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MISSISSIPPI SOCIETY OF CERTIFIED PUBLIC ACCOUNTANTS
VOLUME XLVIII SEPTEMBER 2009
MSCPA Foundation Awards 2009 ScholarshipsScholarship checks
totaling $17,000
have been mailed to accountingstudents at Mississippi colleges
anduniversities. Members of the MSCPAAwards, Education &
ScholarshipsCommittee reviewed and approvedapplications in July
from students atinstitutions which award accountingdegrees.
Scholarships are then reviewedby a Foundation Trustee and
fundedthrough the MSCPA EducationFoundation.
To be eligible, students must bemajoring in accounting,
havecompleted their junior year inpreparation for their senior year
orgraduate study, be a Mississippi resident,excel academically, be
recommended bya professor, have a financial need andbe involved in
campus activities.
The scholarships include three$1,000 scholarships to
graduatestudents: the Ross/Nickey Scholarshipand two Gary E.
Thornton MemorialScholarships. This year undergraduatescholarships
for $2,000 were awarded tostudents at seven
colleges/universities.
One scholarship winner is selectedto receive the Hamp King
Award. Thisaward was established to recognize andhonor the memory
of the late HampKing who served as Mississippi’s State
Auditor for manyyears. Julia RayeJesuit of Madisonwas selected
for thishonor and willreceive a secondscholarship checkin November
fromthe Mississippi TaxInstitute Trustees.Julia attends
Millsaps College where she has a 4.0 inaccounting and a 3.847
overall. AtMillsaps, she is active in Wellspring, acommunity
service on campus forFreshmen; Kappa Delta, serving as
Assistant Treasurer, SisterhoodCommittee, Treasurer; Beta Alpha
Psi,Treasurer; and Beta Gamma Sigma,Catholic Student Association,
Circle K-Treasurer; and College Republicans. Inthe community, she
has volunteeredwith Stewpot Communities Services,Habitat for
Humanity, New OrleansRelief Work (Hurricane Katrina),mentoring at
an elementary school,Midtown volunteer work, assisted GirlScouts,
St. Joseph Catholic Church, andvolunteering at a nursing home
withchurch.
Scott Andrew Stewart of Madisonwas named the recipient of the
ThomasA. Ross/Robert L. Nickey Scholarship,established in 1998 to
honor theircontributions to the accountingprofession. Ross, who
died in 2007, wasan MSCPA Past President, long-timepractitioner and
former State Boardmember. Nickey, who died in 2003,served as
Executive Director of theMSCPA for 23 years. Scott attends
theUniversity of Mississippi where he has a
Virginia Lois Carpenter
Julia Raye JesuitHamp King Award Winner
Whitney Lauren Gill
Jennifer Michelle Scott
Patricia Diane Commarato
Holly C. Grames
Scott Andrew Stewart
Christopher Drew Edwards
Shala Sa’Briel Harris
Elizabeth Ann Youngblood
continued on page 5
2010 MSCPAAnnual Convention
June 24-27, 2010Sandestin Golf& Beach Resort
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2
Mississippi Society of Certified Public Accountants September
2009
Publishedby the
Mississippi Society of Certified Public Accountants
306 Southampton RowThe Commons
Highland Colony ParkwayRidgeland, MS 39157
PHONE: (601) 856-4244FAX: (601) 856-8255
E-MAIL ADDRESS: [email protected]
OFFICERS
PresidentBob Cunningham, Jackson
Vice President/President-ElectSim Mosby, Natchez
SecretarySusan Riley, Hattiesburg
TreasurerLee Adams, Jackson
Immediate Past-PresidentJan Lewis, Jackson
Executive DirectorJack O. Coppenbarger
The CPA Newsletter is the officialpublication of the Mississippi
Society ofCertified Public Accountants. TheNewsletter invites
articles of interest to theprofession and gives credit to the
author;however, it reserves the right to editarticles for correct
spelling, wording andpunctuation.
Opinions expressed are not necessarilythe official policy of the
MSCPA.Advertising is accepted in good faith thatthe
product/services are of value stated.
Central Chapter Contributes $10,000Central Chapter has
contributed $10,000 to the MSCPA with $5,000 designated tothe
Education Foundation for scholarships and $5,000 to the Building
Fund.Presentation of the check was made during their August meeting
to MSCPA PresidentBob Cunningham. With President Cunningham is
Central Chapter President MaryLambdin along with Chapter officers
Diana Hardin, VP of Programs and President-Elect, and Giselle
Stromgren, VP of Membership.
Welcome New MembersNew MSCPA members include
Jeremy Allen Bishop, Karla DemaraisDuckworth, Adam Edward
Milner,Matthew Stephen Sasser, JiaVonne Scott,Mark Alan Thornton,
and Scott M.Wilson.
Now completing the membershipprocess are:
Charles R. Byram was born inVicksburg and received his Bachelor
ofScience in Business Administration fromthe University of Southern
Mississippi.He is a Senior Manager with Haddox,Reid, Burkes &
Calhoun in Jackson.
Nicole Lynn Cleveland was born inBay St. Louis and received a
Bachelor ofScience in Business Administration fromthe University of
Southern Mississippiand MBA from Loyola University ofNew Orleans.
She is an Accountant Iwith Mississippi Power Company
inGulfport.
James Russell Gainspoletti wasborn in Cleveland and received his
BBAfrom Delta State University. He is onthe staff of Gainspoletti
and Associates,
P.A. in Cleveland.John Eric Hester was born in
Jackson and earned degrees inpsychology and accounting from
theUniversity of Mississippi. He is on thestaff of Williams, Weiss,
Hester & Co. inJackson.
Brandi Lauren Holley was born inYazoo City and received a BA in
arthistory from the University ofMississippi. She is on the staff
ofChurch, DeVoe & Associates, PLLC inOxford.
Jeffery Wayne Horner was born inJackson and received an A.A.
degreefrom Hinds Community College and hisBachelor and Master of
Accountancydegrees from the University ofMississippi. He is a
Health CareAssurance Manager with Horne LLP inJackson.
Margaret Corban King was born inNew Orleans and received her
BusinessAdministration degree from MillsapsCollege. She is a Bureau
Director with
continued on page 6
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3
September 2009 Mississippi Society of Certified Public
Accountants
www.koerbercompany.com • Toll Free: 888.655.8282103 Madison
Plaza • Hattiesburg, Mississippi 39402
ComputerForensic Services
• Recover deleted files, documents,and emails
• Ensure digital evidence remains in theproper format for
litigation
• Track and establish responsibility forunauthorized
activities
• Verify, preserve, and analyze digital data• Identify sources
of documentary and
digital evidence• Testify at depositions or trials• Consult with
attorneys, CPAs,
and their clients
Andrew P. MozingoComputer Hacking Forensic Investigator
[email protected]
Payroll & PractitionerLiaison Meeting SetNov. 19 in
Tupelo
IRS Stakeholder Liaison is planning aPayroll & Practitioner
Liaison Meeting (PLM)in Tupelo, MS on Thursday, November 19,2009
from 9:30 a.m. to Noon. The IRS, incooperation with Renasant Center
for IDEAsand the Mississippi Small BusinessDevelopment Center,
invites you to plannow to attend this PLM.
The PLM will be held at the RenasantCenter for IDEAS at 398 East
Main Street inTupelo. IRS Functions already committed tomake
presentations include CriminalInvestigation, Appeals and
StakeholderLiaison. Ellen Dolby, Director, Gulf StatesArea, Field
Collection, will give apresentation. Other IRS functions expectedto
confirm soon include Examination,Collection and either TIGTA or the
ReturnPreparer Coordinator. In addition, theMississippi State Tax
Commission will likelygive an update. Please R.S.V.P. as space
islimited. Call or email either Martha Swindlewith Renasant Center
for IDEAs at (662) 823-4336 [email protected] or James
“Mark”Craven, IRS Stakeholder Liaison, at (601)292-4858
[email protected]. More detailsto follow in early October.
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Mississippi Society of Certified Public Accountants September
2009
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5
September 2009 Mississippi Society of Certified Public
Accountants
4.0 in accounting and a 4.0 overall. Hehas served as President
of Students for aSafe Ride; Recording Secretary-BetaAlpha Psi; and
member of Phi KappaPhi, Mortar Board, Beta Gamma Sigma,Ole Miss
Ambassador, Student AlumniCountil, Lambda Sigma, and AlphaLambda
Delta. He served as a Leader atSummer Camp in Jambville,
Francethrough the Children’s InternationalSummer Village.
Two graduate students have beennamed winners of the Gary E.
ThorntonMemorial Scholarships, established in1999 by Gary’s widow,
Cathy. Gary wasan active MSCPA member and formerchair of the
Governmental A&ACommittee. He died in March of 1999.Whitney
Lauren Gill of Oxford attendsMississippi State University where
shehas a 3.75 in accounting and a 3.82overall. She is active in
Beta Alpha Psi,serving as Vice President and attendingthe regional
and national meetingswinning a runner-up in Best Practices
Competition at national; Beta Gamma,Finance Assistant; Beta
Gamma Sigmaand Phi Kappa Phi. She took part in amission trip to
Salerno, Italy in 2007, isactive in Habitat for Humanity and is
astudent member of AICPA. JenniferMichelle Scott of Lena
attendsMississippi College where she has a 4.0in accounting and a
4.0 overall. Shewas a member of Mu Alpha Theta andPhi Theta Kappa
while attending EastCentral Community College. At MC,she was active
in Delta Mu Delta HonorSociety for Business Students, Alpha
ChiHonor Society, and the AccountingSociety. Active in Clifton
BaptistChurch in Forest, she teaches VacationBible School, Sunday
School, MissionFriends and sings in the adult choir.
The following undergraduatewinners of $2,000 scholarships are
listedalphabetically:
Virginia Lois Carpenter ofVicksburg attends Mississippi
Collegewhere she has a 4.0 in accounting and a3.919 overall. While
attending HindsCommunity College, she was a memberof Phi Theta
Kappa, junior college
AWARD WINNERSCONTINUED FROM PAGE 1
honor society, and Alpha Beta Gamma,business honor society. She
is currentlya member of the MC AccountingSociety, Delta Mu Delta, a
businessadministration honor society, and thePhi Theta Kappa Alumni
Chapter. Shehas participated in the Relay for Life in2006 and 2009,
the American CancerSociety’s “Strides Against Breast Cancer”in 2008
and the Muscular DystrophyAssociation’s “Stride and Ride” in
2008.
Patricia Diane Commarato ofMadison attends Mississippi
StateUniversity where she has a 4.0 inaccounting and a 3.96
overall. At MSU,she is a member of the CampusActivities Board,
serving as SpecialEvents Division Head; MSU ConcertChoir, MSU
Chamber Singers, BetaAlpha Psi, and Delta Gamma, serving
asAssistant to VP Finance.
Christopher Drew Edwards ofMeridian attends the University
ofMississippi where he has a 3.67 inaccounting and a 3.93 overall.
He is amember of Phi Theta Kappa and activein Intramural
Basketball, Intramural
continued on page 6
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6
Mississippi Society of Certified Public Accountants September
2009
Football, College Republicans, and aparticipant in the Scholars
Bowl.
Holly C. Grames of Petal attendsthe University of Southern
Mississippiwhere she has a 4.0 in accounting and a3.847 overall.
She is a member of BetaGamma Sigma and is a volunteer leaderfor the
Boy Scouts of America in theCub Scouts Program.
Shayla Sa’Briel Harris of Newtonattends Jackson State University
whereshe has a 3.0 in accounting and a 3.6overall. She is a
National Dean’s ListScholar, member of Alpha LambdaDelta Honor
Society and theAccounting Society. She is a volunteerfor Toys for
Tots and participated in aCanned Food Drive.
Elizabeth Ann Youngblood ofCleveland attends Delta State
Universitywhere she has a 4.0 in accounting and a3.92 overall. She
is a Delta State HonorsFellow; member of Delta Delta Deltaserving
as Athletics/Intramurals Chair2008, Social Chair 2009; Phi Eta
Sigma,Freshman Honor Society; StudentGovernment Association,
Spirits andTraditions Committee member; StudentAccountants and
BusinessAdministration, Secretary 2009; DeltaMu Delta, Accounting
Honors Society,College of Business Dean’s AdvisoryCouncil and the
Wesley Foundation.She is active in the United MethodistChurch in
Batesville, Relay for Life,Missions in Binghamton, Tennessee andon
the Mississippi Gulf Coast, andactive in St. Jude
philanthropicactivities.
AWARD WINNERSCONTINUED FROM PAGE 5
Our Members in the NewsMarion H. Gray, Jr., of Madison has been
named Chief Financial Officer of
Franchise Services of North America, Inc. FSNA is a publicly
traded company listedon the TSX Venture Exchange. The company and
its subsidiaries own the followingbrands: U-Save Car & Truck
Rental; U-Save Car Sales, Rent-A-Wreck of Canada, AutoRental
Resource Center, Xpress Rent a Car and Peakstone Financial
Services.
u u uIn July 2009, Jim Koerber, CPA/ABV, CVA, CFE, CFF was an
invited speaker at the
Mississippi College School of Law’s Marathon CLE. Koerber spoke
on “EvaluatingPersonal Injury & Wrongful Death Damage
Calculations” to over 100 attorneysattending the seminar, which was
held in Jackson, Mississippi. Koerber is ashareholder with The
Koerber Company, PA, a Hattiesburg, Mississippi CPA firm,which
provides forensic, valuation, and litigation services to attorneys,
CPAs, andtheir clients.
u u uHorne LLP, a top 50 accounting and business advisory firm
in the United States
has announced the election of Tommy Butler to the firm’s Board
of Directors. Butlerjoined HORNE in 1998 and has more than 30 years
of experience in publicaccounting. He serves as the partner in
charge of core services, overseeing offices inMississippi and
Tennessee. Butler is a member of the American Institute of
CertifiedPublic Accountants, Mississippi Society of Certified
Public Accountants and theLegislative Committee of Certified Public
Accountants. Active in his community,Butler is committed to
organizations such as the Newcomen Society of the UnitedStates, the
Mississippi Juvenile Diabetes Research Foundation, and is
chairman-electof Junior Achievement of Mississippi’s Board of
Directors. He serves on theMississippi College Business Advisory
Board, Junior League of Jackson AdvisoryBoard, and is chairman of
the Madison County Foundation. Butler is a graduate ofMississippi
College.
the Department of Medicaid in Jackson.Toni Murphy is a graduate
of
Dillard University with a B.A. inBusiness Administration and of
theUniversity of New Orleans with a degreein accounting. She is a
Senior AuditorII with Bruno & Tervalon, LLP inJackson.
Caleb Lee Nicholson was born inHattiesburg and received Bachelor
andMaster of Accountancy degrees from theUniversity of Mississippi.
He is an
Internal Auditor with Blue Cross BlueShield of Mississippi in
Flowood.
Janice A. Saunders was born inNatchez and received a Bachelor
ofBusiness Administration from theUniversity of Mississippi and
anAccounting Certificate from MississippiCollege. She is a Manager
with White& Company in Jackson.
Daniel Hardin Scarbrough wasborn in Flowood and received
Bachelorand Master of Accountancy degreesfrom Mississippi State
University. He isa Supervisor with BKD, LLP in Jackson.
WELCOME NEW MEMBERSCONTINUED FROM PAGE 2
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7
September 2009 Mississippi Society of Certified Public
Accountants
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Mississippi Society of Certified Public Accountants September
2009
Recognize anOutstandingEducator
The Awards, Education &Scholarships Committee is
seekingnominations for the OutstandingEducator Award for
2009-2010.
Each year the committeerequests nominations for selectionof an
educator who has madesignificant contributions as anaccounting
instructor. Thatindividual is honored during theMSCPA Annual
Business Meetingat Convention in June.
Nominations should besubmitted in writing to beconsidered by the
committee.Send your nominations toOutstanding Educator, c/o
MSCPA,306 Southampton Row, Ridgeland,MS 39157 to the attention
ofKaren Moody, CommitteeChairman.
Vehicle Donation Program ContinuesCash for Clunkers may have
ended, but the Mississippi Kidney
Foundation is continuing to accept charitable donations of
unwantedvehicles, including cars, trucks or boats, running or not.
The Kidney KarsProgram, now in its 17th year, is fast approaching
the $2,000,000 mark infunds raised, as well as the 4,000 mark of
donated vehicles.
“People donate for a variety of reasons. Some are tired of
paying taxesand insurance on a car that they no longer want or
need. Many timesrepair bills are too high or the trade-in values
are too low,” said GailSweat, executive director of the Mississippi
Kidney Foundation. “Oftenpeople are just not willing to go through
the hassle of trying to sell thecar themselves and having strangers
come to their house for a test drive.”
When you itemize on your taxes, the IRS allows the deduction of
whatthe car sells for at auction or $500, whichever is higher.
“We were not really affected by the Cash for Clunkers Program
becausethose cars had to be in driveable condition,” said Sweat.
“Most of the carswe receive are not running, and our program is
convenient because weprovide free towing.”
For more information, call the Mississippi Kidney Foundation at
(601)981-3611.
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9
September 2009 Mississippi Society of Certified Public
Accountants
PDFs: More Than You Thought Possible Thomas G. Stephens, Jr.,
CPA.CITPINTRODUCTION
Since their introduction over twodecades ago, PDF files have
ascended tothe forefront of document storage andarchiving and now
serve as the de factostandard in most of the documentmanagement
systems used byaccountants and finance professionals.The reasons
for this are many, but arecentered around the fact that
PDFdocuments are hardware, software, andoperating system
independent – that is,a user can read and work with a PDF
fileregardless of the type of computer oroperating system in use.
What manydo not understand is that PDF files alsoserve many
purposes other than just ameans of storing documents. From fill-in
forms to a mechanism for documentreview and collaboration to
afoundation for multimedia documents,the capabilities of PDF files
are muchgreater than many think possible. Inthis article, we
examine some of thelesser-known possibilities of workingwith PDF
documents.
COLLABORATING WITH PDFSOne of the pervasive myths related
to PDFs is that users cannot change theinformation inside the
document. Infact, PDFs are, by default, unsecureddocuments and,
accordingly, users canalter them in any number of ways. Thisability
to edit PDF files is exactly whatmakes PDFs an ideal tool
forcollaborating with others.
One means of collaborating with
PDFs involves sending the PDF to othersvia email for commenting
and markup.To do so, in Adobe Acrobat Standard orhigher, select the
Comments menu andchoose Attach for Email Review. Next,specify the
email addresses of therecipients and send the file. Thismethod
allows you to track thecomments made by others andincorporate these
comments back intothe original document.
Another very easy way to collaborateon PDFs is to use Adobe’s
freeAcrobat.com service as the means fordistributing documents to
others. WithAcrobat.com, users upload thedocument securely to an
Adobe serverand provide invitations for others toedit and mark up
the document on theserver. Two advantages of usingAcrobat.com
instead of the email-basedreview process include:
1) You can easily track who hascommented on the document andsend
reminders to those that havenot responded, and
2) Every reviewer of the documentcan see the comments and
editssuggested by all other users.
The ability to collaborate on PDFdocuments is a key feature
foraccountants using PDFs in preparing taxreturns. For example,
working papersrelated to the tax return could
bescanned/converted/saved as a PDF andthen routed to the
appropriate teammember for review and approval. Staff
members can easily clear review notesinside the PDF and the PDF
filemaintains a thorough record of all notesand their
disposition.
USING PDFS TO COLLECT DATAVirtually all businesses use forms
as
tools for collecting and summarizinginformation. Purchase
orders, invoices,tax documents, and employmentapplications are all
examples ofcommonly used forms. In some cases,these forms are
preprinted, and usersmanually input data; in other cases,software
applications – accountingapplications, for example – generatethese
forms, and users print or storethem for future recall. However, in
anincreasing number of cases, PDFdocuments are the foundation of
theseforms.
Among the many advantages ofusing PDF files as the basis for
formsare:
• PDF forms can be created anddistributed for virtually zero
out-of-pocket costs to mostorganizations;
• PDF forms support "green"initiatives by reducing
paperconsumption;
• Users can construct PDF formseasily from existing
electronicdocuments and paper-basedforms, as well as from
scratch;
• PDF forms are easy to distribute
continued on page 6
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10
Mississippi Society of Certified Public Accountants September
2009
Your Clients Expect You To Know Everything.
• Business Valuation Services • Lost Profits Analysis •
Healthcare Valuations• Calculation of Damages • Personal
Injury/Wrongful Death • Intangible Asset• Forensic Accounting •
Shareholder Disputes Valuations
103 Madison Plaza • Hattiesburg, MS 39402 • Toll Free
888.655.8282 • www.koerbercompany.com
JAMES A. KOERBERCPA/ABV, CVA, CFE, CFF
BRIAN SCHMITTLINGCPA/ABV, CVA, CFE, CFF
via servers, e-mail, or web-baseddelivery methods;
• PDF forms are relatively easy tosecure;
• Numerous options exist forcollecting and managinginformation
entered into PDFforms; and
• Users can import data collectedvia PDF forms into many
softwareapplications.
Though users of Adobe AcrobatReader can fill in existing PDF
forms,creating forms requires Adobe AcrobatStandard or higher, or
PDF software ofsimilar capability available from othercompanies. If
using Acrobat Standard orhigher, users can create forms in one
ofthree ways:
1) From an existing electronicdocument. To create a form from
anexisting electronic document, includinga Microsoft Office Word
document,select the Form Wizard from the Formsmenu and choose An
existingelectronic document. Acrobat will
“read” your existing document andconvert it into a fill-in PDF
form.Though some minor touch-up may benecessary for the final
product, in mostcases Acrobat does a remarkably goodjob of
converting the document into aform and recognizing all of the
fields.
2) From an existing paperdocument. Choose A paper form fromthe
Form Wizard to convert an existingpaper form into a fill-in PDF
form.During this process, Acrobat promptsyou to scan your existing
paper form;upon scanning the paper form, Acrobatwill convert the
document into a fill-inPDF form, similar in fashion to theprocess
described for converting anexisting electronic document.
3) From scratch or from atemplate. If the form you wish to
createdoes not already exist in some fashion,choose No existing
form from theForm Wizard. Choosing this optionallows you to create
a form from“scratch” or from a predefined templatein Acrobat.
Regardless of the method used tocreate a form, most users will
find theprocess of creating forms, distributingthem, and collecting
data to be
PDF POSSIBILITIESCONTINUED FROM PAGE 9
surprisingly easy and efficient.
WORKING WITH MULTIMEDIAIN PDFS
Users can easily add multimediacontent – such as video and sound
clips– to PDF files. Doing so will help toengage the reader of the
PDF documentand to ensure that your intendedmessage is both heard
and understood.To add a multimedia object, chooseTools, Multimedia
and then the typeof object you will add – 3D, Flash,Sound, or
Video. Next, click and dragon the PDF to select where you wantthe
multimedia object to appear. Thenbrowse to the file you wish to add
orenter the URL that points to thelocation of streaming media you
wishto play inside the PDF.
When adding multimedia to a PDFdocument, users can access a
series ofAdvanced Options that provide choicesfor greater control
over how themultimedia will appear and playbackinside the PDF.
Included in theseoptions are how the reader will startand stop the
playback, the appearanceof the multimedia within the PDF, and
continued on page 13
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11
September 2009 Mississippi Society of Certified Public
Accountants
Young CPA Conference Held September 1The first annual Young CPA
Conference was held Sept. 1 at the
Mississippi Sports Hall of Fame Museum in Jackson with
approximately 85attending. Participants that evening were joined by
members of the YoungJackson Lawyers Group to attend the Mississippi
Braves game. Conferencespeakers included Susan Harris, MSBPA
Executive Director, Mississippi Rules& Regulations; MSCPA
President Bob Cunningham and Past President JanLewis with an MSCPA
update; Charley Rafferty, Reducing the Risk ofIdentify Theft; Mark
Morgan, Beginnings of Fraud Examination; JulieLaperouse, “Wish I
Could Be a Better Speaker but I’m t-t-terrified”; and StateAuditor
Stacey Pickering, Keys to Effective Leadership for
YoungProfessionals. Young CPA Network committee members who planned
themeeting included Melanie Morrow, President; Jonathan Hagood,
VicePresident; Mary Beth Mayer, Secretary; Shanell Watson,
TechnologyCoordinator; Tom Walker, Joy Shideler, Kent Raulston and
Jessica Williams.
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12
Mississippi Society of Certified Public Accountants September
2009
IFRS for Small and Medium-sized Entities (SMEs)What is IFRS for
SMEs?
The July 2009 release of InternationalFinancial Reporting
Standards (IFRS) forSmall and Medium-sized Entities (SMEs) is
amajor event in the adoption of internationalstandards by U.S.
companies. Since theAICPA’s May 2008 recognition of
theInternational Accounting Standards Board(IASB) as a
standard-setting body, IFRS forSMEs automatically becomes an
acceptablebasis for accounting in the United States.
Prior to the release of IFRS for SMEs,professionals studying the
U.S. adoption ofIFRS generally concluded that publiccompanies would
lead the way in the U.S.adoption. However, since the SEC has madeit
clear other problems are more pressingright now, it is quite
possible that privatecompanies, not public ones, will lead theU.S.
adoption of international standards.
The IASB intended IFRS for SMEs to bethe acceptable standard
that mostcompanies would use. The standards settersenvisioned that
companies with publicaccountability would use full IFRS and
allother for-profit entities would use IFRS forSMEs. The IASB
defined publicaccountability to mean public companiesand those
holding assets in a fiduciarycapacity for outsiders such as banks,
creditunions, insurance companies, broker dealersand mutual funds.
They defined SMEs aseveryone else. Thus, their definition of“small
and medium-sized entities” has littleto do with size. A huge
closely heldcompany might fall under IFRS for SMEswhile a small
public company might besubject to full IFRS.
The IASB estimates that 95% of theworld’s for-profit entities
would use IFRS forSMEs. The IASB acknowledged thatlegislatures and
standard-setting bodies ofeach jurisdiction would make the
decisionabout which entities would use each of thetwo IFRS
standards. No internationalstandards yet exist for not-for-profit
entities.
What You Need To KnowThe good news is that IFRS for SMEs is
relatively short. Presented on an odd-sized6”x 93/4” paper with
a tiny 8.5-point font,the full text runs only 231 pages1.
Thiscompares to some 2,500 pages for full IFRSand 25,000 pages for
U.S. GAAP. IFRS forSMEs is not some severely scaled-downstandard
designed for third world countries,but a comprehensive
principles-basedstandard.
Other good news is that most of thestandards discussed in IFRS
for SMEs willseem familiar and common sense to U.S.accountants.
There will be few unfamiliar
terms2. These are among the key provisions:Inventory Valuation –
Inventory
under IFRS is valued at lower of cost orselling price less cost
to sell (net realizablevalue). While similar to the “lower of
costor market” used in U.S. GAAP, this is aharder analysis to
perform due to the addedrequirement of estimating selling
costs.
Fair Value Accounting forProperty, Plant and
Equipment(PP&E), which is one of the majordifferences between
full IFRS and U.S. GAAP,is not an option under IFRS for SMEs.
Usinghistorical cost is the only option. However,this is not the
same historical costmethodology used by U.S. GAAP whereaccountants
routinely ignore residual valueand employ depreciable lives that
sometimesrepresent merely half of economic reality.Under IFRS
historical cost, companies adjustboth useful lives and residual
value ascircumstances change.
While it will take most accountants wellunder an hour to
understand the principlesof IFRS historical cost accounting for
PP&E,the amount of work to implement thisstandard may be
considerable.
Revenue Recognition for SMEs closelyresembles full IFRS, which
consists ofrelatively few principles-based standards.Unlike
rule-based U.S. GAAP, IFRS expectsaccountants to apply and
interpret revenuerecognition principles to their owncompany’s
situation.
Financial Statement Presentation –IFRS for SMEs specifies the
following basicfinancial statements:
• Statement of Financial Position• Statement of Comprehensive
Income• Statement of Changes in Equity• Statement of Cash FlowsThe
standard also provides companies an
alternative that allows them to show profitand loss on a
separate statement fromcomprehensive income. In addition, when
acompany’s only changes in equity are toretained earnings and
dividends, they maycombine the Statement of Changes inEquity with
the Income Statement.
The current IFRS standards specify whatmust appear on financial
statements, butnot how companies must present them.Current IFRS
will have little affect on USfinancial statement presentation.
However,the current FASB/IASB’s financial statementformatting joint
project could completelyremake financial statements as
accountantsworldwide know them today.
While not well known, despite aprominent article in the November
2008Journal of Accountancy, this joint project
would remake all of the basic financialstatements used in the
United States today.The project has been controversial,particularly
in view that the Statement ofFinancial Position would no longer
reflect abalanced “Assets = Liabilities and Equity”format.
Like the changes to accounting for PP&E,understanding the
potential changes tofinancial statements is likely to be easywhen
compared to the work involved inimplementing the changes. The
proposedchanges to financial statement formattingare not minor and
may require completelydifferent financial reporting software
thanyou are currently using. Thus, companiesshould only undertake
new informationtechnology projects with a full knowledge ofthese
potential financial reporting changes.
Footnotes – IFRS for SMEs specifiesFinancial Statement footnotes
must be in asystematic order and that companies mustcross-reference
them to the financialstatements. This is a common-senseenhancement
to financial statementreadability.
Plan for the FutureProfessionals who follow accounting
standards generally agree that the UnitedStates will adopt IFRS.
The only real issue iswhen. There also seems to be a consensusthat
the time accountants spendunderstanding the new standards will
onlybe a small fraction of the work involved inthe conversion
effort. Most people estimatethat IFRS conversion will involve an
effortwhose magnitude will rival implementationof Sarbanes-Oxley.
Some estimates havebeen much higher.
Lessons learned from implementationsin the United Kingdom tell
us that mostcompanies:
• Under-estimated the amount of workinvolved in converting to
IFRS
• Started their conversion projects tolate and
• Failed to involve other departments,particularly IT early
enough in theprocess.
While we do not yet know whencompanies in the United States will
convert,we know that it is not too soon to beginthinking about the
conversion process inour own companies.
John L. Daly, MBA, CPA, CMA, CPIM is a Chelsea,Michigan based
management consultant who has taughtcontinuing professional
education seminars since 1995. Hewas previously CFO of a tier 1
automotive parts supplier anda large restaurant chain. Mr. Daly is
the author of Pricing forProfitability, published by Wiley &
Sons and is a frequentspeaker on financial management topics for
ExecutiveEducation, Inc.
By John L. DalyExecutive Education, Inc.
1 Get the .pdf version from IASB.org. You will be able to read
this standard best on a portrait mode monitor at a 150%
magnification. 2 Among these are biological assets and venturer.
Biological assets are the living products such as livestock, crops
and timber of a company engaged in agriculture. A venturer is a
company
involved in a joint venture.
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September 2009 Mississippi Society of Certified Public
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whether controls for items such as Play,Rewind, and Pause will
be visible in theplayback window.
As with the collaboration and formscapabilities discussed above,
addingmultimedia to PDF documents issurprisingly easy, even for
novice users,and offers tremendous potential toenhance the
effectiveness of your PDF-based communications.
SUMMARYPDF files are clearly in the
mainstream of technology used byaccountants and other
financeprofessionals. Yet, many everyday users
of PDFs view them only as a means ofstoring and archiving
documents. Asdiscussed in this article, the capabilitiesof PDF
documents extend far beyondsaving documents for future recall.
Putthe real power behind PDFs to work foryou today by taking
advantage of thefeatures discussed in this article alongwith many
of the other advancedcapabilities of PDFs. You will be muchmore
productive for doing so!
Mr. Stephens is a shareholder in K2 Enterprises, wherehe
develops and presents technology-related continuingprofessional
education programs to accounting andfinance professionals across
the United States. Youmay reach him at [email protected].
PDF POSSIBILITIESCONTINUED FROM PAGE 10
AICPA Guide HelpsBusinesses InvestigateFraud
The mechanics of a fraud investigationand associated
ramifications for businessprofessionals are the theme of The Guide
toInvestigating Business Fraud, the latest bookpublication from the
American Institute ofCertified Public Accountants’
SpecializedPublications Group.
Authored by a team of seasonedprofessionals from Ernst &
Young’s FraudInvestigation and Dispute Services (FIDS)Practice, the
guide delivers practical,actionable guidance on fraud
investigationsfrom the discovery phase through resolutionand
remediation.
“The decade’s high-profile scandals, withthe Bernard Madoff
Ponzi scheme being themost recent, underscore exactly how
criticalit is for CPAs and the business owners,controllers and
managers they advise tounderstand what to do when fraud hits,how a
fraud investigation works, and howto avoid problems during the
investigation,”said Arleen Thomas, AICPA senior vicepresident –
member competency anddevelopment. “This book provides a veryclear
framework.”
Thomas added that a June report by theFederal Bureau of
Investigation, in whichthe FBI disclosed that it had opened
morethan 100 new cases involving corruptbusiness practices in the
previous 18months, emphasizes the need for the newguidance.
Ernst & Young Principal Ruby Sharma,the main editor and a
contributing author,notes the book, which collects theknowledge of
18 firm contributors, tookover two years to develop.
“This book is the result of manyprofessionals’ hard work and
draws upontheir extensive experience,” she said. “Thisbook is for
forensic accountants, litigationattorneys, corporate boards
andmanagement, audit committees, students ofaccounting and anybody
interested inunderstanding the risk of fraud and itsmultiple
implications."
In 14 chapters arranged to track the timesequence of an
investigation and allanchored to a central case study, The Guideto
Investigating Business Fraud answers fourbasic questions:
• How do fraud experts examine andwork a fraud case?
• How do you reason and makedecisions at critical times during
theinvestigation?
• How do you evaluate a case andinteract with colleagues?
• How do you handle preventive anti-fraud programs?
In addition to Sharma, the editors areMichael H. Sherrod, senior
manager, RichardCorgel, executive director; and Steven J.Kuzma,
Americas Fraud Investigation andDispute Services chief operating
officer.
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Mississippi Society of Certified Public Accountants September
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Mississippi Society of Certified Public Accountants September
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September 2009 Mississippi Society of Certified Public
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CLASSIFIEDSBKD, LLP, one of the 10 largest CPA andadvisory firms
in the U.S., is looking forexperienced audit and tax professionals
forits Mississippi offices. Candidates must haveCPA or be CPA
eligible. For a closer look atBKD, please visit www.bkd.com.
u u uCPA FIRM seeking experienced or entry levelauditors that
live in the Central to SouthDelta region of Mississippi.
Competitivesalary and benefits with limited travel. Noovernight
trips or weekend work. Reply inconfidence to File #401, c/o MSCPA,
306Southampton Row, Ridgeland, MS 39157.
u u uThe firm of GranthamPoole CPAs, a recentrecipient of the
Mississippi Business Journal’sprestigious 2006 One of the Best
Places toWork in Mississippi award, is looking forgreat staff
additions. We will be increasing ournumber of tax professionals
this summer. Ifyou love tax preparation and planning andenjoy
taking excellent care of clients, we mayhave a home for you. Full
time, seasonal, andpart-time staff members are all valued
atGranthamPoole. Competitive salary, partnertrack, great benefits,
and excellentopportunity for advancement all makeGranthamPoole an
outstanding place towork! Send resumes to 6360 I-55 North,
Suite101, Jackson, MS 39211, fax to 601-957-9599or email
[email protected].
u u uCome join the Wolfe, McDuff, & Oppieteam – the firm of
choice on the MississippiGulf Coast. We have openings at all
levels,each with opportunities for advancement.We are looking for
ambitious, energetic andself-starting individuals who seek a career
inpublic accounting. You must be comfortableworking in a laid-back,
flexible environment.We offer competitive salaries,
bonusopportunities, great benefits and excellentgrowth
opportunities. Send your resume [email protected] or fax to
228-762-4498.
u u uAlexander, Van Loon, Sloan, Levens &Favre, PLLC, a Gulf
Coast based CPA firm,Finalist for the 2006 Best Places To Work
inMississippi award, is accepting resumes’ forSenior In-Charge
Level Auditors.Competitive salary, great benefits,limited travel
and overtime –outstanding place to work! Sendresume’ to the
following address (No Calls):Mail to: Attn: Cindy Moore, 9490
ThreeRivers Road, Gulfport, MS 39503; E-mail:[email protected];
Fax: (228) 863-1165
u u uHADDOX REID BURKES & CALHOUNPLLC seeks experienced
audit and taxprofessionals interested in a rewarding careerwith one
of the most established andrespected CPA firms in the Jackson
area.Excellent benefit package, competitive salary,and opportunity
for advancement. Flexiblework schedule is an option. Contact
Debbie
The OFFICE OF THE STATE AUDITORseeks an experienced audit
professional to filla Manager position in the Financial
&Compliance Audit Division, Education AuditSection. The minimum
requirements are abachelor’s degree from an accredited
four-yearcollege or university plus five (5) years ofrelated
experience, which must includeexperience in accounting and
auditingstandards and financial reporting. A CPA ispreferred, and
strong written and oralcommunication skills are necessary.
Foradditional information, please contactTommy Vickers, CPA,
Director, EducationAudit Section at (601) 576-2666, or via e-mailat
[email protected].
u u uTann, Brown & Russ Co. PLLC, located inJackson, MS, is
looking for experiencedprofessionals who are interested in working
inthe area of forensic accounting and litigationsupport services.
Audit and/or income taxbackground is a plus. We offer
competitivecompensation, excellent benefits, very littletravel and
an opportunity for advancement.Send resume to Allen Holiman, 415 E.
CapitolStreet, Jackson, MS 39201 or e-mail
[email protected].
u u uGulf Coast CPA firm of Culumber,Fletcher, Harvey &
Associates, P.A. seeks entrylevel and experienced accountants.
Faxresume to 228-863-6952, email [email protected] or mail to
2300 20thSt., Gulfport, MS 39501.
u u uFred T. Neely & Co, CPAs is seeking a seniorlevel audit
and tax professional. Competitivesalary, excellent opportunity
foradvancement, great benefits package andno travel. Please send
resume to P O Box894, Greenwood, Ms 38935-0894
u u uWm. F. Horne & Co., PLLC is seeking a full-time senior
audit manager for Hattiesburgand Laurel, Mississippi area.
Excellentbenefits and competitive salary withopportunity for
advancement. To apply,email resume to [email protected] or faxto
601-649-5233.
u u uMay & Company, LLP in Vicksburg islooking for highly
motivated tax and auditprofessionals. We offer
competitivecompensation, excellent benefits andopportunities for
advancement in a relaxedenvironment. May & Company is
extremelyemployee friendly with paid overtime orcomp time, minimal
overnight travel, andopportunities in tax preparation andauditing.
Mail resumes with confidence toAttn: Human Resources, P.O. Box
821568,Vicksburg, MS 39182-1568 or email [email protected].
u u u
Holbrook ([email protected]) or mailresume in confidence to
P.O. Drawer 22507,Jackson, MS 39225-2507. For moreinformation,
visit our website atwww.hrbccpa.com.
u u uKPMG LLP seeks experienced auditprofessionals interested in
a rewarding careerwith one of the largest and most dynamicCPA firms
in the world. Competitivecompensation, excellent benefits and
ampleopportunity for advancement are offered.Mail resumes in
confidence to 188 E. CapitolStreet, Suite 1100, Jackson, MS 39201,
[email protected] , or visit our website atwww.kpmg.com.
u u uJACKSON CPA FIRM of Breazeale, Saunders& O’Neil, Ltd.
is seeking experienced auditand tax professionals, both full time
and parttime. Our staff enjoys state-of-the-arttechnology,
intellectually challengingassignments and meaningful opportunities
toenhance professional and personal skills.In addition to an
excellent compensationpackage, we offer a family atmosphere with
astrong emphasis on client-centeredprofessionalism. Send resume in
confidenceto P. O. Box 80, Jackson, MS 39205-0080.FAX
601-355-9003.
u u uCALCULATORS PLUS is now handling theMonroe Calculators and
supplies CallChester Wasser at 601-709-0371 or 888-264-3939 for
more information and special CPApricing.
u u uJIM BURFORD, AGENT FOR ACCOUNTINGPRACTICE SALES - WHERE
PRACTICESELLERS AND BUYERS MEET!!! We have alending source that
will lend 100% ofpurchase price of accounting practices
plusoperating funds, 10 year loan amortizationperiod, with no down
payment, to party thathas good credit and at least 2 years of
relativeexperience. An excellent opportunity to openyour own office
or expand an existing office.ACCOUNTING PRACTICES FOR SALE: MS
practice Gross $1,020,000 * SoutheasternLA practice Gross $382,000
* VicksburgPractice Gross $86,000 * Ocean Springs Gross$270,000 *
Practice 1 hour south of TupeloGross $85,000 * Lake Charles, LA
Gross$558,000 * Jackson Purchase Area of KY Gross$758,000.Thinking
of selling? We have qualified buyerswaiting and an ever expanding
data base ofqualified buyers and 100% cash out financingavailable
to close the sale of your practicewithin 90 days. TO LIST YOUR
PRACTICEWITH US OR TO CHECK OUT OURCURRENT LISTINGS Call me, JIM
BURFORD,CPA TOLL FREE (800) 340-7002 or visit ourwebsite at
www.accountingpracticesales.comor e-mail me at [email protected]
CLASSIFIEDS
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PRSRT STDU.S. POSTAGE
PAIDJACKSON, MSPERMIT #814
Mississippi Society of Certified Public Accountants
and its Education Foundation306 Southampton RowRidgeland, MS
39157