November 2010 Newsletter
Alaska State Board of Public Accountancy Meeting
Melody Schneider, Board Liaison
November 10th and 11th the Board of Public of Accountancy met in Anchorage. They had initially hoped to be interviewing candidates for the Executive Administrator position. The regulations associated with the position had to be adopted before the position could be posted; therefore, the process was not to the point of the interview stage at the time of the meeting.
The Board adopted three consent agreements for individuals not compliant with the ethics exam requirement during the last renewal period (i.e. they did not take an Alaska specific ethics course). The agreement carries a $1300 penalty, the requirement to complete an Alaska specific ethics exam, and a mandatory CPE audit for the next two licensing cycles. The Board also accepted a surrender agreement for a licensee non-compliant with CPE requirements for the renewal cycle. All consent agreements adopted by the Board are posted on their website. The Alaska specific ethics exam is a requirement with each licensing cycle.
AICPA Fall Meeting of Council
Don Rulien, Elected member of Council
The Fall meeting of council was held in New Orleans, LA with the following members attending Marja Beltrami, Linda Plimpton and myself.
The major issue discussed at the fall meeting of council was “Private Company Financial Reporting” better known to many of you as “Big GAAP/Little GAAP”. The AICPA has put together a Blue Ribbon Panel that’s going to make its recommendations to FASB and the AICPA membership early next year.
I believe as many of you believe FASB is broken as it relates to private company financial reporting. The following is the different financial reporting models considered,
2A GAAP with exceptions, restructured FASB board.
- 2B GAAP with exceptions, separate FASB board (FASB publically traded vs. FASB private company reporting).
- 3A Baseline GAAP with public company add-ons, restructured FASB.
- 4A Separate set of standards, restructured FASB.
- 4B Separate set of standards, separate board.
The panel believes that keeping FASB as is and simply adding members with private company experience would not meet the current needs and goals of the panel, which is to find an expedient way to meet the needs of the banking and bonding community as well as the private company’s needs for private company reporting requirements. Currently the blue ribbon panel believes two boards would be the best alternative (2B), one FASB board would deal exclusively with public company GAAP, and the second board would deal with private company reporting requirements.
The blue ribbon panel believes that the two board system is the quickest way to get to a private company financial reporting model. The blue ribbon panel acknowledged that FASB's main focus is on public company reporting, that the make-up of the current board is from large accounting firms and large financial institutions.
The blue ribbon panel believes that the recommended change to separate FASB boards with exceptions will eventually move to 4B, separate set of standards with a separate board. One over-riding reason is IFRS, (international financial reporting standards), separate board for IFRS and for private company reporting.
The council passed a resolution to show support of the blue ribbon panels recommendation.
If we aren’t wiser today than we were yesterday than we’re certain to fail.
If you ever have any questions regarding the council meetings please feel free to contact me at anytime.
New AICPA Book Reveals the “Inside Track” to Accounting Careers
Job outlook for CPAs continues to be strong;
Book provides insights from more than 50 successful CPAs
NEW YORK (Nov. 9, 2010) — Students, young CPAs and future business leaders can learn about the career paths available for accounting professionals in today’s economy in a book published by the American Institute of Certified Public Accountants. The Inside Track to Careers in Accounting, which includes career interviews from more than 50 CPAs, is now available.
“Our book presents personal stories of CPAs around the country and their paths to rewarding careers,” said Barry Melancon, AICPA president and CEO, who contributed the book’s foreword. “We’re reminding students that the accounting profession is a smart and secure choice in today’s challenging economy. Certified Public Accountants remain in high demand throughout the United States.”
Accounting continues to rank among the most admired and high-growth career opportunities. In a list of great careers from Money/PayScale.com, the CPA profession ranked in the top 10 for the second consecutive year.
The Inside Track to Careers in Accounting helps new accounting professionals and students interested in accounting expand their understanding of what CPAs do and how to navigate the numerous opportunities available. Extensively researched, the book delves into accounting careers in public practice, business and industry, and government as well as the steps toward building a business as a sole practitioner.
“It’s not a matter of attracting more students to accounting, but of attracting the best and brightest,” says Dan Deines, 62, a professor of accounting at Kansas State University. On a national level, Deines is helping prepare teachers to teach a new high school course which changes the infrastructure of the accounting curriculum and builds a direct link to college accounting programs. These efforts are improving both the students’ and the teachers’ understanding of the opportunities of the accounting profession.
“People skills are more important than ever in public accounting,” says Krista McMasters, 54, the CEO of Clifton Gunderson and the first woman to lead a top 25 CPA firm in the United States. Clifton Gunderson offers employees an opportunity to perform high level work early in their careers, as well as mentoring programs to provide training and place an emphasis on employees developing new skills.
“I have great people working for me and great clients. What’s not to like?” says Michael Roth, 54, Chairman and CEO of Interpublic Group, a global provider of advertising and marketing services. Roth states that his background in public accounting gave him exposure to different industries and clients and gave him the experience necessary to take ownership of his career and expand his horizons.
Readers will learn how to:
• Select an accounting program at a college or university
• Find their first job
• Navigate the certification process
• Compare career choices using the detailed job descriptions, typical salary ranges and career paths
A companion CD contains full transcripts of the interviews.
The book’s authors are Stan Ross and James Carberry. Ross is chairman of the board of the University of Southern California Lusk Center for Real Estate and a Distinguished Fellow of USC’s School of Policy, Planning & Development.
Formerly a reporter for the Wall Street Journal, Carberry is the principal of Carberry Communications, a business writing and editing service in Portland, Ore.
To purchase the book, go to www.cpa2biz.com/insidetrack. The cost is $59.00 for AICPA members; $73.75 for non-members.
Surviving The Tax Season- Article #2
“Keeping The Pace” - Powerful Time Management
By Cheryl Leitschuh, Ed.D., RCC
During tax season do you feel like the white rabbit in Alice In Wonderland? “I’m late! I’m late! I’m late!” As a CPA, you might be aware of time management tips in the world but during times of increased stress your natural style emerges. So, you can decide to work against your natural time management tendencies OR you can work with your natural flow to improve your productivity.
So, what are “natural time management tendencies”?
There are two types of time management tendencies. One is the “Time Manager”. This person appreciates promptness, speed, brevity and punctuality. They measure things by the clock and typically decide in advance how time will be spent on each task/project. Planners and to-do lists work well for this type of personality. Predictable tasks lend themselves well to this personality.
The other time management tendency is the “Process Manager”. For this person, time is related to many complex factors. Decisions are typically made intuitively, in the moment and as events play out. People issues, intangibles and agreements are most suited to this type of personality.
You might think that all CPA’s would fit the Time Manager Tendency simply because of the work they do. But I have not found this to be true based on the coaching work I have done with my CPA clients. There is an assortment of Time Manager and Process Manager Personalities throughout the CPA profession. Each needs a different approach to time performance management that suits their personality and yet gets the work done. Following are three Powerful Time Management tips tailored to each of the tendencies.
Performance Enhancement #1: PLAN
For Time Managers, planning involves making a list and checking it twice. For Process Managers, planning involves piles and possibilities. We have all heard the saying “Plan well in advance and stick to your plan.” This type of thinking will work well for the Time Manager and frustrate the Process Manager.
Time Managers will perform best if they take time during the day to create a to-do list and have an action plan for each day. Process Managers will need to have three to four working items on their desk. More than four and they will feel overwhelmed. Less than three and they will feel bored.
Tip from the Coach: Regardless of your style, schedule three times during your day to do a time management performance check. The start of the day, mid-day and late afternoon would be my recommendation. The length of this check-in should be five to ten minutes in length. During this time you will either 1) review your list or 2) check the piles of working items on your desk. Clarify where you are and where you need to focus between the current time and your next check-in time.
Performance Enhancement #2: FOCUS
“Finish one task at a time.” A great time management tip that works fine for the Time Manager Personality but can be a disaster for the Process Manager Personality. Time Managers strive to finish each task before moving on to the next. Or, at the very least, leave it with a note on top as to the next steps before you set it aside to begin the next project.
For Process Managers, if you spend too much time on one task, your brain will begin to wander to other projects and tasks despite your best efforts to concentrate on one task at a time. Therefore, with three to four projects on your desk, recognize that you may only be able to spend twenty minutes focusing on one project before moving to another. By frequently changing the focus, you will perform at a higher level than the “one task at a time” perspective.
Tip from the Coach: If you manage others, be aware of this difference. What you see as a lazy or unorganized person may be that your style is Time Manager and your staff’s style is Process Manager. OR, you may see a person on your team as rigid and slow. This may be because you are a Process Manager personality while this team member is a Time Manager personality.
Performance Enhancement #3: USE SOME BEHAVIORS FROM THE OPPOSITE STYLE
Overwork and stress sometimes lead us to become more engrained in our natural styles. The more you can self-manage to use the style that is best for the situation, the more your performance will improve. For example, if you are a Time Manager personality with multiple tasks on your desk, do not let the anxiety of too many things and no clear timeline…overwhelm you. Recognize that is not a natural operating position for your tendency. Do recognize the anxiety, but do not overreact to the anxiety.
On the other hand, if you are a Process Manager who needs to focus on one high priority task, you may struggle with keeping your mind focused on the task. The anxiety will also occur but for a different reason. Recognize that this is not a natural operating position for your personality AND do not overreact to the anxiety.
Tip from the Coach: At the same time that you are checking in on your planning needs from Tip #1 also check in with your anxiety. If anxiety is present, first take a deep breath. One of the things that happens when you are anxious is you forget to breathe which in turn creates more anxiety. After taking a few deep breaths, recognize the anxiety and the fact that you do not need to overreact to the anxiety. Do what you can to plan for the next block of time using your natural time management style. If you cannot use your natural style, incorporate what is needed. Just remember, this too shall pass.
For additional resources or to contact Cheryl Leitschuh, visit www.FromStaffToPartner.com
Outstanding Internal and External Exposure Drafts –
FASB
Issue date -- 9/1/10
Proposed ASU, Compensation—Retirement Benefits—Multiemployer Plans (Subtopic 715-80):
Disclosure about an Employer’s Participation in a Multiemployer Plan
Comment deadline -- 11/1/10
Issue date 8/24/10
Proposed ASU, Other Expenses (Topic 720): Fees Paid to the Federal Government by Pharmaceutical
Manufacturers (a consensus of the FASB Emerging Issues Task Force)
Comment deadline -- 10/8/10
Issue date 8/24/10
Proposed ASU, Health Care Entities (Topic 954): Accounting for Legal Costs Associated with Medical
Malpractice and Similar Claims (a consensus of the FASB Emerging Issues Task Force)
Comment deadline -- 10/8/10
FASAB
Issue date -- 9/13/10
Measurement of the Elements of Accrual-Basis Financial Statements in Periods After Initial Recording
Comment deadline -- 11/30/10
