AICPA News Update - April 20, 2012 

The AICPA has published a white paper to help members understand the Committee of Sponsoring Organizations of the Treadway Commission’s (COSO) proposed update of its Internal Control – Integrated Framework. The framework, which was first issued in 1992, is used in the U.S. and around the globe by businesses and governmental entities. The framework is being changed to keep it relevant in the current and future business world. Read White Paper: COSO 2012 – Updated, Principles-Based, and More Guidance now.

In his latest AICPA Insights blog post, AICPA Chairman of the Board of Directors Gregory J. Anton, CPA, CGMA, talks about a true marketplace-driven opportunity for the CPA profession. The AICPA is initiating a comprehensive campaign to support CPAs as the premier choice for reporting on a service organization’s controls and to mark our guidance as the gold standard for such services. A brand new attestation service, which evolved from the misapplication of the former SAS No. 70, Service Organizations, reports on controls at a service organization related to the security, availability and processing integrity of a system, and the confidentiality and privacy of the information processed by that system. Increased use of outsourcing and cloud computing has led to a greater need for examinations of these controls. Read his blog post.

The AICPA told the Internal Revenue Service (IRS) that its efforts to clarify the rules for deduction and capitalization of tangible property expenses will help some taxpayers but overall, impose more burden than clarity. “The overall approach in the temporary regulations relies too heavily on a “facts and circumstances” based approach,” said AICPA Tax Executive Chair Patricia Thompson in an April 17 letter, “and contains too few bright line tests to alleviate administrative burden and complexity in the capitalization area.” Thompson also expressed concern that requiring an “applicable financial statement” in order to use the de minimis rule (for amounts paid to acquire or produce tangible property) could unfairly discriminate against smaller taxpayers and suggested an alternative test. The AICPA will continue to offer recommendations on these regulations and will testify at the IRS public hearing on May 9.

The Securities and Exchange Commission (SEC) authorized for presentation to Congress a staff study describing options for lawmakers to consider regarding whether private causes of action should be allowed to be extended to extraterritorial securities fraud claims. The AICPA provided resources and background to the SEC throughout the course of study, which was mandated in the Dodd-Frank Act. The SEC staff made no specific recommendations in the study. The U.S. Supreme Court held in Morrison v. National Australia Bank, Ltd. that shareholders who buy or sell securities on non-U.S. exchanges cannot participate in class action lawsuits brought by plaintiffs’ lawyers in U.S. courts. Read this JournalofAccountancy.com article for more information.

The concept of shared value, introduced by Michael E. Porter of Harvard Business School, has been described as the next paradigm in capitalism?a business environment in which an organization’s corporate social responsibility initiatives intersect with and support its business objectives. A new CGMA report Sustainable business: Shared value in practice explores how companies can create economic value using sustainable business practices. The report’s practical illustrations from organizations such as GE, IBM and Nestle illustrate the long-term profitability of creating successful sustainability operations. Download the report today.

• Building Your Personal Board of Directors – 12 to 1:30 p.m. ET, April 25
• Taxes: Start Your Money Plan Here (consumer focused) – 1:30 to 2:30 p.m. ET, April 25
• Leveraging Social Media to Develop Your Company's Brand Webcast – 2 to 3:30 p.m. ET, April 25
• Women's Leadership Initiatives Are Not Only for Women – 12 to 1:30 p.m. ET, April 30