Professional Issues Update Fall 2008 Edition Tom Hood, CPA.CITP CEO & Executive Director Maryland Association of CPAs
 
 
 
CPA Profession is changing & leading the pack to the new world of work <ul><li>The surprise in  BusinessWeek 's second ann...
Did you know?
The Big Three Four Trends <ul><li>Standards & Regulatory Changes </li></ul><ul><li>Globalization </li></ul><ul><li>Workfor...
Speed  – Rate of Change will be blinding & comprehensive in scope Complexity  – a quantum leap in forces will affect every...
Enduring - to have or gain continued or lasting acknowledgment or recognition, as of worth, merit or greatness   So… How d...
Look – See – Imagine - Create What is above knows what is below, but what is below does not know what is above. One climbs...
Professional Standards, Legislation & Regulation 2008 ISSUE
MD Comptroller MD Comptroller Courtesy of the Maryland Association of CPAs – 2008 edition  Drawing by Carol Kirwan, CPA CA...
Who are these guys? <ul><li>Increasing the usefulness of information in SEC reports </li></ul><ul><li>Enhancing the accoun...
Treasury Advisory Committee on the Auditing Profession - ACAP
Lots of changes on the horizon… <ul><li>AS 5 - PCAOB </li></ul><ul><li>IRFS – SEC International gets legs </li></ul><ul><l...
International Financial Reporting Standards ISSUE 2008
IFRS – International  Financial Reporting Standards Not if but when… Goodbye GAAP? Think about this – If SEC timeline is 2...
SEC Roadmap released
Convergence ≠ Sameness <ul><li>US GAAP   </li></ul><ul><ul><li>Rules based </li></ul></ul><ul><ul><li>Based on a GAAP hier...
Private Company Financial Reporting <ul><li>A new wrinkle in the debate </li></ul>This is a very significant  discussion p...
Questions? <ul><li>What happens when FASB moves to IASB? </li></ul><ul><li>FAF Funding goes to IASB </li></ul><ul><li>Who ...
CPAs in Business, Industry, Gov’t & NFP 2008 ISSUE
Top 6 Issues facing business <ul><li>Financing and credit crunch </li></ul><ul><li>Keeping up with Technology </li></ul><u...
Private Company Trends per CEOs Source: 2007 Private Company Index Report by Entrex Lean Operations Workforce
CFO Competencies Needed <ul><li>Change Management (C) </li></ul><ul><li>Strategic Ability (S) </li></ul><ul><li>Critical T...
CPAs in Practice 2008 ISSUE
PCPS MAP Survey
Top 5 Reasons to Join a Firm <ul><li>Career Growth </li></ul><ul><li>Paid Time Off </li></ul><ul><li>Salary </li></ul><ul>...
Top 5 Reasons they Stay <ul><li>Respect for Company Mission </li></ul><ul><li>Career Growth </li></ul><ul><li>Salary </li>...
4 Generations in the Workplace 2008 ISSUE
Talkin’ bout my generation
Pipeline - Good News 20% avg increase in  Graduates & enrollments!
Staff Shortage + Four Generations in workplace = Trouble! Staff Shortage
Four Generations in the Workplace <ul><li>Matures – 1909-45 </li></ul><ul><li>Boomers – 1946-64 </li></ul><ul><li>Gen X – ...
The Matures (born prior to 1946) <ul><li>Duty, honor, country </li></ul><ul><li>Dedication, sacrifice </li></ul><ul><li>Co...
The Baby Boomers (’46 to ’64) <ul><li>Work ethic = Worth.  “Workaholic” </li></ul><ul><li>Competitive </li></ul><ul><li>Su...
Generation X (’65 to ’79) <ul><li>Question authorities. </li></ul><ul><li>Their heroes are people they’ve met; that they k...
Millennials (Since 1980) <ul><li>Individuals w/ a group orientation (team?) </li></ul><ul><li>Optimistic </li></ul><ul><li...
Biggest Issue Facing NYPNs <ul><li>Bridging the Gap between college & real world </li></ul><ul><li>Under-Developed Skill S...
Deloitte’s Global Workforce Advice <ul><li>•  Long-term career development and multiple experiences within a single organi...
The Maryland Perspective 2008 ISSUE
KEY  GOALS/ RESULTS PROJECTS/ STRATEGIES PRODUCTS/ SERVICES/ SITES PEOPLE KEY EVENTS LEARNING MACPA Founded 1901 Dateline ...
WA 2008 OR CA NV ID 2008 MT ND SD WY UT 2008 CO AZ NM 2008 AK HI TX OK KS NE MN IA MO AR LA 2007 MS 2008 AL GA FL WI IL MI...
Web 2.0 continues to grow Try this professional networking site   www.CPALEARNING2.com www.linkedin.com
1,373 1,818 399 8,047 Connect Primary School Student College  Student CPA Exam Candidate CPA MACPA CPA NYPN MACPA CPA Care...
What you can do to promote  the CPA? <ul><li>Understand the “new” CPA Exam </li></ul><ul><ul><li>New Educational Requireme...
CPA Exam changes <ul><li>Paper-based </li></ul><ul><li>2 x year May & November </li></ul><ul><li>5 sections </li></ul><ul>...
Steps to become a CPA <ul><li>Get Accounting Education – 150 hours </li></ul><ul><li>Sit for & Complete CPA Exam </li></ul...
What are the four parts of the “new” CPA Exam? <ul><li>Auditing & Attestation </li></ul><ul><li>Business Environment Conce...
2. Promote the CPA license June 16, 2009 At the Maryland Business & Accounting Expo Maryland DLLR Swearing-in of new CPAs
New / Young Professionals NYPN All member holiday party Maryland Zoo (in Baltimore) December 4, 2008 “ CPE - Certified Pen...
“ CPAs ARE the DISCIPLINE  in business!” Jim Collins
Managing in Turbulent Times <ul><li>Context - Understand the “brutal facts of your reality” </li></ul><ul><li>Strengths Ch...
Connect – Protect - Achieve! “ Association members earn, on average, $10,000 more per year than non-members” And “ are 19%...
Tom Hood, CPA.CITP CEO Maryland Association of CPAs Business Learning Institute (443) 632-2301 E-mail tom@macpa.org
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Presentation to business farternity at University of Maryland. Covers Professional Issues of CPA Profession, Careers as a CPA

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  • MACPA Professional Issues Update - 2008 Spring Edition 06/06/09 Tom Hood, CPA.CITP
  • 2008 Piu U Of Maryland

    1. Professional Issues Update Fall 2008 Edition Tom Hood, CPA.CITP CEO & Executive Director Maryland Association of CPAs
    2.  
    3.  
    4.  
    5. CPA Profession is changing & leading the pack to the new world of work <ul><li>The surprise in BusinessWeek 's second annual ranking: Accounting firms have raced to the head of the pack </li></ul><ul><li>In fact the article included an interview with the CEO of Universum Communications who talked about the &quot;sexiness of accounting,  the popularity of tech, and the workplace stereotypes attached to a misunderstood millennial generation.&quot; </li></ul>
    6. Did you know?
    7. The Big Three Four Trends <ul><li>Standards & Regulatory Changes </li></ul><ul><li>Globalization </li></ul><ul><li>Workforce Issues </li></ul><ul><li>Technology – Web 2.0 </li></ul>
    8. Speed – Rate of Change will be blinding & comprehensive in scope Complexity – a quantum leap in forces will affect everything Risk – new risks, higher risks, more risk Change – drastic adjustments in your work, community & relationships will force you to adapt quickly to radical change Surprise – sometimes good, sometimes difficult to imagine– it will challenge your sensibility & logic The Extreme Future by James Canton, Ph.d
    9. Enduring - to have or gain continued or lasting acknowledgment or recognition, as of worth, merit or greatness So… How do we endure and prosper in the face of continuous market, economic, and environmental change?
    10. Look – See – Imagine - Create 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
    11. Professional Standards, Legislation & Regulation 2008 ISSUE
    12. MD Comptroller MD Comptroller Courtesy of the Maryland Association of CPAs – 2008 edition Drawing by Carol Kirwan, CPA CAQ US Treasury MD Comptroller
    13. Who are these guys? <ul><li>Increasing the usefulness of information in SEC reports </li></ul><ul><li>Enhancing the accounting standards-setting process </li></ul><ul><li>Improving the substantive design of new accounting standards </li></ul><ul><li>Delineating authoritative interpretive guidance </li></ul><ul><li>Clarifying guidance on financial restatements and accounting judgments </li></ul>
    14. Treasury Advisory Committee on the Auditing Profession - ACAP
    15. Lots of changes on the horizon… <ul><li>AS 5 - PCAOB </li></ul><ul><li>IRFS – SEC International gets legs </li></ul><ul><li>XBRL – SEC mandatory (comments end Aug 1 st ) </li></ul><ul><li>Codification Project – FASB </li></ul><ul><ul><li>Convergence with international </li></ul></ul><ul><li>Clarity Project – ASB </li></ul><ul><ul><li>Convergence with international </li></ul></ul><ul><ul><li>Risk-based standards already in int’l format (SAS 104-111) </li></ul></ul><ul><li>SAS 112 Communication </li></ul><ul><li>Internal Control – COSO </li></ul><ul><li>Fin 48 – Private Companies </li></ul><ul><li>Delay of SOX 404 for “small” caps </li></ul>
    16. International Financial Reporting Standards ISSUE 2008
    17. 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?
    18. SEC Roadmap released
    19. Convergence ≠ Sameness <ul><li>US GAAP </li></ul><ul><ul><li>Rules based </li></ul></ul><ul><ul><li>Based on a GAAP hierarchy (level A – D) </li></ul></ul><ul><ul><li>Primary accounting standard setting body is the FASB </li></ul></ul><ul><ul><li>Accounting guidance and interpretation is provided by FASB, SEC, AICPA and EITF </li></ul></ul><ul><li>IFRS </li></ul><ul><ul><li>Principles based </li></ul></ul><ul><ul><li>No hierarchy, consists of IASs, IFRSs & interpretations </li></ul></ul><ul><ul><li>Standards and interpretations approved by the IASB </li></ul></ul><ul><ul><li>Interpretations of IFRIC and its predecessor the SIC </li></ul></ul>25,000 pages vs 2,000 pages
    20. Private Company Financial Reporting <ul><li>A new wrinkle in the debate </li></ul>This is a very significant discussion point
    21. Questions? <ul><li>What happens when FASB moves to IASB? </li></ul><ul><li>FAF Funding goes to IASB </li></ul><ul><li>Who funds GASB? </li></ul><ul><li>Who funds US private company standards (GAAP)? </li></ul>
    22. CPAs in Business, Industry, Gov’t & NFP 2008 ISSUE
    23. Top 6 Issues facing business <ul><li>Financing and credit crunch </li></ul><ul><li>Keeping up with Technology </li></ul><ul><li>Workforce and People Shortage </li></ul><ul><li>Rising Health Care Costs </li></ul><ul><li>Rising Energy Costs </li></ul><ul><li>Rising Taxes </li></ul>
    24. Private Company Trends per CEOs Source: 2007 Private Company Index Report by Entrex Lean Operations Workforce
    25. CFO Competencies Needed <ul><li>Change Management (C) </li></ul><ul><li>Strategic Ability (S) </li></ul><ul><li>Critical Thinking (S) </li></ul><ul><li>Business Perspective (C) </li></ul><ul><li>Organizational Agility (C) </li></ul><ul><li>Dealing with Ambiguity (S) </li></ul><ul><li>Communication & Leadership </li></ul><ul><li>Strategic & Critical Thinking </li></ul><ul><li>Focus on the Customer, Client, and Market </li></ul><ul><li>Interpretation of Converging Information </li></ul><ul><li>Technologically adept </li></ul>C – Catalyst S - Strategist
    26. CPAs in Practice 2008 ISSUE
    27. PCPS MAP Survey
    28. Top 5 Reasons to Join a Firm <ul><li>Career Growth </li></ul><ul><li>Paid Time Off </li></ul><ul><li>Salary </li></ul><ul><li>Respect for Company Mission </li></ul><ul><li>Challenging Work </li></ul>
    29. Top 5 Reasons they Stay <ul><li>Respect for Company Mission </li></ul><ul><li>Career Growth </li></ul><ul><li>Salary </li></ul><ul><li>Management Style </li></ul><ul><li>Challenging Work </li></ul>
    30. 4 Generations in the Workplace 2008 ISSUE
    31. Talkin’ bout my generation
    32. Pipeline - Good News 20% avg increase in Graduates & enrollments!
    33. Staff Shortage + Four Generations in workplace = Trouble! Staff Shortage
    34. Four Generations in the Workplace <ul><li>Matures – 1909-45 </li></ul><ul><li>Boomers – 1946-64 </li></ul><ul><li>Gen X – 1965-80 </li></ul><ul><li>Millennials - 1981 + up (Y2K, Netgen, Echo-boom, Gen Y) </li></ul><ul><li>Which one are you? </li></ul>Issue: Generation Differences
    35. The Matures (born prior to 1946) <ul><li>Duty, honor, country </li></ul><ul><li>Dedication, sacrifice </li></ul><ul><li>Conformity, blending, unity – “We First” </li></ul><ul><li>Patience </li></ul><ul><li>Hard, hard times then prosperity </li></ul><ul><li>National pride </li></ul><ul><li>Doing a good job was most important </li></ul><ul><li>Age = Seniority </li></ul>
    36. The Baby Boomers (’46 to ’64) <ul><li>Work ethic = Worth. “Workaholic” </li></ul><ul><li>Competitive </li></ul><ul><li>Success is largely visible – trophies, plaques, certificates, etc. </li></ul><ul><li>Optimistic </li></ul><ul><li>Consumers </li></ul><ul><li>Defined by their work </li></ul><ul><li>We are the world, We are the children </li></ul>
    37. Generation X (’65 to ’79) <ul><li>Question authorities. </li></ul><ul><li>Their heroes are people they’ve met; that they know. </li></ul><ul><li>Raised as their parent’s friends. </li></ul><ul><li>Saw lifelong employment end – don’t believe it will happen to them. </li></ul><ul><li>Can be cynical. Can be pessimistic. </li></ul><ul><li>Time horizons are shorter than the Boomers or Matures. </li></ul><ul><li>Time is a currency. </li></ul><ul><li>Carpe Diem approach – Seize the day! </li></ul><ul><li>“ Prove it to me.” </li></ul>
    38. Millennials (Since 1980) <ul><li>Individuals w/ a group orientation (team?) </li></ul><ul><li>Optimistic </li></ul><ul><li>Programmed. Coddled. Well looked after. </li></ul><ul><li>Hard time focusing on anything. </li></ul><ul><li>Busy & stressed at a young age. </li></ul><ul><li>Like “X”, raised as their parent’s friends. </li></ul><ul><li>Are not adults. Are not adolescents. “Adultolescent” phase. </li></ul><ul><li>“ Future” is very short term. </li></ul><ul><li>Huge goals. Clueless on the execution. </li></ul><ul><li>Smartest generation + 20 IQ </li></ul>
    39. Biggest Issue Facing NYPNs <ul><li>Bridging the Gap between college & real world </li></ul><ul><li>Under-Developed Skill Sets </li></ul><ul><ul><li>Leadership & Communication </li></ul></ul><ul><ul><li>Time Management & Organization </li></ul></ul><ul><ul><li>Analytical Skills </li></ul></ul><ul><ul><li>Technical Skills </li></ul></ul><ul><li>Work-Life Balance </li></ul><ul><li>Limited Networking Opportunities </li></ul><ul><li>Intimidation </li></ul><ul><li>CPA Exam </li></ul><ul><li>Lack of a Voice in Profession </li></ul>
    40. Deloitte’s Global Workforce Advice <ul><li>• Long-term career development and multiple experiences within a single organization </li></ul><ul><li>• Sense of purpose and meaning in work </li></ul><ul><li>• 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.) </li></ul><ul><li>• Work-life flexibility </li></ul><ul><li>• Tech-savvy work environment (for example, access to online problem-solving and learning tools) </li></ul><ul><li>• Open social networks that embrace open and honest communication </li></ul>Source Deloitte Global Manufacturing survey
    41. The Maryland Perspective 2008 ISSUE
    42. KEY GOALS/ RESULTS PROJECTS/ STRATEGIES PRODUCTS/ SERVICES/ SITES PEOPLE KEY EVENTS LEARNING MACPA Founded 1901 Dateline Gov. John Smith signs CPA Bill April 10, 1900 MACPA first attempt to rights to audit MACPA passes 1924 Law 1900 1987 1974 1976 In the Beginning... Maryland becomes the 1 st state to restrict practice for CPAs 1901 Larry Kamanitz chairs Legislative Committee AG opinion of 1981 Grants rights to non-CPAs for Reviews & Comps. MACPA Passes Mandatory CPE Bill Sarbanes-Oxley Act of 2002 Max Teichman, Frank Blacklock & William Rogers HB 1296 Mobility Passes Quality Review Legislation fails 150 Hours Ed Requirement passes Effective date is January 1, 1999 • CPA Bill signed April 10, 1900 • MD is 3 rd state (NY & PA) 1922 1924 1981 2005 HB 1261 re-writes CPA Law - 1986 MACPA amendments to ed requirements fail Dawson Grove chairs Legislative Committee Allen Deleon chairs Legislative Committee <ul><li>Rights & Recognition </li></ul><ul><li>Privilege of Self-Regulation </li></ul><ul><li>Right to Sole Control over an Area of Practice </li></ul>History of CPA Legislation 1993 2006 2003 UAA MACPA passes 1 yr Experience Requirement 2007 2008 2001 1999 SB 560 Defeated Maryland Corporate Accountability Act MACPA requests reversal of AG Opinion – “This is not an audit” language added Terry Hancock chairs Legislative Committee MACPA Forms Task Force and surveys members 88% Sub Equivalency 76% Peer Review & Safe Harbor 68% Non-CPA Ownership State Board of Accountancy formed UAA MACPA passes non-CPA Ownership Computerized CPA exam Separate Fund Bill passed Maryland Special Session Oct – Nov 07 MACPA defeats Sales Tax on Services Amends Corporate Tax Reporting Bill from special session State Board passes qualify Peer Review for CPE credit MACPA wins use of “consultants” in firm letterhead at State Board Accounting Reform task Force addresses SOX State Board Hearing May 1, 2003 New simpler CPA exam Education Rules HB 1223 Mandatory Peer Review Maryland Association of CPAs MACPA stops several attempts to amend 1924 law MACPA tries to pass CPE Bill in 1974 & 1975 Interstate Practice & Uniform Accountancy Act Rise of special interests & non-CPAs Non-CPAs begin attempts at 2 nd Tier license 1993 MACPA passes MD LLC & LLP Acts
    43. WA 2008 OR CA NV ID 2008 MT ND SD WY UT 2008 CO AZ NM 2008 AK HI TX OK KS NE MN IA MO AR LA 2007 MS 2008 AL GA FL WI IL MI IN KY 2008 TN SC NC VA WV 2008 OH PA NY VT ME NH MA RI NJ DE MD CT States with Mobility Enacted or Legislation Introduced 40 States are moving toward uniform mobility for CPAs! DC Expected in 2009 Legislation Pending Mobility Enacted Mobility Enacted 28 Legislation Pending 2 Expected in 2009 10 AICPA –NASBA September, 2008 2007 2007 2007 2007 2007 2007 1961 2002 1999 2006 17 States have passed this in 2008! PR Opposition by unlicensed accountants
    44. Web 2.0 continues to grow Try this professional networking site www.CPALEARNING2.com www.linkedin.com
    45. 1,373 1,818 399 8,047 Connect Primary School Student College Student CPA Exam Candidate CPA MACPA CPA NYPN MACPA CPA Career Paths Engaged Retiree <ul><li>Awareness </li></ul><ul><li>Competencies </li></ul><ul><li>Financial literacy </li></ul><ul><li>Awareness </li></ul><ul><li>Competencies </li></ul><ul><li>Career information </li></ul><ul><li>Choice of Major </li></ul><ul><li>Shift from accounting </li></ul><ul><li>to CPA </li></ul><ul><li>awareness </li></ul><ul><li>Drive to CPA Exam </li></ul><ul><li>Reach employment influencers </li></ul><ul><li>Career changers </li></ul><ul><li>Brand awareness </li></ul><ul><li>Professional pride </li></ul><ul><li>Professional affiliation </li></ul><ul><li>Market recognition and rewards </li></ul><ul><li>Drive to join </li></ul><ul><li>Young CPAs </li></ul><ul><li>Career </li></ul><ul><li>pathing </li></ul><ul><li>Professional pride and affiliation </li></ul><ul><li>Preferred source of information </li></ul><ul><li>MACPA as </li></ul><ul><li>career partner </li></ul><ul><li>Professional development </li></ul><ul><li>Maintain brand affiliation/equity </li></ul><ul><li>Follow/plot career paths </li></ul><ul><li>Mentoring </li></ul><ul><li>Mining intellectual capital </li></ul>
    46. What you can do to promote the CPA? <ul><li>Understand the “new” CPA Exam </li></ul><ul><ul><li>New Educational Requirements </li></ul></ul><ul><li>Encourage MACPA candidate membership </li></ul><ul><li>Use CPA Exam tracking tool to track employees progress </li></ul><ul><li>Support the swearing-in ceremony </li></ul><ul><li>Create / reinforce firm/company culture that celebrates CPAs </li></ul>update
    47. CPA Exam changes <ul><li>Paper-based </li></ul><ul><li>2 x year May & November </li></ul><ul><li>5 sections </li></ul><ul><li>Computerized </li></ul><ul><li>Anytime </li></ul><ul><li>2 months per quarter </li></ul><ul><li>Pass all sections in 18 months (to keep passed sections) </li></ul><ul><li>4 sections </li></ul><ul><li>70% new content! </li></ul>Then: Now: update
    48. Steps to become a CPA <ul><li>Get Accounting Education – 150 hours </li></ul><ul><li>Sit for & Complete CPA Exam </li></ul><ul><li>Take AICPA Ethics self-study & report grades to State Board </li></ul><ul><li>Complete 2,000 hour experience requirement (interning counts) RPE form </li></ul><ul><li>Take the official oath at the Swearing-in Ceremony </li></ul>
    49. What are the four parts of the “new” CPA Exam? <ul><li>Auditing & Attestation </li></ul><ul><li>Business Environment Concepts </li></ul><ul><li>Financial Accounting & Reporting </li></ul><ul><li>Regulation </li></ul>The “New” CPA exam update
    50. 2. Promote the CPA license June 16, 2009 At the Maryland Business & Accounting Expo Maryland DLLR Swearing-in of new CPAs
    51. New / Young Professionals NYPN All member holiday party Maryland Zoo (in Baltimore) December 4, 2008 “ CPE - Certified Penguin Extravaganza”
    52. “ CPAs ARE the DISCIPLINE in business!” Jim Collins
    53. Managing in Turbulent Times <ul><li>Context - Understand the “brutal facts of your reality” </li></ul><ul><li>Strengths Challenges Opportunities & Threats – Differentiate yourself for high leverage opportunities </li></ul><ul><li>Envision your future </li></ul><ul><li>Manage for today & tomorrow </li></ul><ul><ul><li>Liquidity (balance sheet </li></ul></ul><ul><ul><li>Productivities – 3 types of IC (human, structural & social) </li></ul></ul><ul><ul><li>Costs of the future </li></ul></ul>
    54. Connect – Protect - Achieve! “ Association members earn, on average, $10,000 more per year than non-members” And “ 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
    55. Tom Hood, CPA.CITP CEO Maryland Association of CPAs Business Learning Institute (443) 632-2301 E-mail tom@macpa.org

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