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New Michigan
Accountancy Rules Take Effect March 1, 2008
Some accounting news was overshadowed
by the service tax battle last week: administrative rules associated with
the accountancy reform on which many have been working hard for many months
became final in late November. The rules go into effect March 1, 2008. Of
particular interest are guidelines for the new peer review requirement
(rules 501 and 503) and removal of the business communications course
requirement (rule 114). In addition, amendments to rule 140 have eased
restrictions for temporary practice. Click
here for a copy of the new administrative rules.
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MAF Accepting 2008
Scholarship Applications Now
Do you know any accounting students who will be entering their
fifth/graduate year? Encourage them to apply for the MAF Scholarship today.
Each year, the Michigan Accountancy Foundation (MAF) awards Fifth/Graduate
Year Scholarships to deserving accounting students. The scholarship is
intended for students who plan on taking the CPA exam. The MAF Scholarship
application is available
online.
The deadline for submissions is January 31, 2008. If you have any questions
please contact David Johnson by e-mail
or call 248.267.3700.
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AICPA Applauds House
Bill to Modify Preparer Penalty
The AICPA
applauded legislation introduced in the House of Representatives last
week that would restore the role of CPAs as advocates for taxpayers by
equalizing the IRS tax return reporting standards for preparers and
taxpayers. The U.S. Congress passed a law earlier this year – without
hearings or public comment – that upended the traditional client
relationship for CPAs who help prepare federal tax returns for companies and
individuals. At issue is a provision amending Internal Revenue Code section
6694 that was added to emergency spending legislation passed by Congress in
May. It would require a major change in how CPAs represent taxpayers by
raising an IRS reporting standard for preparers to a level of certainty
higher than taxpayers must meet, thus creating a potential conflict of
interest between preparers and their clients. The IRS has delayed
implementation of the law. Rep. Joe Crowley’s bill, H.R. 4318, would
equalize the IRS tax return reporting standards for preparers and taxpayers.
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PCAOB Proposes Guidance
on Rule 4012
The Public Company Accounting Oversight Board (PCAOB) last week issued
proposed guidance that would allow increased reliance on the inspections
programs of qualified non-U.S. auditor oversight entities. The Board seeks
public comment on the criteria and the approach described in the policy
statement, Rule 4012 (Inspections of Foreign Registered Public Accounting
Firms).
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FASB Issues Convergence
Statements, Nos. 141(R) and 160
On December 4, the Financial Accounting Standards Board (FASB) issued
two
standards to improve, simplify and converge internationally the
accounting for business combinations and the reporting of noncontrolling
interests in consolidated financial statements. Statements No. 141 (revised
2007), Business Combinations, and No. 160, Noncontrolling Interests in
Consolidated Financial Statements are effective for fiscal years beginning
after December 15, 2008. Statement 141(R) requires the acquiring entity in a
business combination to recognize all (and only) the assets acquired and
liabilities assumed in the transaction; establishes the acquisition-date
fair value as the measurement objective for all assets acquired and
liabilities assumed; and requires the acquirer to disclose to investors and
other users all of the information they need to evaluate and understand the
nature and financial effect of the business combination. Statement 160
requires all entities to report noncontrolling (minority) interests in
subsidiaries in the same way – as equity in the consolidated financial
statements.
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One Set of International
Standards Important for Economic Growth, According to Survey of World
Accountancy Leaders
Convergence to a single set of international standards is a key to economic
development, according to a
worldwide survey of leaders of the accounting profession conducted by
the International Federation of Accountants. Randy Fletchall, chairman of
the AICPA, and Barry Melancon, president and CEO, were among the
respondents. Of the 143 leaders from 91 countries who responded, a large
majority (89 percent) indicated that convergence to international financial
reporting standards was “very important” or “important” for economic growth
in their countries. The majority of respondents (80 percent) expressed
optimism about the prospects for economic growth and development in their
countries in 2008. Major factors in economic expansion next year are likely
to be the growth of small and medium entities and access to financial
capital. A summary of the survey findings, along with responses to the full
survey, may be found at
www.ifac.org/globalsurvey.
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FTC Offers Tutorial for
Businesses on Protecting Personal Information
Protecting the personal information of customers, clients and employees is
good business. CPAs might consider sharing with small business clients a new
resource from the Federal Trade Commission. The FTC offers a new online
tutorial with practical and low- or no-cost ways to keep data secure. The
tutorial, “Protecting Personal Information: A Guide for Business,” at
www.ftc.gov/infosecurity, takes a plain-language, interactive approach
to the security of sensitive information. Although the specifics depend on
the type of company and the kind of information it keeps, the basic
principles are the same: any business or office that keeps personal
information needs to take stock, scale down, lock it, pitch it, and plan
ahead. The tutorial explains each of these principles, and includes
checklists of steps to take to improve data security.
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Have You Ordered Your
Copy of the 2008 Master Tax Guide?
The MACPA is offering the CCH 2008 U.S. Master Tax Guide and Michigan Tax
Guide at a special discounted rate for all members. The deadline to
pre-order at the discounted rate is December 14, 2007, so don't delay! Your
order should arrive in late December or early January. Take advantage of
this outstanding money-saving member benefit. Please click
here
to order by credit card using VISA, MasterCard or American Express.
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Working in a
Wireless World
The demand for accountants to have accessibility to conducting work on the
road has been driven by the streamlining of businesses going mobile. An
Intuit survey states that 70 percent of small businesses have employees
utilizing wireless communication, a fact echoed by the necessity for CPAs'
dependence on the ability to handle payrolls and customer relationship
management via the wireless Web.
To read this article in its entirety
and learn much more about developments in technology, access
Technology and
Productivity Weekly, the MACPA's electronic technology newsletter for
industry professionals, sponsored by Information, Inc.
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