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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.

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slide1

ProfessionalIssues Update

Presented by

David Haddock,

2012-13 TSCPA Chair

current professional issues
Current Professional Issues
  • Professional Competence & Standards
  • CPA Exam
  • Legislative & Regulatory Relations
    • Mobility
    • PTIN/Tax Issues
  • Leadership
  • Financial Literacy
  • CPA Image / Public Relations
tscpa mission vision
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”

broad strategic initiatives
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.
tscpa membership vs total licensees in tn
TSCPA Membership vs. Total Licensees in TN

* Approx. 10% of licensees are non-residents of Tennessee.

tscpa members areas of practice
TSCPA Members: Areas of Practice

Public Practice

45%

Industry

40%

slide9

CPA Horizons 2025

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

cpa horizons 2025
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
results
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
the core
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
a new credential
A New Credential

Chartered Global Management Accountant (CGMA)

cpa pathway thru january 2015
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.
cpa pathway after january 2015

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
private companies background
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
outside of u s

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
u s answer blue ribbon panel on private company financial reporting
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
faf s response
FAF’s Response
  • Financial Accounting Foundation Board of Trustees Establishes Private Company Council (PCC) May 30, 2012
  • Held first meeting December 6, 2012
pcc duties
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
pcc 2013 meetings

October 1

November 12

PCC 2013 Meetings
  • February 12
  • May 7
  • July 16
aicpa s response
AICPA’s Response
  • Financial Accounting Framework for Small and Medium Size Enterprises
  • Chaired by David Morgan, LBMC
  • Exposure Draft comment period through January 2013
faf for smes
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
overview of frf for smes
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
features of frf for smes
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
fingerprinting for tax return preparers
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
irs releases ptin holder information
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.
ethics cpe requirement
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
pre license education
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.
2012 tennessee legislative actions
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
thanks to involvement of tscpa members
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
cpa mobility
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.
mobility map
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

2012 election year impact by tscpa
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
scholarship program fundraising efforts
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)
named scholarships
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.

slide46

King Foundation

Calvin and Jean King, Memphis

1983-84 TSCPA President

go interactive with your tennessee cpa journal
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!

or go mobile
…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.

social media
Social Media

Get the latest breaking news, event information, exclusive discounts, and more by joining the TSCPA's social networks. Be in the know and join the conversations with your peers... instantly!

LinkedIn

http://linkd.in/gmMGuE

Twitter

www.twitter.com/tscpa

Facebook

www.facebook.com/tnscpa

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Let me hear from you:

dhaddock@lbmc.com

Thanks for your involvement!