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Uniform Laws Governing
Practice of CPAs Across State Lines Gain National Momentum
Meanwhile, 23 states have approved laws to make it less burdensome for
certified public accountants to represent clients across state lines. The
AICPA is seeking enactment of similar laws in every state so that a national
uniform mobility system will become a reality for CPAs, CPA firms and the
state boards of accountancy that regulate them. The AICPA has worked
collaboratively since 2007 with the state boards of accountancy, the
individual state CPA societies and the National Association of State Boards
of Accountancy to update the states’ laws. Read
more.
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FASB Issue Its Own
Hierarchy to Replace AICPA GAAP
On Friday, May 9, the Financial Accounting Standards Board (FASB) issued
FASB
Statement No. 162, The Hierarchy of Generally Accepted Accounting
Principles. Prior to the issuance of Statement 162, GAAP hierarchy was
defined in the AICPA Statement on Auditing Standards (SAS) No. 69. SAS 69
has been criticized because it is directed to the auditor rather than the
entity. Statement 162 addresses these issues by establishing that the GAAP
hierarchy should be directed to entities because it is the entity (not its
auditor) that is responsible for selecting accounting principles for
financial statements that are presented in conformity with GAAP. Statement
162 is effective 60 days following the SEC's approval of the Public Company
Accounting Oversight Board Auditing amendments to AU Section 411, The
Meaning of Present Fairly in Conformity with Generally Accepted Accounting
Principles. It is only effective for nongovernmental entities; therefore,
the GAAP hierarchy will remain in SAS 69 for state and local governmental
entities and federal governmental entities. FASB Statement No. 162 is
available at www.fasb.org.
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FASB Offers Article on
Fair Value
The FASB has posted an article entitled “Understanding the Issues – Some
Facts about Fair Value.” The article is authored by Robert H. Herz and Linda
A. MacDonald and is available to
download.
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AICPA Adds Content for
New CPA Exam
The AICPA has issued a draft proposal outlining new content and skill
specifications it wants to include in the Uniform CPA Examination, including
a greater focus on ethics.
The proposal also increases emphasis on ethics, provides more in-depth
descriptions of the skills necessary for entry-level CPAs, and includes
International Financial Reporting Standards (IFRS) on the exam for the first
time. Read
more.
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Accounting Degrees
Reach 36-Year High
More than 64,000 students graduated with bachelor's and master's degrees in
accounting in the 2006-2007 school year, the largest number of accounting
graduates in at least 36 years, according to a report by AICPA. The total
pool of newly minted accounting talent is 19 percent greater than the one
reported in the previous survey, which covered the 2003-04 school year. The
gender ratio of graduates is fairly close at 52 percent female and 48
percent male. At the same time, more than 203,000 students enrolled in accounting
programs at both the undergraduate and graduate levels. This also represents
a 19 percent increase since 2004, according to the AICPA study, 2008 Trends
in the Supply of Accounting Graduates and the Demand for Public Accounting
Recruits. Read
more.
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The AICPA and Texas
Society of CPAs Need Your Help! Participate in the 2008 PCPS/TSCPA National
MAP Survey
The AICPA’s Private Companies Practice Section (PCPS) together with the
Texas Society of CPAs (TSCPA) are asking that all managing partners of
accounting firms nationwide participate in the
2008 PCPS/TSCPA National MAP
Survey. This is your opportunity to benchmark your firm against others
like yours. The 2008 survey is shorter, with 40percent fewer questions, plus
is more
targeted and user-friendly. The survey will be open through Friday, July 11.
Do not delay, take the survey
today! For more information, please visit the MACPA
web site or call us at
248.267.3700.
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AICPA Whitepaper
Presents a Roadmap for Modernizing Business Reporting
Transparency in financial reporting is improved through the use of XBRL and
an enhanced business reporting model that takes into account non-financial
factors contributing to a company’s value, according to a white paper
produced by the Assurance Services Executive Committee of the AICPA. The
paper, The Shifting Paradigm in Business Reporting and Assurance, asserts
that both private and public companies would benefit by adopting XBRL and
Enhanced Business Reporting (EBR). XBRL, a key enabler of an enhanced
business reporting model, has been embraced by the SEC, which is expected to
mandate it for public filings. Download the
white paper.
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