Keeping CalCPA Members Connected and Informed
California educators, nonprofit representatives, legislators, small-business owners, parents, CPAs and other financial professionals will come together July 30 to discuss how to improve financial literacy in California. The summit will feature:
Register or learn more.
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The AICPA released a six-point plan to improve audits that outlines enhancements in the following areas:
The National Association of State Boards of Accountancy commented on the Financial Accounting Foundation’s three-year review of the Private Company Council with the following:
It’s not always clear as to how to apply the FTB’s federal determination for research credit cases, especially if there was no review of the research credit at the federal level. The following examples illustrate situations where the FTB would not automatically follow federal actions for research credit cases or would need to inquire further into the credit computation:
The Financial Accounting Foundation issued its 2014 Annual Report, which is themed “Building a Better GAAP” and focuses on the new FAF/FASB/GASB Strategic Plan. The plan serves as a blueprint for how the three groups will work together in the next few years to improve Generally Accepted Accounting Principles.
The report includes listings of all FAF, FASB and GASB advisory groups—including the Private Company Council and the Emerging Issues Task Force—as well as a complete 2014 management’s discussion, analysis and audited financial statements.
Thanks to all those who renewed their membership prior to May 1 and qualified for our contest. Our winners are:
If you haven’t, you can do so online—and still earn four hours of free ethics education.
Juries (members of the public) assess situations and create jury or claims standards. Jurors rarely care as much about CPA professional standards as they do about CPAs “getting it right,” which often means protecting the public interest; uncovering fraud regardless of the services being rendered; advising and informing clients of all significant matters (especially risk and how to avoid it); and documenting all significant communications, decisions and observations.
The expectation that CPAs will uncover fraud can be difficult to meet, but CPAs can address the issue by advising and informing clients about fraud exposures, as well as by offering to help clients address their exposures. CPAs also should document the advice and warnings provided to the client in case a dispute arises. Also, while CPAs are not required to verify certain types of information in engagements—such as tax return preparation or compilation of financial statements—if something looks irregular, it should be investigated, documented and communicated to the client.
For more information about CPA firm insurance issues, call 1 (800) 652–1772 or go online.
The Governmental Accounting Standards Board (GASB) issued its Statement No. 68, Accounting and Financial Reporting for Pensions—An Amendment of GASB Statement No. 27, with new pension reporting requirements for employers. GASB also issued Statement No. 71, Pension Transition for Contributions Made Subsequent to the Measurement Date—An Amendment of GASB Statement No. 68, to clarify the transition year provisions of GASB 68. Statements issued by the GASB collectively establish the foundation of generally accepted accounting principles. Local governments follow these accounting principles when preparing their financial statements to receive “clean,” unmodified audit opinions from their external auditors.
This white paper has been prepared by the California Committee on Municipal Accounting—a joint committee composed of representative from the League of California Cities and the CalCPA Government Accounting and Auditing Committee—to assist California local governments and their auditors with the implementation of the new pension statement. For most local governments with July 1–June 30 fiscal years, implementation will be required in the June 30 financial statements. Specific focus and sample disclosures are provided for local governments participating in the California Public Employees’ Retirement System. However, concepts set forth in this white paper are also applicable to other retirement systems.
Here are the steps to dissolve, surrender or cancel a business entity:
The IRS is reminding small businesses that have failed to timely file certain required retirement plan returns that they have until Tuesday, June 2, to take advantage of a special penalty relief program, which is designed to help small businesses with retirement plans that may have been unaware of the reporting requirements that apply to these plans. Normally, the plan administrators and sponsors of these plans who fail to file required annual returns can face stiff penalties—up to $15,000 per return. By filing late returns by June 2, eligible filers can avoid these penalties. About 6,000 delinquent returns have been filed under this program so far.
This program is generally open to certain small business (owner-spouse) plans and plans of business partnerships (together, “one-participant plans”) and certain foreign plans. Those who have already been assessed a penalty for late filings are not eligible for this program.