MSCPA - News

Corporate Tax Panel Chair Says Commission Should Press Ahead With Report

Wed, 31 Dec 1969 19:00:00 EST

Chief Financial Officers, CPA Executives Remain Cautious Regarding U.S. Economy

Wed, 31 Dec 1969 19:00:00 EST

If CPA executives across the U.S. could use one phrase to describe their outlook on the U.S. economy in the fourth quarter, it would likely be "holding steady." Results from the Fourth Quarter Economic Outlook Survey, sponsored by the American Institute of Certified Public Accountants (AICPA) and the University of North Carolina's Kenan-Flagler Business School, show that the increase in optimism seen in the second and third quarter surveys has leveled off, and modest expectations for business expansion are mixed with significant uncertainty about the timing of recovery.

Queried on their expectations regarding optimism and expansion over the coming year, corporate financial executives provided insight into two economic indices introduced in this quarter's survey: the Corporate Optimism Index (COI) and the Corporate Expansion Index (CEI).

After two quarters of improvement, COI for the US economy has stabilized. Overall optimism percentages were virtually unchanged from July 2009-40 percent of respondents expressed pessimism while 27 percent were optimistic. In answering whether their confidence levels had changed from last quarter, 37 percent expressed more confidence, 35 percent about the same confidence and 28 percent expressed less confidence.

The trend also remains stable for chief financial officers who are more optimistic about their own organizations than they are about the broader U.S. economy. Thirty-eight percent of respondents are optimistic about the prospects for their own organizations, consistent with 39 percent from last quarter. Showing a slight increase in optimism, expansion plans are on the uptick. This quarter's CEI indicates that 45 percent (up from 42 percent last quarter) of respondents now expect their businesses to expand in the next 12 months.

"It seems as though the worst might be over and there are some hints of expansion," said Carol Scott, AICPA Vice President, Business Industry and Government. "However, the majority of our CFOs and controllers are telling us that they expect a slow recovery and now don't expect significant improvement until late in 2010 or even into 2011," she added.

Expectations for when the economy will begin to improve have shifted out once again. Of the 1,201 CPA respondents, 61 percent (up from 43 percent last quarter) do not believe the economy will begin to improve until the second half of 2010 or beyond, and a quarter of respondents believe it will be 2011 before the economy begins to improve. While the percentage of respondents who think the economy is improving now almost doubled, the percentage of respondents who expect improvement before the end of 2009 has dropped from 26 percent to 21 percent.

When asked about potential recovery scenarios less than one percent say they expect a rapid rebound while 69 percent of respondents anticipate a slow economic recovery and 20 percent believe that the U.S. economy will experience a double-dip recession.

In the realm of key performance indicators, 52 percent (up from 45 percent last quarter) now expect revenue increases while the percentage expecting decreases dropped from 42 percent to 36 percent. Regarding profits, 48 percent expect increases, while only 35 percent expect decreases. Expectations for employment improved slightly but continue to lag behind expectations for revenue and profit. Twenty-eight percent of respondents expect to increase the number of employees at their businesses (up from 25 percent last quarter). However 30 percent of respondents still expect a decrease in the number of employees over the next 12 months.

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

MSCPA Responds to IFAC Proposal

Wed, 31 Dec 1969 19:00:00 EST

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