CPA Success
CPA Success
http://www.macpa.org/blog/category/13/legislative---regulatory/files/sb_444_support.doc?i=29&watch=rss
en-US
2016
blog@macpa.org (CPA Success)
Sun, 06 Mar 2016 03:39:45 GMT
Sun, 06 Mar 2016 03:39:45 GMT
BryceWebGroup.Blast
10
Dodd-Frank: The best (or worst) is yet to come
<p><a href="http://cpasuccess.typepad.com/.a/6a00d834520c5769e20168e49378d3970c-pi"
style="float: right;"><img alt="128012802 (1)" border="0" class="asset asset-image at-xid6a00d834520c5769e20168e49378d3970c"
src="http://www.macpa.org/blog/resources/assets/1330701094.jpg" style="margin: 0px 0px 5px 5px;"
title="128012802 (1)" /></a></p> <p>This one pretty much blew my mind.</p> <p><a
href="http://en.wikipedia.org/wiki/Dodd%E2%80%93Frank_Wall_Street_Reform_and_Consumer_Pr
otection_Act" target="_blank">The Dodd-Frank Act</a>, a&#0160;package of financial reforms
signed into law in July 2010 in the wake of the credit crisis, <em>isn&#39;t even close</em> to
being&#0160;completely enacted. In fact, The Washington Post&#39;s Danielle Douglas claims that
barely a quarter of the act&#39;s regulations&#0160;have been put into place so far.</p>
<p>That&#39;s 25 percent in 17 months. Guess what we&#39;ve got to look forward to in 2012?</p>
<p>&quot;Bankers have complained that the slow-going implementation makes it difficult to get a
handle on added compliance costs and&#0160;regulators’ expectations,&quot; <a
href="http://www.washingtonpost.com/business/capitalbusiness/banks-still-waiting-on-most-doddfrank-rules/2011/12/20/gIQAeBZUHP_story.html" target="_blank">Douglas writes</a>.
&quot;Regulators argue they are moving as fast as they can considering&#0160;30 federal agencies
are tasked with writing some 400 rules of varying complexity. ... There is still a ways to go before
the&#0160;full impact of the legislation is felt. More than half of the rules are not due until 2012 or
later.&quot;</p> <p>Then again, given Dodd-Frank&#39;s shear size, maybe we shouldn&#39;t be
surprised after all. The law is an astounding <a
href="http://docs.house.gov/rules/finserv/111_hr4173_finsrvcr.pdf" target="_blank">2,319
pages&#0160;long</a>. To put that in perspective,<a href="http://en.wikipedia.org/wiki/SarbanesOxley_Act" target="_blank"> the Sarbanes-Oxley Act</a>&#0160;-- arguably the most important
piece of accounting-related legislation to&#0160;come along since the securities acts of 1933 and
1934 -- is <a href="http://taft.law.uc.edu/CCL/SOact/soact.pdf" target="_blank">66 pages
long</a>.</p> <p>It all strikes me as Exhibit A for why you should be planning to attend <a
href="http://www.macpa.org/Public/Catalog/CourseDetails.aspx?courseID=12181000"
target="_blank">CPA Day in Annapolis</a>&#0160;on Jan. 18. If CPAs don&#39;t step up and offer
some&#0160;input, politicians will be crafting accounting-related legislation on their own.</p>
<p>Does that sound like a good idea to you? Me either.</p> <p>Not that Maryland politicians will be
considering anything approaching the scope of Dodd-Frank. But you never know
when&#0160;they&#39;ll look at something like sales taxes on professional services and say,
&quot;<em>That</em> seems like a good idea.&quot;</p> <p>That&#39;s when CPAs need to step
up and respond, &quot;No, it&#39;s not, and here&#39;s why.&quot;</p> <p>That&#39;s the power
of CPA Day. The more CPAs who join us in Annapolis, the more powerful our legislative message
becomes.</p> <ul> <li><a
href="http://www.macpa.org/Public/Catalog/CourseDetails.aspx?courseID=12181000"
target="_blank">Register to attend here.</a></li> <li>Check out our <a
href="http://www.macpa.org/Content/21812.aspx" target="_blank">CPA Day Primer</a> before the
big event.</li> </ul> <p>Don&#39;t sit there waiting for something to happen to you. Make
something happen yourself. Join us in Annapolis.</p> <p>And brace for a wild 2012. There&#39;s a
lot of Dodd-Frank waiting in the wings.</p><!-- Imported Assets -->
http://www.macpa.org/blog/1675/dodd-frank-the-best-or-worst-is-yet-to-come
bill@macpa.org(Bill Sheridan)
Thu, 29 Dec 2011 13:00:00 GMT
http://www.macpa.org/blog/1675/dodd-frank-the-best-or-worst-is-yet-to-come
Behind the mess, a closer look at the payroll tax cut
<p><a href="http://cpasuccess.typepad.com/.a/6a00d834520c5769e20162fe95c9e7970d-pi"
style="float: right;"><img alt="100889473" border="0" class="asset asset-image at-xid6a00d834520c5769e20162fe95c9e7970d"
src="http://www.macpa.org/blog/resources/assets/996671105.jpg" style="margin: 0px 0px 5px 5px;"
title="100889473" /></a></p> <p>It&#39;s tempting to make jokes about Congress these days, but
why bother? Congress is doing a great job of making a joke of itself on its own.</p> <p>The latest
example is the spat over the payroll tax cut extension. It would easy to gripe about how
<em>silly</em> the whole sorry affair was, but the fact is that, as usual, our politicians&#39;
arguments have left the rest of us with real issues to tackle.</p> <p>So here&#39;s the deal:</p> <ul>
<li>The IRS says nearly <a href="http://www.macpa.org/Content/26406.aspx" target="_blank">160
million people will benefit from the extension</a>, which includes a &quot;recapture&quot; provision
that imposes a 2 percent income tax on certain high-wage workers. Accounting Today takes <a
href="http://www.accountingtoday.com/news/Payroll-Tax-Cut-Extension-Includes-RecaptureProvision-61259-1.html" target="_blank">a closer look at that provision</a>.</li> <br />
<li>CNNMoney offers <a
href="http://money.cnn.com/2011/12/23/news/economy/payroll_tax_cut_deal/index.htm"
target="_blank">an extensive summary</a> of what the extension means for American workers.</li>
<br /> <li>Politicians will revisit the issue in February in an effort to extend the cuts through the end of
2012, and <a href="http://money.cnn.com/2011/12/23/news/economy/payroll_tax_cut_deal/index.htm"
target="_blank">as CNNMoney says</a>, &quot;(t)here&#39;s little reason to believe the
negotiations will be any easier than they were in recent weeks.&quot;</li> <br /> <li>Just for fun,
&quot;TaxGirl&quot; Kelly Phillips Erb takes a look at <a
href="http://www.forbes.com/sites/kellyphillipserb/2011/12/25/what-you-can-buy-with-your-payrolltax-cut-from-congress/" target="_blank">what you can buy with your tax cut</a>. On the list: 84
loaves of bread, 49 gallons of milk, 11 pizzas, and 79 cups of Starbucks coffee.</li> </ul> <p>What
are you going to do with <em>your</em> cut?</p> <p>Me? Between <a
href="http://www.businessweek.com/news/2011-12-27/payroll-tax-tiff-times-25-awaits-congress-inutter-dysfunction-.html" target="_blank">stuff like this</a> and the upcoming presidential election, I
might just put a down-payment on a sensory deprivation chamber.&#0160;</p><!-- Imported Assets ->
http://www.macpa.org/blog/1676/behind-the-mess-a-closer-look-at-the-payroll-tax-cut
bill@macpa.org(Bill Sheridan)
Wed, 28 Dec 2011 17:21:34 GMT
http://www.macpa.org/blog/1676/behind-the-mess-a-closer-look-at-the-payroll-tax-cut
Comptroller Franchot on things that go together
<p><em>Each December, Maryland&#39;s comptroller and the <a href="http://www.macpa.org"
target="_blank">MACPA</a> break bread and talk about how they can work together to improve the
lives of Maryland&#39;s taxpayers and preparers alike.</em></p> <p><em>This year, MACPA
Finance Director Skip Falatko was on hand to witness the goings-on. He filed the following report.
Skip?</em></p> <p style="text-align: center;">======</p> <p><a
href="http://cpasuccess.typepad.com/.a/6a00d834520c5769e20154385d8146970c-pi" style="float:
right;"><img alt="Franchot" border="0" class="asset asset-image at-xid6a00d834520c5769e20154385d8146970c"
src="http://www.macpa.org/blog/resources/assets/1406121045.jpg" style="margin: 0px 0px 5px 5px;"
title="Franchot" /></a></p> <p>Collaboration, financial literacy, and fiscal responsibility were some
of the themes emphasized by Maryland Comptroller <a
href="http://www.marylandtaxes.com/comptroller/franchot.asp" target="_blank">Peter Franchot</a>
at the MACPA’s annual Comptroller’s Luncheon.</p> <p>The event gives the tax preparer
community a chance to get to know the professionals who manage those agencies. Attendees included
MACPA members, tax attorneys, and staff from the <a href="http://www.comp.state.md.us/"
target="_blank">Maryland Comptroller’s Office</a>, <a
href="http://www.dat.state.md.us/sdatweb/general_info.html" target="_blank">State Department of
Assessments and Taxation</a>, and <a
href="http://www.dllr.state.md.us/employment/unemployment.shtml" target="_blank">Division of
Unemployment Insurance</a>.</p> <p>Comptroller Franchot addressed the group and thanked CPAs
for their past efforts working with the Comptroller’s Office on combined reporting, the proposed
computer tax, and e-filing.</p> <p>Franchot also stressed the need for financial literacy for Maryland
students by outlining an initiative to require Maryland high school graduation requirements to include
a course in financial literacy. Franchot is seeking 10,000 signatures on <a
href="http://www.marylandtaxes.com/comptroller/initiatives/literacy/default.asp#" target="_blank">a
petition</a> to bring to the Maryland legislature on the issue.</p> <p>Franchot also promoted the
concept of fiscal responsibility in state government by promoting a two-year “time-out” on any tax or
fee increases in order to provide some “tax certainty” to citizens and to give them some time to “catch
their breath” so the fragile recovery can continue.</p> <p>The comptroller noted CPAs are viewed as
objective, trusted advisors and encouraged us to talk to our legislators about these issues. A great way
to do that is to attend <a
href="http://www.macpa.org/Public/Catalog/CourseDetails.aspx?courseID=12181000"
target="_blank">CPA Day in Annapolis</a> on Jan. 18. The event is free, includes two hours of CPE,
and is an easy way to get to know your legislators. <a
href="http://www.macpa.org/Public/Catalog/CourseDetails.aspx?courseID=12181000"
target="_blank">You can register here.</a></p> <p>Like shoes and socks, salt and pepper, and bricks
and mortar, financial literacy and fiscal responsibility go together, hand-in-glove. You can’t have one
without the other. Let’s work together to help educate our legislators on the issues important to the
CPA profession on Jan. 18.</p><!-- Imported Assets -->
http://www.macpa.org/blog/1411/comptroller-franchot-on-things-that-go-together
bill@macpa.org(Bill Sheridan)
Fri, 16 Dec 2011 13:00:00 GMT
http://www.macpa.org/blog/1411/comptroller-franchot-on-things-that-go-together
SEC decision on IFRS delayed. Education shouldn't be.
<p><a href="http://cpasuccess.typepad.com/.a/6a00d834520c5769e201543814172f970c-pi"
style="float: right;"><img alt="78494970" border="0" class="asset asset-image at-xid6a00d834520c5769e201543814172f970c"
src="http://www.macpa.org/blog/resources/assets/786482232.jpg" style="margin: 0px 0px 5px 5px;"
title="78494970" /></a></p> <p>My attitude on <a href="http://www.ifrs.com/"
target="_blank">IFRS</a> in the United States is starting to drift into &quot;I&#39;ll believe when I
see it&quot; territory.</p> <p>In early 2010, the <a href="http://www.sec.gov"
target="_blank">SEC</a> said it would vote <a
href="http://www.journalofaccountancy.com/Web/20102656.htm" target="_blank">before the end of
2011</a> on how to incorporate IFRS into the U.S. financial reporting system, if at all. A year and a
half later, with the end of 2011 approaching and no SEC decision on IFRS in sight, SEC
Commissioner Kathleen Casey urged the SEC to incorporate IFRS, adding that the SEC “<a
href="http://www.cpasuccess.com/2011/07/is-ifrs-worth-the-effort-in-the-us.html"
target="_blank">can no longer kick the can down the road</a>.”</p> <p>Then came the&#0160;<a
href="http://www.aicpa.org" target="_blank">AICPA</a>&#39;s National Conference on Current
SEC and PCAOB Developments in early December, where SEC Chief Accountant James Kroeker told
attendees that the Commission <a href="http://www.accountingtoday.com/news/SEC-Postpones-IFRSDecision-60988-1.html" target="_blank">would need &quot;a few additional months&quot;</a> to
complete its IFRS deliberations. <a href="http://www.reuters.com/article/2011/12/05/accountingidUSL5E7N53FB20111205" target="_blank">This Reuters article</a> seems to imply that the delay
could be even longer than that.</p> <p>In response, <a href="http://www.fasb.org"
target="_blank">Financial Accounting Standards Board</a> Chair Leslie Seidman offered her own
vision of a &quot;modified incorporation&quot; of IFRS into the U.S. financial reporting system. <a
href="http://www.accountancyage.com/aa/analysis/2130683/considers-modified-incorporation-ifrs"
target="_blank">According to Accountancy Age</a>, it looks like this: &quot;Under her vision, the
FASB would gather input and research, while refraining from working on standards being tackled by
the (International Accounting Standards Board).&quot;</p> <p>It all seems like semantics though,
doesn&#39;t it? <a href="http://youtu.be/3rXjywEMocg" target="_blank">As Peter Margaritis
says</a>, the U.S. is <em>already</em> dealing with IFRS. It&#39;s hard not to, considering that
about 120 countries already permit or require the use of IFRS for listed companies.</p>
<p>&quot;IFRS is already here through the back door, and it&#39;s not going to go away, even if the
SEC says, &#39;We&#39;re not going to do this,&#39;&quot; <a
href="http://www.cpasuccess.com/2011/07/is-ifrs-worth-the-effort-in-the-us.html"
target="_blank">says Margaritis</a>, an instructor with the <a href="http://www.bizlearning.net"
target="_blank">Business Learning Institute</a> and president of IFRS Education and Training, LLC.
&quot;You&#39;ve got Canada, Mexico -- all the major economies throughout the world are using
IFRS. We will run into it somewhere down the line -- and that&#39;s if the United States doesn&#39;t
adopt it. I believe we will.&quot;</p> <p>If that&#39;s the case, we&#39;ll need to bone up on our
IFRS -- and sooner rather than later. Here are some crash courses in all things IFRS:</p> <ul>
<li>Dec. 15: <a
href="http://www.macpa.org/Public/Catalog/CourseDetails.aspx?courseID=11111082A"
target="_blank">International versus U.S. Accounting: What in the World is the Difference?</a></li>
<br /> <li>Jan. 9-10: <a href="http://www.MACPA.org/IFRS1" target="_blank">Major IFRS and
U.S. GAAP Differences</a>: This two-day course provides a comprehensive comparison and review
of critical technical differences between US GAAP and IFRS. Use promocode MACPA10 to recieve a
discount.</li> <br /> <li>Webcast: The Impact of IFRS and Other Global Standards on Private
Entities: <a href="http://www.macpa.org/Public/Catalog/CourseDetails.aspx?courseID=1217W286"
target="_blank">Jan. 10</a> | <a
href="http://www.macpa.org/Public/Catalog/CourseDetails.aspx?courseID=1217W287"
target="_blank">March 6</a> | <a
href="http://www.macpa.org/Public/Catalog/CourseDetails.aspx?courseID=1217W288"
target="_blank">May 23</a></li> <br /> <li>Feb. 28-March 2: <a
href="http://www.MACPA.org/IFRS2" target="_blank">IFRS Fundamentals</a>: This four-day
course provides a rigorous and detailed overview of all major technical IFRS requirements, and
includes illustrative financial statements, case studies, examples, coverage of the most significant
IFRSs, and interactive participation from the delegates.&#0160;Use promocode MACPA10 to recieve
a discount.</li> <br /> <li>April 23: <a
href="http://www.macpa.org/Public/Catalog/CourseDetails.aspx?courseID=12171024"
target="_blank">Understanding IFRS: A Hands On, How To Approach</a></li> </ul>
<p><strong>Customized training also available</strong><br />The MACPA’s Business Learning
Institute can also customize your on-site IFRS training for you. Visit <a
href="http://www.BizLearning.net" target="_blank">www.BizLearning.net</a> and click on “Search
the Customized Training Catalog” for a full list of available options.</p><!-- Imported Assets -->
http://www.macpa.org/blog/1689/sec-decision-on-ifrs-delayed-education-shouldnt-be
bill@macpa.org(Bill Sheridan)
Fri, 09 Dec 2011 17:05:00 GMT
http://www.macpa.org/blog/1689/sec-decision-on-ifrs-delayed-education-shouldnt-be
10 years after Enron, the wound is still fresh
<p><a href="http://cpasuccess.typepad.com/.a/6a00d834520c5769e2015393e14327970b-pi"
style="float: right;"><img alt="Enronlogo" border="0" class="asset asset-image at-xid6a00d834520c5769e2015393e14327970b"
src="http://www.macpa.org/blog/resources/assets/198678732.jpg" style="margin: 0px 0px 5px 5px;"
title="Enronlogo" /></a></p> <p>At the risk of ruining your Friday, today is the <a
href="http://abcnews.go.com/US/wireStory/us-learned-lesson-enron-10-years-
15068231#.TthncmOVpkY" target="_blank">10th anniversary</a> of <a
href="http://en.wikipedia.org/wiki/Enron"
target="_blank">Enron</a>&#39;s&#0160;bankruptcy.</p> <p>Remember how utterly chaotic that
time was? News that shook CPAs to the core surfaced almost daily,&#0160;<br />and the next day
brought even <em>worse</em> news. I mean, look at the <a
href="http://en.wikipedia.org/wiki/Timeline_of_the_Enron_scandal"
target="_blank">timeline</a>:</p> <ul> <li>Dec. 2, 2001: Enron files for the largest-ever U.S.
bankruptcy.</li> <br /> <li>Dec. 3, 2001: About 4,000 Enron employees are laid off in Houston.</li>
<br /> <li>Jan. 9, 2002: The Justice Department opens a criminal investigation into the Enron
affair.</li> <br /> <li>Jan. 10, 2002: Enron auditor <a
href="http://en.wikipedia.org/wiki/Arthur_Andersen" target="_blank">Arthur Andersen</a>
confirms&#0160;that it shredded Enron documents.</li> <br /> <li>Jan. 15, 2002: David Duncan,
managing partner of Andersen&#39;s Enron engagement team, is fired for his&#0160;role in the
shredding. He is eventually charged with obstruction of justice.</li> <br /> <li>Jan. 17, 2002: Enron
fires Arthur Andersen as its auditor.</li> <br /> <li>June 15, 2002: Arthur Andersen is convicted of
obstruction of justice for the shredding of Enron&#0160;documents.</li> <br /> <li>July 21, 2002: <a
href="http://www.usatoday.com/money/industries/telecom/2002-07-21-worldcom-chronology_x.htm"
target="_blank">WorldCom</a>&#0160;files for bankruptcy, in the process surpassing Enron as the
largest-ever U.S.&#0160;bankruptcy.</li> <br /> <li>July 31, 2002: <a
href="http://en.wikipedia.org/wiki/Sarbanes%E2%80%93Oxley_Act" target="_blank">The SarbanesOxley Act</a> is&#0160;enacted.</li> <br /> <li>Aug. 31, 2002: Arthur Andersen gives up its CPA
licenses and surrenders its right to practice before&#0160;the SEC, effectively putting the Big 5 firm
out of business.</li> </ul> <p>In just nine months, the business and accounting worlds were turned
upside down.</p> <p>The years that followed have been dotted with all of the requisite legal
proceedings. Former Enron&#0160;CEOs Jeffrey Skilling and Ken Lay were indicted in 2004 and
found guilty in 2006. Before he was&#0160;sentenced, Lay died of a heart attack on July 5, 2006.
Former Enron CFO Andrew Fastow made a deal&#0160;with prosecutors and went to jail in 2004. In
2011 he was released to in-home detention in the same&#0160;home -- valued at nearly $1 million -where he lived before Enron&#39;s fall from grace. His prison&#0160;sentence will officially end on
Dec. 17.</p> <p>Meanwhile, Enron shareholders lost nearly $11 billion as a result of the collapse.
With much of&#0160;their life savings tied up in company stock, many Enron employees left the
company with nothing.</p> <p>Other scandals have come and gone. By the end of 2002, the
bankruptcies of WorldCom ($103.9 billion)&#0160;and Enron ($65.5 billion) were <a
href="http://www.businessinsider.com/largest- bankruptcies-in-american-history-2011-11"
target="_blank">the largest in U.S. history</a>. Today, they&#39;ve been dwarfed by the 2008-09
credit crunch&#0160;bankruptcies of companies like CIT Group, General Motors, Washington Mutual
and Lehman Brothers.</p> <p>Enron is the one we remember, though, isn&#39;t it? It gave us
notorious villains (Lay, Skilling),&#0160;memorable heroes (whistleblower Sherron Watkins),
personal tragedy, political intrigue and, for&#0160;CPAs, migraine after debilitating migraine.</p>
<p>You could argue that the profession is better off because of it. We took our lumps, rolled with
the&#0160;punches, and emerged on the far side stronger and more trustworthy than ever. &quot;That
which doesn&#39;t&#0160;kill you,&quot; etc., etc.</p> <p>Still, I&#39;m not in any rush to go
through something like that again. Are you? Let&#39;s just reminisce&#0160;every 10 years or so and
call it good. Deal?</p> <p>On second thought, let&#39;s just forget I brought it up.</p><!-- Imported
Assets -->
http://www.macpa.org/blog/1692/10-years-after-enron-the-wound-is-still-fresh
bill@macpa.org(Bill Sheridan)
Fri, 02 Dec 2011 13:00:00 GMT
http://www.macpa.org/blog/1692/10-years-after-enron-the-wound-is-still-fresh