CalCPA BUZZ
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Archive for the ‘CalCPA Buzz’ Category
May 21st, 2013
In order to comply with Government Code Sec. 11346.1(a)(2), the California Board of Accountancy is giving notice of its intent to file emergency regulations with the Office of Administrative Law (OAL). The purpose of this emergency rulemaking is to implement the practice privilege program that goes into effect on July 1, 2013, pursuant to Article 5.1 (commencing with Business and Professions Code Sec. 5096) of the Accountancy Act. In order to comply with Government Code Sec.11346.1(a)(2), the CBA includes with this notice the the specific language proposed to be adopted and the required Finding of Emergency.
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May 21st, 2013
CalCPA is in search of CPA professionals licensed less than five years who are looking to develop critical leadership skills with a network of peers and local leaders for our annual Emerging Leaders Certificate Program.
Join us for a full-day conference (July 25 at the South San Francisco Conference Center or July 26 at the Four Points Sheraton LAX) focused on various areas of leadership development, followed by four, two-hour chapter-based workshops Aug. 7 and 21, Sept. 18 and Oct. 18.
Program topics include leadership in the new normal, leading from a place of natural strength, how to think like a leader, establishing an ethical culture … and more.
Register today by going online and selecting your chapter.
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May 21st, 2013
Problem: A hacker attacks your computer system and compromises confidential client data. When you notify affected clients that their personal identity information has been exposed, they threaten to take their business elsewhere and demand that you pay for credit-monitoring services for them.
Solution: Some professional liability policies cover the costs to notify third parties of unauthorized disclosure of personal identity information. However, expenses for credit monitoring services, public relations and reputational services are generally covered by a data breach insurance policy.
For more information about CPA firm insurance issues, call CAMICO at (800) 652-1772 or go online.
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May 21st, 2013
The International Accounting Standards Board and the Financial Accounting Standards Board published for public comment a revised exposure draft outlining proposed changes to the accounting for leases. The revised draft proposes a dual approach to the recognition, measurement and presentation of expenses and cash flows arising from a lease. For most real estate leases, a lessee would report a straight-line lease expense in its income statement. For most other leases, such as equipment or vehicles, a lessee would report amortization of the asset separately from interest on the lease liability.
Stakeholders are encouraged to review and provide feedback on the revised draft by Sept. 13. Learn more.
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May 21st, 2013
IRS Criminal Investigation has released its Annual Report for fiscal 2012. Investigations initiated and prosecution recommendations were both up nearly 9 percent in fiscal 2012 compared to the prior year. Filings of indictments and other charging documents rose 13 percent. Meanwhile, convictions and those sentenced both gained roughly 12 percent from the prior year. Criminal investigation initiations totaled 5,125 cases in fiscal 2012 while investigations completed were 4,937—up 5 percent from fiscal 2011. Convictions totaled 2,634 in fiscal 2012 while the conviction rate edged up slightly to 93 percent.
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May 21st, 2013
Check out the new digital version of our course catalog.
- Governmental Accounting and Auditing Conference: May 21, Inland Empire; May 22, Sacramento; and webcast
- Practical Guide to Accounting Fraud: May 23, webcast
- GAAP Update: May 31, S.F. Peninsula and webcast
- Cloud Computing: June 3, S.F. Peninsula and webcast
- Excel-Based Dashboards: June 4, S.F. Peninsula and webcast
- Estate and Trust Conference: June 6, Burbank; June 7, San Francisco and webcast
- Entertainment Industry Conference: June 12, Beverly Hills and webcast
- Fraud in Audit, Accounting and Tax Conference: June 13, Burbank; June 14, San Francisco and webcast
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May 7th, 2013
Problem: An office fire damages your furniture, fixtures and equipment. Valuable papers and records are destroyed. Your business, cash flow and revenues come to a halt, and you must rent temporary space to continue operations.
Solution: A business owner’s policy protects the property your business owns, including office equipment, phone systems, furniture and inventory damaged by fire, theft or other covered perils. Some policies also cover damaged computers and media, and loss of income and valuable papers to help you meet your continuing financial obligations, such as rent or payroll and extra expenses for additional costs.
For more information about CPA firm insurance issues, visit CAMICO online or call (800) 652-1772.
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May 7th, 2013
As a trusted adviser, clients often rely on you for information about the economy and its impact on their wealth. The stock market stands at a crossroads. Key averages such as the Dow and S&P 500 recently reached new highs. But what does that mean for you and your clients? Are we in a new bull market? Or is this just a new peak that perpetuates the range in which we’ve fluctuated since the tech bubble burst in 2000?
Michael Lehmann, creator of the “Be Your Own Economist” series of learning modules, outlines ways to address the above questions and frame the discussion of profit margins and the stock market with your clients in this May 24 webcast. This course demonstrates methods for collecting, navigating and analyzing internet-based economic data to be able to advise your clients with the greatest authority.
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May 7th, 2013
The Financial Accounting Standards Board issued an Accounting Standards Update (ASU) that improves financial reporting by clarifying when and how public and private companies, and nonprofit organizations should prepare statements using the liquidation basis of accounting. ASU No. 2013-07, Presentation of Financial Statements (Topic 205): Liquidation Basis of Accounting, is effective for interim and annual reporting periods beginning after Dec. 15, 2013, with early adoption permitted.
Under the new standard, an organization will be required to prepare its financial statements using the liquidation basis of accounting when liquidation is “imminent.” Liquidation is considered imminent when the likelihood is remote that the organization will return from liquidation and either a plan for liquidation is:
- Approved by the person or persons with the authority to make such a plan effective and the likelihood is remote that the execution of the plan will be blocked by other parties, or
- Being imposed by other forces (for example, involuntary bankruptcy).
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May 7th, 2013
Did you know if you acquire the assets of a business, you also acquire its (the payer’s) withholding tax liability? Under California law (RT&C Sec. 18669) the successor of business assets can be held personally liable for the amount of withholding taxes, interest and penalties if not paid by the payer. It does not matter how the assets were acquired—whether purchased, transferred, inherited or distributed in liquidation. The obligation to pay required withholding tax transfers with the assets. The successor’s liability is limited to the fair market value of the assets acquired.
As a successor, you are required to withhold in trust a sufficient part of purchase price or set aside in trust money or property to cover the amount of the taxes required to be withheld and any interest or penalties associated with the withholding tax obligation(s) that are due or unpaid by the business entity (payer).
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