CPA Success
CPA Success
http://www.macpa.org/blog/category/13/legislative--regulatory/files/ways_and_means_contacts.doc?i=66&watch=rss
en-US
2016
blog@macpa.org (CPA Success)
Mon, 07 Mar 2016 04:49:23 GMT
Mon, 07 Mar 2016 04:49:23 GMT
BryceWebGroup.Blast
10
It's time to learn some lessons ... but will we?
<p><a href="http://cpasuccess.typepad.com/.a/6a00d834520c5769e20120a51f5043970c-pi"
style="FLOAT: right"><img alt="Circle" border="0" class="at-xid6a00d834520c5769e20120a51f5043970c " src="http://www.macpa.org/blog/resources/assets/1723578044.jpg" style="MARGIN: 0px 0px 5px 5px" title="Circle" /></a> It&#39;s funny what time,
a little perspective, and a comprehensive report from a high-profile advisory group will do to popular
opinion.</p> <p>The Financial Crisis Advisory Group, a committee of 18 members chosen by the
Financial Accounting Standards Board and the International Accounting Standards Board, has released
a <a href="http://www.iasb.org/NR/rdonlyres/5EB35F78-33FC-4C34-9C9753DB4543038D/0/FCAGReport29July_LD.pdf" target="_blank">report</a> that tells us what we
already knew -- that <a
href="http://www.google.com/hostednews/ap/article/ALeqM5jV4jfZH6k0TtNjlcs8rATnFXeEbgD99N
JG6G1" target="_blank">accounting standards did not cause the global financial
crisis</a>&#0160;and that the fair value witch hunt of early 2009 was <a
href="http://dealbook.blogs.nytimes.com/2009/07/28/politicians-accused-of-meddling-in-bank-rules/"
target="_blank">little more than a political show</a>&#0160;that set a dangerous precedent.</p>
<p>Just as we <a href="http://www.cpasuccess.com/2009/03/are-we-selling-our-souls-on-the-way-torecovery.html" target="_blank">suspected</a>. The question is, will we learn anything from that rush
to judgment, or will we all just panic and overreact again the next time a crisis comes calling? Time
will tell.</p> <p>In the meantime, there are other lessons to be learned, particularly for CFOs and
other financial executives.</p> <p>&quot;The FCAG recommendations,&quot; <a
href="http://www.cfo.com/article.cfm/14155093" target="_blank">writes CFO.com&#39;s Marie
Leone</a>, &quot;range from asking companies to take more responsibility for &#39;effective price
verification&#39; when valuing financial instruments, to developing robust disclosures around
structured financial products, to developing a permanent funding mechanism for the IASB as a way to
protect its independence from &#39;undue influence.&#39;&quot;</p> <p>That last point speaks to a
greater concern about independence in standard-setting.&#0160;According to Leone, the report
suggests that the IASB and the FASB should &quot;define when it is appropriate to expedite the
rulemaking due process, and how to inject into that rushed process the &#39;maximum&#39; amount
of consultation that is practical. The group also wants to see policymakers &#39;refrain&#39; from
writing, or rewriting, accounting rules.&quot;</p> <p>Sounds like fair, reasoned advice to me. We
could&#39;ve used it about a year ago, but hey, better late than never.</p> <p>What are
<em>your</em> thoughts about the report? Let us know, then check out the schedule of upcoming
MACPA professional issues updates. These popular programs are free for MACPA members and are
worth four hours of CPE.</p> <ul> <li><a
href="http://www.macpa.org/Public/Catalog/CourseDetails.aspx?courseID=09141028"
target="_blank">Sept. 3, Holiday Inn of Waldorf</a> <li><a
href="http://www.macpa.org/Public/Catalog/CourseDetails.aspx?courseID=09141036"
target="_blank">Oct. 1, Sheraton Columbia Hotel, Columbia</a> <li><a
href="http://www.macpa.org/Public/Catalog/CourseDetails.aspx?courseID=09141033"
target="_blank">Oct. 2, Johns Hopkins University, Montgomery</a> <li><a
href="http://www.macpa.org/Public/Catalog/CourseDetails.aspx?courseID=09141034"
target="_blank">Oct. 12, Sheppard Pratt Health Systems, Baltimore</a> <li><a
href="http://www.macpa.org/Public/Catalog/CourseDetails.aspx?courseID=09141035"
target="_blank">Nov. 12, Mount Continuing Studies Center, Frederick</a> </li>
</li></li></li></li></ul><!-- Imported Assets -->
http://www.macpa.org/blog/2231/its-time-to-learn-some-lessons-but-will-we
bill@macpa.org(Bill Sheridan)
Wed, 05 Aug 2009 11:00:00 GMT
http://www.macpa.org/blog/2231/its-time-to-learn-some-lessons-but-will-we
You can never have too many advisory groups
<p><a href="http://cpasuccess.typepad.com/.a/6a00d834520c5769e201157160c398970c-pi"
style="FLOAT: right"><img alt="PCAOB" border="0" class="at-xid6a00d834520c5769e201157160c398970c "
src="http://www.macpa.org/blog/resources/assets/1158762340.jpg" style="MARGIN: 0px 0px 5px
5px" title="PCAOB" /></a> Good idea? Bad idea? Beats me. I just thought this was interesting.</p>
<p>The <a href="http://www.pcaobus.org/" target="_blank">Public Company Accounting Oversight
Board</a>, which aims to protect investors by overseeing the folks who audit public companies, <a
href="http://www.macpa.org/Content/25163.aspx" target="_blank">is forming an Investor Advisory
Group</a> to advise the board on how to do just that.</p> <p>Members of the group &quot;will
represent a broad spectrum of the investment community and consist of individuals who have a
demonstrated history of commitment to investor protection,&quot; the PCAOB explained.</p> <p>So
the PCAOB, whose job is to protect investors by overseeing auditors, wants advice from investors on
how to do that.</p> <p>At first glance, it makes perfect sense. Who&#39;s better qualified to provide
advice on protecting the public than the public itself?</p> <p>On the other hand, the PCAOB already
has a <a href="http://www.pcaobus.org/Standards/Standing_Advisory_Group/Biographies.aspx"
target="_blank">Standing Advisory Group</a>, made up of folks with backgrounds in accounting,
auditing, corporate finance, corporate governance <em>and</em> investing. </p> <p>So how is this
new group different? What sets it apart from the Standing Advisory Group? Is it needed&#0160;at
all?</p> <p>I&#39;ll be the first to admit I don&#39;t know the answers. I&#39;m just asking. Maybe
someone will chime in and explain it.</p> <p>What do <em>you</em> think? What&#39;s the deal
with the new Investory Advisory Group?</p> <p>In the meantime, check out these other recent
updates from the PCAOB:</p> <ul> <li><a href="http://www.macpa.org/Content/25124.aspx"
target="_blank">PCAOB adopts new standard on engagement quality review</a> <li><a
href="http://www.macpa.org/Content/25121.aspx" target="_blank">Goelzer named acting PCAOB
chair</a> </li> </li></ul><!-- Imported Assets -->
http://www.macpa.org/blog/2234/does-pcaob-really-need-an-investor-advisory-group
bill@macpa.org(Bill Sheridan)
Sun, 02 Aug 2009 10:00:00 GMT
http://www.macpa.org/blog/2234/does-pcaob-really-need-an-investor-advisory-group
Can XBRL save Maryland's budget?
<p><a href="http://cpasuccess.typepad.com/.a/6a00d834520c5769e20115713f6078970c-pi"
style="FLOAT: right"><img alt="Statehouse" border="0" class="at-xid6a00d834520c5769e20115713f6078970c "
src="http://www.macpa.org/blog/resources/assets/1071972859.jpg" style="MARGIN: 0px 0px 5px
5px" title="Statehouse" /></a> OK everyone, put your thinking caps on.</p> <p>In light of a projected
$700 million shortfall in this year&#39;s budget and an estimated $1 billion deficit next year,
Maryland Gov. Martin O&#39;Malley is looking everywhere for ideas on how to save money and cut
costs. <a href="http://www.baltimoresun.com/news/maryland/politics/balmd.omalley24jul24,0,4483221.story" target="_blank">Now he wants to know what <em>you</em>
think.</a></p> <p>&quot;We encourage all citizens to join in,&quot; O&#39;Malley told <em>The
Baltimore Sun</em> in launching <a href="http://www.gov.state.md.us/budgetcuts.asp"
target="_blank">a new online suggestion box</a>. &quot;Tradition is not a good enough excuse for
continuing to do something in a suboptimal way.&quot;</p> <p>Here&#39;s our chance, folks:
Let&#39;s tell the governor exactly what we think. <a href="http://www.cpasuccess.com/2009/07/canxbrl-save-marylands-budget.html#comments">Leave us a comment</a> with your best idea for how
Maryland can rescue its budget. It seems like a state full of CPAs can come up with at least a few
fiscally responsible ideas. Let&#39;s hear them.</p> <p>In the meantime, here&#39;s mine: Give <a
href="http://www.cpasuccess.com/2008/03/the-abcs-of-xbr.html">XBRL</a> a try.</p> <p>XBRL,
of course, is short for eXtensible Business Reporting Language. It&#39;s a tagging language that helps
companies electronically communicate their business and financial data to investors and other users of
financial statements.</p> <p>But it&#39;s much more than that. Supporters say XBRL <a
href="http://www.cpasuccess.com/2009/06/xbrl-the-curtain-is-rising-on-act-2.html"
target="_blank">has moved beyond financial reporting</a>&#0160;and is proving its mettle as a
solution for reducing costs and increasing competitiveness.</p> <p>And now governments are getting
in on the act. Nevada Comptroller Kim Wallin told me that her state could save up to $600,000 in
staffing costs and bring in an additional <em>$5 million</em> over two years <a
href="http://www.cpasuccess.com/2009/06/xbrl-and-government-a-marriage-made-in-nevada.html"
target="_blank">by using XBRL in its debt collection process<span
id="fck_dom_range_temp_1248530518640_899"></span></a>. Wallin is hoping to apply XBRL to
other state operations as well.</p> <p>So if Nevada can do it, why can&#39;t Maryland?</p>
<p>Sure, XBRL won&#39;t solve all of our <a href="http://www.cpasuccess.com/2009/07/marylandbudget-from-bad-to-worse.html" target="_blank">budgetary woes</a>. But if it could save one worthy
program from being cut or stop lawmakers from enacting one bad tax, wouldn&#39;t it be worth
it?</p> <p>Give it some thought, Gov. O&#39;Malley. Give it some <em>serious</em> thought.
XBRL is helping at least one state cut costs <em>and</em> raise additional revenue.</p>
<p>Let&#39;s figure out what it can do for Maryland.</p><!-- Imported Assets -->
http://www.macpa.org/blog/2238/can-xbrl-save-marylands-budget
bill@macpa.org(Bill Sheridan)
Sat, 25 Jul 2009 14:15:51 GMT
http://www.macpa.org/blog/2238/can-xbrl-save-marylands-budget
Maryland budget: From bad to worse?
<p><a href="http://cpasuccess.typepad.com/.a/6a00d834520c5769e2011572268c25970b-pi"
style="FLOAT: right"><img alt="Cuts" border="0" class="at-xid6a00d834520c5769e2011572268c25970b " src="http://www.macpa.org/blog/resources/assets/159441111.jpg" style="MARGIN: 0px 0px 5px 5px" title="Cuts" /></a> <a
href="http://www.maryland.gov" target="_blank">Maryland</a> has lived a pretty charmed life
throughout this financial crisis. Employment is lower and business opportunities are more plentiful
here than in most other parts of the country, and many economists are convinced <a
href="http://www.cpasuccess.com/2009/01/top-5-reasons-we-think-we-can-beat-this-recession.html"
target="_blank">the state is well positioned to weather the economic storm</a>.</p> <p>Still, I
supposed it was only a matter of time before the Free State felt the pinch, too.</p> <p>Nearly <a
href="http://www.baltimoresun.com/news/maryland/politics/bal-md.budget22jul22,0,3066772.story"
target="_blank">$280 million in mid-year budget cuts</a>&#0160;proposed by Gov. Martin
O&#39;Malley <a href="http://www.bizjournals.com/baltimore/stories/2009/07/20/daily34.html"
target="_blank">have been approved by the state&#39;s Board of Public Works</a>, and that&#39;s
only the beginning. O&#39;Malley plans to cut another $470 million or so from Maryland&#39;s $14
billion budget before Labor Day.</p> <p>O&#39;Malley apparently is heeding the words of Warren
Deschenaux, the legislature&#39;s chief fiscal analyst, who called for &quot;prompt action&quot; in
<a href="http://www.macpa.org/Content/Public/Documents/PDF/budget_letter.pdf" target="_blank">a
recent letter</a>. &quot;If the budget is to be cut, for most ongoing items, sooner is better than
later,&quot; Deschenaux wrote.</p> <p>The problem, of course, is tax revenue -- specifically, <a
href="http://www.bizjournals.com/baltimore/stories/2009/07/13/daily50.html" target="_blank">a lack
thereof</a>, and we have the recession to thank for that.</p> <p>Spending cuts will bring the budget
back into its mandated balance, but here&#39;s my question: What happens when the <a
href="http://mlis.state.md.us/" target="_blank">General Assembly</a> reconvenes in January?
Deschenaux writes that &quot;in magnitude and urgency, (the situation) is equivalent, if not more
substantial, than that which precipitated the special (legislative) session of 2007.&quot; All that
session resulted in was $1.4 billion in new taxes.</p> <p>Fortunately, thanks to the work of MACPA
members and legislative volunteers, that tally did <em>not</em> include any sales taxes on
professional services. Will we be so fortunate this time? I mean, the state is going to be scratching for
every cent of revenue it can find.</p> <p>That&#39;s where Maryland&#39;s CPAs come in.
We&#39;re going to need CPAs to educate legislators once again about the negative consequences of
taxing professional services.</p> <p>That means it&#39;s never too early to start planning for CPA
Day in Annapolis. The 2010 edition of <a
href="http://www.macpa.org/Public/Catalog/CourseDetails.aspx?courseID=10181000"
target="_blank">CPA Day will be held on Jan. 20</a>, and the more CPAs in attendance, the more
powerful our message becomes. Mark your calendars now. It&#39;s going to be a big day for the
profession.</p> <p>In the meantime, you&#39;ll want to attend one of our professional issues
updates. MACPA Executive Director <a
href="http://www.cpasuccess.com/2006/10/tom_hood_cpa.html" target="_blank">Tom Hood</a>
packs each session with information that CPAs need to know. Plus, the updates are free for MACPA
members and count for four hours of CPE. <a href="http://www.macpa.org/Content/23456.aspx"
target="_blank">Check out the schedule here.</a></p> <p>What&#39;s <em>your</em> take on
O&#39;Malley&#39;s budget cuts?</p><!-- Imported Assets -->
http://www.macpa.org/blog/2240/maryland-budget-from-bad-to-worse
bill@macpa.org(Bill Sheridan)
Thu, 23 Jul 2009 13:00:00 GMT
http://www.macpa.org/blog/2240/maryland-budget-from-bad-to-worse
IFRS: U.S. deliberates, world marches forward
<p><a href="http://cpasuccess.typepad.com/.a/6a00d834520c5769e2011570ec0194970c-pi"
style="FLOAT: right"><img alt="Ifrs" border="0" class="at-xid6a00d834520c5769e2011570ec0194970c "
src="http://www.macpa.org/blog/resources/assets/1338248936.jpg" style="MARGIN: 0px 0px 5px
5px" title="Ifrs" /></a> Remember that mad rush to move toward <a href="http://www.ifrs.com/"
target="_blank">IFRS</a> here in the United States? Ever since <a
href="http://www.cpasuccess.com/2008/11/change-happens.html" target="_blank">President
Obama</a>&#0160;moved into the Oval Office and <a
href="http://www.cpasuccess.com/2009/02/sec-a-speedbump-on-the-ifrs-roadmap.html"
target="_blank">Mary Schapiro</a>&#0160;took the reins at the SEC, it has slowed to a crawl. Folks
are using words like &quot;thorough&quot; and &quot;thoughtful&quot; in describing the
U.S.&#39;s&#0160;IFRS deliberations, and that&#39;s not such a bad thing. If all our leaders were
thorough and thoughtful, we might not be facing a lot of the problems we&#39;re facing now.</p>
<p>While we continue to deliberate the merits of IFRS, though, the rest of the world marches on.</p>
<p>The <a href="http://www.iasb.org" target="_blank">International Accounting Standards
Board</a> has published <em><a
href="http://www.iasb.org/News/Press+Releases/IASB+publishes+IFRS+for+SMEs.htm"
target="_blank">IFRS for Small and Medium-Sized Entities (SMEs)</a></em>, a &quot;selfcontained standard tailored for the needs and capabilities of smaller businesses.&quot; The standard is
not part of the full international standards and therefore is &quot;available for any jurisdiction to adopt
whether or not it has adopted the full IFRS,&quot; the IASB explains.</p> <p>Edith Orenstein at <a
href="http://www.financialexecutives.org" target="_blank">Financial Executives International</a>
has posted <a href="http://financialexecutives.blogspot.com/2009/07/iasb-publishes-ifrs-forsmes.html" target="_blank">a fantastic summary</a> of the new standard. In it, she explains the
IASB&#39;s definition of &quot;SME&quot; as follows:</p> <p>&quot;I would describe it as a twotier test,&quot; Orenstein writes. &quot;First, the entity can have no publicly traded debt or stock, and
second, the entity cannot be deemed as having &#39;public accountability&#39; wherein it it
&#39;holds assets in a fiduciary capacity for a broad group of outsiders ... which is typically the case
for banks, credit unions, insurance companies, securities brokers / dealers, mutual funds and
investment banks.&#39;&quot;</p> <ul> <li>Read Orenstein&#39;s FEI summaries <a
href="http://financialexecutives.blogspot.com/2009/07/iasb-publishes-ifrs-for-smes.html"
target="_blank">here</a> and <a href="http://financialexecutives.blogspot.com/2009/07/ifrs-forsmes-to-be-issued-tomorrow.html" target="_blank">here</a>. </li> </ul> <p>Of course, many believe
it&#39;s only a matter of time before the U.S. catches up to the rest of the world, and at least one
learned soul -- instructor and Ohio Dominican University faculty member <a
href="http://www.petermargaritis.com/" target="_blank">Peter Margaritis</a> -- says IFRS in the
United States is &quot;inevitable.&quot;</p> <p>&quot;I don&#39;t picture the Unites States sticking
with U.S. GAAP while the rest of the world runs on IFRS,&quot; Margaritis, a CPA and chair-elect of
the Ohio Society of CPAs&#39; executive board, said during an interview at the 2009 <a
href="http://www.cpasuccess.com/2009/06/missed-the-expo-heres-a-taste.html"
target="_blank">Maryland Business and Accounting Expo</a>. &quot;What&#39;s that going to do
to our capital market structure? We wouldn&#39;t be the leader in the financial world. I think we are
in a position where we have to move forward with (IFRS). Yes, we should put some serious thought
into how this is going to transition, but we shouldn&#39;t stop the process.&quot;</p> <p>I have to
agree, but I&#39;m curious what the rest of the CPA world thinks. Is IFRS &quot;inevitable&quot; in
the U.S., as Margaritis believes? Let us know what you think, then check out these other IFRS
resources:</p> <ul> <li><a href="http://www.cpasuccess.com/2009/05/ifrs-all-hands-on-deck.html"
target="_blank">IFRS: All hands on deck</a> <li><a
href="http://www.cpasuccess.com/2009/04/executives-on-ifrs-give-us-a-plan-and-let-us-go.html"
target="_blank">Executives on IFRS: Give us a plan and let us go</a> <li><a
href="http://www.macpa.org/Public/Catalog/CourseDetails.aspx?courseID=09211007A"
target="_blank">Are You Ready for IFRS? Moving Beyond the Basics</a> (an MACPA program on
Sept. 23-24) <li><a
href="http://www.macpa.org/Public/Catalog/CourseDetails.aspx?courseID=09111131"
target="_blank">The Impact of IFRS and Other Global Standards on Private Entities</a> (an MACPA
program on Dec. 17) <li><a
href="http://www.macpa.org/Public/Catalog/CourseDetails.aspx?courseID=09111136A"
target="_blank">International versus U.S. Accounting: What in the World is the Difference?</a> (an
MACPA program on Dec. 18) </li> </li></li></li></li></ul><!-- Imported Assets -->
http://www.macpa.org/blog/2249/ifrs-us-deliberates-world-marches-forward
bill@macpa.org(Bill Sheridan)
Thu, 09 Jul 2009 13:47:00 GMT
http://www.macpa.org/blog/2249/ifrs-us-deliberates-world-marches-forward