The time is now! An MACPA task force supports creation of private company standards board, says GAAP exceptions and modifications are essential.
This whitepaper was unanimously approved and adopted by the Board of Directors of the Maryland Association of CPAs on June 2, 2011.
After three months of study and debate, the MACPA task force concluded that the needs of private companies or nonpublic entites have not been considered by FASB in their standard setiing activities resulting in overly complex and costly standards that do not benefit the users of those financial statements.
This whitepaper present the research, analysis, and recommendations of the MACPA Task Force.
This article documents increased diversity in financial accounting practice. The Financial Accounting Standards Board (FASB) standard-setting process for the Accounting Standards Update (ASU) 2014-18 is used as documentation. The FASB ASU 2014-18 was approved by a slim margin of four to three of the FASB members. This indicates continuing controversy around accounting for goodwill that relates to the public interest goal of similar accounting for similar transactions and events. This article analyzes the content within the 52 Comment Letters submitted in response to 18 questions asked by the Private Company Council (PCC) that lead to the promulgation of the FASB ASU 2014-18. Private companies are to include non-marketable intangibles in the account goodwill that non-private companies are to continue measure and report separate from goodwill. Plus private companies are allowed to either amortize or test for impairment in measuring and reporting goodwill. Non-private companies are to test for impairment. Non-private companies do not have the option of using amortization as part of the measurement and reporting process regarding goodwill. This diversity in measuring and reporting goodwill decreases progress toward the public interest goal of comparability of financial reports. Comparability is a significant quality thought to improve decision usefulness of information.
The recent downturn in the economy and recent failures in the business have been merged for the creation of a financial environment to make reports unlike any other within present memory. There has been a major impact on the confidence of investors that had been shaken up by an increase in the volatility within the markets of capital. This has further been followed up by unsettlement in the extremely publicized restatements being drafted for the statements of finance (Bond and Cummins 2010). These have resulted in the generation of several questions regarding the quality being presented in the reports of finance.
This article documents increased diversity in financial accounting practice. The Financial Accounting Standards Board (FASB) standard-setting process for the Accounting Standards Update (ASU) 2014-18 is used as documentation. The FASB ASU 2014-18 was approved by a slim margin of four to three of the FASB members. This indicates continuing controversy around accounting for goodwill that relates to the public interest goal of similar accounting for similar transactions and events. This article analyzes the content within the 52 Comment Letters submitted in response to 18 questions asked by the Private Company Council (PCC) that lead to the promulgation of the FASB ASU 2014-18. Private companies are to include non-marketable intangibles in the account goodwill that non-private companies are to continue measure and report separate from goodwill. Plus private companies are allowed to either amortize or test for impairment in measuring and reporting goodwill. Non-private companies are to test for impairment. Non-private companies do not have the option of using amortization as part of the measurement and reporting process regarding goodwill. This diversity in measuring and reporting goodwill decreases progress toward the public interest goal of comparability of financial reports. Comparability is a significant quality thought to improve decision usefulness of information.
The recent downturn in the economy and recent failures in the business have been merged for the creation of a financial environment to make reports unlike any other within present memory. There has been a major impact on the confidence of investors that had been shaken up by an increase in the volatility within the markets of capital. This has further been followed up by unsettlement in the extremely publicized restatements being drafted for the statements of finance (Bond and Cummins 2010). These have resulted in the generation of several questions regarding the quality being presented in the reports of finance.
This group of dyslexia superstars are testaments to hard work and perseverance. Any young person struggling with the disorder can take from their example that they have every potential to become whoever and whatever they want to be. They provide kids with dyslexia everywhere with an example to tell them that they are not alone and they can also become a superstar.
Melbourne Infracoders: Compliance as Code with InSpecMatt Ray
Presentation to the Melbourne Infrastructure Coders Meetup November 8, 2016. Overview of InSpec (https://inspec.io) and the idea of "Compliance as Code"
http://www.meetup.com/Infrastructure-Coders/events/233990769/
Types of Learning Disabilities - ACE ClinicsBob Gottfried
ACE Clinics has been treating ADD, ADHD, Learning Disorders, and Memory Loss for over 15 years and has successfully treated thousands of individuals, both children and adults.
La revolution digitale dans le BtoB par jeremy dumont pour R9nous sommes vivants
Les clients sont connectés "anywhere, anytime, anyhow", ils achètent de manière différente ce qui induit un challenge dans la relation fournisseurs et les réseaux de distribution : le marketing doit donc s'adapter avec de nouveaux outils et moyens de communication.
Il ne s'agit pas de faire un catalogue et se différencier avec des outils marketing "digitaux" mais savoir adapter son plan avec ses outils en choisissant lesquels répondront le mieux à son marché en fonction de son budget.
Vous découvrirez dans ce slideshare des exemples concrets d'utilisation du digital en B2B
Un vrai support pour préparer son plan 2015 !
Photo : christophe beauregard
Halloween offers Realtors® a unique opportunity to tap into community foot traffic. Marketing on Halloween can gain much-needed exposure for your real estate business. Halloween can create more exposure in 24 hours than you’ll get on any other day of the year because a majority of your community will be out walking the streets on this one day.
Check out our blog for ten tips to build a sound marketing strategy and take advantage of this spooky holiday!
http://www.z57.com/marketing-on-halloween/
• Determine what you believe to be the major obstacles to the conver.pdfsriammanmarketing
• Determine what you believe to be the major obstacles to the convergence process. Recommend
two (2) strategies that the IASB could use in order to improve the convergence process overall.
Justify your response.
Solution
WHY IS IT IMPORTANT TO HAVE MORE COMPARABLE GLOBAL ACCOUNTING
STANDARDS? HOW DOES THAT EFFORT FIT WITH THE FASB’S MISSION?
The first priority of the Financial Accounting Standards Board (FASB) is to improve financial
reporting for the benefit of investors and other users of financial information in U.S. capital
markets. We do that by striving to set the highest-quality standards, which collectively are
known as Generally Accepted Accounting Principles (GAAP). By highest quality, we mean
standards that provide users of financial statements with information that is clear, useful, and
relevant to their needs, while considering whether the expected benefits of that information
justify the costs of providing and using it.
The FASB believes that seeking more comparable global accounting standards—improving the
quality of accounting standards used around the world while reducing differences among those
standards—is consistent with its core mission. Investors, companies, auditors, and other
participants in the U.S. financial reporting system benefit from the increased comparability that
can result from the closer alignment of standards used internationally. More comparable
standards have the potential to reduce costs for both users and preparers of financial statements
and make worldwide capital markets more efficient. The Securities and Exchange Commission
(SEC) expects the FASB to consider, in developing standards, the extent to which international
comparability is necessary or appropriate in the public interest and for the protection of
investors.
HOW DOES THE FASB SEEK GREATER COMPARABILITY?
As we conclude the bilateral convergence program begun in 2002 by the FASB and the
International Accounting Standards Board (IASB), the FASB has implemented a three-part
strategy for seeking greater comparability in accounting standards internationally:
Developing High Quality GAAP Standards
The FASB continually strives to meet the needs of investors and other users of GAAP-based
financial reports, both within and outside the United States, by improving the quality of GAAP.
The FASB believes that the high-quality standards it develops will continue to influence the
shape and future direction of international standards, as they have for more than 40 years. By
creating high-quality standards through a best-in-class standard-setting process, the FASB serves
as a reference point and benchmark for others. In other words, we will continue to lead by setting
an example of excellence.
As it undertakes standard-setting projects, the FASB carefully evaluates whether U.S. financial
reporting would be improved by implementing approaches consistent with particular IFRS
standards. This also would enhance international comparability for the benefit of inves.
briefly compare the IASB and FASB in regards to the convergence proc.pdfajayelectronisyavatm
briefly compare the IASB and FASB in regards to the convergence process. Give your opinion
on the reasons why a single set of accounting principles would be beneficial to corporations.
Explain your rationale.
Solution
WHY IS IT IMPORTANT TO HAVE MORE COMPARABLE GLOBAL ACCOUNTING
STANDARDS? HOW DOES THAT EFFORT FIT WITH THE FASB’S MISSION?
The first priority of the Financial Accounting Standards Board (FASB) is to improve financial
reporting for the benefit of investors and other users of financial information in U.S. capital
markets. We do that by striving to set the highest-quality standards, which collectively are
known as Generally Accepted Accounting Principles (GAAP). By highest quality, we mean
standards that provide users of financial statements with information that is clear, useful, and
relevant to their needs, while considering whether the expected benefits of that information
justify the costs of providing and using it.
The FASB believes that seeking more comparable global accounting standards—improving the
quality of accounting standards used around the world while reducing differences among those
standards—is consistent with its core mission. Investors, companies, auditors, and other
participants in the U.S. financial reporting system benefit from the increased comparability that
can result from the closer alignment of standards used internationally. More comparable
standards have the potential to reduce costs for both users and preparers of financial statements
and make worldwide capital markets more efficient. The Securities and Exchange Commission
(SEC) expects the FASB to consider, in developing standards, the extent to which international
comparability is necessary or appropriate in the public interest and for the protection of
investors.
HOW DOES THE FASB SEEK GREATER COMPARABILITY?
As we conclude the bilateral convergence program begun in 2002 by the FASB and the
International Accounting Standards Board (IASB), the FASB has implemented a three-part
strategy for seeking greater comparability in accounting standards internationally:
Developing High Quality GAAP Standards
The FASB continually strives to meet the needs of investors and other users of GAAP-based
financial reports, both within and outside the United States, by improving the quality of GAAP.
The FASB believes that the high-quality standards it develops will continue to influence the
shape and future direction of international standards, as they have for more than 40 years. By
creating high-quality standards through a best-in-class standard-setting process, the FASB serves
as a reference point and benchmark for others. In other words, we will continue to lead by setting
an example of excellence.
As it undertakes standard-setting projects, the FASB carefully evaluates whether U.S. financial
reporting would be improved by implementing approaches consistent with particular IFRS
standards. This also would enhance international comparability for the benefit of investor.
This group of dyslexia superstars are testaments to hard work and perseverance. Any young person struggling with the disorder can take from their example that they have every potential to become whoever and whatever they want to be. They provide kids with dyslexia everywhere with an example to tell them that they are not alone and they can also become a superstar.
Melbourne Infracoders: Compliance as Code with InSpecMatt Ray
Presentation to the Melbourne Infrastructure Coders Meetup November 8, 2016. Overview of InSpec (https://inspec.io) and the idea of "Compliance as Code"
http://www.meetup.com/Infrastructure-Coders/events/233990769/
Types of Learning Disabilities - ACE ClinicsBob Gottfried
ACE Clinics has been treating ADD, ADHD, Learning Disorders, and Memory Loss for over 15 years and has successfully treated thousands of individuals, both children and adults.
La revolution digitale dans le BtoB par jeremy dumont pour R9nous sommes vivants
Les clients sont connectés "anywhere, anytime, anyhow", ils achètent de manière différente ce qui induit un challenge dans la relation fournisseurs et les réseaux de distribution : le marketing doit donc s'adapter avec de nouveaux outils et moyens de communication.
Il ne s'agit pas de faire un catalogue et se différencier avec des outils marketing "digitaux" mais savoir adapter son plan avec ses outils en choisissant lesquels répondront le mieux à son marché en fonction de son budget.
Vous découvrirez dans ce slideshare des exemples concrets d'utilisation du digital en B2B
Un vrai support pour préparer son plan 2015 !
Photo : christophe beauregard
Halloween offers Realtors® a unique opportunity to tap into community foot traffic. Marketing on Halloween can gain much-needed exposure for your real estate business. Halloween can create more exposure in 24 hours than you’ll get on any other day of the year because a majority of your community will be out walking the streets on this one day.
Check out our blog for ten tips to build a sound marketing strategy and take advantage of this spooky holiday!
http://www.z57.com/marketing-on-halloween/
• Determine what you believe to be the major obstacles to the conver.pdfsriammanmarketing
• Determine what you believe to be the major obstacles to the convergence process. Recommend
two (2) strategies that the IASB could use in order to improve the convergence process overall.
Justify your response.
Solution
WHY IS IT IMPORTANT TO HAVE MORE COMPARABLE GLOBAL ACCOUNTING
STANDARDS? HOW DOES THAT EFFORT FIT WITH THE FASB’S MISSION?
The first priority of the Financial Accounting Standards Board (FASB) is to improve financial
reporting for the benefit of investors and other users of financial information in U.S. capital
markets. We do that by striving to set the highest-quality standards, which collectively are
known as Generally Accepted Accounting Principles (GAAP). By highest quality, we mean
standards that provide users of financial statements with information that is clear, useful, and
relevant to their needs, while considering whether the expected benefits of that information
justify the costs of providing and using it.
The FASB believes that seeking more comparable global accounting standards—improving the
quality of accounting standards used around the world while reducing differences among those
standards—is consistent with its core mission. Investors, companies, auditors, and other
participants in the U.S. financial reporting system benefit from the increased comparability that
can result from the closer alignment of standards used internationally. More comparable
standards have the potential to reduce costs for both users and preparers of financial statements
and make worldwide capital markets more efficient. The Securities and Exchange Commission
(SEC) expects the FASB to consider, in developing standards, the extent to which international
comparability is necessary or appropriate in the public interest and for the protection of
investors.
HOW DOES THE FASB SEEK GREATER COMPARABILITY?
As we conclude the bilateral convergence program begun in 2002 by the FASB and the
International Accounting Standards Board (IASB), the FASB has implemented a three-part
strategy for seeking greater comparability in accounting standards internationally:
Developing High Quality GAAP Standards
The FASB continually strives to meet the needs of investors and other users of GAAP-based
financial reports, both within and outside the United States, by improving the quality of GAAP.
The FASB believes that the high-quality standards it develops will continue to influence the
shape and future direction of international standards, as they have for more than 40 years. By
creating high-quality standards through a best-in-class standard-setting process, the FASB serves
as a reference point and benchmark for others. In other words, we will continue to lead by setting
an example of excellence.
As it undertakes standard-setting projects, the FASB carefully evaluates whether U.S. financial
reporting would be improved by implementing approaches consistent with particular IFRS
standards. This also would enhance international comparability for the benefit of inves.
briefly compare the IASB and FASB in regards to the convergence proc.pdfajayelectronisyavatm
briefly compare the IASB and FASB in regards to the convergence process. Give your opinion
on the reasons why a single set of accounting principles would be beneficial to corporations.
Explain your rationale.
Solution
WHY IS IT IMPORTANT TO HAVE MORE COMPARABLE GLOBAL ACCOUNTING
STANDARDS? HOW DOES THAT EFFORT FIT WITH THE FASB’S MISSION?
The first priority of the Financial Accounting Standards Board (FASB) is to improve financial
reporting for the benefit of investors and other users of financial information in U.S. capital
markets. We do that by striving to set the highest-quality standards, which collectively are
known as Generally Accepted Accounting Principles (GAAP). By highest quality, we mean
standards that provide users of financial statements with information that is clear, useful, and
relevant to their needs, while considering whether the expected benefits of that information
justify the costs of providing and using it.
The FASB believes that seeking more comparable global accounting standards—improving the
quality of accounting standards used around the world while reducing differences among those
standards—is consistent with its core mission. Investors, companies, auditors, and other
participants in the U.S. financial reporting system benefit from the increased comparability that
can result from the closer alignment of standards used internationally. More comparable
standards have the potential to reduce costs for both users and preparers of financial statements
and make worldwide capital markets more efficient. The Securities and Exchange Commission
(SEC) expects the FASB to consider, in developing standards, the extent to which international
comparability is necessary or appropriate in the public interest and for the protection of
investors.
HOW DOES THE FASB SEEK GREATER COMPARABILITY?
As we conclude the bilateral convergence program begun in 2002 by the FASB and the
International Accounting Standards Board (IASB), the FASB has implemented a three-part
strategy for seeking greater comparability in accounting standards internationally:
Developing High Quality GAAP Standards
The FASB continually strives to meet the needs of investors and other users of GAAP-based
financial reports, both within and outside the United States, by improving the quality of GAAP.
The FASB believes that the high-quality standards it develops will continue to influence the
shape and future direction of international standards, as they have for more than 40 years. By
creating high-quality standards through a best-in-class standard-setting process, the FASB serves
as a reference point and benchmark for others. In other words, we will continue to lead by setting
an example of excellence.
As it undertakes standard-setting projects, the FASB carefully evaluates whether U.S. financial
reporting would be improved by implementing approaches consistent with particular IFRS
standards. This also would enhance international comparability for the benefit of investor.
Case 1-3 Politicalization of Accounting StandardsSome accountaTawnaDelatorrejs
Case 1-3 Politicalization of Accounting Standards
Some accountants have said that politicalization in the development and
acceptance of generally accepted accounting principles (i.e., standard setting) is
taking place. Some use the term politicalization in a narrow sense to mean the
influence by governmental agencies, particularly the SEC, on the development of
generally accepted accounting principles. Others use it more broadly to mean the
compromising that takes place in bodies responsible for developing these principles
because of the influence and pressure of interested groups (SEC, American
Accounting Association, businesses through their various organizations, Institute
of Management Accountants, financial analysts, bankers, lawyers, etc.).
Required:
A.) Do the reasons these groups were formed, their methods of operation while in existence, and the reasons for the demise of the first two indicate an increasing politicalization (as the term is used in the broad sense) of accounting standard setting? Explain your answer by indicating how the CAP, APB, and FASB operated or operate. Cite specific developments that tend to support your answer.
CAP. The Committee on Accounting Procedure, CAP, which was in existence from 1939 to 1959, was a natural outgrowth of AICPA committees which were in existence during the period 1933 to 1938. The committee was formed in direct response to the criticism received by the accounting profession during the financial crisis of 1929 and the years thereafter. The authorization to issue pronouncements on matters of accounting principles and procedures was based on the belief that the AICPA had the responsibility to establish practices that would become generally accepted by the profession and by corporate management.
As a general rule, the CAP directed its attention, almost entirely, to resolving specific accounting problems and topics rather than to the development of generally accepted accounting principles. The committee voted on the acceptance of specific Accounting Research Bulletins published by the committee. A two-thirds majority was required to issue a particular research bulletin. The CAP did not have the authority to require acceptance of the issued bulletins by the general membership of the AICPA, but rather received its authority only upon general acceptance of the pronouncement by the members. That is, the bulletins set forth normative accounting procedures that "should be" followed by the accounting profession, but were not "required" to be followed.
It was not until well after the demise of the CAP, in 1964, that the Council of the AICPA adopted recommendations that departures from effective CAP Bulletins should be disclosed in financial statements or in audit reports of members of the AICPA. The demise of the CAP could probably be traced to four distinct factors: (1) the narrow nature of the subjects covered by the bulletins issued by the CAP, (2) the lack of any theoretical groundwork in esta ...
This article documents increased diversity in financial accounting practice. The Financial
Accounting Standards Board (FASB) standard-setting process for the Accounting Standards Update (ASU)
2014-18 is used as documentation. The FASB ASU 2014-18 was approved by a slim margin of four to three of
the FASB members. This indicates continuing controversy around accounting for goodwill that relates to the
public interest goal of similar accounting for similar transactions and events. This article analyzes the content
within the 52 Comment Letters submitted in response to 18 questions asked by the Private Company Council
(PCC) that lead to the promulgation of the FASB ASU 2014-18. Private companies are to include nonmarketable intangibles in the account goodwill that non-private companies are to continue measure and report
separate from goodwill. Plus private companies are allowed to either amortize or test for impairment in
measuring and reporting goodwill. Non-private companies are to test for impairment. Non-private companies do
not have the option of using amortization as part of the measurement and reporting process regarding goodwill.
This diversity in measuring and reporting goodwill decreases progress toward the public interest goal of
comparability of financial reports. Comparability is a significant quality thought to improve decision usefulness
of information.
With talent recruitment and retention topping the list of issues facing CPA Firms along with partner alignment and succession planning issues, the stakes have never been higher for CPA Firms in their recruitment and retention strategies. BLI just announced the 'magnetic firm' framework and the 'big four' ways for firms to become talent magnets.
This presentation has the latest scores on the magnetic firm index which is averaging 67% or a D+ across CPA Firms.
The four categories for a magnetic firm are:
1) Purpose driven workplace
2) Culture of growth (Career Development)
3) Inspiring workplace – flexible and inclusive
4) Great leadership – trust & transparent
Visit us at www.blionline.org
Future of Learning - innovative new learning formats for accounting and finan...Tom Hood, CPA,CITP,CGMA
MACPA and the Business Learning Institute release the first nano-learning course for CPAs, accounting and finance professionals that meets the new CPE standards.
NASBA and the AICPA approved the revisions to the Statement on Standards for Continuing Professional Education (CPE) Programs (Standards) effective September 1, 2016. Among the most significant changes to the Standards is the addition of two new instructional delivery methods: nano learning and blended learning.
The Maryland Association of CPAs and its Business Learning Institute believe that Learning is THE only competitive advantage in this rapidly changing world. They have been on the forefront of learning for the past ten years. Since passing nano-learning in 2015 at the Maryland State Board of Public Accounting, they have been integrating new formats of learning to make learning continuous, engaging and ultimately transformative. The Anticipatory Organization: Accounting and Finance Edition is THE First nano-learning program in North America for accounting and finance professionals. Winner of the Accounting Today 2016 Product of the Year in the learning category. This program combines nano learning format (three to four minute single concept videos) with rapid application exercises to accelerate learning of complex competencies in less times than traditional CPE / CPD programs.
MACPA and its Business Learning Institute have pioneered new methods of learning including second life (CPA Island), remote collaboration via the ThinkTank platform, participation engagement via conferences.io and their #MBSN Management by Sticky Notes collaboration process.
Here are five ways we are changing up learning:
Social;
Mobile / nano, or “Just When You Need It” learning;
Cloud: In what we call the four Cs of talent development, the AICPA Navigator allows us to offer Competencies, Career Path, and a Curriculum on a Cloud-based learning platform that allows firms and companies to move their talent development to a strategic and systematic approach;
Collaborative: MBSN (Management By Sticky Notes), Conferences.io, and the ThinkTank Collaboration platform are highly engaging ways of increasing learning through involvement (see our post on LinkedIn);
Competency-based learning: With our Bounce framework (which maps BLI programs to the new CGMA Competency framework) and our new program to develop a special self-directed action learning program to build a competency around anticipation and strategic thinking.
Impact of Firm Wide Adoption - The Anticipatory Organization Accounting and F...Tom Hood, CPA,CITP,CGMA
This is the first accelerated learning system for accounting and finance professionals featuring nano-learning and rapid application tools. The Business Learning Institute and the Maryland Association of CPAs customized the learning system with a co-creation group working with Daniel Burrus. Accounting Today Magazine recognized this learning system as a 2016 Top Product in Learning.
This presentation covers the experience of firm-wide adoption of the Anticipatory Organization: Accounting and Finance Edition at several major organizations with focus on the first firm to adopt this for their entire firm. Joey Havens, Executive Partner of HORNE, LLP a Top 50 CPA Firm outlines the reasons he made the AOAF learning system a cornerstone of his Growth Mindset and implemented it across his entire workforce of almost 400 people. he also explains why he thinks an "anticipatory skill set is essential for today's accounting and finance professionals.
The Anticipatory Organization™ Model, created and developed by Daniel Burrus of Burrus Research, Inc., has changed how many of the world’s most successful businesses plan their future and accelerate growth. Now, Daniel Burrus is bringing what he calls the greatest missing competency – the ability to anticipate change – to CPAs, CFOs, controllers and management accountants. This model represents a new way of thinking, planning, and acting – a paradigm shift that’s required in a world of accelerating change, competition, and uncertainty.
This innovative learning system will jump start your ability to anticipate and learn critical competencies like strategic thinking, external awareness, vision, continuous learning, innovation, creativity, problem solving, prioritization, business acumen, decisiveness, influencing/persuading, emotional intelligence, consensus building, collaboration, inspiration, risk management, and immediately apply it to your own situation at work.
For more information visit our website http://www.blionline.org/ao
What do next generation leaders say they need to be 'future ready'? This report is from 200+ next generation leaders attending the #AICPA_EDGE Conference in Las Vegas in August, 2016.
Next Gen leaders will be called to lead in a different environment than many leaders of the past. These times of exponential change will require a different skill set. They will be leading in transformational and adaptive times which require new skills and new practices.
This report highlights top challenges, top skills, insights from the session and more.
These polls were integrated during a presentation on "The Future Ready CPA" where we covered the 5 C's - Context, Certainty, Capacity, Competency, and Core Purpose & Values.
We are living in “exponential times” where the size, scale and scope of change is incredible. That means there are incredible opportunities for those who can see through the fog of uncertainty and anticipate what’s next. The biggest opportunity is to harness the wisdom of our older generations with the fresh perspectives of the tech-savvy younger generations. The next generation of leaders is enthusiastically ready to have a seat at the table. The future is not created; the future is co- created. Let’s get to work!
“Everyone keeps telling accountants that they need to change their focus from the historic and the backward-looking, and to start being proactive and offering future-focused advice – but no one tells them how. The beauty of the Anticipatory Organization program is that it actually gives you a set of tools to harness the hard trends that are shaping the future, and use them to create new value for your firm and your clients.” - Daniel Hood, Editor-in-Chief of Accounting Today (when recognizing AOAF as a 2016 Top Product in Learning
The competency of “anticipation” actually includes a number of competencies included in many of the top companies of today.
Across these models, you'll see a common theme of “strategic thinking," "innovation" and “leading change."
Many of these organizations build (and validate) fantastic competency models and know what they want people to do.
The top five skills and competencies identified for CPAs, accounting and finance professionals are:
1. Strategic and critical thinking;
2. Communication;
3. Anticipating and serving evolving needs;
4. Inspiring and motivating others;
5. Collaboration and mobilizing consensus
The beauty of the Anticipatory Organization model is that it offers a clear process that makes highly-abstract leadership competencies attainable and trainable. Using nano-leanring in very short 3-4 minute single concept videos (imagine a series of shirt Ted Talks) with rapid application exercises to immediately apply the concepts to the job, and visual job aids to reinforce and remember the learning. Add a team implementation and collaboration guide and you can create a shared language and culture of being anticipatory and proactive.
If an organization wants to make "strategic thinking" or "innovation" a core competency, we can provide clear, trainable activities that can be targeted to a wide range of learners (from individual contributors to senior leadership). We provide the bridge between the competency model and the desired observable behaviors.
For more information visit www.blionline.org/ao or contact Tom Hood tom@blionline.org
Will your firm thrive or just survive? Anticipation - The critical competency...Tom Hood, CPA,CITP,CGMA
Today, the world of professional education, and accordingly the accounting profession, is migrating toward a competencies-based learning approach. But what are the most critical competencies for practitioners and firms to thrive in today’s ever changing, fast paced business environment?
Research from the Business Learning Institute identified the Top 5 Competencies for CPAs, accounting and financial professionals as:
1. Strategic & Critical Thinking
2. Communication
3. Anticipating and serving evolving needs
4. Inspiring and motivating others
5. Collaboration and mobilizing consensus
In addition, research from CPA.COM shows that only 8% of CPAs are future ready. Future Ready is the Is the capacity to be ANTICIPATORY (aware, predictive and adaptive) of emerging technology and trends in business, demographics, and the social environment impacting your organization and industry.
Together this group of skills and competencies have been researched with a leading global futurist who has put together an innovative learning system, the Anticipatory Organization: Accounting and Finance Edition which is being used to transform firm cultures to build and enhance proactive business advisor skills.
Most of us wish we had the power to predict future trends, and would benefit by learning tactics to do so. Daniel Burrus is one of the world’s leading technology forecasters and innovation experts and the featured keynoter speaker at this year’s DCPA16. He is globally recognized for his exceptional 30+ year record of accurately predicting how technological, social, and business forces converge to create untapped opportunities.
Joey Havens, Executive Partner at Horne, LLP (A top 50 CPA Firm) discusses how he has used the Anticipatory Organization as a foundational learning system throughout his firm. He is requiring his whole firm of 400+ professionals to take this and running collaboration sessions by practice areas to create group learning and a shared language around anticipatory thinking that is being applied inside the firm and outside with clients.
This presentation is from the July 20th, 2016 webcast by CPA.COM. CPA.com President and CEO, Erik Asgeirsson as he discusses the critical Anticipatory competency with Daniel Burrus, HORNE LLP executive partner Joey Havens and the CEO of the Maryland Association of CPAs and the Business Learning Institute, Tom Hood.
For more information http://www.blionline.org/ao
You will learn:
Why anticipation is the critical competency for today's accounting and finance professionals
The difference between hard trends and soft trends
Why it is important to identify trend types
Use cases of how these skills are being used in the profession
How this learning system can be used as a foundational skill set to help CPAs and accounting professionals be more proactive business advisors.
It May be Time to Reinvent Your Firm - CPAFMA National Practice Management Co...Tom Hood, CPA,CITP,CGMA
What is the accounting professionals' role in creating a culture of innovation? How are CPA Firms innovating? Reinventing themselves? Creating magnetic cultures?
Studies are showing a growing expectation for accounting professionals to lead these initiatives. In this session we will discuss tactics to foster innovation in your firms, technology's role and advising clients to do the same through tools you provide.
This session covers the latest research from the Business Learning Institute (BLI) about what it takes to create a magnetic firm culture and scores the latest issues facing CPA firms, top skills needed, and an innovation index.
From a session at the CPAFMA National Practice Management Conference in Baltimore in 2016.
For more information see www.blionline.org
Recent research says that the business environment for CPAs and their clients will be characterized by “unprecedented, massive and highly accelerated change” through 2025. To thrive in this new age of hyper-change and growing uncertainty, it is now an imperative to learn a new competency--how to accurately anticipate the future. The key to success in this fast-changing environment is to learn how to move from being reactive to proactive and flip from crisis manager to an opportunity manager. Tom will show how to explore new value added services and position their practices for success in a rapidly changing world.
Recent research from the AICPA says that the business environment for CPAs and their clients will be characterized by “unprecedented, massive and highly accelerated change” through 2025. To thrive in this new age of hyper-change and growing uncertainty, it is now an imperative to learn a new competency–how to accurately anticipate the future. This session will show how to anticipate these trends and move from being a crisis manager to an opportunity manager. At the end of the session participants will set actionable steps to elevate and accelerate their organization’s strategy.
VUCA stands for Volatility, Uncertainty, Complexity and Ambiguity and describes the fast-arriving future we are living in. This inspirational session will talk about how leadership, culture, and talent management are changing in these exponential times. Participants thru an exercise to leave with a person action plan.
Learning Objective:
Understand emerging trends and issues facing business and CPA Profession.
Learn about how leadership is changing to lead change in rapidly changing times.
Develop an action plan to take back and apply the principles learned.
The #1 reason clients leave their CPAs is that they are receiving service instead of proactive advice. Tom will show how firms are exploring new value added services and position their practices for success in a rapidly changing world. He will discuss the major "shift change" and the trends shaping business today and give participants a framework to provide more proactive services and strategic advice and a plan to get started. But these services require new skills and approaches which is a big opportunity for firm HR and Learning Leaders.
Presentation to AGN International in San Diego #NARM16 for Managing Partners in MAP Track
How to Accelerate Growth, Innovation, and High Performance for CPAs, Account...Tom Hood, CPA,CITP,CGMA
The # 1 challenge facing CPAs, Accounting and Finance Professionals is 'not enough time' who creates the equivalent of a gravitational pull of the past when it comes to changing their mindsets and thinking. How will we go from a historical perspective to a more future-focused, from rearview mirror to windshield and from being reactive to proactive?
Our latest research from the Business Learning Institute sows the critical competencies that will make a difference have not changed in the past seven years. What has changed is the gravitational pull has gotten worse as we enter what Josh Bersin calls the age of the 'overwhelmed employee'.
What we need is a new approach to learning these critical competencies. A blended approach that uses nano-learning nuggets (very short 2-3 minute single-concept videos), rapid application templates to apply each concept to the business, and a series of job aids and performance support tools to turn the learning into immediate on the job application. This is our award-winning Anticipatory Organization learning system by Burrus Research. In about one third of the time as traditional CPE, CPAs and accounting and finance professionals can learn the critical competencies of:
Anticipation; Strategic Thinking; External Awareness; Vision; Continuous Learning; Innovation ;Creativity; Problem Solving; Prioritization; Business Acumen; Decisiveness; Influencing/Persuading; Emotional Intelligence; Consensus Building; Collaboration; Inspiration; Risk Management; and Communication.
The Anticipatory Organization can support an entire cultural shift for an organization or team with the added implementation guide and collaboration tools. See more at http://www.blionline.org/ao
Our new MBA Express is another option to create or add a series of critical success skills to your technical training portfolio in on-site, on-line and on-demand learning formats. http://blionline.org/featured/8-hour-mba/
We believe we need new approaches and new tools to break the pull of the past and the inertia from 'overwhelmed employees'. These exciting new learning formats are one step in this direction.
Accounting Today Editor, Daniel Hood said this after selecting the Anticipatory Organization as a Top Product for 2016 in the Learning Category, “Everyone keeps telling accountants that they need to change their focus from the historic and the backward-looking, and to start being proactive and offering future-focused advice – but no one tells them how. The beauty of the Anticipatory Organization program is that it actually gives you a set of tools to harness the hard trends that are shaping the future, and use them to create new value for your firm and your clients.”
What does innovation look like in a CPA Firm? How are leading CPA firms creating a culture of innovation?
We are in a fast-paced world where growth/change is exponential not incremental. The CPA profession has been late adopters of change and “anticipation” is a missing skill set for many CPAs. We will soon be living in a world where global competition and automation will be performing basic accounting tasks currently being performed in our firms today. Tom Hood, Executive Director of the MACPA will lead a discussion on where accounting firms
fit into a rapidly changing world. Hood, along with Jim Powers, CEO of Crowe Horwath LLP and Bill Balhoff, Managing Director of Postlethwaite & Netterville will explore how firms can maintain their competitive edge through inNEWvation.
The CPA Vision 2011 is the report from the AICPA from a project to create a comprehensive grassroots vision for the future of the CPA Profession. The first profession to ever create a vision for itself. Using a volunteer team of CPAs and State CPA Society executives aided by a team from the AICPA and led by Jeannie Patton in 1997-1998.
MACPA Spring 2016 Professional Issues Update - Business & Industry EditionTom Hood, CPA,CITP,CGMA
What are the latest trends and issues facing the CPA profession? What is the future of finance and accounting in an age of exponential change? What is the future of the profession and what is the MACPA doing about it?
Tom Hood, the second most influential person in the CPA Profession and CEO of the Maryland Association of CPAs attempts to answer these questions and offer his perspective in this special update for MACPA members only focusing on CPAs in business industry, government and NFP.
Keynote for Beta Alpha Psi Atlantic Coast Regional Meeting
on March 18, 2016 in Towson, Maryland
What are the latest trends and issues facing accounting and business? What are the outlooks for careers in accounting, finance, information systems and business majors?
Tom Hood, CEO of the MACPA and Business Learning Institute covers this and career advice for accounting students in this inspirational keynote.
State of Accounting for Linked-in Influencer Series #MyIndustry
Big Waves of Change, Oceans of Opportunity
These big waves of change are the result of a “perfect storm” of sorts -- the convergence of three “hard trends” of exponential technological innovation, the demographic shift as baby boomers retire, and globalization. Key challenges facing accounting and finance professionals are automation and digital transformation, succession and talent shortages, a “brain drain” as experienced people retire, business model changes, and the increasingly VUCA world (that’s volatility, uncertainty, complexity and ambiguity) in which we find ourselves.
Several recent studies (from WEF, Oxford, McKinsey and MIT) report that accounting, auditing and tax are among the occupations most at risk for complete automation within the next 20 years.
As a result, the accounting and finance profession is rapidly approaching what Andy Grove, retired CEO of Intel Corporation, described as a “strategic inflection point,” -- “a time in the life of a business when its fundamentals are about to change. That change can mean an opportunity to rise to new heights. But it may just as likely signal the beginning of the end.” This is where there are two major pathways: doing business as usual, or embracing and adapting to the new. At the moment these are fairly close together, but they will soon diverge into a growing gap between growth and success, or entropy and decline.
“You can’t stop the waves, but you can learn how to surf.” - Jon Kabat-Zinn
To take advantage of these oceans of opportunity, accounting and finance professionals will need to learn how to ride these big waves or risk being crushed by their frequency and force. The critical thing to know is that what got you here, won’t get you there. Business as usual simply won’t work.
Here are six ways to learn how to ride these big waves of change now and in the future:
1. Embrace digital: Learn how to elevate and accelerate your job using technology and to race with the machines, not against them.
2. Anticipate: Learn the critical competency of anticipation. Only those who constantly try to anticipate change will survive when change happens.
3. Collaborate: The collaboration curve is quickly replacing the experience curve. Who you know is replacing what you know.
4. Learning is the next competitive advantage: As Fast Company editor Robert Safian wrote, “the most important skill is the ability to acquire new skills.”
5. Protect the core: When everything is changing, it is important to know what should not change. Purpose and values for individuals and organizations should serve as that anchor or grounding.
6. Make time for the future. Your time and those of your people will be your number one challenge, and nothing will change if you are overwhelmed and too busy.
The hard trends are forming these big waves of disruption and change. Surf's Up - Are you ready?
What are the Top Competencies (Knowledge, Skills and Abilities) needed by CPAs, Accounting and Finance Professionals today?
The Business Learning Institute shares its latest research and correlates it with other leading global research (Conference Board, AICPA, CGMA, IFAC, CPA Canada, Burrus Research, Bersin by Deloitte). These skills were identified and then surveyed across over 1,000 finance and accounting professionals to identify the top five skills needed today.
In our survey work at the Business Learning Institute (http://www.blionline.org) we found that the top five skills ranked by survey respondents covered 75% or everyone's top five list, providing a great starting point for skills development and targeting in talent development.
1. Strategic and Critical Thinking
2. Communication
3. Anticipating and serving evolving needs
4. Inspiring and motivating others
5. Collaboration and mobilizing consensus
BLI also developed a framework, called The Bounce to describe the career trajectory of today's finance and accounting professional. The Bounce is the natural career trajectory for accounting and finance professionals. It talks about the process of acquiring technical mastery in the early career and beginning to supplement wit the critical skills (competencies) needed for long-term success. BLI has been leading the training and development of accounting and finance with these ‘success skills’ for eighteen years.
The Business Learning Institute (BLI) is the largest talent development and and learning provider to CPAs, accounting and finance professionals in the US. We bring our leading approach to ‘success skills’ and competency-based curriculums to the leading organizations, public companies and CPA firms all over North America.
We tend to think of “innovation” in terms of new technology – gadgets, hardware, new apps, and software. But true innovation more often comes in the form of new business models, workflows, service offerings, and office and staffing patterns. This session will center on those innovations that are significantly impacting our firms and our clients. You never know where innovation might sprout!
This session was produced for the DCPA15 Conference in Las Vegas.
A recent HBR special edition headline said "Got to war for talent", but how. BLI has developed a guidance and a six step process to give you new weapons to win in the war for talent.
Our Magnetic Firm framework outlines the critical elements of a magnetic culture and our six step Talent and Leadership Development framework show you how to develop a winning career and curriculum aligned to your overall firm strategy and objectives.
This presentation was developed and presented for the Digital CPA Conference in December #DCPA15
The Business Learning Institute can help you build your magnetic firm framework and strategic learning plan - contact us at http://www.blionline.org
In the Adani-Hindenburg case, what is SEBI investigating.pptxAdani case
Adani SEBI investigation revealed that the latter had sought information from five foreign jurisdictions concerning the holdings of the firm’s foreign portfolio investors (FPIs) in relation to the alleged violations of the MPS Regulations. Nevertheless, the economic interest of the twelve FPIs based in tax haven jurisdictions still needs to be determined. The Adani Group firms classed these FPIs as public shareholders. According to Hindenburg, FPIs were used to get around regulatory standards.
Event Report - SAP Sapphire 2024 Orlando - lots of innovation and old challengesHolger Mueller
Holger Mueller of Constellation Research shares his key takeaways from SAP's Sapphire confernece, held in Orlando, June 3rd till 5th 2024, in the Orange Convention Center.
VAT Registration Outlined In UAE: Benefits and Requirementsuae taxgpt
Vat Registration is a legal obligation for businesses meeting the threshold requirement, helping companies avoid fines and ramifications. Contact now!
https://viralsocialtrends.com/vat-registration-outlined-in-uae/
Cracking the Workplace Discipline Code Main.pptxWorkforce Group
Cultivating and maintaining discipline within teams is a critical differentiator for successful organisations.
Forward-thinking leaders and business managers understand the impact that discipline has on organisational success. A disciplined workforce operates with clarity, focus, and a shared understanding of expectations, ultimately driving better results, optimising productivity, and facilitating seamless collaboration.
Although discipline is not a one-size-fits-all approach, it can help create a work environment that encourages personal growth and accountability rather than solely relying on punitive measures.
In this deck, you will learn the significance of workplace discipline for organisational success. You’ll also learn
• Four (4) workplace discipline methods you should consider
• The best and most practical approach to implementing workplace discipline.
• Three (3) key tips to maintain a disciplined workplace.
Business Valuation Principles for EntrepreneursBen Wann
This insightful presentation is designed to equip entrepreneurs with the essential knowledge and tools needed to accurately value their businesses. Understanding business valuation is crucial for making informed decisions, whether you're seeking investment, planning to sell, or simply want to gauge your company's worth.
Digital Transformation and IT Strategy Toolkit and TemplatesAurelien Domont, MBA
This Digital Transformation and IT Strategy Toolkit was created by ex-McKinsey, Deloitte and BCG Management Consultants, after more than 5,000 hours of work. It is considered the world's best & most comprehensive Digital Transformation and IT Strategy Toolkit. It includes all the Frameworks, Best Practices & Templates required to successfully undertake the Digital Transformation of your organization and define a robust IT Strategy.
Editable Toolkit to help you reuse our content: 700 Powerpoint slides | 35 Excel sheets | 84 minutes of Video training
This PowerPoint presentation is only a small preview of our Toolkits. For more details, visit www.domontconsulting.com
Improving profitability for small businessBen Wann
In this comprehensive presentation, we will explore strategies and practical tips for enhancing profitability in small businesses. Tailored to meet the unique challenges faced by small enterprises, this session covers various aspects that directly impact the bottom line. Attendees will learn how to optimize operational efficiency, manage expenses, and increase revenue through innovative marketing and customer engagement techniques.
Enterprise Excellence is Inclusive Excellence.pdfKaiNexus
Enterprise excellence and inclusive excellence are closely linked, and real-world challenges have shown that both are essential to the success of any organization. To achieve enterprise excellence, organizations must focus on improving their operations and processes while creating an inclusive environment that engages everyone. In this interactive session, the facilitator will highlight commonly established business practices and how they limit our ability to engage everyone every day. More importantly, though, participants will likely gain increased awareness of what we can do differently to maximize enterprise excellence through deliberate inclusion.
What is Enterprise Excellence?
Enterprise Excellence is a holistic approach that's aimed at achieving world-class performance across all aspects of the organization.
What might I learn?
A way to engage all in creating Inclusive Excellence. Lessons from the US military and their parallels to the story of Harry Potter. How belt systems and CI teams can destroy inclusive practices. How leadership language invites people to the party. There are three things leaders can do to engage everyone every day: maximizing psychological safety to create environments where folks learn, contribute, and challenge the status quo.
Who might benefit? Anyone and everyone leading folks from the shop floor to top floor.
Dr. William Harvey is a seasoned Operations Leader with extensive experience in chemical processing, manufacturing, and operations management. At Michelman, he currently oversees multiple sites, leading teams in strategic planning and coaching/practicing continuous improvement. William is set to start his eighth year of teaching at the University of Cincinnati where he teaches marketing, finance, and management. William holds various certifications in change management, quality, leadership, operational excellence, team building, and DiSC, among others.
Discover the innovative and creative projects that highlight my journey throu...dylandmeas
Discover the innovative and creative projects that highlight my journey through Full Sail University. Below, you’ll find a collection of my work showcasing my skills and expertise in digital marketing, event planning, and media production.
The Influence of Marketing Strategy and Market Competition on Business Perfor...
MACPA Private Company Standards Whitepaper
1. Private Company Standards: Responding to the
Reporting Needs of Private Companies and the
Users of Their Financial Statements
Maryland Association of
Certified Public Accountants, Inc.
A Report from the MACPA Accounting Standards Task Force
May 27, 2011
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MACPA – Copyright 2011
2. Executive summary
The suitability of Generally Accepted Accounting Principles (GAAP) for private companies has
been a matter of debate and study for more than 30 years. Numerous task forces, committees,
and studies have been formed or undertaken over the years to address private company standards
with minimal accomplishments.
The concerns of private company preparers, users, and auditors center on:
the costs of GAAP private company financial statements, which often exceed the
benefits;
lack of relevance to users;
increasing complexity of standards and the pace of change; and
increasing use of “other comprehensive basis of accounting” (OCBOA), viewed as a
symptom of the problem.
In 2009, the Financial Accounting Foundation (FAF), the parent organization of the FASB,
formed the Blue Ribbon Panel on Standard Setting for Private Companies (BRP) with
representatives from the AICPA and the National Association of State Boards of Accountancy
(NASBA). In January 2011 the BRP issued a report calling for exceptions and modifications to
GAAP to better meet the needs of private companies. In addition, the BRP report called for a
separate standards board to develop those exceptions and modifications to GAAP.
The MACPA’s Accounting Standards Task Force (Task Force), created by the MACPA Board of
Directors in October 2010, has met to review and discuss the history of private company
standards and formulate a response to the BRP’s report. The private company standards issue has
been reviewed and discussed with more than 1,500 MACPA members at town hall meetings
throughout Maryland over the past year. More than 90 percent of members polled at those
meetings believed GAAP modifications and exceptions for private companies are the best
solution to the problem. The MACPA Task Force responded to the BRP’s report and offered
additional suggestions and comments. The Task Force’s response to the BRP report can be
summarized as follows:
The Task Force agreed that the current structure does not properly address private
company standards and needs to be improved.
The Task Force agreed that the FASB has not demonstrated an ability to address the
needs of private companies.
The Task Force agreed that a separate board for private companies is warranted. A
majority of the Task Force wanted the separate board to have ultimate authority over
standards decisions for private companies. Two dissenters felt the FASB should have
“veto power” over standards changes proposed by the new committee. The principle of
“distinct but linked” with a parallel and joint process to avoid unnecessary divergence
was viewed as critical to the process.
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MACPA – Copyright 2011
3. The Task Force agreed that a “sunset” provision of five years, during which the new
private company board would be evaluated, would be appropriate with the understanding
that the five-year term begins with the formation of the new board.
The Task Force viewed the development of a differential framework for developing
exceptions and modifications to extended GAAP as an essential element of the new
board’s work and critical to the successful development of private company standards.
The Task Force agreed that a proper cost-benefit balance is critical to the success of the
new private company standards while taking into account the relevance to the financial
statement users.
The Task Force agreed that a single source of GAAP is imperative and would be codified
in the same manner for private and public companies, with private company exceptions
noted and contained within the respective pronouncements.
History and background
The Financial Accounting Standards Board (FASB) was created in 1973 to establish and
improve standards of financial accounting and reporting by non-governmental entities. Those
standards, known as “generally accepted accounting principles” (GAAP), are the widely
accepted set of accounting standards and rules used by non-governmental entities for reporting
financial information.
Private company accounting standards have been the topic of debate in the United States for
almost 40 years. There have been 12 separate studies, reports, or formal recommendations that
have been made, with the most recent recommendations made in January 2011.
The FASB’s most recent formal research on the needs of private companies took place in 1983,
with discussions by others occurring several years before. Since then business, finance, and
economics have expanded globally and have become exponentially more complex. Accounting
standards that have developed in response to these changes have become increasingly divergent
from the needs of users of private company financial statements, examples of which include
accounting for variable interest entities, uncertain tax positions, fair value measurements, and the
level of detail associated with certain disclosures.
The efforts expended over the past 40 years to make private company accounting standards more
relevant to its users had varying degrees of success, and generally culminated in
recommendations or creations of advisory-level committees that lacked authoritative status.
In 2004, the American Institute of Certified Public Accountants (AICPA) established the Private
Company Financial Reporting Task Force (PCFRTF), chaired by Jim Castellano of the
accounting firm RubinBrown. The report issued by the PCFRTF, known as the “Castellano
Report,” was completed in 2005 (see Resources for further details). The Report concluded users
of private company financial statements have different needs from users of public company
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MACPA – Copyright 2011
4. financial statements; GAAP exceptions and Other Comprehensive Basis of Accounting
(OCBOA) should not be the resolution to the private company financial reporting problems; and
fundamental changes should be made to the current standard-setting process.
Subsequently, in 2006 the FASB established the Private Company Financial Reporting
Committee (PCFRC) to further improve its current standard-setting process. The PCFRC’s
primary objective is to provide recommendations to the FASB as the FASB sets accounting
standards for privately held enterprises. In addition, PCFRC members focus on how standard-
setting affects day-to-day technical activities and procedures from a cost/benefit perspective. The
establishment of the PCFRC was significant in that, unlike prior efforts, the FASB was to
specifically address and articulate within the literature of each subsequently issued accounting
standard, whether differences should exist for private companies and state the basis for its
conclusion. Based on private company stakeholders’ comment letters, feedback from MACPA
members and the work of this Task Force, the work of the PCFRC was viewed as not fully
achieving its intended goal due to the FASB’s unwillingness or inability to consider and approve,
where appropriate, the possibility of measurement, recognition, and presentation differences for
private company financial reporting.
On Sept. 8, 2008, the Maryland Association of Certified Public Accountants (MACPA), joined
by 10 other state CPA societies, wrote to Chairman Bob Herz of the FASB and requested that the
FASB accept the recommendations from the PCFRC and exempt private companies from the
provisions of the proposed Interpretation No. 48 – Accounting for Uncertainty in Income Taxes,
An Interpretation of FAS Statement No. 109. The FASB acted with an extended implementation
deadline of one year for private companies and non-profits and a modification to the disclosure
requirements but declined to exempt private companies from the new interpretation. The result
was an implementation delay and a modification to the disclosure requirements, which provided
only limited relief for private companies and non-profits.
In 2009, the Financial Accounting Foundation (FAF), the parent organization of the FASB,
formed the Blue Ribbon Panel on Standard Setting for Private Companies (BRP) with the
AICPA and NASBA. The mission of the BRP was to address how accounting standards can best
meet the needs of users of U.S. private company financial statements.
On Aug. 5, 2010, the BRP published a list of questions requesting input from the public. The
common issues and concerns cited by the respondents were as follows:
Private company financial statements often lack relevance to users.
Standards have become increasingly complex.
The pace of the standard-setting process has increased.
Costs often exceed benefits.
There has been an increase in qualified opinions and use of OCBOA basis statements in
order to avoid the complexities of GAAP.
Our experience in Maryland is consistent with the feedback from the respondents to the BRP.
Our fall 2010 town hall meetings reached approximately 1,500 CPAs, with 90.87 percent
indicating support for GAAP modifications and exceptions for private companies.
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MACPA – Copyright 2011
5. The BRP issued a report in January 2011 concluding that there are urgent and growing systemic
problems that need to be addressed in the current U.S. system of standard setting. The BRP
recommended that there be exceptions and modifications from extended GAAP to better meet
the needs of private companies and the users, preparers, and auditors of their financial
statements. In addition, the BRP recommended that a separate private company standards board
be established to develop and implement those exceptions and modifications.
On March 4, 2011, FAF announced “the formation of a Trustee Working Group to address the
important topic of accounting standards for nonpublic entities.” The FAF news release stated that
“the Working Group will conduct outreach to stakeholders in various ways, including roundtable
meetings, surveys, and meetings with advisory and constituent groups and others. In conjunction
with obtaining input on the scope of the issues and concerns to be addressed, the Trustees also
will seek input on suggested improvements, including the solutions recommended by the Blue-
Ribbon Panel.”
Internationally, standards setting bodies are wrestling with the same issue. Most notably, Brazil,
Argentina, and Hong Kong have adopted International Financial Reporting Standards (IFRS) for
Small and Medium-sized Entities (SMEs) with the United Kingdom scheduled to implement it in
2012.
MACPA Accounting Standards Task Force
At its October 2010 meeting, the Board of Directors of the MACPA recognized the need to
inform members and the Maryland financial community of the need for changes in private
company financial reporting and approved the formation of the MACPA Accounting Standards
Task Force (Task Force). The Board directed the Task Force to study current issues in
accounting standards, inform the Maryland financial community of the issues surrounding
private company standards, comment on the private company financial reporting standards issue,
and provide input into satisfying the needs of private companies and the users of their financial
statements. The Task Force participants were selected in December 2010. The Task Force
includes representatives of CPA firms, public and private companies, as well as representatives
from banking, education, and government. Four Task Force meetings have been held to date in
Columbia, Md.
Criteria for evaluating reform proposals
We focused our efforts on finding solutions and making recommendations that would be
meaningful to preparers, auditors, and users of private company financial statements. To evaluate
our recommendations in this report, we developed and considered the following criteria:
Will the recommendations and comments:
Improve the relevance of financial statements for users?
Improve the cost-benefit ratio of private company accounting standards?
Minimize complexity of financial statements for users, preparers, and auditors?
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MACPA – Copyright 2011
6. Reform matters for consideration: Scope of this document
The Task Force focused on the January 2011 Report to the Board of Trustees of the FAF by the
Blue Ribbon Panel on Standard Setting for Private Companies (BRP). Our approach is to
comment on the recommendations outlined in the report, raise pertinent questions on the
structure and processes being followed, and provide suggestions from our perspectives as
preparers, auditors, and users of financial statements. This report is the work of the Task Force
and is for the use of the MACPA Board of Directors, MACPA members, and the financial
community in Maryland.
Task Force response to the BRP recommendations
The Task Force, in carefully reviewing and deliberating the recommendations of the Blue
Ribbon Panel, has made the following resolutions:
1) The Task Force agreed that the current structure does not properly address private
company standards and needs to be improved. The Task Force was dismayed that a
broad section of private companies, both large and small, are not using GAAP,
viewing it as too complex and expensive to implement. The Task Force concluded that
the use of OCBOA is not an acceptable alternative to GAAP.
2) The Task Force agreed that the FASB has not demonstrated an ability to address the
needs of private companies as evidenced by the inability of the PCFRC to effect
meaningful change.
3) The Task Force agreed that a separate board for private companies is warranted. The
principle of “distinct but linked” with a parallel and joint process to avoid unnecessary
divergence was viewed as critical to the process. A majority of the Task Force wanted
the new board to have ultimate authority over private company standards decisions.
Two Task Force members dissented; they stated that a separate board is needed but,
concerned about excessive standards divergence, felt separate private company
standards board recommendations should be subject to the final approval of the FASB,
much like the Emerging Issues Task Force (EITF) is structured.
4) The Task Force agreed a “sunset” provision of five years would be appropriate, with
the understanding that the five-year term begins with the formation of the new board.
The sunset provision is critical to evaluate whether the new structure is adequately
addressing the shortcomings of the current system and to make changes as necessary
to further address the needs of private company stakeholders. One factor to use in
judging the level of success will be whether usage of OCBOA diminishes after
implementation of private company modifications and exclusions are implemented.
5) The Task Force viewed the development of a differential framework for developing
exceptions and modifications to extended GAAP as an essential element of the new
board’s work and critical to the successful development of private company standards.
The Task Force felt it is important to identify in advance the attributes that will drive
differences between public company and private company standards. For instance,
when are differences appropriate, under what circumstances are differences allowed, if
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MACPA – Copyright 2011
7. and how will private company standards interfaces with International Financial
Reporting Standards (IFRS) for Small and Medium-sized Entities (SMEs)? The Task
Force also agreed the differential framework should be made available for public
comment and approved by the FAF.
6) The Task Force agreed a proper cost-benefit balance is critical to the success of the
new private company standards while taking into account the relevance to the financial
statement users. At the same time, the Task Force recognizes the level of complexity
of the underlying accounting (for instance, accounting for derivatives), will have a
bearing on the complexity of the standard.
7) The Task Force agreed that a single source of GAAP is imperative and would be
codified in the same manner for private and public companies, with private company
exceptions noted and contained within the respective pronouncements. The Task Force
believes such codification is essential to allow for full understanding for preparers and
auditors of financial statements.
Other recommendations and concerns:
In considering the issues related to private company accounting standards, the Task Force makes
the following recommendations or raises the following areas of concern:
The Task Force recommends that principles and structure be put in place to ensure
collaboration between the FASB and the new private company board. The Boards need to
be distinct but linked. Public company/private company divergence should be limited
with both boards being compatible and collaborative.
The funding of the new board needs to be structured to ensure independence. The Task
Force questioned how the new board would be funded and whether the source of that
funding would have an impact on the development of private company standards.
Consideration should be given to the impact on private companies of International
Financial Reporting Standards convergence and the development of IFRS for small and
medium-sized entities (SME).
Concern was expressed about the disparity of interests between small, medium, and large
private companies. The Task Force recommends that all entities that are eligible to use
private company GAAP have the option to use extended GAAP, allowing the flexibility
to respond to the needs of the users of the financial statements.
The Task Force suggested that consideration be given to the academic community when
offering subscription-based standards resources to ensure the maximum number of
students have inexpensive access to standards materials as these changes are
implemented.
The Task Force noted a real need to inform the financial community and the broader
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MACPA – Copyright 2011
8. business community about these changes to private company standards once they are
implemented.
Conclusion
The Task Force concludes that the time is right to establish a separate board for private company
accounting standards that will develop exceptions and modifications to GAAP for private
companies. It is clear private company stakeholders see a need to improve standards for private
companies. The increasing use of OCBOA calls into question what is generally accepted and is
symptomatic of the problems with private company standards. Any further studies should be
limited to determining how the recommended changes can be implemented and not continuing to
study whether changes are needed. The Task Force looks forward to the implementation of these
recommendations to improve private company accounting standards.
Approval
The Task Force report was formally accepted and endorsed by the Maryland Association of
CPAs Board of Directors on June 2, 2011 in a unanimous resolution.
For more information about the Task Force Report and Process:
MACPA Announcement http://www.macpa.org/Content/26146.aspx
Contacts:
Skip Falatko, CPA – MACPA Committee Liaison – skip@macpa.org
Tom Hood, CPA.CITP – MACPA CEO – tom@macpa.org
Disclaimer
The opinions expressed in this document reflect the personal views of the Task Force members
and don’t necessarily reflect the viewpoint of their employers.
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9. Task Force Members
Chairman: Organization: Segment:
Arthur E. Flach, CPA Grant Thornton, LLP Public Accounting
Members:
Debra G. Busk, CPA DeLeon & Stang Public Accounting
James F. Canalichio DVCC, Inc. Private Company
Allen P. DeLeon, CPA, PFS DeLeon & Stang Public Accounting
James D. Jenkins, CPA SC&H Group, LLC Public Accounting
Carl Kampel, CPA Ellin & Tucker, Chartered Public Accounting
Kenneth A. Kelly, Jr., CPA McCormick & Co., Inc. Public Company
Michael P. Manspeaker, CPA Smith Elliott Kearns & Co., LLC Public Accounting
Hayles & Howe, Inc.
Joselin R. Martin, CPA KCI Technologies, Inc. Private Company
Donald A. McConnell, CPA University of Maryland Private Company
James J. McKinney, CPA Gross, Mendelsohn & Associates, Education
Ernest J. Paszkiewicz, CPA P.A. Public Accounting
Small Business Administration
Oliver J. Phillips Santos, Postal & Company, PC Government
Charles B. Postal, CPA Branch Banking & Trust Co. Public Accounting
Robert L. Tuggle Branch Banking & Trust Co. Banking
William Ziegler, CPA Banking
MACPA Staff: MACPA
Jacqueline E. G. Brown MACPA Non-profit
Francis J. Falatko, Jr., CPA MACPA Non-profit
J. Thomas Hood, III, CPA Non-profit
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10. Resources
AICPA: “Private company financial reporting panel starts work”
http://www.macpa.org/Content/23457.aspx
AICPA Private Company Standards Resource Center
http://www.aicpa.org/privategaap
AICPA Private Company Financial Reporting Task Force Report (known as the
“Castellano Report”), Feb. 28, 2005
http://www.aicpa.org/InterestAreas/AccountingAndAuditing/Resources/AcctgFinRptg/A
cctgFinRptgGuidance/DownloadableDocuments/Report_Draft_Final.pdf
Blue Ribbon Panel on Standard Setting for Private Companies: “Report to the Board of
Trustees of the Financial Accounting Foundation,” January 2011
http://www.accountingfoundation.org/cs/ContentServer?site=Foundation&c=Document_
C&pagename=Foundation%2FDocument_C%2FFAFDocumentPage&cid=11761581813
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Kennard S. Brackney and R. David Mautz, Jr.: “The Private Company Financial
Reporting Committee - A New Voice in FASB’s Process,” NYSSCPA, July 2008
http://www.nysscpa.org/cpajournal/2008/708/infocus/p14.htm
CPASuccess.com: “What is one thing almost all CPAs agree with?” Jan. 28, 2011
http://www.cpasuccess.com/2011/01/this-time-its-real-private-company-standards-time-
to-pay-attention.html
CPASuccess.com: “Private company GAAP? Time to pay attention,” Dec. 7, 2010
http://www.cpasuccess.com/2010/12/private-company-gaap-time-to-pay-attention.html
Government Accountability Office: “A Framework for Crafting and Assessing Proposals
to Modernize the Outdated U.S. Financial Regulatory System,” January, 2009
http://www.gao.gov/new.items/d09216.pdf
House Bill 3763 (the "Oxley Bill”), United States House of Representatives, Feb. 5, 2002
http://www.gpo.gov/fdsys/pkg/BILLS-107hr3763ih/pdf/BILLS-107hr3763ih.pdf
Marie Leone: “A one-two accounting punch? Next year U.S. public companies will find
out if they have to adopt international accounting standards – just as they are
implementing a host of new FASB rules,” CFO.com, May 18, 2010
http://www.cfo.com/article.cfm/14496195
MACPA: “Financial reporting committee names founding members,” March 6, 2007
http://www.macpa.org/Content/23173.aspx
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11. MACPA letter to Tim Woo, FAF/FASB - “Blue-Ribbon” Panel written submissions from
constituents, Sept. 15, 2010
http://dl.dropbox.com/u/20948371/Tim%20Woo%20-
%20MACPA%20Letter%20to%20FAF%20Blue%20Ribbon%20Committee.doc
MACPA letter to Bob Herz, chairman of FASB: “Support of PCFRC’s positions on
FASB Interpretation No. 48 & FASB Interpretation No. 46(R),” Sept. 4, 2008
http://dl.dropbox.com/u/20948371/FASB%20Chairman%20Bob%20Herz%20-
%202008%20Comment%20letter.doc
Edith Orenstein: “FEI CPC-S releases working draft on private company accounting,”
Financial Executives International, May 19, 2010
http://www.accountingweb.com/blogs/edith-orenstein/fei/fei-cpc-s-releases-working-
draft-private-co-accounting
Bruce Pounder: “How not to create private company GAAP: A favored approach to
establishing "little GAAP" for private U.S. companies is way off target,” CFO.com, Jan.
6, 2011
http://www.cfo.com/article.cfm/14548290
Private Company Financial Reporting Committee (PCFRC) meeting:
Judy O'Dell (PCFRC chair), who is a participating observer on the BRP, provided the
PCFRC with an overview of the first meeting of the BRP, April, 2010
http://www.pcfr.org/downloads/PCFRC_April_2010_final_meeting_highlights.pdf
Private Company Financial Reporting Committee: Recommendations and other letters to
FASB
http://www.pcfr.org/recommendations.html
The Sarbanes-Oxley Act of 2002, 107th United State Congress, July 30, 2002
http://www.gpo.gov/fdsys/pkg/BILLS-107hr3763enr/pdf/BILLS-107hr3763enr.pdf
Senate Bill 2673 (the "Sarbanes Bill"), United States Senate, June 25, 2002
http://frwebgate.access.gpo.gov/cgi-
bin/getdoc.cgi?dbname=107_cong_bills&docid=f:s2673pcs.txt.pdf
Bill Sheridan: “CPAs take next step in private company debate,” ledgerlink.monster.com,
Dec. 24, 2009
http://ledgerlink.monster.com/training-accounting/articles/506-cpas-take-next-step-in-
private-company-debate
Small Business Administration Office of Advocacy: “The impact of regulatory costs on
small firms,” September 2010
http://archive.sba.gov/advo/research/rs371tot.pdf
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