MSCPA - News

CFOs and CPA More Pessimistic on Economy: AICPA-UNC Economic Survey

Wed, 31 Dec 1969 19:00:00 EST

The U.S. economy has already entered a recession and the outlook remains negative according to a majority of CFOS and senior-level executive CPAs surveyed by the AICPA and the University of North Carolina's Kenan-Flagler Business School. Sixty-two percent of CPA respondents said they were pessimistic or very pessimistic about the economic outlook for the U.S. over the next 12 months and 57 percent believe the U.S. economy has already entered a recession.

Access the full poll.

Feed The Pig� Podcasts Offer Money Saving Tips For Young Americans

Wed, 31 Dec 1969 19:00:00 EST

Feed the Pig, the award-winning national public service campaign of the AICPA and state CPA societies in partnership with the Ad Council, is launching a free podcast series to help 25�34 year olds take control of their finances. In each episode, a young CPA provides basic tips to help a career builder struggling with a financial issue. To listen to the first episode, �Managing Your Student Loans,� and to subscribe to future episodes visit www.feedthepig.podomatic.com. Future podcasts cover �Buying Your First Home,� �Paying down Debt vs. Saving for the Future,� �Filing Your Taxes,� and �Compulsive Spending.� Financial illiteracy is a national crisis. Americans spend $1.22 for every $1.00 they earn, according to the U.S. Commerce Department. The statistics for young Americans are just as staggering. An AICPA-commissioned study found:

The median net worth of Americans 25-34 years of age is significantly lower than it was 20 years ago, despite increases in income. In 1985, it was $6,788; in 2004, it was $3,746.

There is an increased willingness among Americans in this age group to acquire unsecured debt: The average level of debt in 1985 was $3,118, whereas in 2004, it climbed to $4,733.

On average, net worth for 25-34 year olds was 99 percent of income in 1985; by 2004 it was 92 percent. Feed the Pig offers free financial information to help 25-34 year olds work toward long-term financial security. The target audience can find free resources to make positive changes at FeedThePig.org.

AICPA Issues Statement on Standards for Valuation Services No. 1

Wed, 31 Dec 1969 19:00:00 EST

The Consulting Services Executive Committee of the American Institute of Certified Public Accountants (AICPA) announced today the release of a new professional standard on valuation services, Statement on Standards for Valuation Services No. 1 (SSVS No. 1) “Valuation of a Business, Business Ownership Interest, Security, or Intangible Asset.” The standard provides guidelines to CPAs for developing estimates of value and reporting on the results. It applies to AICPA members who perform an engagement that estimates the value of a business, business interest, security or intangible asset for numerous purposes, including sales transactions, financing, taxation, financial reporting, mergers and acquisitions, management and financial planning and litigation. SSVS No. 1 is effective for engagements accepted on or after January 1, 2008. A copy of the standard has been posted to the AICPA Web site at http://bvfls.aicpa.org/Resources/Laws+Rules+Standards+and+Other+Related+Guidance/AICPA+Valuation+Standard+and+Implementation+Toolkit.htm.

“The AICPA developed the valuation standard to improve the consistency and quality of practice among its members who perform engagements that estimate values for various reasons,” said Barry Melancon, CPA, AICPA President and CEO. “Congress, government agencies and accounting regulators have recently focused their attention on appraisal issues – such activity shows the importance of valuation to the business community and individuals. In addition, an increasing number of CPAs offer valuation services. The standard promotes greater transparency and provides our members with a set of guidelines in the unique context of a CPA practice.”

“The demand for valuation services has significantly increased over the past 20 years. The standard should benefit the public because it promotes consistent practice among CPAs performing valuation services and adequate disclosures for users of these services,” said Michael Crain, CPA/ABV, Chair of the AICPA Business Valuation Committee.

SSVS No. 1 specifies two types of engagements: valuation engagements and calculation engagements. For valuation engagements, two types of written reports are permitted – detailed reports and summary reports. For calculation engagements, one type of written report is permitted – calculation reports. Oral reports are allowed for all engagements under the standard.

"SSVS No. 1 is the product of a thoughtful and open standard-setting process that constantly seeks to improve the quality of valuation services offered by CPAs," said Edward J. Dupke, CPA/ABV, Chair of the BV Standards Task Force of the AICPA Business Valuation Committee. “Although the effective date is not until January 1, 2008, we are urging firms and CPAs to begin earlier implementation.”

The AICPA estimates that more than 25,000 CPAs currently provide Business Valuation and Forensic & Litigation Services (BVFLS). More than 2,500 CPAs hold the AICPA’s Accredited in Business Valuation (ABV) credential which signifies their expertise as preferred valuation professionals. To locate an ABV credential holder, please visit http:// www.aicpa.org/BVFLS and select “Find an ABV.” For more information about the ABV credential or the BVFLS Membership Section, please select the Membership tab.

AICPA Certified Information Technology Professional (CITP) Credential

Wed, 31 Dec 1969 19:00:00 EST

AICPA Certified Information Technology Professional (CITP) Credential: Distinguish Your Technology Expertise! The American Institute of Certified Public Accountants offers CPAs the ability to differentiate themselves with a unique credential that is exclusively available to CPAs. The CITP credential distinguishes CPAs with a broad range of competencies in business and technology, whether they work in public accounting, consulting or business and industry. By becoming a CITP you convey to your clients and employers that you have the necessary experience and training to bridge the gap between business and technology. Furthermore, since only CPAs can obtain the CITP your clients and employers will know that you have the independence and objectivity unique to the Certified Public Accountant, and the business acumen necessary to align IT innovation with their business needs. The AICPA provides more support and resources than ever before to CITP credential holders. The CITP credential offers CPAs:

$125 Discount off the AICPA's annual TECH conference
Exclusive CITP Web Seminars
CITP Marketing Toolkit
Monthly CITP Credential Committee Chairletters
Online Member Forums
AICPA IT Section Membership ($200 Value)
CPA Technology Advisor magazine
IT Section eNews Letter
Monthly IT Executive Committee Chairletter
Bi-monthly InfoTech Update
Participation in the AICPA Top Technology Initiative

Want to learn more�Visit aicpa.org/citp and click on "Learn About the CITP Credential". There you can access a detailed inventory of CITP benefits, a detailed list of frequently asked questions, the CITP Handbook, and the CITP application. You can also download the application for reviewing before you decide to apply. For more information or if you have questions, visit www.aicpa.org/citp, call 201.938.3828, Option 3, or send an e-mail to citp@aicpa.org.

MSCPA Responds to IFAC Proposal

Wed, 31 Dec 1969 19:00:00 EST

The Society issued comments on the proposed revisions to the independence standards of the IFAC Code of Ethics. Review the comments.

Update: 4/20/07 The International Ethics Standards Board for Accountants, an independent standard-setting board within the International Federation of Accountants (IFAC), released an exposure draft containing significant revisions to the independence standards of the IFAC Code of Ethics. Revisions to the IFAC Code include: - Extending the more restrictive listed entity independence requirements to the audits of entities of significant public interest. - Expanding the applicability of partner rotation requirements and removal of the provision that allows flexibility for small firms to apply alternative safeguards. - Strengthening guidance related to the provision of non-assurance services, including new guidance on the provision of tax services to audit clients. The proposed standards are more restrictive than the AICPA Code, and if adopted, they may be considered by the AICPA to harmonize international standards. If adopted, the standards could significantly impact AICPA members. All members are encouraged to review the important proposal. Comments are due to IFAC by April 30, 2007. Review the exposure draft.

Below is an alert from the AICPA Center for Public Company Audit Firms (CPCAF), highlighting major issues with IFAC's proposal. CPCAF Alert #156 � January 8, 2007 "IFAC's Ethics Standards Board Proposal Related to Auditor Independence � Certain Aspects More Restrictive than SEC Requirements" On December 29, 2006, the International Ethics Standards Board for Accountants, (IESBA), an independent standard-setting board within the IFAC Press Release can be accessed by clicking on the respective link. The exposure draft can be accessed at the following link: Proposed Revised Section 290 of the Code of Ethics for Professional Accountants, Independence - Audit and Review Engagements, and Proposed Section 291, Independence - Other Assurance Engagements (the exposure draft) Why is this Relevant to U.S. Auditors of Public Companies? The AICPA is a member body of the IFAC. As a member body, you must at a minimum apply the more restrictive code of ethics rules of IFAC and incorporate them into your code. Since certain aspects of the IFAC proposed ethics rules will be more restrictive than the AICPA�s and SEC�s independence rules, it is important that AICPA members are aware of this proposal. The IFAC�s Statement of Membership Obligation (SMO) No. 4 sets out the obligations of member bodies in relation to the IFAC Code. SMO 4 states, in part, that "Member bodies should not apply less stringent standards than those stated in the IFAC Code of Ethics. If a member body is prohibited from complying with certain parts of the Code by law or regulation, it should comply with all other parts of the Code." A number of revisions are being proposed to the IFAC Code that are more restrictive than that of the AICPA and the SEC and accordingly, may have a significant impact on U.S. auditors of public companies. The exposure draft revises Section 290: Independence- Audit and Review Engagements of the IFAC Code of Ethics for Professional Accountants (the Code) and proposes a new Section 291: Independence- Other Assurance Engagements. The goal of this proposal is to strengthen independence requirements. Comments are due by April 30, 2007 and instructions on how to submit comments are included in the exposure draft The IESBA is requesting general comments on the exposure draft in addition to comments on specific questions outlined in the proposal. The AICPA�s Professional Ethics Executive Committee (PEEC) will be commenting on this proposal on behalf of AICPA members. The current independence requirements within the Code were issued in November of 2001 and due to the current environment, the IESBA deemed it necessary to begin a project to determine if any of the independence requirements were in need of revision. This exposure draft was developed over a two year period and the text of the exposure draft includes background information on the process. Significant proposed modifications to the Code include: - Extending the more restrictive listed entity independence requirements to the audits of a wider range of entities of significant public interest. For example, the proposal will extend the listed entity independence provisions (e.g., partner rotation, cooling-off period, non-audit services restrictions) to all entities of significant public interest. Such entities are described in proposed revised Section 290 as listed entities and certain other entities which, because of their business, size or number of employees have a large number and wide range of stakeholders. While the proposal allows some flexibility for each member body to determine which entities should be considered to be entities of significant public interest for purposes of their particular jurisdiction, there is a presumption that regulated financial institutions would be considered to be entities of significant public interest, and depending on the facts and circumstances, may include pension funds, government-agencies, government-controlled entities and not-for-profit entities. - Expanding the applicability of partner rotation requirements to all entities of significant public interest and removal of the provision that allows flexibility for small firms to apply alternative safeguards. - For example, the proposed revised Section 290 addresses the familiarity threat by extending the partner rotation requirements to all key audit partners (which is defined in the exposure draft) on an audit of an entity of significant public interest with no exceptions. A "key audit partner" is defined in the proposal as "the engagement partner, the individual responsible for the engagement quality control review, and other audit partners on the engagement team, such as lead partners on significant subsidiaries or divisions, who are responsible for key decisions or judgments on significant matters with respect to the audit of the financial statements on which the firm will express an opinion." - The IESBA also proposes removing the existing flexibility to permit firms without a large number of partners to apply other safeguards, instead of partner rotation, to address the familiarity threat. The proposal is therefore more restrictive than the SEC requirement that provides an exception for firms with fewer than five SEC audit clients and fewer than ten partners. - Strengthening guidance related to the provision of non-assurance services, including setting out additional guidance on the provision of tax services to audit clients. For example, the proposal states that performing certain tax services may create threats to independence and contains guidance on the following four broad categories of taxation services: tax return preparation; preparation of tax calculations; tax planning and other tax advisory services; and assistance in the resolution of tax disputes. About the IESBA and IFAC "The IESBA develops ethical standards and guidance for use by professional accountants. It encourages member bodies of IFAC to adopt high standards of ethics for their members and promotes good ethical practices globally. The Public Interest Oversight Board oversees the activities of the IESBA and, as one element of that oversight, establishes the criteria for its due process and working procedures." "IFAC is the worldwide organization for the accountancy profession dedicated to serving the public interest by strengthening the profession and contributing to the development of strong international economies. IFAC is comprised of 155 members and associates in 118 countries, representing more than 2.5 million accountants in public practice, education, government service, industry and commerce. In addition to setting international standards of ethics through the IESBA, IFAC, through its independent standard-setting boards, sets auditing and assurance, education, and public sector accounting standards. It also issues guidance to encourage high quality performance by professional accountants in business."

State Filing Deadlines

Wed, 31 Dec 1969 19:00:00 EST

The IRS has extended the deadline for taxpayers to file their 2006 federal returns and pay any taxes due until April 17, 2007. http://www.irs.gov/newsroom/article/0,,id=167194,00.html Each state has their own filing deadline and many (though not all) have elected to follow the federal rule and allow taxpayers an extra day to file state income taxes. The MSCPA received inquiries from members seeking information on other state deadlines, so we informally surveyed each state. Please see below for a list of the fifty states and their corresponding filing deadlines. For more information on each state's deadline, please click on the link, where applicable. If you have any questions, please e-mail Hayley Dunn. Alabama: April 17, 2007 http://www.revenue.alabama.gov/prdocs/April17filingdate.pdf Alaska: No state income tax Arizona: April 17, 2007 Arkansas: April 17, 2007 California: April 17, 2007 http://www.ftb.ca.gov/aboutftb/press/2007/07_02.html Colorado: April 17, 2007 http://www.cocpa.org/articles/article_detail.asp?article_id=232 Connecticut: April 17, 2007 http://www.ct.gov/drs/cwp/view.asp?Q=331336&A=1436 Delaware: April 30, 2007 http://www.state.de.us/revenue/information/2007Information.shtml Florida: No state income tax Georgia: April 17, 2007 Hawaii: April 20, 2007 http://www.state.hi.us/tax/media/2007-01-23-Tax_Season.pdf Idaho: April 17, 2007 Illinois: April 17, 2007 http://www.revenue.state.il.us/Individuals/FilingRequirements/index.htm Indiana: April 17, 2007 Iowa: April 30, 2007 http://www.state.ia.us/tax/news/nrIowaIncomeTax2006.html Kansas: April 17, 2007 http://www.ksrevenue.org/news/012607bnews.htm Kentucky: April 17, 2007 http://revenue.ky.gov/NR/rdonlyres/E21E3920-A8BB-4085-A73B-A9A86F3B375A/0/April17.pdf Louisiana: May 15, 2007 http://www.rev.state.la.us/sections/faq/default.asp#general Maine: April 17, 2007 Maryland: April 17, 2007 Pass through entity income tax returns (Form 510) and fiscal year corporate returns due April 15 must still be filed by Monday, April 16, 2007. http://individuals.marylandtaxes.com/incometax/personal.asp Massachusetts: April 17, 2007 Michigan: April 17, 2007 http://www.michigan.gov/treasury/0,1607,7-121--161683--,00.html Minnesota: April 17, 2007 http://www.taxes.state.mn.us/taxes/individ/index.shtml Mississippi: April 17, 2007 http://www.mstc.state.ms.us/extended_due_date.htm Missouri: April 17, 2007 http://www.dor.mo.gov/news/2007/EEZpkVZp.htm Montana: April 17, 2007 Nebraska: April 17, 2007 http://www.revenue.state.ne.us/news_rel/jan_07/due_date_chg.html Nevada: No state income tax http://tax.state.nv.us New Hampshire: No state income tax New Jersey: April 17, 2007 http://www.njscpa.org/story.cfm?SID=12225 Other filing dates: http://www.state.nj.us/treasury/taxation/pdf/chronolist07.pdf New Mexico: Filing by paper, April 16, 2007 Filing and paying electronically, April 30, 2007 http://www.tax.state.nm.us/forms/year06/2006PIT1INST.pdf New York: April 17, 2007 http://www.tax.state.ny.us/pit/income_tax_2006/due_date.htm North Carolina: April 17, 2007 http://www.dor.state.nc.us/extension41707.html North Dakota: April 17, 2007 Ohio: April 17, 2007 http://tax.ohio.gov/divisions/communications/information_releases/IT_2007-02.stm Oklahoma: April 16, 2007 http://www.tax.ok.gov/faq/faqiti09.html Oregon: April 17, 2007 http://www.oregon.gov/DOR/NEWS/news/012607deadline.shtml Pennsylvania: April 17, 2007 http://www.revenue.state.pa.us/revenue/CWP/view.asp?Q=267998&A=208 Rhode Island: April 17, 2007 http://www.tax.ri.gov/ South Carolina: April 17, 2007 http://www.sctax.org/default.htm South Dakota: No state income tax Tennessee: April 17, 2007 http://www.state.tn.us/revenue/newsreleases/2007/filedeadline.htm Texas: No state income tax Utah: April 16, 2007 http://incometax.utah.gov/ Vermont: April 17, 2007 http://www.state.vt.us/tax/pdf.word.excel/forms/2006/incbk.pdf Virginia: May 1, 2007 http://www.tax.virginia.gov/site.cfm?alias=WhenToFile Washington: No state income tax West Virginia: April 17, 2007 Wisconsin: April 17, 2007 http://wfrv.com/topstories/local_story_027103311.html Wyoming: No state income tax

AICPA Standards for Performing and Reporting on Peer Reviews Exposure Draft Released

Wed, 31 Dec 1969 19:00:00 EST

The AICPA Peer Review Board (Board) released an exposure draft on April 16, 2007 containing proposed revisions to the AICPA Standards for Performing and Reporting on Peer Reviews (Standards) and Interpretations to the Standards. The exposure draft is available on the AICPA Peer Review Program (PRP) and Center for Public Company Audit Firms (CPCAF) PRP�s Web sites at http://www.aicpa.org/members/div/practmon/index.htm and http://www.aicpa.org/centerprp/index.htm, respectively. The proposed changes are expected to result in a more efficient and effective peer review process. However, since the proposed changes are significant, all interested parties (especially peer reviewers, peer reviewed firms and peer review users) are encouraged to review them and provide feedback to ensure your views are considered. The comment deadline is June 30, 2007. The exposure draft contemplates that the revised Standards and Interpretations will be effective for peer reviews commencing on or after January 1, 2009. Many factors have influenced the current reevaluation of the Standards and Interpretations, most notably feedback received from peer review users, including feedback received from an on-line poll of AICPA members. The feedback was considered by an AICPA Board of Directors task force established in May 2005, which issued a report of recommendations to enhance the Program in February 2006. That report of recommendations was considered by a Joint Peer Review Task Force and the Board�s Standards Task Force, which have been addressing harmonization issues and other program enhancements since 2004. The most significant conclusions from the work of the Board of Directors and Joint Peer Review task forces are the recommendations to:

Merge the AICPA�s two peer review programs (AICPA and CPCAF PRPs), and

Reengineer the reporting process to be more understandable and usable in light of the growing mandate that the results of peer reviews be made more widely available. To further these recommendations, the exposure draft proposes to create one set of Standards and Interpretations within the Program for all AICPA members subject to peer review. This includes those members� firms currently enrolled in the CPCAF Peer Review Program. Other proposals include a reengineered reporting process, changes to engagement and report reviews, and more principles-based Standards. We strongly encourage you to review the exposure draft and provide your feedback so your comments and ideas are heard. The comment deadline is June 30, 2007.

The Department of Revenue Administration Reminds You It�s Tax Time in NH

Wed, 31 Dec 1969 19:00:00 EST

April 17th Deadline to Pay Taxes The Business Profits Tax is an 8.5% tax assessed on taxable business profits of entities conducting business activity within this state. All business organizations with more than $50,000 of gross business income in 2006 are required to file a return and pay 100% of the tax liability on or before April 17, 2007 (except calendar year corporations). The Business Enterprise Tax is a 0.75% tax assessed on the sum of all compensation paid or accrued, interest paid or accrued, and dividends paid by the business enterprise, after special adjustments and apportionment. Business enterprises with more than $150,000 of gross business receipts from all their activities in 2006, or an enterprise value tax base more than $75,000, are required to file a return and pay 100% of the tax liability on or before April 17, 2007 (except calendar year corporations) The Interest and Dividends Tax is a 5% tax levied on interest and dividend income. Resident individuals, partnerships, limited liability companies, and fiduciaries with non-transferable shares that earned interest and dividend taxable in 2006 of more than $2,400, or $4,800 for joint filers, are required to file a return and pay 100% of the tax liability on or before April 17, 2007. e-File New Hampshire Taxpayers with a tax liability of $100,000 or greater are required to make tax payments electronically. All other taxpayer�s have the option to pay their business taxes or interest and dividends tax on-line. The department�s website also allows taxpayers to file their Interest & Dividends Tax returns on-line; whether making a payment or claiming an overpayment. For those who are not ready to file their return, extension payments of 100% of the tax due can be made on-line prior to midnight of the 17th to receive an automatic 7-month extension to file their return. On-line payments may be scheduled up to one year in advance to be deducted from your bank account on the due date of the tax. Visit the department�s website at http://www.revenue.nh.gov for more information. Low & Moderate Income Homeowner�s Property Tax Relief New Hampshire residents who owned a homestead subject to the state education property tax, resided in the homestead as of April 1, 2006, and had a total household adjusted gross income of $20,000 or less if a single person or $40,000 or less if married or head of a NH household may apply for property tax relief between May 1 and June 30, 2007. Visit the department�s web site at http://www.revenue.nh.gov for more information about the program and to obtain Form DP-8 after April 30, 2007.