Last week, CPA Practice Advisor shared remarks made by AICPA CEO Barry Melancon at this year’s ENGAGE conference and … uh. Let’s just get straight into it. That resiliency will be needed going forward, with more changes to come from technological disruption, expanded categories of non-financial reporting, and the rapid evolution of new service lines […]
There are countless photos out there of AICPA CEO, President, and ham radio operator Barry Melancon (aka “Bean Picker”) gesturing excitedly this way and that as he explains the future of the CPA profession for captive audiences everywhere. Yet for all the snaps of the benevolent overlord of the world’s most powerful accounting biker gang, […]
I have no idea what AICPA CEO, President and street taco eating champion Barry Melancon is thinking in the above photo, but he couldn’t be more rapt with what this woman has to say. The caption from the Wyoming Society of CPAs website reads: “Break-time Alexandra Wilkinson explaining a case to Barry Melancon.” And sure, […]
I don’t know what AICPA President, CEO and Electoral College Dropout Barry Melancon was getting at here, but it’s safe to say that he wasn’t plugging this as a virtue of the next crop of talent. Melancon: Attention span of the average member of Gen Z is 8 seconds. #roundtable17 — Daniel Hood (@AccountingEdit) February […]
As we told you on Wednesday, the AICPA wasn't too happy about a video from H&R Block that promoted its new service, Block Advisors. In that post, we shared with you a template of the letter the AICPA sent to Bill Cobb, H&R Block's CEO. That letter, among other things, requested that he "remove these […]
Back in October, we discussed whether the CPA exam would ever become an optional within CPA firms. The reason the topic even came up was due to the fact that while the number of accounting students continues to increase, the number sitting for the CPA exam hasn't kept up, either declining in some years or staying flat.
2002 wasn't exactly a fantastic year for accounting. Arthur Andersen had just been convicted of obstruction of justice in the wake of Enron's collapse. That whole Sarbanes-Oxley thing happened. And, of course, the PCAOB was born as a result. In "The Man With Nine Lives" published by Forbes in November of 2002 we meet then […]
AICPA President, CEO, and Benevolent Dictator Barry Melancon gave his yearly "state of the profession" address to CPA Letter Daily recently, but we won't bore you too hard with the specifics. We will, however, skim through this with a few interesting bulletpoints from the profession's fearless leader. AICPA membership swelled to 400,000 this year. Melancon […]
From the professional organization that brought you the letters XYZ and CGMA, the AICPA now brings you the number 400,000: The American Institute of CPAs today announced that its membership recently passed the 400,000 mark, a milestone that underscores the continuing value and vitality of the organization and the accounting profession as well. The […]
As we told you earlier this year, the CPA exam overlords are working on CBT-3, which is the natural evolution of CBT-e (2011) and CBT-e's dusty grandpa CBT (2004). We still aren't totally sure what they're changing around but it looks like they're still looking for help with writing and testing questions before candidates experience […]
This is so ridiculous that upon receiving it, Colin did one of those cartoonish double-takes, you know, with the sound effect and everything. The really sad part is minus the swearing, you could almost believe it to be true. AICPA Launches Three New Professional Designations New York (November 19, 2013) — The new Chartered Global […]
Although there are 40-some-odd thousand CGMAs in the U.S. and 140k worldwide, anyone wanting to get in on this without wading through MCQs, essays, etc. should know that the clock is ticking: #aicpagc13 Melancon: #CGMA Capstone Exam expected in January 2015. — Janice Maiman (@J_Maiman) October 21, 2013
THE MAN HAS SPOKEN. This is the official statement from Barry Melancon in response to the PCAOB's proposed broker-dealer audit standards: “The AICPA is committed to activities that enhance audit quality and has been a leader assisting practitioners in achieving that goal. “We have been consistent in our position that brokers and dealers should be […]
Although the Wall Street Journal Editorial Page made it abundantly clear that the Equal Employment Opportunity Commission was way off, giving PwC and other large accounting firms a hard time for their mandatory retirement age policies, the AICPA thought it would be prudent to make its thoughts on the matter known: In a letter to members […]
The ongoing bickering over FRF for SMEs — which went Defcon 4 the other day with a strongly worded press release from NASBA — has just gone nuclear. I come from a single parent household so I don't know what it's like to live in a home with parents who are on the brink of divorce […]
Judging by the AICPA's PR blitz, you'd think that everyone was excited about their release of its Financial Reporting Framework for Small- and Medium-Sized Entities. Just out of curiousity, I went back and I read three articles on the subject from Accounting Today, the Wall Street Journal, and the New York Times to see if there was any dissent on […]
Oh look, the AICPA put out a press release that says the Chartered Global Management Accountant designation is the "most prominent management accounting credential in the U.S. with 37,864 CFOs, controllers and other finance professionals holding the designation." Plus, it's managed to its way into some of the most prestigious companies in America! U.S. CGMA […]
Barry Melancon speaks on behalf of all the CPAs, CGMAs across this great land who have had it up to here [bridge of nose] with Congress' inability to accomplish anything other than naming post offices: “CPAs in communities large and small and from coast to coast are increasingly troubled by the government’s inability to come […]
I refuse to become a CGMA. If you are a CGMA, I will pretend to not judge you if we meet in person. But I will be judging you in my heart. The Chartered Global Management Accountant designation has been available since January 31, and the AICPA has been promoting the hell out of it. […]
It's that time of year again when lobbyists dust off their agendas and head to Washington to represent the voice of America's CPAs and their clients for the spring meeting of AICPA Governing Council. Once again I'll be covering the festivities however since hardly any of you actually care about legislative news or anything serious […]
You may not know this but AICPA leadership consists mostly of the same old white guys; a complaint you hear often, not something I made up just now. I don't personally have any issues with those old white guys and actually like some of them but it's worth noting that AICPA leadership could use a […]
Thirty three state CPA societies have reached out to the Financial Accounting Foundation (FAF) or passed regulations urging it to create a new board to write differential financial reporting standards for private companies. Alabama, Arkansas, Colorado, Georgia, Illinois, Indiana, Iowa, Kentucky, Louisiana, Maryland, Massachusetts, Minnesota, Montana, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, South Dakota, Tennessee, Texas, Utah, Virginia, West Virginia, Wisconsin and Wyoming all feel FASB’s current standards setting process does not adequately address the needs of the private company sector.
“In today’s business world it is extremely rare to get an overwhelming consensus supporting one idea. However, the responses from the state societies are another example of the CPA profession’s overwhelming support for an independent board to set differential standards for private businesses,” said Barry Melancon, American Institute of Certified Public Accountants (AICPA) president and CEO. “The message is clear; FAF must do this now or run the risk of missing our best opportunity to make GAAP relevant for private companies.” The thirty three states in agreement on this issue represent some 275,000 CPAs.
These state societies basically told FAF that GAAP has become too complex, and the cost associated with GAAP-based financial reporting has become too much of a pain in the assets for private companies, placing an unnecessary burden on these companies with little benefit to financial statement users as a result of this effort. Personally I think the states here are forgetting that the complexity of GAAP and its esoteric intricacies keep a lot of CPAs gainfully employed, as someone actually has to analyze, manipulate, audit and teach that crap. CPA review instructors need to sell FAR videos. Caleb and I need things to make fun of, like SEC Chief Accountant James Kroeker reminding a PACE University IFRS discussion that the P in GAAP stands for principles. Right. Like we forgot.
Anyway, nearly 3,000 letters have been sent to FAF from the private company constituency in support of this separate board for private company reporting standard setting. Maybe FASB has too much to do and too many clever interns to train. Maybe FASB has lost its public company influence and this is just the first step in the coup to overthrow it. I haven’t heard very many pushing for more FASs directly handed down from (mostly) European accounting standard setters but that’s an argument for a different day.
“The boards of more than half of the country’s state CPA societies, representing more than a quarter of a million CPAs, agree that a systemic problem exists,” stated Paul V. Stahlin, chairman of the AICPA. “After over 30 years of research by numerous diverse and independent groups, the only conclusion is that an autonomous standard-setting body under FAF to set differential standards for privately held companies must be created.”
Must be. There’s no way around that.
And for those interested, here’s a tl;dr PwC report tangentially related to private company accounting standards you can read. Perfect for a Friday.
Were you aware that over 2,500 letters have been sent to the Financial Accounting Foundation “demanding” the development of private company GAAP as well as a separate independent board to oversee the standards? If no, why not? If yes, why aren’t you feigning rage, issuing press releases with impatient statements by various bigwigs? If you’re the AICPA, that’s exactly what you’re doing:
For almost 40 years, the pleas of private companies to set standards for financial reporting that are more relevant too often have been ignored. The American Institute of Certified Public Accountants (AICPA) believes that it is time for the Financial Accounting Foundation (FAF) to listen to the constituents who have written to FAF demanding differential financial reporting standards for private companies and a separate independent board to oversee those standards. There are approximately 28 million privately held U.S. companies, accounting for more than 50 percent of our economy.
“Ninety nine percent of the letters from the privately held company constituency demanded that the Financial Accounting Foundation create differential standards for privately held companies,” said Barry Melancon, AICPA president and CEO. “We’ve studied this problem for far too long.”
Pick up the pace, FAF. People are getting antsy.
“The debate becomes what rate to apply, and there’s the Republican view and the Democratic view, and what level of transfer exemption should be there. There are two different camps on that. I think historically that would be ripe for sort of compromising down the middle, but unfortunately, that’s not the political environment that exists right now.”
~ AICPA President and CEO Barry Melancon remains optimistic that something will get done.