AICPA News Update - August 24, 2012 

    Two AICPA Proposals Aim to Make Financial Statement Preparation a Nonattest Service in All Instances; Q&A Explains 
    Published August 24, 2012

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    AICPA News Update
    A Weekly Email Newsletter on Issues & Events Surrounding the CPA Profession
     
     
     
     
      In This Update: August 24, 2012 - Volume 15 No. 34  
     
    Two AICPA Proposals Aim to Make Financial Statement Preparation a Nonattest Service in All Instances; Q&A Explains
    ASB Seeking Feedback Specific to U.S. Auditor’s Reports
    AICPA Tells Congress That Education Tax Incentives Are Too Complicated
    AICPA Recommends Changes to IRS Form 990
    Students Challenged to Provide Fiscal Plans for Accounting Competition
    Upcoming Free Webinars and Resources
           
     
    Two AICPA Proposals Aim to Make Financial Statement Preparation a Nonattest Service in All Instances; Q&A Explains
     

    Two related exposure drafts would clarify issues surrounding financial statement preparation; the comment periods for both end on Aug. 31. The Professional Ethics Executive Committee’s exposure draft proposes, among other things, that financial statement preparation should always be considered a nonattest service subject to the general requirements of Interpretation 101-3 Nonattest Services. The Accounting and Review Services Committee’s exposure draft proposes that the compilation standard only be followed when a CPA is engaged to do so. For more information on these proposals, read the Summary and Q&A Document and the Journal of Accountancy article about these proposals.

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    ASB Seeking Feedback Specific to U.S. Auditor’s Reports
     

    The AICPA’s Auditing Standards Board is requesting members complete a survey to help inform the ASB’s response to the International Auditing and Assurance Standards Board’s Invitation to Comment: Improving the Auditor’s Report. On June 22, the IAASB released its ITC, seeking input on potential changes to improve the information provided in the auditor’s report on financial statements. Read the ASB’s letter requesting member input and access the survey, which will remain open through Sept. 10.

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    AICPA Tells Congress That Education Tax Incentives Are Too Complicated
     

    The AICPA sent written testimony to the U.S. Senate Finance Committee following a July 25 hearing on education tax incentives and tax reform. Few taxpayers are aware of all the education tax incentives and familiar with their details. Fewer still can perform the analysis to determine which incentive is most advantageous to them. Contributing to taxpayers’ confusion are requirements, eligibility rules, definitions and income phase-outs that vary from incentive to incentive. The AICPA has called on Congress to create one new or revised credit, create a uniform definition of qualified higher education expenses and to coordinate phase-out amounts for the student loan interest deduction and other exclusions.

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    AICPA Recommends Changes to IRS Form 990
     

    The AICPA submitted a comment letter to the Internal Revenue Service suggesting improvements to Form 990. The suggestions included making permanent the optional reporting of income from partnership interests. Many organizations, particularly those with large endowments, hold partnership investments that are recorded on a fair value basis for GAAP accounting purposes. The AICPA made a total of 17 recommendations to the IRS in regard to Form 990.

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    Students Challenged to Provide Fiscal Plans for Accounting Competition
     

    Registration is now open for the 2012 AICPA Accounting Competition.* This year’s competition challenges students to solve some of the nation’s biggest financial debates on Social Security, the national deficit, and taxes while considering what it takes to get politicians elected. Students competing in the first round this year will present their best ideas in 1,000 words or less no later than 11:59 a.m. ET on Oct. 1, 2012. For more information and to register teams, students can visit www.thiswaytocpa.com/2012.

    *NO PURCHASE NECESSARY. Competition begins on 8/20/12 and ends on 12/19/12. All entries must be received by 10/1/12. Subject to Official Rules available at www.thiswaytocpa.com/competition. Open to legal residents of the 50 US states, DC, Puerto Rico, Guam, Northern Mariana Islands, American Samoa and US Virgin Islands who are: AICPA student affiliates, who are at least 18 and who are also full-time undergraduate students at community or four-year college/university in one of those jurisdictions. See Official Rules for all requirements, terms & conditions.  Void where prohibited. Sponsor: AICPA, 220 Leigh Farm Rd., Durham, NC 27707

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    Upcoming Free Webinars and Resources
     
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    "Trust not only enhances commerce and progress, it makes it possible.  For 125 years, CPAs have provided that foundation to propel a fast-changing world.”

    Jean-Luc Bourdon, CPA/PFS

     



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