state of being a cpa (in industry)...state of being a cpa (in industry) may 2011 paul parks aicpa...

State of Being a CPA (in Industry)

May 2011

Paul ParksAICPA Senior Technical ManagerBusiness, Industry & Government

American Institute of CPAs

Topics

Peer review, mobility and substantial equivalencyEthics resources for CPAs in IndustryThe Work We Do: AICPA thought leadership initiatives and resources for CPAs in industryManagement accounting designation – AICPA & CIMA


AICPA requires its member firms to undergo peer review every three yearsFICPA manages the AICPA’s practice monitoring Florida does not have mandatory peer review, but legislation is activeAICPA.org and FICPA.org to learn more

Peer Review


Practice Mobility & Substantial Equivalency

Practice mobility • Ability of a licensee to gain a practice privilege outside of his or

her home jurisdiction without obtaining an additional license in another state where he or she will be serving a client or an employer

• The concept of mobility allows licensed CPAs and CPA firms to more readily practice across state jurisdictions.

The provision specifically allows for interstate practice by CPAs whose home jurisdiction or who individually meets the UAA licensure standard.


Practice Mobility & Substantial Equivalency

Substantial Equivalency• Under section 23 of the AICPA/NASBA Uniform Accountancy

Act (UAA), a CPA with a license in good standing from a jurisdiction with CPA licensing requirements essentially equivalent to those outlined in the UAA is deemed to be substantially equivalent, or a licensee who individually meets the requirements of-

- 150 credit hours with a Baccalaureate - Minimum 1 year of CPA experience - The Uniform CPA Examination

States Boards have jurisdiction over out-of-state CPAs and firms practicing in their stateMyFloridaLicense.com for links to Statutes and Rules


CPA Mobility Initiative2011

TX

WA

OR

CA

NV

ID

MTND

SDWY

UTCO

AZ NM

HI

OK

KS

NE

MN

IA

MO

AR

LA

MS AL *GA

FL

WI

IL

MI

IN

KY

TN

SC

NC

VA

OH

NY

ME

CT

RI

*MA

AKWV

NJDE

DC

MD

*PA

CPA Mobility Enacted 47

CPA Mobility Enacted Only for Other Mobility States – GA, PA, MA

Legislation Expected

*

Awaiting Governor Signature - 1

NH

In Progress

VT

PR

GU

VILegislation Introduced

American Institute of CPAs7

Ethics Resources For CPAs in Industry



Ethics Resources for Industry CPAs



The Work We Do


Business & Industry Responsibilities

1/3 of B&I ResponsibilitiesFinancial accountingFinancial ReportingAuditTax

2/3 of B&I ResponsibilitiesStrategic planningManagement AccountingSustainabilityBudgetingFinancial operations managementRisk management & internal controlsInternal auditGovernanceHR & benefitsIT, legal, purchasing

AICPA Thought Leadership Areas in Business and Industry


Financial Reporting Landscape


Financial Reporting


SEC’s Consideration of IFRS

SEC Work PlanDecision in 2011Earliest Adoption Date 2015Method of incorporation –“Condorsement?”


Accounting Convergence

Priority Projects:• Revenue Recognition• Leases• Financial Instruments• Fair Value Measurement• Statement of Comprehensive Income• Balance Sheet Offsetting• Insurance Contracts (for the IASB)

Effective Dates• To be determined• Big bang or phased approach• Standard setters are reviewing input from comment letters


Enterprise Risk Management


Why ERM?CPAs in industry can take leadership role in ERM initiatives

Website with Briefs, MAGs, Research and other resources to help members with risk management.


Perceptions About Riskiness of Business Environment Out of 331 executives responding in the US and 264 executives responding Globally


Risk Oversight Process

Most perceive their risk oversight processes to be immature with…


Perceived Barriers to ERM


Partnered for a global view of enterprise risk oversight

•AICPA

•Chartered Institute of Management Accountants (CIMA)

•NCSU ERM Initiative


Top Ten ‘Next’ Practices for ERM


Sustainability


Sustainability

Copyright 2009 Foundation for a Sustainable Community

“Going green” can save you green


AICPA Sustainability Initiative Sustainability Competency Domains

PublicPractice


Where are Impacts Found?


Levi Strauss – Life Cycle of a Jean

Cotton Production

Fabric Production

Garment Manufacture

Transport &Distribution

Consumer Use

End of Life

Recycling1

2

3 4

5

6

7


Some Findings• Compliance, reputational

risk and cost cutting are drivers

• Finance function contributions to sustainability highly valued, yet underdeveloped

• Large companies have more robust capabilities, yet 33% of smaller companies have sustainability strategy

Evolution of sustainability practices


Operational Finance & Accounting


Lead Through Financial Operations Management


Professional Issues/Other AICPA Resources


Changing Landscape


AICPA Primer• Consumer Financial

Protection Bureau• Assets under

management threshold• GAO study• Corporate governance,

and accountability• Compensation

Dodd-Frank Act Impact on CPAs


Health Care Reform Resources for CPAs

Free info cast on tax implicationsPowerPoint, brochure for membersNew webpage


Support for CPAs Serving Small Business


Training Grants Resource for CPAs

Whitepaper outlines how: • CPAs can use grants

to increase skill base• Job seekers can

pursue training in growing fields

• Businesses can use grants to fund staff training


Service Organization Control (SOC) Reports


Quarterly Survey of B&I C-Suite CPA Executives

Partnership with UNC Kenan-Flagler Business School

B&I 2010 Goal

Economic Outlook Survey


BusIndNews

Offers the latest news and resources relevant to CPAs especially in business, industry and governmentOther Newsletters:• IFRS Report • CPA Letter Daily• Corporate Finance Insider• CPA Insider• Tax Insider


Proposed Joint Venture AICPA and CIMA


Chartered Institute of Management Accountants

Based in LondonFounded in 1919Largest professional body of management accountants183,000 members and students in 168 countries


Overview

EXPLORING A JOINT VENTURE TO

Establish and promote a new joint designation as the global standard for management accounting

Leverage the power of over 550,000 members in practice and in business

Advance AICPA position as a global advocate for professional accountants

Provide significantly enhanced benefits for CPAs who practice in business and industry

46


The New AICPA-CIMA Designation

Delivered through the AICPA in the Americas and to US CPAs anywhere in the world, with the US CPA credential being a preferred entry pathDifferentiated by ongoing competency / relevant knowledge program: Virtual Me

Benefits for members of AICPA and state societiesNext Step: Approval by AICPA and CIMA Governing Councils

47

A Globally Recognized Management Accounting Designation


A Credential for Business & Industry

Questions with which we wrestled:• How do we respond to the desire of members in business and

industry for a management accounting credential that builds on their CPA certificate?

• How do we improve the quality and scope of resources offered to CPAs in management accounting?

• How can we enhance, deepen and accelerate the CPA’s international influence and reputation?

• Is it in the best interest of the public and the profession for public and management accountants to have a unified professional home?

The answer we arrived at:• A joint venture with the Chartered Institute of Management

Accountants.


Business & Industry Executive Committee View

Pursuing a B&I credential is a very important competitive strategy for AICPA to considerTarget Entry Level/Early Career vs. Expert Level Model as preferred marketStrategic partnering is preferred approach for entering market (buy vs. build) Availability to non-CPAs is important for broad appeal and size of potential market Chartered Institute of Management Accountants most desirable partner to meet needs

49


Permanent Joint Venture supported by a contract

GRAPHIC ELEMENT ISILLUSTRATIVE

50


Thank You!

Contact info: [email protected]

state of being a cpa (in industry)...state of being a cpa (in industry) may 2011 paul parks aicpa...

Documents