ASCPA Student Education Fund

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Economic Crisis Resource Center

AICPA IFRS Resources

Mobility Legislation

AICPA Agrees with Repeal of Cell Phone Tax

Internal Revenue Service Commissioner Doug Shulman and Treasury Secretary Timothy Geithner have asked Congress to simplify the rules regarding an employee's tax obligation on the personal use of an employer-paid cell phone. In a statement, Shulman said reports that the IRS is cracking down on employee use of employer-provided cell phone are erroneous."[We] ask that Congress act to make clear that there will be no tax consequence to employers or employees for personal use of work-related devices such as cell phones provided by employers. The passage of time, advances in technology and the nature of communication in the modern workplace have rendered [the current law] obsolete." Citing the tax as unpopular and difficult to enforce, Obama administration policymakers favor repeal. The AICPA has advocated for this change as well.

Hear About IFRS for Private Companies -- Coming Next Month

In an increasingly global business environment, the demands CPAs face are changing. In this three-minute video, Judith O'Dell, chairwoman of the Private Company Financial Reporting Committee, discusses three things all CPAs should recognize about the new landscape and the internationalization of accounting standards.

FASB Accounting Standards Codification^TM to Officially Launch on July 1, 2009On that date, the Codification becomes the official single source of authoritative nongovernmental U.S. GAAP

June 3, 2009The Financial Accounting Standards Board (FASB) today voted to approve the FASB Accounting Standards Codification^TM as the single source of authoritative nongovernmental U.S. Generally Accepted Accounting Principles (GAAP) to be launched on July 1, 2009.  The Codification will be effective for interim and annual periods ending after September 15, 2009, which means that preparers must begin to use the Codification for periods that begin on or about July 1, 2009. All existing accounting standard documents are superseded.  All other accounting literature not included in the Codification will be considered nonauthoritative.

"When the Codification goes live on July 1, 2009, it will vastly improve the ease of researching U.S. GAAP issues," states FASB Chairman Robert Herz. "The FASB is confident that preparers, auditors and users of financial statements-who for years have had to wade through hundreds of pieces of disparate GAAP literature to resolve an accounting issue-will find the Codification provides a much more efficient, user-friendly method of researching up-to-date solutions."

Starting in January 2008, the FASB made the Codification available for free for an extended verification period, during which time users were urged to provide feedback on the new system to confirm that the Codification accurately reflects existing U.S. GAAP for nongovernmental entities. In December 2008, the FASB publicly announced July 1, 2009, as the date on which the Codification was expected to go live.

The Codification reorganizes the thousands of U.S. GAAP pronouncements into roughly 90 accounting topics and displays all topics using a consistent structure. It also includes relevant Securities and Exchange Commission (SEC) guidance that follows the same topical structure in separate sections in the Codification.

To prepare constituents for the change, the FASB has provided a number of tools and training resources including:

• An online tutorial available on the Codification website at http://asc.fasb.org
• A Notice to Constituents that includes a significant amount of background information at http://asc.fasb.org
• A Codification Question and Answer (Q&A) document at http://www.fasb.org/cod_project/Cod_overview_12-08.pdf
• Various webcasts, including a March 13, 2008 webcast entitled The Move to Codification of U.S. GAAP, available at http://www.fasb.org/fasb_webcast_series/index.shtml
• "Countdown to Codification Alerts," a series of weekly e-mails featuring tips to help ease the transition to the new research system, available at http://www.fasb.org/codification_alerts
• Numerous presentations.

While the Codification does not change GAAP, it introduces a new structure-one that is organized in an easily accessible, user-friendly online research system. The FASB expects that the new system will reduce the amount of time and effort required to research an accounting issue, mitigate the risk of noncompliance with standards through improved usability of the literature, provide accurate information with real-time updates as new standards are released, and assist the FASB with the research efforts required during the standard-setting process.

The FASB Accounting Standards Codification^TM excludes governmental accounting standards. It codified all standards issued by a standard-setter within levels A through D of the pre-Codification GAAP hierarchy, as follows:

Financial Accounting Standards Board (FASB)

• Statements (FAS)
• Interpretations (FIN)
• Technical Bulletins (FTB)
• Staff Positions (FSP)
• Staff Implementation Guides (Q&A)

Emerging Issues Task Force (EITF)

• Abstracts
• Appendix D Topics

Derivative Implementation Group (DIG) Issues

Accounting Principles Board (APB) Opinions

Accounting Research Bulletins (ARB)

Accounting Interpretations (AIN)

American Institute of Certified Public Accountants (AICPA)

• Statements of Position (SOP)
• Audit and Accounting Guides (AAG)-only incremental accounting guidance
• Practice Bulletins (PB)
• Technical Inquiry Service (TIS)-only for Software Revenue Recognition.

More details about the availability of the Codification, including subscription information and a planned print edition, will appear soon on www.fasb.org.

About the Financial Accounting Standards Board

Since 1973, the Financial Accounting Standards Board has been the designated organization in the private sector for establishing standards of financial accounting and reporting. Those standards govern the preparation of financial reports and are officially recognized as authoritative by the Securities and Exchange Commission and the American Institute of Certified Public Accountants. Such standards are essential to the efficient functioning of the economy because investors, creditors, auditors, and others rely on credible, transparent, and comparable financial information. For more information about the FASB, visit our website at www.fasb.org.

Accounting Doctoral Scholars Program
Internal Announcement - 2009

You are no doubt aware of the growing crisis in the shortage of academically-qualified accounting faculty.  Not only has the production of doctoral accounting faculty declined substantially over the last ten years, but a large percentage of accounting faculty are expected to retire over the five to seven years.  Without adequate and qualified faculty, accounting program administrators and deans of business schools will be forced to limit enrollment in undergraduate and masters programs in accounting.  You know how important a supply of well educated talent is to the future of the profession.

I am pleased to announce that the Arkansas Society of CPAs is partnering with over 69 firms, and over 35 additional State CPA Societies, to help address this critical need by committing financial and other support to for the Accounting Doctoral Scholars (ADS) program that is administered by the AICPA Foundation. 

Launched in 2008, the ADS program provides funding for up to 30 individuals each year, with a focus on those currently working in public accounting, to help them make a permanent transition to teaching and research in accounting at the university level.  The funding supports application to doctoral programs in accounting and also provides an annual stipend of $30,000 up to four years of enrollment.  Priority is given to those committed to teaching and research in audit and tax—the areas of greatest need. 

Applicants to the program must be U.S. citizens and have three years of recent meaningful public accounting experience in auditing or tax.  A full description of the program, complete eligibility requirements, application procedures and a current list of participating universities are available on line at www.adsphd.org.  The ADS Program application, for enrollment in an accounting doctoral program for fall 2010, will be available online June 1, 2009.  The application deadline is October 1, 2009. 

I encourage those of you who may have an interest in transitioning to an academic career to seriously consider this opportunity.  I also urge you to encourage others in the firm whom you believe have the potential to excel in teaching and research at the university level to seriously consider this program.

Your firm is pleased to be part of this effort to attract to the classroom individuals who have demonstrated successful performance in the practice of public accounting.  The future of the profession and our firm depends upon having the best and brightest faculty possible preparing the next generation of accounting graduates.

Sincerely,
Barbara S. Angel
Executive Director