in 140 characters or less w/ messaging capabilities and a real-time feed of “tweets” to keep users’ networks of contacts up-to-date regarding their daily activities.Yammer:Essentially Twitter for the workplace, replacing the question “What are you doing?” with “What are you working on?” Companies can purchase the ability to monitor and administer their own networks.Friendfeed: A freemicroblogging tool to post content, such as, text, video, photos, etc. that can be embedded on another social networking site, emphasis on the Twitter-esque qualities, but with the ability to see comments and others’ posts like a Facebook wall or News Feed post.YouTube: A site allowing people to upload and view video content for free, now the 3rd most commonly visited website globally according to Alexa (a company that tracks Web content and visiting), contains “channel” capabilities for users as well as commenting options as well as “response” posts.Vimeo: The “snob’s YouTube”, boasts better quality and HD capabilities as well as somewhat more “selective” content.Ustream.TV:A free live video content host site, includes interactive features since it is broadcast in real time with various messaging capabilities.Slideshare: A community for sharing business presentations such as PowerPoint and OpenOffice presentations, with webinar, downloading and embedding capabilities.
  • 2007 was all human capital and succession. The 2007 list really represented the traditional CPA pipeline with Finding talent number one, retaining talent number 2 and getting them ready to become partner and succeed senior management rounding out the top 5Now this 2009 list shows greater emphasis on the marketing with client retention again number one and Marketing to new clients at number 4 and fee pressure/pricing at number 6.Notice that finding staff isn’t in the top 10. Retaining is and right now firms have a tremendous opportunity to clean up internal operations, solidify retention programs and start to build for the future. Mentoring and coaching being the number 10 issue is a positive sign that this firm category is really focused on the right things.Partner accountability and succession planning at number 2 and 3 was very interesting. Again, showing that firms have some house cleaning to put the right systems in place to build for the future.
  • http://www.economist.com/theworldin/displaystory.cfm?story_id=12494665
  • CFO.Com article – The Key to Bankers Hearts http://www.cfo.com/article.cfm/13131183/1/c_13131494?f=home_todayinfinance
  • Switch to TomLearning & staying on the cutting edge (content & filtering) Managing my career (content – competencies – career paths)Doing my work (social context)Interacting with peers (web tools)Becoming a leader in my field (managing on-line identity – whuffie)Who is there , ready to leadStaying up to date, Do I know what is happening in my profession, thought leadership, collaboration,
  • Pull information in from many disparate resourcesResearch
  • Organize information and communicate it effectively


  • 1. Keeping Up With AccountingProfessional Issues Update2009 Fall Edition
    Tom Hood, CPA.CITP
    CEO & Executive Director
    Business Learning Institute
    Maryland Association of CPAs
  • 2. What is the One Thing for CPAs?
  • 3. What is the One Thing for CPAs?
    CPAs… Making sense of a changing and complex world.
  • 4. “But a time of turbulence is also one of great opportunity for those who can understand, accept and exploit the new realities. It is above all a time of opportunity for leadership.”
    - Peter Drucker,
    Managing in Turbulent Times
  • 5. LC
    “To keep pace in your industry, let alone excel as a leader, requires your rate of learning to be greater than, or equal to, the rate of change.” -Unknown
     We think this means a few things:
    • Skills based training isn’t enough, extraordinary leaders must be able to rapidly shift perspectives and change their own mindset.
    • 6. Strategic planning isn’t enough, extraordinary leaders must be strategically thinking, all of the time.
    • 7. Charisma and creativity aren’t enough; extraordinary leaders need to be ambidextrous thinkers – able to think conceptually and sequentially, in the abstract and in the concrete, and able to move quickly between the two.
    • 8. Extraordinary leaders cannot do it alone; they must be adept at building and sustaining large social networks of people engaged in the work.
  • Dealing with Change
    Start Here – strong foundation of core values and public perception
    Sight – look at the forces outside & inside your organization (and your customers)
    Insight – what insights do you see, opportunities? What skills do you have and do you need ?
    Create – What is your desired future, your vision?
    Communicate – the plan, get approvals
    Inspire others to join you
  • 9. What is your line of sight?
    How far can you see?
    Look beyond the edges?
    What patterns are emerging?
    What insights can be gained?
  • 10. What do you see?
  • 11.
  • 12. What’s your vision?
  • 13.
  • 14. Outcomes for today
    Understand the trends and issues facing your Profession and your firm
    Learn about the structure of the CPA profession and how you can influence major trends and issues
    Gain insights that can help you jump the experience curve as a future leader
    Learn about a strategic thinking system to deal with rapid & constant change
  • 15. Our agenda
    Act 1
    The one thing all CPAs need to know
    Regulations & Standards
    Act 2
    Issues facing CPA firms
    Issues facing Business Industry Government
    Act 3
    Dealing with Change
    What’s your one thing & Top five
  • 16. What will the new normal look like?
    “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, McKinsey
    Quarterly March, 2009
  • 17.
  • 18. The Formula that blew up our 401(k)s
    Source: Wired magazine 17.03 March, 2009
  • 19. Guardians cannot keep up with Commerce
    “Even the regulators can't keep up. A Senate study in 2002 found that the SEC had managed to fully review just 16 percent of the nearly 15,000 annual reports that companies submitted in the previous fiscal year; the recently disgraced Enron hadn't been reviewed in a decade." 
    Source: Wired magazine 17.03 March, 2009
  • 20. A Month to Remember
    Rescue package fails; Dow takes record
    U.S. Bails Out Fannie Mae & Freddie Mac
    Dow Jones plunges 504 pts
    Dow plunges again; gold sees biggest one-day gain in 10 years
    Fed proposes bailout package
    Washington Mutual seized
    Goldman and Morgan Stanley become bank holding companies
    Rescue package goes to Congress; Wachovia for sale
    Lehman bankrupt; Merrill Lynch sold
    Fed rescues AIG
    Common Fund Fails
    Source: New York Times
  • 21. Emergency Economic Stabilization Act of 2008
    Signed into law on October 3, 2008
    $700 Billion
    TARP (Troubled Assets Relief Program
  • 22. ARRA – American Recovery & Reinvestment Act of 2009
  • 23. We need
    We got
    Source: Dr. Anirhban Basu
  • 24. The new normal – Wall Street?
    1920 - 2008
    2008 - ????
  • 25. How we got here
  • 26. Now what? I like this approach!
    Time to get tough.
    Time to get smart.
    Time to get going.
    Who’s with us?
  • 27. Regulations & Standards
  • 28. Madoff’s auditor
    • Sole Practitioner
    • 29. Accused of issuing audits of Madoff Securities
    • 30. Lied on AICPA membership renewal about peer review
    David Friehling, CPA faces 105 years in prison
    For issuing false audit reports
  • 31. Satyam + PWC
    Ramalinga Raju – CEO created $40 billion in fake billing and cash
    PWC auditors missed cash accounts?
  • 32. Infrastructure
    the basic physical and organizational structures needed for the operation of a society or enterprise
    The infrastructure for the free market was found to be in disrepair in this latest market crisis and the CPA profession is a critical component
  • 33. Three Drivers
    Fair Market Value (Acctg Standards)
    Futures & Derivatives
    Investment Advisors & Broker-Dealers
  • 34.
  • 35. Fair Market Value – FAS 159
  • 36. What will a modernized financial services regulatory scheme include?
  • 37. What is under the CPA Profession?
  • 38. police power of the states to protect their citizens vs commerce clause
  • 39. Another View
    Public Company
    Private Company
    Int’l Company
    Attest Performance
    Code of Conduct
    State Oversight & Enforcement of CPA License
  • 40. Should Congress Set Accounting Standards?
  • 41. The Real Costs of Changing FMV?
    “Confidence, trust, and numbers that investors can believe in are the stuff that make or break the capital markets. When investors question the validity of numbers, they sell and wait, rather than buy and invest.
    Yet those charged with building confidence and trust and presenting numbers that can be believed are under sustained attack -- and they are losing.”
    - Arthur Levitt, Weakening a Market Watchdog in Washington Post – March 26, 20009
  • 42. First PCAOB now FAOB?
    New 5 member oversight board proposed by Congress – March 6th, 2009
  • 43. Changes in our Infrastructure
    The Infrastructure for the CPA Profession is maintained by your
    Professional Associations
    AICPA & State CPA societies (MACPA)
  • 44. US Treasury
    MD Comptroller
    MD Comptroller
    MD Comptroller
    Courtesy of the Maryland Association of CPAs – 2008 edition Drawing by Carol Kirwan, CPA
  • 45. Standards Changes
    AS 5 - PCAOB
    IFRS – SEC International gets legs
    Fair Value Accounting
    XBRL – SEC mandatory
    Codification Project – FASB
    Clarity Project – ASB
    Convergence with international
    Reliability Project (comps & reviews)
    DOL 403 (b) Plans
    Internal Control – COSO
    Fin 48 effective 2009
    Form 990 Changes
    Fraud & Forensic SAS 99
  • 46. Fraud
    Madoff scandal has created a major focus on fraud
    Extra attention to identifying fraud opportunities during the planning phase of an engagement
    Robust SAS 99 work is required
    Professional skepticism
    Meaningful brainstorming sessions
    No “checklist” mentality
  • 47. “No man’s life, liberty, or happiness are safe when the legislature is in session”
    – Mark Twain
    Section 7216
    Circular 230/Section 6694
    Proposed regulation/registration of tax return preparers
    SSTS exposure draft
    Tax strategy patents legislation
    Latest developments on e- filing
    Extended due dates for returns
    Proposed Consumer Financial Protection Agency legislation
    Cell phone developments
    Trust fee deductibility
    Estate tax developments
    FTC red flags
  • 48. Maryland Tax Preparer LawThreats to your CPA License
    Well intentioned consumer group
    Solving a problem – low income tax frauds
    But…creating problems for CPAS
    Licensed / Certified Tax Preparers would be confusing to the public
    Tax Preparer Exam using ACAT designation (ATA, ATP) opens door for second tier license
    Misinformation / confusion
  • 49. Licensed / Certified
    Tax Preparer?
  • 50. Maryland Individual Tax Preparers Act
    Requires registration and examination of all tax preparers
    Registered Tax Preparers (cannot use terms licensed or certified)
    CPAs and staff are exempt (along with other Circ 230 Practitioners)
    Out-of-state CPAs exempt
    Independent Regulatory Exam required
    Safe Harbor disclosure required
    “I am not a CPA”
    MACPA seat on State Board
  • 51. CPA Mobility Legislative Activity 2009
    45 States in 2 years!
    2009 -2010 Anticipated Legislative
    Mobility Enacted - 45
    Legislation Introduced - 1
    No Formal Activity
    Mobility Enacted Only for Other
    Mobility States -2 (GA PA)
    AICPA March 2009
  • 52. Leg / Reg Changes you need to know!
    • New Mobility Law
    • 53. Maryland Individual Tax Preparer Act
    • 54. New Corporate Reporting Requirements
    • 55. Peer Review Requirement – October 1st
    • 56. New CPA Exam Requirements
    • 57. New CPE regulations
    • 58. Mandatory e-file
    • 59. New Non-Profit Audit Requirements > $500,000
    CPA Day in Annapolis
    January 20, 2010
  • 60. Mandated Electronic Filing of Personal Income Tax Returns (SB 96 / HB 810)
    2009 Returns – if the preparer files more than 300 returns
    2010 Returns – if the preparer files more than 200 returns
    2011 Returns – if the preparer files more than 100 returns
    Comptroller may grant hardship exemption
    Penalties for noncompliance - $50 each return, $500 max
    Taxpayer may opt out
  • 61. Improving Your Infrastructure The CPA License
    The AICPA & your State CPA Society
  • 62. CPE
    New approved fields of study
    CPE = CPE
    Changes in rules for accounting educators
    Effective May 18, 2009
  • 63. 52
    History of CPA Legislation
    Interstate Practice &
    Uniform Accountancy Act
    1993 MACPA passes
    MD LLC & LLP Acts
    Rise of special interests
    & non-CPAs
    MACPA stops several attempts to amend 1924 law
    Non-CPAs begin attempts at 2nd Tier license
    MACPA tries to pass CPE Bill in 1974 & 1975
    In the
    Act of 2002
    Rights & Recognition
    • Privilege of Self-Regulation
    • 64. Right to Sole Control over an Area of Practice
    Max Teichman, Frank Blacklock & William Rogers
    AG opinion of 1981
    Grants rights to non-CPAs for Reviews & Comps.
    SB 560 Defeated
    Maryland Corporate Accountability Act
    MACPA requests reversal of AG Opinion – “This is not an audit” language added
    HB 1296 Mobility Passes
    • CPA Bill signed April 10, 1900
    • MD is 3rd state (NY & PA)
    MACPA wins use of “consultants” in firm letterhead at State Board
    Maryland Special Session
    Oct – Nov 07
    State Board of Accountancy formed
    Accounting Reform task Force addresses SOX
    Maryland becomes the 1st state to restrict practice for CPAs
    MACPA defeats Sales Tax on Services
    HB 1261 re-writes
    CPA Law - 1986
    State Board Hearing
    May 1, 2003
    Amends Corporate Tax Reporting Bill from special session
    UAA MACPA passes
    non-CPA Ownership
    MACPA amendments to ed requirements fail
    MACPA Forms Task Force and surveys members
    88% Sub Equivalency
    76% Peer Review & Safe Harbor
    68% Non-CPA Ownership
    New simpler CPA exam Education Rules
    State Board
    passes qualify Peer Review for CPE credit
    Terry Hancock
    chairs Legislative Committee
    Larry Kamanitz chairs Legislative Committee
    Dawson Grove chairs Legislative Committee
    Allen Deleon chairs Legislative Committee
    Gov. John Smith signs CPA Bill
    April 10, 1900
    Quality Review Legislation fails
    MACPA first attempt
    to rights to audit
    MACPA Passes Mandatory CPE Bill
    150 Hours Ed Requirement passes
    Effective date is January 1, 1999
    MACPA Founded 1901
    MACPA passes 1924 Law
    UAA MACPA passes 1 yr
    Experience Requirement
    HB 1223 Mandatory Peer Review
    Computerized CPA exam
    Separate Fund Bill passed
    Maryland Association of CPAs
  • 65. Sales Tax
  • 66. 120 – 150 Hour Proposal
    • 120 hours to sit for CPA Exam
    • 67. 150 hours required for licensure
    • 68. Five – Six years to complete
    • 69. CPE required to stay current
  • The CPA Agenda
    Stop MSA repealing Peer Review
    Stop Sales Taxes on CPA services
    Stop efforts to liberalize tort laws (lawsuit abuse)
    State Board 120/150 legislation?
    Oppose Combined Reporting?
    CPA Day in Annapolis
    January 20, 2010
  • 70. IFRS – International Financial Reporting Standards
    Not if but when…
    Goodbye GAAP?
    Think about this – If SEC timeline is 2014 – what year do you have to convert to show three years of comparable f/s?
  • 71. SEC Roadmap released
  • 72. Corporate Conversion Timeline
  • 73. Convergence ≠ Sameness
    Rules based
    Based on a GAAP hierarchy (level A – D)
    Primary accounting standard setting body is the FASB
    Accounting guidance and interpretation is provided by FASB, SEC, AICPA and EITF
    Principles based
    No hierarchy, consists of IASs, IFRSs & interpretations
    Standards and interpretations approved by the IASB
    Interpretations of IFRIC and its predecessor the SIC
    25,000 pages vs 2,000 pages
  • 74. IASB/FASB Convergence
    Hope to complete convergence by 2011
    Outstanding Issues:
    Revenue recognition
    Financial statement presentation
    Financial instruments
    Liabilities and equity distinctions
    Post-employment benefits
  • 75. IFRS Readiness Survey: March 2009
    Organizations have made little progress toward preparing for adoption of IFRS
    Currently most members do not believe the benefits of IFRS outweigh the costs
    Members working for foreign-owned companies are the exception
    Members favor a delay in the currently proposed SEC timeline
    Again, members working for foreign-owned companies are the exception
  • 76. Internationalizing the CPA Exam
    Expanding locations for U.S. CPA Exam outside of U.S.
    Application, security & licensure emphasis will model U.S. requirements
    Next Steps
    NASBA consensus
    Parallel implementation planning
    Contract/Plan approval targeted for August
    Launch targeted for mid-2010
  • 77. Are you ready for International?
    According to a UPS study, “Roughly 33% of U.S. small businesses participate in cross-border trade“
    “Almost half of small businesses will be involved in global trade by 2018 “
    - Intuit’s Future of Small Business Report
    “Nearly one-third of you (CPA firms < 10) have clients doing business on an international level”
    • Greg LaFollette
    CPA Technology Advisor
  • 78. Potential Versions of Private Company IFRS
  • 79. Workforce / Pipeline
  • 80. Pipeline - Good News
    20% avg increase in
    Graduates & enrollments!
  • 81. Four Generations in the Workplace
    Issue: Generational Differences
    Matures 64 - 100
    Boomers 45 - 63
    Gen X 29 - 44
    Millennials 10 - 28
    Which one are you?
  • 82. Staff Shortage + Four Generations in workplace = Trouble!
  • 83. 'The bottom line is this: if you understand the Net Generation, you will understand the future.' And as my son often reminds me, the future is now." The New York Times, Book Review, Sunday, December 21, 2008
  • 84. A Vision of Students Today
  • 85. 8 Norms of the Net Gen
    Freedom of Choice
  • 86.
  • 87. Deloitte’s Global Workforce Advice
    • Long-term career development and multiple experiences within a single organization
    • Sense of purpose and meaning in work
    • Availability and access to mentors across the company. (The focus should not only be on making senior staff mentor younger associates, but also ensuring that people connect and share experiences across all levels of the organization, and across relevant departments and areas of expertise.)
    • Work-life flexibility
    • Tech-savvy work environment (for example, access to online problem-solving and learning tools)
    • Open social networks that embrace open and honest communication
    Source Deloitte Global Manufacturing survey
  • 88. Biggest Issue Facing NYPNs
    Bridging the Gap between college & real world
    Under-Developed Skill Sets
    Leadership & Communication
    Time Management & Organization
    Conflict Management
    Supervisory Skills
    Work-Life Balance
    Limited Networking Opportunities
    CPA Exam
    Lack of a Voice in Profession
  • 89. Overcoming Downturn-Related Talent Challenges
    Reassessing business objectives in light of changing market conditions
    Implementing changes to existing organization models --- and then finding people with the right knowledge & skills
    Recalibrating headcount while focusing on the pivotal talent needed to achieve business objectives
    Understanding how the external talent market has & will continue to change
  • 90. Are You Asking The Right Questions About Your Talent?
    Have we aligned our talent priorities to our business objectives?
    Have we validated our talent priorities?
    Do we have consensus on the 5 most pivotal positions in each critical area of the business?
    Do we have an accurate perspective about the competence of our current workforce when measured against business objectives?
  • 91. Are You Asking The Right Questions About Your Talent?
    How much do we really know about the fast-changing external talent marketplace?
    Are our talent requirements tailored to the values & expectations of our pivotal talent?
    Do we know what return we’re getting on our investment in talent?
  • 92. Motivating Your Staff in a Recession
  • 93. Technology
  • 94. Information Security Management
    Privacy Management
    Secure Data File Storage, Transmission and Exchange
    Business Process Improvement / Work Flow
    Mobile & Remote Computing
    Training & Competency
    Identity & Access Management
    Improved Application & Integration
    Document, Forms, Content & Knowledge Management
    Electronic Data Retention Strategy
  • 95. Transparency Now! – A Wired Manifesto
    Source: Wired magazine 17.03 March, 2009
  • 96.
  • 97. Technology & Web 2.0
    By 2010, Millenials/Gen Y-erswill outnumber Baby Boomers.
  • 98. Social Media
  • 99. Name three “change the world” events where social media made a difference?
  • 100. The New Math
    Social Networking (Old)
    Social Media (New)
    A change in the way we build relationships
    Source: Matt Goddard, CEO R2integrated
  • 101. Old School vs. New School
    Chamber of Commerce
    Class Reunions
    Friends and Family
    Industry Meetings
  • 102. This is a Social Network
  • 103.
  • 104. and the Network Effect…
    Metcalf’s Law
    "states that the economic value of a network increases like the square of the number of its nodes, or the law of increasing returns. Usually, when people share a piece of equipment, the return diminishes. When more people are engaged in the network, more value is returned to the user."
  • 105. It’s all about your Whuffie
    Whuffie is the culmination of your reputation, influence, bridging and bonding capital, current and potential access to ideas, talent and resources, saved-up favors, and accomplishments.
    - Tara Hunt “The Whuffie Factor”
  • 106. Five Learning Trends for 2009
    Mobile Learning
    DIY - Do-it-Yourself Learning
    Flexible Learning Environments
    Virtual Worlds
    Games & Simulation
    Chief Learning Officer Magazine – January 2009
  • 107. FASB is there!
  • 108. Accounting Educators in Second Life
    Dr. Mike Kraten
    Suffolk University
    Dr. Robert Bloomfield
    Cornell University
    Dr. Steve Hornik
    University of Central Florida
  • 109. Tools
    Social Networking
    Blogs / Wikis
    Video & Content Sharing
    Second Life
  • 110. More ways to CONNECT with MACPA
    Linked-In – MACPA Group
    Facebook – NYPN Group
    MACPA on Twitter
    Tom on Twitter
    Bill on Twitter
    Youtube videos from MACPA
    Visit us in Second Life
  • 111. Issues Facing CPA firms
  • 112. Say what?
    “An increase of larger firms will result from an increase in mergers. Accounting firms will look more like law firms in terms of size.” -Marc Rosenberg
    “There will be more large firms.” – Marc Rosenberg
    “Mergers and acquisitions will increase.” – Jeff Pawlow, The Growth Partnership
    IPA Consultant Predictions – Jan, 2006
    47,000 to 40,000
  • 113. PCPS/TSCPA MAP Survey 2009Top Five Issues Facing Firms 21+
    Client Retention
    Partner Accountability
    Succession Planning
    Marketing / Practice Growth
    Retaining Qualified Staff
  • 114. Provided by the Business Learning Institute ©
    PCPS/TSCPA MAP Survey 2008Top Five Issues Facing Firms
  • 115. 2009 Top Issues – 21+ Professionals
  • 116. Top 20 Reasons to Stay with a Firm
    4 out of top 5
    13 out of 20
    Have nothing to do with $$$ and
    everything to do with culture!
  • 117. Provided by the Business Learning Institute ©
    To put it another way – firms are under investing significantly in the things that really make a difference.
  • 118. Characteristics of Over-Achieving Firms
    Provided by the Business Learning Institute ©
    Outstanding Vision,
    Leadership / Management
    Common Focus / Culture
    Performance Discipline
    High Leverage of
    Highly trained staff
  • 119. 7 Keys to Success in CPA Firm Management
    Learning Organization
    Marketing & Business Development
    A great Place to Work
    Client Service & Satisfaction
    Strategy Execution
    Source: Rick Telberg – Bay Street Group
  • 120. CPAs in Business, Industry, Government & NFP
  • 121. The Year of the CFO
    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.
    Source: The Economist Magazine The World in 2009 Nov, 2008
  • 122. CFO WorriesCFO Magazine/Duke Global Business Outlook Survey – December 2008
    Consumer demand
    Credit markets & interest rates
    Housing market fallout
    New administration & Congress
    Financial regulation
    Volatility of the dollar
    Cost of nonfuel commodities
    Cost of fuel
    Foreign competition
    Environmental regulation
    Top Concerns
    About the
    Macro Economy
  • 123. CFO WorriesCFO Magazine/Duke Global Business Outlook Survey – December 2008
    Ability to forecast results
    Maintaining morale/productivity during the downturn
    Balance sheet weakness
    Cost of health care
    Attracting & retaining qualified employees
    Supply-chain risk
    Managing IT systems
    Pension obligations
    Protection of intellectual property
    Data security
    Top Concerns
    Their Own
  • 124. A Hard Job in Hard Times
    “Doing more with less has been the mantra of the last half-dozen years.”
    VP of Finance
    “Quite simply, we are being required to do more with less resources.”
    Director of Tax
  • 125. Getting the Most from Finance Talent
    84% say keeping their staff engaged & motivated will be important
    80% say managing staff workload & managing their own workload will be important
    31% expect to spend less time on finance & staffing development – an activity critical for building a strong & value-added finance function
    Influenced by those expecting to move within 2 years
    75% or respondents said the financial crisis & economic turmoil have changed their on-the-job responsibilities
  • 126. Which of the following external factors have had the greatest impact on your company’s function within the past year?
    Percentage of respondents
    Note: Percentages may not total 100%, due to rounding.
    Note: Respondents were asked to select their top three choices.
  • 127. Compared with the previous year, which activities do you expect your finance staff to devote more time to over the next 12 months? Which activities will your staff spend less time on?
  • 128. What do you expect you will have to do within the next 5 years
    to pursue your career goals?
  • 129. What challenges do you expect will impact your career
    the most over the next 12 months?
  • 130. IFRS Opportunity? – Meet Joe Box, CPA - CFO of Joe Money Machinery
    “Well, the IASB is coming out with a simplified version for private companies. With IFRS, you mark-to-market more assets. We're a 72-year-old company that has real estate on our books at historical cost, so there could be a big benefit in IFRS based on the substantially higher fair market value for that property. Any private-company CFO should be knowledgeable about it, to determine whether to consider adoption.”
    “But even more importantly, it has been my objective that our key bankers consider me knowledgeable in the issues important to their commercial portfolio. XBRL is another one.”
  • 131. CFO Opportunities
    Business process efficiency – LEAN
    Cash flow & Financing
    Risk Management
    Budget Scenarios
    Young Professionals – reverse mentoring
    Sustainability Reporting
  • 132. Image of the CPA
  • 133. The future success of the CPA profession relies a great deal upon public perception of CPAs' abilities & roles
    - CPA Vision Project
  • 134. Image is better than pre-Enron highs
  • 135. Attitudes toward CPA Credential
    More confident in a job done by a CPA than if it were done by an accountant not a CPA.
    Accountants certified by non-U.S. organizations, such as the Association of Chartered Certified Accountants (ACCA), are just as qualified as CPAs.
    CPA requires more rigorous training and testing than any other financial credential.
  • 136. Concern About Accounting Fraud Has Decreased
    What do you think is the biggest problem
    facing corporate America today?
    • Top 3 issues among BDMs and investors:
    Global competitiveness
    Cost of healthcare benefits
    Economic growth
  • 137. Physicians
    Certified Public Accountants (CPAs)
    Chief Executive Officers (CEOs)
    Chief Financial Officers (CFOs)
    Commercial bankers
    Accountants who are not CPAs
    Insurance agents
    Investment bankers
    Management consultants
    Stock brokers
    Mortgage brokers
    Hedge fund managers
    Overall Evaluation of Professionals Among Investors
  • 138. ...And Business Decision Makers
    Certified Public Accountants (CPAs)
    Chief Executive Officers (CEOs)
    Chief Financial Officers (CFOs)
    Tax advisors
    Financial planners
    Accountants who are not CPAs
    Commercial bankers
    Investment bankers
    Management consultants
    Insurance agents
    Stock brokers
    Mortgage brokers
    Hedge fund managers
  • 139. BDM & Investor Data ConfirmQualitative Findings
    CPA Attribute Ratings
  • 140. ...As Do CPA & Young Professional Data
    CPA Attribute Ratings
  • 141. +
    Importance of attribute when evaluating business professional
    How well attribute describes CPAs

    CPAs Strongest on The Two Most Important Attributes
    High Importance/
    Low Descriptiveness
    High Importance/
    High Descriptiveness
    Low Importance/
    Low Descriptiveness
    Low Importance/
    High Descriptiveness
  • 142. Investor Satisfaction with CPAs Is High
    Satisfaction with CPA(s)
  • 143. CPAs Closely Associated with Core Values
    • “CPAs are the guardians of financial truth.” – Senior SEC Official
    • 144. “CPAs are not trying to finesse the numbers, they are interested in painting the most accurate picture they can with the information they have.” – Institutional Investor
    • 145. “I associate CPAs with a high standard of ethics. There’s a certain love of a kind of order.” – Senior SEC Official
    • 146. “CPAs are the financial experts needed to put their stamp on the financial statements that allow the capital markets to work.” – Senior IRS Official
  • 147. Perceptions of CPAs Largely Consistent Across All Audiences
  • 148. “CPAs ARE the DISCIPLINE in business!”Jim Collins
  • 149. Dealing with Change
    Change is the law of life. Those who look only to the past or present are certain to miss the future." - John F. Kennedy
  • 150. Q: What is the # 1 Issue facing all CPAs:
    A: Keeping up with changing standards & regulations
    “As it relates to science and technology, the rate of change in the next decade, is likely to be 4 to7 times faster than in the last decade. If it is 4x faster it would be like planning for 2006 in 1890, if it is 7x faster it would be like planning for 2006 in 1670.”
    -Expert on Education Panel, The Aspen Institute, 2007
  • 151. Dealing with Change
  • 152.
  • 153.
  • 154. CPA Competencies Needed
    2008 – Deloitte Research
    1998 – CPA Vision Project
    Change Management (C)
    Strategic Ability (S)
    Critical Thinking (S)
    Business Perspective (C)
    Organizational Agility (C)
    Dealing with Ambiguity (S)
    Communication & Leadership
    Strategic & Critical Thinking
    Focus on the Customer, Client, and Market
    Interpretation of Converging Information
    Technologically adept
    C – Catalyst
    S - Strategist
  • 155. What do CPA Leaders look like?
  • 156. CPA Professional 2.0
    Learning & staying on the cutting edge
    Managing my career
    Doing my work
    Interacting with peers
    Becoming a leader in my field
  • 157. MAP it! think, plan, act, learn…
  • 158. CPA
    templates to help you with...
  • 159. synthesize information
  • 160. manage processes
  • 161. communicate effectively
  • 162. You cannot stay on the summit forever; you have to come down again. So why bother in the first place?
    Just this: What is above knows what is below, but what is below does not know what is above. One climbs, one sees. One descends, one sees no longer, but one has seen. There is an art of conducting oneself in the lower regions by the memory of what one saw higher up. When one can no longer see, one can at least still know.
    -Rene' Daumal
  • 163.
  • 164. Create your future!
  • 165. Connect – Protect - Achieve
    “Association members earn, on average, $10,000 more per year than non-members”
    “are 19% more likely to say they are “very-satisfied” with their jobs than non-members”
    Where the Winners Meet Study by the William E. Smith Institute for Association Research
  • 166. Tom Hood, CPA.CITP
    Maryland Association of CPAs
    Business Learning Institute
    (443) 632-2301
    E-mail tom@macpa.org