Professional Issues Update
    Spring 2009 Edition
         Tom Hood, CPA.CITP
       CEO & Executive Director
     Maryla...
The Formula that blew up our 401(k)s




Source: Wired magazine 17.03 March, 2009
Bernard Madoff
                         Law of Intractable Systemic Corruption

                     Any significant breac...
This is the key question –
What will the new normal look like?
“It is increasingly clear that the current
   downturn is fundamentally different from
   recessions of recent decades. We...
Emergency Economic Stabilization Act of 2008

• Signed into law on October 3, 2008
• $700 Billion
• TARP (Troubled Assets ...
ARRA – American Recovery & Reinvestment Act of 2009
The new normal – Wall Street?
 1920 - 2008      2008 - ????
Source: Dr. Anirhban Basu
Mega-trends
1. Regulations &
   Standards
2. Globalization   Economic Meltdown
3. Workforce         – More Government
4. T...
MACPA is here for you
                              But a time of turbulence is also one of great opportunity
            ...
Our Agenda - The New Normal?
• The Mega-trends
  – Regulations &
    Standards
  – Globalization
  – Workforce
  – Technol...
Regulations & Standards
the basic physical and organizational
   structures needed for the operation of a
            society or enterprise
The in...
CPA Profession in the Spotlight
Fair Value Accounting under fire?
What is under the CPA Profession?
Federal Laws & Regulations –
  SEC, DOL, Treasury, GAO, PCAOB

   CPA Profession Standards – AICPA
   & FASB, GASB, FASAB,...
Another View
                                                  Int’l Company
              Public Company   Private Compan...
US Treasury




MD Comptroller
MD Comptroller




MD Comptroller




                                                     ...
A Tale of Two Frauds
Then : December, 2001   Now : December, 2008
Madoff’s auditor
   • Sole Practitioner
   • Accused of issuing audits of Madoff Securities
   • Lied on AICPA membership ...
Satyam + PWC




  Ramalinga Raju – CEO created $40 billion in
  fake billing and cash
  PWC auditors missed cash accounts?
Changes in our Infrastructure




The Infrastructure for the CPA Profession is maintained by your
                    Prof...
The Obama Cabinet
The year of the REGULATOR




 Timothy Geithner,        Paul Volcker,   Mary Schapiro,
  Secretary of th...
Massive Changes in our Regulatory Structure
First PCAOB now FAOB?




   New 5 member oversight board
 proposed by Congress – March 6th,
              2009
The Real Costs of Changing
FMV?
“Confidence, trust, and numbers that investors
can believe in are the stuff that make or b...
Standards Changes
•   AS 5 - PCAOB
•   IRFS – SEC International gets legs
•   Fair Value Accounting
•   XBRL – SEC mandato...
US Treasury




MD Comptroller
 MD Comptroller




MD Comptroller




                                                    ...
Improving Your Infrastructure –
The CPA License
• Initial Licensure
    – Transfer of Grades
•   Temporary Practice (mobil...
History of CPA Legislation
 KEY                     In the
                       Beginning...
                           ...
Meet Bill…
                             • Bill files tax returns in 9
                             states + Maryland
     ...
Meet Jane…
             • She is a CFO of a mid-
               size company operating
               in 5 states with ori...
Meet James…
              • James is a CFO of a
              public company
              • He let his CPA license
      ...
Mobility passes Senate
April 7th @ 10:44 pm
And HB 1296
CPA Mobility Legislative Activity 2009



                       WA
                                                      ...
Leg / Reg Changes you
need to know!
 New Mobility Law
 Maryland Individual Tax Preparer Act
 New Corporate Reporting Re...
What you (and the world) would miss if MACPA went away…
Globalization
IFRS – International
Financial Reporting Standards




            Not if but when…
            Goodbye GAAP?
Think about ...
SEC Roadmap released
Early adopters                    Large
can file using                  Accelerated
                 ...
Corporate Conversion Timeline
Convergence ≠ Sameness

      US GAAP                       IFRS
       – Rules based                 – Principles based
 ...
Private Company Reporting
1. IFRS with Private Entities Option
2. U.S. Adapted version of Private
   Entities
3. IFRS with...
Questions?

• What happens when FASB moves to
  IASB?
• FAF Funding goes to IASB
• Who funds GASB?
• Who funds US private ...
Pipeline / Workforce
Pipeline - Good News
                    20% avg increase in
                  Graduates & enrollments!
Promoting the CPA Career




              New/Young
 Tomorrows
                             MACPA
             Profession...
Four Generations in the Workplace
               Issue: Generational Differences


•   Matures – 1909-45
•   Boomers – 194...
The Benjamin Buttons Paradox
Staff Shortage + Four
Generations in workplace =
Trouble!
 90,000,000
 80,000,000
                                    Staf...
Biggest Issue Facing NYPNs
 • Bridging the Gap between college & real world
 • Under-Developed Skill Sets
    – Leadership...
Meet the NYPNs…
Remember when you were „made‟ to be a
member of MACPA & AICPA?




  According to the William E. Smith stu...
Deloitte‟s Global Workforce Advice
• Long-term career development and multiple
   experiences within a single organization...
CPA Exam changes

  Then:                 Now:
• Paper-based      • Computerized
• 2 x year May &   • Anytime
  November  ...
Steps to become a CPA
1. Get Accounting Education – 150 hours
2. Sit for & Complete CPA Exam
3. Take AICPA Ethics self-stu...
Promote the CPA license
   Maryland DLLR Swearing-in of new CPAs




       Next ceremony - June 16, 2009
At the Maryland ...
Meet Karen…
              • Recent graduate from U
                of MD
              • She has 150 hours but
           ...
New CPAs in Maryland – Filling the Pipeline
350


300
                                                     291
250

      ...
Technology
“As it relates to science and technology, the
 rate of change in the next decade, is likely
    to be 4 to7 times faster t...
Guardians cannot keep up with Commerce
   “Even the regulators can't
  keep up. A Senate study in
    2002 found that the ...
Transparency Now! – A Wired Manifesto




                                           www.xbrl.org
Source: Wired magazine 1...
Enhanced Business Reporting




         www.ebr360.com
Technology & Web 2.0
By 2010, Millenials/Gen Y-ers will outnumber
              Baby Boomers.
“If you think about the media
    environment an average American
teenager lives in, to walk into a classroom
 (or one of ...
Meet the Gaming Generation
• Games make it easier to understand difficult
concepts – 51%
• I would be more engaged in the ...
Five Learning Trends for 2009

1.Mobile Learning
2.DIY - Do-it-Yourself
  Learning
3.Flexible Learning
  Environments
4.Vi...
Accounting Educators in Second Life
Dr. Mike Kraten
Suffolk University
Dr. Robert Bloomfield
Cornell University
Dr. Steve ...
FASB is there!
Tools to keep you ahead of the game
                         • Listservs
                         • Podcasts
             ...
More ways to CONNECT with MACPA

 •   Linked-In – MACPA Group
 •   Facebook – NYPN Group
 •   MACPA on Twitter
 •   Tom on...
4 tips to cross the digital divide

1. Start Gaming and take a
   session in Second Life
2. Do our 33 things in 15
   minu...
High Leverage Opportunities
Who will lead us to a better future?
“CPAs ARE the
DISCIPLINE in business!”
       Jim Collins
Perceptions of CPAs Largely
                                      Consistent Across All Audiences
Rank
            BDMs La...
Image is better than pre-Enron highs
The Year of the CFO




     As financial skills are valued more
     highly, CFOs will make it to the corner
     office ...
IFRS Opportunity? – Meet Joe Box, CPA -
CFO of Joe Money Machinery
              “Well, the IASB is coming out with a
    ...
Recession Playbook




                     Two priorities:
                     1) manage your short-term
               ...
CFO Competencies Needed
• Change                       • Communication &
  Management (C)                 Leadership
• Str...
CFO Opportunities
•   Business process efficiency – LEAN
•   Cash flow & Financing
•   Risk Management
•   Budget Scenario...
Firm Opportunities

• Talent acquisition
• Succession planning
• Strengthen value-added relationship with
  clients (cash ...
Transparency & Accountability
                                                “Publicity is justly
                       ...
Sustainability – green & lean
Financial Literacy




          www.feedthepig.org
          www.360financialliteracy.org
So what are we doing for you?
Six ways to help you weather the storm
1.   24 Hours of Free CPE
2.   New Career Center
3.   Economic Resource Center
4.  ...
MDBIZEXPO June 16th & 17th, 2009




                   www.mdbizexpo.com
Managing in Turbulent Times
1. Context - Understand the “brutal facts of
   your reality”
2. Strengths Challenges Opportun...
“You must never confuse faith that you
                                                                           will pre...
Connect – Protect - Achieve!
                         “Association members
                       earn, on average, $10,00...
Tom Hood, CPA.CITP
            CEO
Maryland Association of CPAs
 Business Learning Institute
       (443) 632-2301
   E-ma...
Maryland Association of CPAs – founded 1901 to
promote and protect CPAs and help them thrive in
the rapidly changing envir...
MACPA PIU - Spring 2009
MACPA PIU - Spring 2009
MACPA PIU - Spring 2009
MACPA PIU - Spring 2009
MACPA PIU - Spring 2009
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MACPA PIU - Spring 2009

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MACPA Professional Issues Update - Spring 2009 edition. Preso covers major trends affecting the CPA profession including the economic crisis, globalization, regulation/standards, technology, workforce, and Maryland legislative & regulatory developments

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MACPA PIU - Spring 2009

  1. Professional Issues Update Spring 2009 Edition Tom Hood, CPA.CITP CEO & Executive Director Maryland Association of CPAs
  2. The Formula that blew up our 401(k)s Source: Wired magazine 17.03 March, 2009
  3. Bernard Madoff Law of Intractable Systemic Corruption Any significant breach of a syndrome’s integrity (Government & Commerce) – usually by adopting an inappropriate function – causes some normal virtues to convert automatically to vices, and still others to bend and break for necessary expedience. Over the course of time, corrupted organizations accumulate in society. Without correction, the accompanying rancid cooperation blurs more than the afflicted organizations. -Jane Jacobs – Systems of Survival Ponzi scheme of $ 50 billion Facing 150 years in prison
  4. This is the key question – What will the new normal look like?
  5. “It is increasingly clear that the current downturn is fundamentally different from recessions of recent decades. We are experiencing not merely another turn of the business cycle, but a restructuring of the economic order.” – Ian Davis, McKinsey Quarterly March, 2009 You are not alone
  6. Emergency Economic Stabilization Act of 2008 • Signed into law on October 3, 2008 • $700 Billion • TARP (Troubled Assets Relief Program
  7. ARRA – American Recovery & Reinvestment Act of 2009
  8. The new normal – Wall Street? 1920 - 2008 2008 - ????
  9. Source: Dr. Anirhban Basu
  10. Mega-trends 1. Regulations & Standards 2. Globalization Economic Meltdown 3. Workforce – More Government 4. Technology – Less Leverage /Credit Crunch
  11. MACPA is here for you But a time of turbulence is also one of great opportunity for those who can understand, accept and exploit the new realities. It is above all a time of opportunity for leadership. - Peter Drucker, Managing in Turbulent Times Our goal is for us to survive this recession together and position you, our members for the recovery. The power of your Profession is ready to work for you!
  12. Our Agenda - The New Normal? • The Mega-trends – Regulations & Standards – Globalization – Workforce – Technology • Opportunities • So what we are doing for you • Tools for surviving & thriving
  13. Regulations & Standards
  14. the basic physical and organizational structures needed for the operation of a society or enterprise The infrastructure for the free market was found to be in disrepair in this latest market crisis and the CPA profession is a critical component
  15. CPA Profession in the Spotlight
  16. Fair Value Accounting under fire?
  17. What is under the CPA Profession?
  18. Federal Laws & Regulations – SEC, DOL, Treasury, GAO, PCAOB CPA Profession Standards – AICPA & FASB, GASB, FASAB, IASB, IFAC State CPA Statutes police power of the states to protect their citizens vs commerce clause
  19. Another View Int’l Company Public Company Private Company SEC IASB Financial FASB Reporting FASB IFRS Attest AICPA PCAOB IAASB Performance Standards ASB Code of AICPA AICPA IFAC Conduct PEEC PEEC CPA State Oversight & Enforcement of CPA License Licensure
  20. US Treasury MD Comptroller MD Comptroller MD Comptroller CAQ Courtesy of the Maryland Association of CPAs – 2008 edition Drawing by Carol Kirwan, CPA
  21. A Tale of Two Frauds Then : December, 2001 Now : December, 2008
  22. Madoff’s auditor • Sole Practitioner • Accused of issuing audits of Madoff Securities • Lied on AICPA membership renewal about peer review David Friehling, CPA faces 105 years in prison For issuing false audit reports
  23. Satyam + PWC Ramalinga Raju – CEO created $40 billion in fake billing and cash PWC auditors missed cash accounts?
  24. Changes in our Infrastructure The Infrastructure for the CPA Profession is maintained by your Professional Associations AICPA & State CPA societies (MACPA)
  25. The Obama Cabinet The year of the REGULATOR Timothy Geithner, Paul Volcker, Mary Schapiro, Secretary of the Chair, Economic Recovery SEC Chief Treasury Advisory Board Gary Gensler, Ben Bernanke, Sheila Bair, Chair, Federal Chair, Commodity Futures Chair, FDIC Trading Commission Reserve Board
  26. Massive Changes in our Regulatory Structure
  27. First PCAOB now FAOB? New 5 member oversight board proposed by Congress – March 6th, 2009
  28. The Real Costs of Changing FMV? “Confidence, trust, and numbers that investors can believe in are the stuff that make or break the capital markets. When investors question the validity of numbers, they sell and wait, rather than buy and invest. Yet those charged with building confidence and trust and presenting numbers that can be believed are under sustained attack -- and they are losing.” - Arthur Levitt, Weakening a Market Watchdog in Washington Post – March 26, 20009
  29. Standards Changes • AS 5 - PCAOB • IRFS – SEC International gets legs • Fair Value Accounting • XBRL – SEC mandatory • Codification Project – FASB • Clarity Project – ASB – Convergence with international – Risk-based standards already in int‟l format (SAS 104-111) • SAS 112 Communication • Internal Control – COSO • Fin 48 delay • Delay of SOX 404 for “small” caps
  30. US Treasury MD Comptroller MD Comptroller MD Comptroller CAQ Courtesy of the Maryland Association of CPAs – 2008 edition Drawing by Carol Kirwan, CPA
  31. Improving Your Infrastructure – The CPA License • Initial Licensure – Transfer of Grades • Temporary Practice (mobility) • Reciprocal License – 4 in 10 • Reinstatement – requires 80 hours of CPE • Built around „substantial equivalency‟
  32. History of CPA Legislation KEY In the Beginning... Rights & Recognition Max Teichman, GOALS/ •Privilege of Self- RESULTS Frank Blacklock & AG opinion of 1981 Regulation SB 560 Defeated William Rogers Grants rights to non- Maryland Corporate •Right to Sole Control CPAs for Reviews & Accountability Act over an Area of Practice Comps. MACPA requests HB 1296 reversal of AG Opinion – “This is not an audit” Mobility language added • CPA Bill signed April 10, 1900 Passes PROJECTS/ MACPA wins use of • MD is 3rd state (NY & PA) STRATEGIES “consultants” in firm Maryland letterhead at State Special Board Session State Board of Accounting Oct – Nov 07 Accountancy Reform task formed Maryland Force KEY EVENTS MACPA defeats Sales addresses becomes the 1st SOX Tax on Services HB 1261 re-writes state to restrict State Board Hearing CPA Law - 1986 May 1, 2003 Amends Corporate Tax practice for CPAs MACPA amendments Reporting Bill from to ed requirements fail special session PEOPLE MACPA Forms Task Force and New simpler CPA surveys members exam Education Rules 88% Sub Equivalency 76% Peer Review & Safe Harbor 68% Non-CPA Ownership Terry Hancock chairs Legislative PRODUCTS/ Larry Kamanitz Dawson Grove Committee Allen Deleon SERVICES/ chairs Legislative SITES chairs Legislative chairs Legislative Committee Committee Committee Dateline 1900 1901 1922 1924 1974 1976 1981 1987 1993 1999 2001 2003 2005 2006 2007 2008 35 Maryland Association of CPAs
  33. Meet Bill… • Bill files tax returns in 9 states + Maryland • Last year he would have required additional state licenses in all states (except OH, VA, MO, WI) • He would have had to register as a tax advisor (est $250) • He would have to report to two state boards with different CPE requirements • He would have had to charge & collect sales taxes What would this cost you? on his accounting & tax services
  34. Meet Jane… • She is a CFO of a mid- size company operating in 5 states with original license in Virginia • Last year she would have faced a $1,500,000 penalty and 5 years in jail • Had to implement Fin 48 • Pay sales tax on all accounting, tax, and computer services • Could use CPA and not get her MD license without taking 150 hours
  35. Meet James… • James is a CFO of a public company • He let his CPA license lapse • He was told he cannot get his license reinstated • He has to make sure his accounting team complies with SOX • Last year he would have faced a $1,500,000 penalty and 5 years in jail • Pay sales tax on all accounting, tax, and computer services
  36. Mobility passes Senate April 7th @ 10:44 pm
  37. And HB 1296
  38. CPA Mobility Legislative Activity 2009 WA VT ME MT ND MN OR NH ID WI SD MA NY WY MI CT RI IA PA NE NV NJ UT OH DE IN IL WV CO CA VA MD KS MO KY DC NC AZ TN OK AR SC NM MS AL GA AK TX LA PR HI FL GU V 2009 -2010 Anticipated Legislative Mobility Enacted - 32 No Formal Activity Activity Legislation Introduced 7 Mobility Enacted Only for Other Awaiting Governor Signature 2 Mobility States -3 GA OK PA AICPA March 2009
  39. Leg / Reg Changes you need to know!  New Mobility Law  Maryland Individual Tax Preparer Act  New Corporate Reporting Requirements Peer Review Requirement – October 1st   Prevent Sales Tax on Accounting & Tax Services  Stop trial lawyers efforts at repealing contributory fault doctrine  New CPA Exam Requirements  New CPE regulations  120 – 150 hours? CPA Day in Annapolis January 28, 2009
  40. What you (and the world) would miss if MACPA went away…
  41. Globalization
  42. 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?
  43. SEC Roadmap released Early adopters Large can file using Accelerated Small-caps IFRS Filers 2016 2010 2014 2011 2015 Official SEC Accelerated filers – decision point second wave
  44. Corporate Conversion Timeline
  45. Convergence ≠ Sameness US GAAP IFRS – Rules based – Principles based – Based on a GAAP – No hierarchy, consists hierarchy (level A – D) of IASs, IFRSs & – Primary accounting interpretations standard setting body – Standards and is the FASB interpretations – Accounting guidance approved by the IASB and interpretation is – Interpretations of IFRIC provided by FASB, and its predecessor the SEC, AICPA and EITF SIC 25,000 pages vs 2,000 pages
  46. Private Company Reporting 1. IFRS with Private Entities Option 2. U.S. Adapted version of Private Entities 3. IFRS with differential reporting 4. Separate U.S. Private Co. GAAP - Revised 5. Separate U.S. GAAP- Maintained and Updated for Private Companies
  47. Questions? • What happens when FASB moves to IASB? • FAF Funding goes to IASB • Who funds GASB? • Who funds US private company standards (GAAP)?
  48. Pipeline / Workforce
  49. Pipeline - Good News 20% avg increase in Graduates & enrollments!
  50. Promoting the CPA Career New/Young Tomorrows MACPA Professionals CPA.org Network
  51. Four Generations in the Workplace Issue: Generational Differences • Matures – 1909-45 • Boomers – 1946-64 • Gen X – 1965-80 • Millennials - 1981 + up (Y2K, Netgen, Echo-boom, Gen Y) Which one are you?
  52. The Benjamin Buttons Paradox
  53. Staff Shortage + Four Generations in workplace = Trouble! 90,000,000 80,000,000 Staff 70,000,000 Shortage 60,000,000 50,000,000 40,000,000 30,000,000 20,000,000 10,000,000 0 Matures Boomers X'ers Millenials
  54. Biggest Issue Facing NYPNs • Bridging the Gap between college & real world • Under-Developed Skill Sets – Leadership & Communication – Time Management & Organization – Analytical Skills – Technical Skills • Work-Life Balance • Limited Networking Opportunities • Intimidation • CPA Exam • Lack of a Voice in Profession
  55. Meet the NYPNs… Remember when you were „made‟ to be a member of MACPA & AICPA? According to the William E. Smith study of Association value: Benefits to the professionals and their employers include higher morale, increased employer loyalty, networking, professional development, leadership experience, professional community and big-picture thinking.
  56. Deloitte‟s Global Workforce Advice • Long-term career development and multiple experiences within a single organization • Sense of purpose and meaning in work • Availability and access to mentors across the company. (The focus should not only be on making senior staff mentor younger associates, but also ensuring that people connect and share experiences across all levels of the organization, and across relevant departments and areas of expertise.) • Work-life flexibility • Tech-savvy work environment (for example, access to online problem-solving and learning tools) • Open social networks that embrace open and honest communication Source Deloitte Global Manufacturing survey
  57. CPA Exam changes Then: Now: • Paper-based • Computerized • 2 x year May & • Anytime November • 2 months per quarter • 5 sections • Pass all sections in 18 months (to keep passed sections) • 4 sections • 70% new content!
  58. Steps to become a CPA 1. Get Accounting Education – 150 hours 2. Sit for & Complete CPA Exam 3. Take AICPA Ethics self-study & report grades to State Board 4. Complete 2,000 hour experience requirement (interning counts) RPE form 5. Take the official oath at the Swearing-in Ceremony
  59. Promote the CPA license Maryland DLLR Swearing-in of new CPAs Next ceremony - June 16, 2009 At the Maryland Business & Accounting Expo
  60. Meet Karen… • Recent graduate from U of MD • She has 150 hours but missed a oral communication course and has wrong ethics course • She does not know what the rules are or when to sit • She is thinking about sitting in Delaware or Virginia to get around rules
  61. New CPAs in Maryland – Filling the Pipeline 350 300 291 250 236 200 194 166 150 100 74 50 0
  62. Technology
  63. “As it relates to science and technology, the rate of change in the next decade, is likely to be 4 to7 times faster than in the last decade. If it is 4x faster it would be like planning for 2006 in 1890, if it is 7x faster it would be like planning for 2006 in 1670.” -Expert on Education Panel, The Aspen Institute, 2007
  64. Guardians cannot keep up with Commerce “Even the regulators can't keep up. A Senate study in 2002 found that the SEC had managed to fully review just 16 percent of the nearly 15,000 annual reports that companies submitted in the previous fiscal year; the recently disgraced Enron hadn't been reviewed in a decade.quot; Source: Wired magazine 17.03 March, 2009
  65. Transparency Now! – A Wired Manifesto www.xbrl.org Source: Wired magazine 17.03 March, 2009
  66. Enhanced Business Reporting www.ebr360.com
  67. Technology & Web 2.0 By 2010, Millenials/Gen Y-ers will outnumber Baby Boomers.
  68. “If you think about the media environment an average American teenager lives in, to walk into a classroom (or one of our Associations) that doesn’t have any of that media must be like walking into a desert.” – Steve Maher, High School teacher PBS Special “Growing Up On-line”
  69. Meet the Gaming Generation • Games make it easier to understand difficult concepts – 51% • I would be more engaged in the subject – 50% • I would learn more about the subject – 46% (56% of students in K-2 chose this as their #1 reason) • It would be more interesting to practice problems – 44% Source: Project Tomorrow – Speak Up 2007 report
  70. Five Learning Trends for 2009 1.Mobile Learning 2.DIY - Do-it-Yourself Learning 3.Flexible Learning Environments 4.Virtual Worlds 5.Games & Simulation Chief Learning Officer Magazine – January 2009
  71. Accounting Educators in Second Life Dr. Mike Kraten Suffolk University Dr. Robert Bloomfield Cornell University Dr. Steve Hornik University of Central Florida
  72. FASB is there!
  73. Tools to keep you ahead of the game • Listservs • Podcasts • Blogs – CPASuccess.com – NewCPAs.com – TCPAblog.com – CPALegislativeinsider.com – CPAIsland.com – SLACPA.org – CPALearning2.com MACPA.org -> Resources - > Communications
  74. More ways to CONNECT with MACPA • Linked-In – MACPA Group • Facebook – NYPN Group • MACPA on Twitter • Tom on Twitter • Bill on Twitter • Youtube videos from MACPA • Slideshare • Visit us in Second Life
  75. 4 tips to cross the digital divide 1. Start Gaming and take a session in Second Life 2. Do our 33 things in 15 minutes a day www.cpalearning2.com 3. Get an iPod and listen to our cool podcasts – CPA Spotlight 4. Check out our blogs and post a comment or subscribe in a blog reader (RSS)
  76. High Leverage Opportunities
  77. Who will lead us to a better future?
  78. “CPAs ARE the DISCIPLINE in business!” Jim Collins
  79. Perceptions of CPAs Largely Consistent Across All Audiences Rank BDMs Large Biz BDMs Sm-Med Biz Investors CPAs YPs 1 Has integrity Competent Competent Has integrity Competent 2 Competent Has integrity Has integrity Competent Has integrity Able to synthesize Able to synthesize 3 information from multiple Objective Objective Objective information from multiple sources sources Able to synthesize Able to synthesize Able to synthesize 4 Objective information from multiple information from multiple information from multiple Able to see the big picture sources sources sources 5 Focused on client needs Focused on client needs Focused on client needs Focused on client needs Objective Able to identify potential Able to identify potential Able to identify potential 6 Able to see the big picture Focused on client needs problems before they happen problems before they happen problems before they happen Able to identify potential 7 Technologically adept Technologically adept Technologically adept Demonstrates leadership problems before they happen Able to identify potential 8 Communicates effectively Able to see the big picture Able to see the big picture Demonstrates leadership problems before they happen 9 Able to see the big picture Communicates effectively Communicates effectively Technologically adept Technologically adept 10 Demonstrates leadership Demonstrates leadership Creative and innovative Communicates effectively Communicates effectively 11 Creative and innovative Creative and innovative Demonstrates leadership Creative and innovative Creative and innovative
  80. Image is better than pre-Enron highs
  81. The Year of the CFO As financial skills are valued more highly, CFOs will make it to the corner office in greater numbers than before. Recession, credit crunch and the increasingly complex nature of global companies will all play directly into the bean counter‟s hands. Source: The Economist Magazine The World in 2009 Nov, 2008
  82. IFRS Opportunity? – Meet Joe Box, CPA - CFO of Joe Money Machinery “Well, the IASB is coming out with a simplified version for private companies. With IFRS, you mark-to-market more assets. We're a 72-year-old company that has real estate on our books at historical cost, so there could be a big benefit in IFRS based on the substantially higher fair market value for that property. Any private- company CFO should be knowledgeable about it, to determine whether to consider adoption.” “But even more importantly, it has been my objective that our key bankers consider me knowledgeable in the issues important to their commercial portfolio. XBRL is another one.”
  83. Recession Playbook Two priorities: 1) manage your short-term credit, cash and performance needs 2) effectively position and utilize assets with an eye toward post-recession growth.
  84. CFO Competencies Needed • Change • Communication & Management (C) Leadership • Strategic Ability (S) • Strategic & Critical Thinking • Critical Thinking (S) • Focus on the • Business Customer, Client, and Perspective (C) Market • Organizational • Interpretation of Agility (C) Converging Information • Dealing with • Technologically adept Ambiguity (S) C – Catalyst S - Strategist
  85. CFO Opportunities • Business process efficiency – LEAN • Cash flow & Financing • Risk Management • Budget Scenarios • Young Professionals – reverse mentoring
  86. Firm Opportunities • Talent acquisition • Succession planning • Strengthen value-added relationship with clients (cash flow, financing & cost control) • International • Governance • Young Professionals – reverse mentoring
  87. Transparency & Accountability “Publicity is justly commended as a remedy for social and industrial diseases. Sunlight is said to be the best of disinfectants; electric light the most efficient policeman.” - Supreme Court Justice Louis Brandeis Source: Wired magazine 17.03 March, 2009
  88. Sustainability – green & lean
  89. Financial Literacy www.feedthepig.org www.360financialliteracy.org
  90. So what are we doing for you?
  91. Six ways to help you weather the storm 1. 24 Hours of Free CPE 2. New Career Center 3. Economic Resource Center 4. Shared Services Purchasing Programs 5. Maryland Business & Accounting EXPO 6. Promoting & protecting your CPA license
  92. MDBIZEXPO June 16th & 17th, 2009 www.mdbizexpo.com
  93. Managing in Turbulent Times 1. Context - Understand the “brutal facts of your reality” 2. Strengths Challenges Opportunities & Threats – Differentiate yourself for high leverage opportunities 3. Envision your future 4. Manage for today & tomorrow – Liquidity (balance sheet – Productivities – 3 types of IC (human, structural & social) – Costs of the future
  94. “You must never confuse faith that you will prevail in the end – which you can never afford to lose – with the discipline to confront the most brutal facts of your current reality, whatever they might be.” Holding those two seemingly contradictory notions in his head simultaneously was the key to Stockdale surviving, even thriving, in his experience. Admiral James Stockdale 1923- 2005 He returned home after eight years of imprisonment in the “Hanoi Hilton” during the Vietnam War
  95. 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
  96. Tom Hood, CPA.CITP CEO Maryland Association of CPAs Business Learning Institute (443) 632-2301 E-mail tom@macpa.org
  97. Maryland Association of CPAs – founded 1901 to promote and protect CPAs and help them thrive in the rapidly changing environment – 10,000 members Business Learning Institute – founded in 2000 with a mission to help organizations deliver competency- based curriculum, courses, content and community to enhance learning and grow intellectual capital for organizational and executive leadership Second Life Association of CPAs – founded in 2006 With 459 members and two islands (CPA Island & CPA Island 2) with a mission of building a community of people interested in exploring the possibilities of CPAs in Second Life

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