1 / 52

Professional Issues Update

Professional Issues Update. Presented by David Haddock, 2012-13 TSCPA Chair. Current Professional Issues. Professional Competence & Standards CPA Exam Legislative & Regulatory Relations Mobility PTIN/Tax Issues. Leadership Financial Literacy CPA Image / Public Relations.

lyn
Download Presentation

Professional Issues Update

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript


  1. ProfessionalIssues Update Presented by David Haddock, 2012-13 TSCPA Chair

  2. Current Professional Issues • Professional Competence & Standards • CPA Exam • Legislative & Regulatory Relations • Mobility • PTIN/Tax Issues • Leadership • Financial Literacy • CPA Image / Public Relations

  3. TSCPAMission & Vision The mission of the Tennessee Society of Certified Public Accountants is to enhance the success of our members through service, support and advocacy. TSCPA Vision: “To be the premier professional organization serving CPAs in Tennessee”

  4. Broad Strategic Initiatives • Promoting public awareness of the roles and the value of CPAs; • Representing the professional views of our members; • Helping to attract the best and the brightest people to the accounting profession; • Providing high-quality services and education; • Providing opportunities for members to interact at local and state levels; and • Maintaining the TSCPA as a highly-effective professional society.

  5. TSCPA Membership vs. Total Licensees in TN * Approx. 10% of licensees are non-residents of Tennessee.

  6. TSCPA Membership by Chapter

  7. TSCPA MembershipAge & Gender Breakdown women men

  8. TSCPA Members: Areas of Practice Public Practice 45% Industry 40%

  9. CPA Horizons 2025 The CPA profession taking a fresh look at the environments in which we work and live.

  10. CPA Horizons 2025 • Questions about: • Technology • Competition • IFRS • Regulation • Globalization • Human Resources • Ranking issues on a time horizon • Next Year, five years, 20 years • Validation • Core values, core competencies, core services

  11. CPA Horizons 2025

  12. Results • Education will continue to be, an extremely important aspect of the profession • Technologywill play an ever larger role in a CPAs life creating • Globalizationwill continue to progress • Demographic changes—working longer/women • Changing regulations & standards • Value for ethics, integrity and trust

  13. The Core … • Core Values and Core Competencies • Overwhelming agreement that they will remain as relevant, if not more so, in 2025 • Core Services • Majority agreed still relevant today • more attest services in 2025—not sure of what those will be • Most public firms will offer much more than audit/tax

  14. A New Credential Chartered Global Management Accountant (CGMA)

  15. Complementary Global Presence

  16. CPA Pathway: Thru January 2015 • CPAs have accelerated pathway: • Must be AICPA voting member, and • 3 years of experience working in a financial/ management accounting capacity in business industry or government, OR • 2 such years plus one 1 year of public accounting experience, OR • 3 years of experience working in a financial/ management accounting role on a consulting basis, OR • 3 years of management accounting experience gained by a U.S. CPA whose primary responsibilities are focused on the management and operation of a CPA firm.

  17. PATHWAY TO MEMBERSHIP To obtain CGMA in the US, must be a regular voting AICPA member EXPERIENCE REQUIREMENT Three years of management accounting experience are required EXAM REQUIREMENT Computer-based assessment starts in January 2015 CPA Pathway: After January 2015

  18. Private Company Financial Reporting

  19. Private Companies … Background • 15,000 issuers vs. 28.5 million private companies but GAAP is driven by public company issues • Small businesses employ more than half of all private sector workers • Private company financial statement users have information needs different from public companies

  20. decided one size does not fit all • published Accounting Standards for Private Enterprises Dec. 2009 Outside of U.S. • proposing three-tier system of financial reporting • Japan • Council on Accounting for Unlisted Companies formed to determine if changes should be made to standard-setting process for unlisted companies • UK Accounting Standards Board • IFRS for SMEs • Canadian Accounting Standards Board • being used in many areas of the world and being considered in some others

  21. U.S. Answer: Blue Ribbon Panel on Private Company Financial Reporting • Sponsored by AICPA, FAF and NASBA • 18 panel members: • cross-section of financial reporting constituencies, including lenders, investors, owners, preparers and auditors • Address how accounting standards can best meet private company financial statement users’ needs • Determine future of GAAP standard-setting process for private companies

  22. FAF’s Response • Financial Accounting Foundation Board of Trustees Establishes Private Company Council (PCC) May 30, 2012 • Held first meeting December 6, 2012

  23. PCC Duties • Two duties: • Determine exceptions/modifications to GAAP for private companies • Serve as primary advisory body to FASB on appropriate treatment for private companies for items on technical agenda • 10 members appointed 9/19/2012 Chair is Billy M. Atkinson (Texas) • FASB liaison is Daryl E. Buck

  24. October 1 November 12 PCC 2013 Meetings • February 12 • May 7 • July 16

  25. AICPA’s Response • Financial Accounting Framework for Small and Medium Size Enterprises • Chaired by David Morgan, LBMC • Exposure Draft comment period through January 2013

  26. FAF for SMEs • Separate from FAF and FASB • FAF/PCC and AICPA aimed at private company accounting, but different objectives • FAF supports FAF for SMEs/AICPA supports PCC

  27. Overview of FRF for SMEs • Special Purpose Framework (there is no OCBOA) • Addresses well-documented SME’s financial reporting issues • Reduced costs to prepare • Specifically designed to suit financial reporting needs of SMEs and their financial statement users

  28. Features of FRF for SMEs • Historical Cost Basis • Relevant--no OCI • Simplified—no derivative/hedge accounting or stock compensation • Reduced Disclosures—only what user needs • Traditional accounting with accrual income tax methods • Not authoritative

  29. Tax Return Preparer Regulation

  30. Fingerprinting for Tax Return Preparers • IRS is delaying / reconsidering its fingerprinting requirement for tax return preparers • IRS will move forward with other aspects of regulation, including: • Competency Testing • Continuing Education Requirements for preparers who are non-CPAs, attorneys or enrolled agents

  31. IRS Releases PTIN Holder Information • IRS began releasing PTIN holders’ contact information to those making requests under the Freedom of Information Act (FOIA) • PTIN holders may update their accounts (and eliminate info from FOIA request) so that only business or P.O. box information in available – www.irs.gov.

  32. Tennessee State Board of Accountancy Rule Changes

  33. Ethics CPE Requirement • Ethics requirement decreases from four hours to two hours of Tennessee specific . • Requires a Tennessee licensee living in and holding a license in another state to complete the two-hour TN state-specific requirement unless the other state has specific ethics requirements. • CPAs renewing in 2013 must comply with the new requirement of two TN-specific hours

  34. Pre-License Education • Minimum number of successfully completed pre-license accounting semester hours has changed from 24 to 30, and of the 30, 24 must be upper-division courses. • Candidates have an extension of exactly 1 year from the effective date of the new pre-license education rule to sit for the CPA exam with successful completion of only 24 semester hours of Accounting, if they were approved to sit for the exam within that one year extension.

  35. Legislative & Regulatory Issues

  36. 2012 Tennessee Legislative Actions • Inheritance Tax Phasing Out • Tennessee Gift Tax Eliminated • “Amazon Bill” Passes • Dept of Revenue moving to E-filing • Board of Accountancy “Sunset Review” will happen in 2013

  37. Thanks to Involvement of TSCPA Members • Structure of State Board of Accountancy is preserved for now • TSCPA remains involved in vetting candidates for State Board

  38. CPA Mobility • 51 jurisdictions have adopted mobility legislation – which is a practice privilege that generally permits a licensed CPA in good standing from a substantially equivalent state to practice outside of his or her principal place of business without obtaining another license. • www.cpamobility.org - provides up-to-date information on the status of CPA mobility laws across the country.

  39. Mobility Map WA VT ME MT ND MN OR NH ID WI SD MA NY WY MI CT RI IA PA NV NE NJ UT OH DE IN IL CO CA WV VA MD KS MO KY DC NC AZ TN OK SC AR NM AK MS AL GA TX LA Mobility Enacted FL HI PR GU

  40. 2012 Election Year Impact by TSCPA • Tennessee CPA/PAC Activity • TSCPA Key Contact Program • TSCPA Registered Lobbyist • TSCPA Legislative Reception (Feb. 11, 2013) • Tennessee Legislators Tax Guide

  41. TSCPA Educational & Memorial Foundation Scholarship Program

  42. TSCPA Scholarship Recipients By Year

  43. TSCPA Scholarship Amounts

  44. Scholarship Program Fundraising Efforts • TSCPA dues statement check-off • Life Associates ProgramAppalachian – 81Chattanooga – 100Elk Valley – 12Knoxville – 113Memphis – 79Nashville – 176Upper Cumberland – 16West Tennessee - 25Total – 629 Life Associates (602 is correct)

  45. Named Scholarships • Paul Royston Award –top accounting student in TN • Robert Knapp Award –top student in Shelby County • Maxie O. Patton Award –top student at Tennessee Tech • Richard L. Townsend Award – top Macc student at UTK • Will J. Pugh, Sr. Award – top overall student at UTK • Chattanooga Chapter Award • Nashville Chapter Award • Memphis Chapter Award • West Tennessee Chapter Award * Every college/university receives at least one award as long as there is a qualified candidate.

  46. King Foundation Calvin and Jean King, Memphis 1983-84 TSCPA President

  47. Connect with TSCPA

  48. Have You Checked Out the New TSCPA.com?

  49. Go Interactive with Your Tennessee CPA Journal… The new digital edition features a smooth, user-friendly interface and multimedia functionality. Visit www.tscpa.com/Content/Journal.aspx to take it for a test spin!

  50. …Or Go Mobile! • TSCPA now offers apps for the Tennessee CPA Journal for • iPad • iPhone • Kindle Fire • Android Download the app at no charge and have access to the Journal from your tablet or mobile device.

More Related