AICPA News Update - February 11, 2013 

Learn About Debt Ceiling Issue and AICPA's Efforts on Fiscal Responsibility 
Published February 11, 2013

   Learn About Debt Ceiling Issue and AICPA's Efforts on Fiscal Responsibility
AICPA News Update
A Weekly Email Newsletter on Issues & Events Surrounding the CPA Profession
  In This Update: February 11, 2013 - Volume 16 No. 7  
Learn About Debt Ceiling Issue and AICPA’s Efforts on Fiscal Responsibility
Learn About Debt Ceiling Issue and AICPA’s Efforts on Fiscal Responsibility
  You likely have read the news reports on the nation’s debt crisis and its possible ramifications on the economy. To help members understand the issue, manage clients’ uncertainty and provide guidance to employers and others, the AICPA has prepared a backgrounder on the federal debt ceiling. Moreover, the AICPA has taken steps to advocate for governmental fiscal responsibility and be a part of the national discourse, and some of those initiatives are highlighted in this special News Update.

Debt Ceiling
President Barack Obama has signed into law a measure temporarily suspending the federal debt limit through May 18. This action was a necessary move by Congress after the U.S. Department of the Treasury announced that the federal government had borrowed up to the current statutory debt limit of approximately $16.4 trillion and would only have enough cash to pay its bills until sometime between February 15 and March 1. The backgrounder explains what led to the situation the U.S. faced and provides a timeline of key developments.

Economic Effects and Outlook
The federal government’s unsettled financial outlook is of concern to U.S. CPAs and global business leaders alike. A December survey of AICPA members found that most CPAs believe deficit reduction should be the government’s top economic priority, with the vast majority calling for immediate action. Furthermore, many of the world’s CFOs, controllers and other management accountants have predicted at least some impact on their own operations and a weaker position for the United States in the long run, according to a January survey of 1,300 Chartered Global Management Accountant® designation holders conducted by the AICPA and the Chartered Institute of Management Accountants.

To learn more about the AICPA’s position on fiscal responsibility, read AICPA President and CEO Barry Melancon’s recent blog post. Among other things, he discusses the imperative for policy makers to tackle the federal government’s fiscal challenges by moving toward balance, compromise and real solutions. He also addresses a resolution approved by the AICPA Board of Directors supporting two nonpartisan efforts working to inform Americans about the dangers of the U.S. debt: Campaign to Fix the Debt and Comeback America Initiative.

We will continue to keep you informed of any developments on this critical issue for the people, businesses and organizations you work for or serve.
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