Keeping Up With Accounting Phase
-
date post
19-Oct-2014 -
Category
Education
-
view
2.286 -
download
4
description
Transcript of Keeping Up With Accounting Phase
KEEPING UP WITH ACCOUNTINGKEEPING UP WITH ACCOUNTING From Globalization to Web 2.0
Tom Hood, CPA.CITPCEO & E ti Di tCEO & Executive Director
Maryland Association of CPAs
“CPAs ARE the DISCIPLINEDISCIPLINE in business!”
Jim Collins
Economic Outlook
National Outlook is not brightg Economists estimate 3Q 2009 – 1st Q 2010 for recoveryrecovery Maryland outlook is much better T 5 t t t th Top 5 states to recover the fastest CPA Career one of the Top p10 recession-proof careers CPA firms below Top 8 are continuing to see growthcontinuing to see growth
the basic physical and organizational structures needed for the operation of a
society or enterprise
The Infrastructure for the CPA Profession is maintained by your Professional Associations
society or enterprise
AICPA & State CPA societies (MACPA)
GlobalizationPipeline – WorkforceT h l W b 2 0Technology – Web 2.0
What is under the CPA Profession?
Federal Laws & Regulations – SEC, DOL, Treasury, GAO, PCAOB
CPA Profession Standards – AICPA & FASB GASB FASAB IASB IFAC& FASB, GASB, FASAB, IASB, IFAC
State CPA Statutes
police power of the states to protect their citizens vs commerce clause
Another View
S C S S
Public Company Private Company Int’l Company
Financial SEC FASB IASBFinancialReporting
PCAOB AICPA IAASBAttest PerformanceStandards
AICPA AICPA IFACCode of Conduct AICPA AICPA IFAC
CPAState Oversight & Enforcement of CPA License
CPALicensure
US Treasury
MD ComptrollerMD Comptroller
MD Comptroller
CAQCAQ
Courtesy of the Maryland Association of CPAs – 2008 edition Drawing by Carol Kirwan, CPA
Scandals & CPA Profession
CPA Profession in the Spotlight
Changes in our Infrastructure
Massive Changes in our Regulatory Structure
The Obama CabinetThe year of the REGULATORThe year of the REGULATOR
Timothy Geithner,Secretary of the
Treasury
Mary Schapiro,SEC Chief
Paul Volcker,Chair, Economic Recovery
Advisory Boardy y
Gar GenslerGary Gensler,Chair, Commodity Futures
Trading Commission
Ben Bernanke,Chair, Federal Reserve Board
Sheila Bair,Chair, FDIC
Standards ChangesAS 5 PCAOB• AS 5 - PCAOB
• IRFS – SEC International gets legs• Fair Value Accounting• Fair Value Accounting• XBRL – SEC mandatory• Codification Project – FASBCod cat o oject S• Clarity Project – ASB
– Convergence with international– Risk-based standards already in int’l format
(SAS 104-111)SAS 112 Comm nication• SAS 112 Communication
• Internal Control – COSO• Fin 48 delayFin 48 delay• Delay of SOX 404 for “small” caps
US Treasury
MD ComptrollerMD Comptroller
MD Comptroller
CAQ
Courtesy of the Maryland Association of CPAs – 2008 edition Drawing by Carol Kirwan, CPA
IFRS – International Financial Reporting StandardsFinancial 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?
SEC Roadmap releasedSEC Roadmap releasedEarly adopters can file using
Large Acceleratedcan file using
IFRS 2010
Accelerated Filers2014
Small-caps2016
2011Official SEC
decision
2015Accelerated
filersdecision point
filers –second wave
Corporate Con ersion TimelineCorporate Conversion Timeline
Convergence ≠ Sameness
US GAAP IFRS– Rules based– Based on a GAAP
hierarchy (level A – D)
– Principles based– No hierarchy, consists
of IASs IFRSs &hierarchy (level A D)– Primary accounting
standard setting body is the FASB
of IASs, IFRSs & interpretations
– Standards and interpretationsis the FASB
– Accounting guidance and interpretation is provided by FASB
interpretations approved by the IASB
– Interpretations of IFRIC and its predecessor theprovided by FASB,
SEC, AICPA and EITFand its predecessor the SIC
25,000 pages vs 2,000 pages
Private Company ReportingPrivate Company Reporting
1. IFRS with Private Entities Option1. IFRS with Private Entities Option2. U.S. Adapted version of Private
EntitiesEntities3. IFRS with differential reporting
S S C G4. Separate U.S. Private Co. GAAP -Revised
5. Separate U.S. GAAP- Maintained and Updated for Private Companies
Q ti ?Questions?
• What happens when FASB moves to IASB?FAF F di t IASB• FAF Funding goes to IASB
• Who funds GASB?• Who funds US private company
standards (GAAP)?
And if that is not enough…CPA Pipeline
– CPA Exam– Young CPAs– Student Recruitment
Quality– Audit Quality – Auditing Standards– Clarity Project
– Minority Initiatives– PhD Creation & Support– 150 hour
Regulatory Forces
y j– Reliability Project– Audit Committee
Effectiveness– Peer Review
Ethig y
– SEC Changes– Fair Value Report– Regulatory Restructuring– Economic Recovery and
R
– Ethics
Advocacy– Federal/State Legislation &
Response– Enhanced Business Reporting– XBRL– Private Company Financial
Reporting
gRegulation
– Tax– Uniformity & Mobility– Public Policy IssuesReporting
International– International Convergence– IASB
Internationali ation of E am
yFinancial Literacy
– Feed the Pig– 360 degrees of Financial
Literacy– Internationalization of Exam Literacy
Pipeline WorkforcePipeline - Workforce
Pipeline - Good Newsp20% avg increase in
Graduates & enrollments!
Pipeline - CPAs are SEXY!
The surprise in BusinessWeek'sThe surprise in BusinessWeek s second annual ranking: Accounting firms have raced to the head of the
kpack In fact the article included an interview with the CEO of Universum Communications who talked about the "sexiness of accounting the popularity of techaccounting, the popularity of tech, and the workplace stereotypes attached to a misunderstood
ill i l ti "millennial generation."
Maryland Pipeline
Primary School Student
College Student
CPA ExamCandidate
CPA MACPACPANYPN
MACPA CPACareer Paths
EngagedRetiree
1,373 1,818 399 8,047
•Drive to CPA Exam
h•Reach employment influencers•Career hchangers
Four Generations in the WorkplaceI G ti l Diff
• Matures – 1909-45
Issue: Generational Differences
• Boomers – 1946-64• Gen X – 1965-80Gen X 1965 80• Millennials - 1981
+ up (Y2K, Netgen, p ( , g ,Echo-boom, Gen Y)
Which one are you?
Staff Shortage + Four Generations in workplace = pTrouble!
90,000,000
70,000,00080,000,000
StaffShortage
50,000,00060,000,000
20 000 00030,000,00040,000,000
010,000,00020,000,000
0Matures Boomers X'ers Millenials
Why won’t they sit?
CPA Exam changes
Then: Now:• Paper-based• 2 x year May &
• Computerized• Anytime
Then: Now:
2 x year May & November
• 5 sections
Anytime• 2 months per quarter• Pass all sections in 18
months (to keep passed sections)
• 4 sections• 4 sections• 70% new content!
Steps to become a CPA1. Get Accounting Education – 150 hours2. Sit for & Complete CPA Examp3. Take AICPA Ethics self-study & report
grades to State Board4. Complete 2,000 hour experience
requirement (interning counts) RPE form
5. Take the official oath at the Swearing-in CCeremony
Promote the CPA licenseMaryland DLLR Swearing-in of new CPAs
June 16, 2009At the Maryland Business & Accounting Expo
Biggest Issue Facing NYPNsBiggest Issue Facing NYPNs
• Bridging the Gap between college & real worldg g p g• Under-Developed Skill Sets
– Leadership & Communication– Time Management & Organization– Analytical Skills
S– Technical Skills• Work-Life Balance• Limited Networking Opportunities• Limited Networking Opportunities• Intimidation• CPA ExamCPA Exam• Lack of a Voice in Profession
Deloitte’s Global Workforce AdviceDeloitte 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 p y ( ymaking senior staff mentor younger associates, but also ensuring that people connect and share experiences across all levels of the organization and across relevant departmentsorganization, and across relevant departments and areas of expertise.)
• Work-life flexibilityT h k i t (f l• Tech-savvy work environment (for example, access to online problem-solving and learning tools)
Open social networks that embrace open and• Open social networks that embrace open and honest communication
Source Deloitte Global Manufacturing survey
By 2010 Millenials/Gen Y-ers will outnumberTechnology & 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 our Associations) that doesn’t
have any of that media must be like have any of that media must be like walking into a desert.”
– Steve Maher, High School teacher PBS Special “Growing Up On line”Special Growing Up On-line
Meet the Gaming GenerationG k it i t d t d diffi lt• Games make it easier to understand difficult
concepts – 51%• I would be more engaged in the subject – 50%ou d be o e e gaged e subjec 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• It would be more interesting to practice problems –44%
Source: Project Tomorrow – Speak Up 2007 report
Meet our future members?
“over 64% of students in grades K-12 play onlinegrades K-12 play online and/or electronics based games regularly”g g y
“Downloading music is #1 activity by middle and high school students”
“40% of middle school students and 67% of high school students have a personal
school students
students have a personal website (Facebook, MySpace, Xanga)”
Source: Project Tomorrow – Speak Up 2007 report
Five Learning Trends for 2009
1.Mobile Learning2.DIY - Do-it-Yourself
LearningLearning3.Flexible Learning
Environments4.Virtual Worlds4.Virtual Worlds5.Games & Simulation
Chief Learning Officer Magazine – January 2009
So what?
Accounting Educators in Second Life
Dr. Mike KratenSuffolk UniversityDr. Robert BloomfieldDr. Robert BloomfieldCornell UniversityDr. Steve HornikUniversity of Central FloridaUniversity of Central Florida
FASB is there!
Even our members are already there!
IBM Financial AnalystMember of NJSCPA
Accounting Assistant
Benefits of Virtual Worlds for Education• The sense of self• The death of distance• The death of distance• The power of presence,
sense of space &sense of space & capacity to co-create
• The pervasiveness ofThe pervasiveness of practice
• The enrichment of experience
VW Sensibilities - eLearn Magazine Another Life: Virtual Worlds as Tools for Learning, Jay Cross – eLearning Magazine
Accounting for Second LifeJournal of AccountancyJ 2008June, 2008
University of Florida Report - Winter 2008
The study found that 93% of college instructors using Second Life in classes were satisfied enough to do
y p
classes were satisfied enough to do it again and felt it enhanced the learning experience.
"Post-secondary school instructors who conduct classes fully in Second Life are significantly more satisfied than those who use Second Life as only a small supplement to a real-world classes.”
Professors Richard Johnson & Joyce Middleton of Frostburg University,
Maryland
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 comwww.cpalearning2.com
3. Get an iPod and listen to our cool podcasts – CPA S tli htSpotlight
4. Check out our blogs and post a comment or psubscribe in a blog reader (RSS)
You can…Ignore itFight it orFight it or
Harness it’s power
Maryland Association of CPAs – founded 1901 to promote and protect CPAs and help them thrive in the rapidly changing environment 10 000the rapidly changing environment – 10,000 members
Business Learning Institute – founded in 2000 withBusiness Learning Institute founded in 2000 with a mission to help organizations deliver competency-based curriculum, courses, content and community toenhance learning and grow intellectual capital forenhance learning and grow intellectual capital for organizational and executive leadership
Second Life Association of CPAs founded inSecond Life Association of CPAs – founded in 2006 With 238 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
For more information
Tom Hood, CPA.CITPCEO
Maryland Association of CPAsBusiness Learning InstituteBusiness Learning Institute
(443) 632-2301E-mail [email protected]