CPA Trendlines

UK accountants may change rules after failure to merge

The Times October 26, 2005

By Liz Chong

ERIC ANSTEE, chief executive of the Institute of Chartered Accountants in England and Wales, called yesterday for changes to the body?s voting rules after its sixth failed attempt at a merger.

In a widely expected blow to Mr Anstee?s strategy of expansion, the 65.7per cent of ICAEW members who voted in favour of a merger with the Chartered Institute of Public Finance Accountants were narrowly defeated by those opposed. Under the body?s rules, a majority of 66.7per cent is required.

CIPFA members voted overwhelmingly for a merger, with 86.7 per cent in favour.

However, the polls were hampered by low turnout, with fewer than half the members of both institutes bothering to vote after heavy canvassing.

Mr Anstee and Diane Colley, president of CIPFA, expressed disappointment, but said that they were determined to co-operate on other projects. These could include cutting costs by conducting joint research in public services, and combining training courses, Mr Anstee said.

Mr Anstee also hinted that he might ask ICAEW members to reduce the requirement for a two-thirds majority to 60 per cent, as he called for the profession?s five other bodies to consider merging. ?It is absurd that there are six separate institutes,? he said, citing the vote as evidence of support for change.

The merger campaign was dogged by complaints from ICAEW members about potential dilution of their qualification, which they consider more prestigious, despite repeated reassurances from Mr Anstee that both institutes would keep separate qualifications.

The campaign?s failure is a blow to Mr Anstee, who came out of semi-retirement to head the ICAEW and has been working 60 to 70 hours a week during the campaign.

The debate was highly charged, leading Mr Anstee to accuse some critics of adopting an ?emotional? approach to an issue crucial to the ICAEW?s long-term survival. He has said that the ICAEW?s influence could wane as members age and concern mounts over a possible funding crisis.

Mr Anstee rejected calls for his resignation by some critics, who complained about the campaign?s ?1.4 million cost.

Bruce Lawson, who ran the website www.stopthemerger.org, said that many who voted against were younger ICAEW members, not those who were older and ?out of touch?.

The campaign was also dogged by complaints from the Institute of Chartered Accountants in Scotland, which publicised a row that erupted over the proposed name for the merged bodies.

APPETITE FOR MERGERS MISCALCULATED
1969: ICAEW members reject a merger with five other accounting bodies

1988: ICAEW members vote in favour of a merger with ICAS, which rejects the proposal

1990: ICAEW members narrowly miss two-thirds majority needed to merge with CIPFA. Eighty per cent of CIPFA members back a merger

1990: Attempt by six accountancy bodies to merge, but fails before before being put to a vote by members

1995: ICAEW and CIMA attempt to merge, but move fails before going to a poll of members

2005: ICAEW and CIPFA fail in latest attempt to merge. But Eric Anstee, the ICAEW?s chief executive, is not put off. ?I would love to enter consolidation discussions with the ICAS, and the five other bodies,? he said

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PCAOB Names 2006 Standing Advisory Group Members

… The envelope please!

Press Release/Source: PCAOB

Washington, DC — The Public Company Accounting Oversight Board today announced new appointments and re-appointments to its Standing Advisory Group for 2006. In May 2005, the Board began soliciting nominations and re-nominations to fill the slots of those whose terms have ended this year. The Board received more than 150 nominations and re-nominations. From this list, the Board selected individuals with expertise in a variety of fields, including accounting, auditing, corporate finance, corporate governance, and investing in public companies.

The new two-year terms will begin in January 2006. Membership in the advisory group is personal to the member, and the duties and responsibilities of the member cannot be delegated to others. The Board will solicit nominations and re-nominations annually. The advisory group also has six observing organizations: the Financial Accounting Standards Board, the Government Accountability Office, the International Auditing and Assurance Standards Board, the Securities and Exchange Commission, Department of Labor, and the AICPA?s Auditing Standards Board. The group is chaired by the Board’s Chief Auditor and Director of Professional Standards, Douglas R. Carmichael, and will meet approximately three times each year.

The members are…
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Tax Season Outlook Gets Rosier

Tax Pros Report Improved Readiness

Contrary to the readings from a few weeks ago, tax practitioners are now more positive than negative on the outlook for their busy season.

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Keeping Up With Technology

Vendors take note: Finance and accounting professionals want real solutions.

by Rick Telberg
[For AICPA Insider]

If financial managers and accountants could have their wishes come true, technology vendors would take a breather for a while. Are vendors, resellers and systems integrators listening? Definitely, yes. Still, many professionals feel as though they are already dealing with as much change and innovation as they can handle. Instead, they?d really like help in getting the most out of their current systems and integrating one system with another.

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Super-Regionals on the March

Moss Adams, Brady Ware Pick up Local Firms; St. Clair Repositions as a ‘Dot-Net’

Moss Adams, the nation’s 12th largest accounting firm, is absorbing Neff + Ricci, adding 100 staffers and 15 partners to its current 1,400 staff and 180 partners. Closing is due after Jan. 1, 2006. No terms were disclosed.

In Dayton, Ohio, meanwhile, Brady Ware is merging with Shaw & Shaw CPAs Inc. in Columbus. The deal adds 16 employees, giving Brady Ware a total of 126 in three cities — Dayton and Columbus, Ohio, and Richmond, Ind. It also gives Brad Ware 50 new car dealerships in Ohio, Kentucky and South Carolina as clients. Last year Brady Ware bought Miami Valley Pension LLC, one of Ohio’s largest retirement plans. In 1999, Brady Ware merged with another Columbus firm, Schneider, Meixner and Co. Inc., and bought Richmond, Ind.-based Olive LLP. In 2001, it bought a Cincinnati-based Internet company to boost its technology consulting business and in the intervening years has set up multiple new divisions.

And, in the Philadelphia area, St. Clair, Easton, England & Johnston, PC, has restructured as CPA Solutions.net, LLC. St.Clair & Associates, CPAs, started in 1986, has grown through mergers to be ranked among the 25 largest regional firms in the area. The firm also offers investments, insurance, employee benefits, technology and payroll functions.
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CCH LAUNCHES TAX RESEARCH CONSULTANT: NEW RESOURCE IS GROUNDED IN PRACTITIONER?S WORKFLOWS

CCH PRESS RELEASE

(RIVERWOODS, ILL., October 20, 2005) ? CCH, a leading provider of tax law information, software and services, has launched the new Tax Research Consultant (TRC) online, combining the best traditional fine-grained research capabilities with new content, new tools and a new ?how-to? approach, all in a new clear voice. The product represents a complete overhaul of CCH?s Federal Tax Service and replaces that product in serving tax, accounting and legal professionals with a practice-oriented approach to tax research online (tax.cchgroup.com).

?When we stood back and looked at how we had re-shaped topically-organized federal tax research, we felt that only a new name would do justice to the depth and breadth of the editorial improvements and enhancements,? said Tanya Rose, CCH product manager. ?The new name ? Tax Research Consultant ? sums its role in providing expert insights that get the researcher to end results quickly and easily.?

New Topics and Chapters
Available on the CCH Tax Research NetWork, the Tax Research Consultant adds over 50 new chapters and three new topics. New topics include: Business Stages from Start Up to Termination (12 new chapters); LLCs; and Excise Taxes (9 new chapters).

Existing topics are augmented with new chapters covering banks, filing requirements for retirement plan administrators and executive compensation.

Nearly all topics are now introduced by a ?Fundamental Concepts? chapter designed to provide a clear and thorough introduction to the 30 topics covered by Tax Research Consultant.

?The ?Fundamental Concepts? are well-written orientations that give users a solid introductory grounding in the topic and save them time by pointing out the key issues right up front,? Rose noted.

New Tools Linked from Explanations
New to the Tax Research Consultant are interactive research aids that go beyond stating the rules to applying them. For example, explanations on like-kind exchanges contain links that lead to a decision tree. By answering a few questions, the researcher can determine whether a client meets the requirements.

Other interactive research aids include:

? NOLs;

? Deducting rental residence of vacation homes;

? Identifying 263A property;

? Capitalization v. expensing;

? Identifying MACRS class life;

? Computer software expenditures; and

? Cost-benefit analysis of cost-segregation studies.

?We realize that knowing the law is just part tax research,? said Rose. ?These tools let practitioners take the next step and apply the rules to their clients? fact situations, all within the Tax Research Consultant.?

Clear Voice, Grounded in Practice
As important as new content and new tools, according to Rose, is the new, clear voice of Tax Research Consultant explanations.

?We worked hard to make sure that the expertise of our outside authors and our editorial staff comes through clearly and cleanly, so discussions are interesting, informative and easy to follow,? said Rose.

The Tax Research Consultant is grounded in practice, so professionals using it can deliver end results for their clients quickly and efficiently. For example, a professional interested in drafting an executive compensation agreement who searches for ?compensation agreement terms,? will locate hundreds of hits. The very first one lays out and discusses the common terms used in an executive compensation agreement.

In addition to the explanations in the Tax Research Consultant, subscribers also receive a number of useful and authoritative tools and publications:

? CCH Election and Compliance Toolkit;

? IRS Actuarial Factors Finding Tool;

? Internal Revenue Code and Regulations, with complete CCH legislative history;

? IRS Publications;

? Taxes ?The Tax Magazine;

? CCH Perform Plus II Forms; and

? Business and Tax Preparation Calculators.

Availability and Pricing
For more information or to subscribe to the CCH Tax Research Consultant, call a CCH sales representative at 1-888-CCH-REPS (1-888-224-7377) or visit tax.cchgroup.com. Until the end of 2005, a one-year subscription is available at the introductory price of $1,490.

About CCH Tax and Accounting
CCH Tax and Accounting (tax.cchgroup.com), based in Riverwoods, Ill., is a leading provider of tax, audit and accounting information, software and services. It has served tax, accounting and business professionals and their clients since 1913. Among its market-leading products are The ProSystem fx? Office, CCH? Tax Research NetWork?, Accounting Research Manager? and the U.S. Master Tax Guide?. CCH Tax and Accounting is a Wolters Kluwer company.

Wolters Kluwer is a leading multinational publisher and information services company. Wolters Kluwer has annual revenues (2004) of ?3.3 billion, employs approximately 18,400 people worldwide and maintains operations across Europe, North America and Asia Pacific. Wolters Kluwer is headquartered in Amsterdam, the Netherlands (www.wolterskluwer.com). Its depositary receipts of shares are quoted on the Euronext Amsterdam (WKL) and are included in the AEX and Euronext 100 indices

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CONTACT :

Leslie Bonacum, 847-267-7153, mediahelp@cch.com

Neil Allen, 847-267-2179, allenn@cch.com

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CPA2Biz Moves to Profitability with Strong Revenue Growth

Thursday October 20, 9:45 am ET

JERSEY CITY, N.J.–(BUSINESS WIRE)–Oct. 20, 2005–CPA2Biz Inc., the majority owned marketing and technology provider of the American Institute of Certified Public Accountants (AICPA), today announced that it achieved profitability –a significant company milestone.
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CPA2Biz posted its third consecutive year of improving results, reporting a Net Income of $150,000 for the year ending July 31, 2005, compared to a loss of $3.144 million the previous year. CPA2Biz’s revenue grew by almost $1 million to $14.284 million from $13.327 million the previous year. These results were driven by strong revenue growth in new CPA2Biz business lines and a reduction in depreciation expense. “Through focus and solid execution, we’ve been able to grow our customer base and revenues while maintaining an appropriate cost structure moving the company to profitability,” remarked Erik Asgeirsson, CEO, CPA2Biz Inc.

The CPA2Biz site (www.cpa2biz.com), now serving over 50% of the CPA Profession, is the leading e-commerce site for CPAs. The company continues to invest the resources necessary to make it a leading edge platform providing CPAs numerous tools and resources to help them be more successful. In addition, CPA2Biz is also helping CPAs build stronger relationships with their clients through the Business Solutions Program it launched two years ago. Approximately 1/3 of CPA firms nationwide are now enrolled in this program.

“Over the past few years we have been extremely focused on building out a high quality online channel for CPAs, developing value added programs for CPA firms and their small business clients, and providing leading marketing and technology services to the AICPA”, Asgeirsson added, “All of this is enabling us to deliver on our charter, and, as a result, the AICPA and its members are deriving significant value.”

About CPA2Biz

CPA2Biz is the exclusive marketing provider of the American Institute of Certified Public Accountants (AICPA), and provides marketing and technology services to the AICPA for its wide array of products and services, such as continuing education, conferences and literature. CPA2Biz also develops and manages client-focused business solutions programs (e.g. payroll, banking) that enable CPAs to build stronger relationships with their business clients or employers. For more information, visit www.cpa2biz.com.
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Tips and Traps for Going SOHO

With more CPAs working from home than ever before, what’s the secret to success?

by Rick Telberg
On Management
from the AICPA Career Insider

Do you take work home with you? If so, you’re not alone. About half of all CPAs work at home in a home office or full time in a small office. Marketers call it the SOHO trend – for small-office, home-office. Accountants see it either as freeing, burdensome, or, sometimes, both. Still, working at home, remotely, or in a small office is a growing reality for the profession. And it poses all sorts of new challenges and strategies to work successfully for both employer and employee, practitioner and client.

Going SOHO? How do CPAs do it?

Join the study here.

Download the Executive Preview here. SOHOPreview.pdf READ MORE →

PDF DOWNLOAD: SOHO Preview Oct 2005

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One in Three Workers Witness Ethical Misconduct Despite Clearly Communicated Guidelines

Hudson Survey Highlights Gap Between Policies and Reality

via Hudson Highland

Nearly a third (31 percent) of U.S. workers have witnessed co-workers engage in ethical misconduct, according to a Hudson survey on workplace ethics. However, only half (52 percent) of those witnessing unethical or illegal acts reported it to anyone in authority. Despite these figures, nearly eight in ten U.S. workers (78 percent) state that their companies clearly communicate what they consider unethical and ethical behavior in the workplace.

When it comes to their own day-to-day jobs, half (53 percent) say they rarely or never encounter ethical gray areas, although 14 percent of workers do at least once a month and 28 percent do occasionally. When workers have witnessed colleagues engaging in unethical behavior, they are more likely to experience gray areas themselves (25 percent say that occurs at least once a month). Witnesses also give lower ratings to their companies for communicating ethical standards.

On the positive side, three in four workers (74 percent) express confidence in their leadership, indicating that senior leaders of their company generally behave with honesty and integrity. However, among those who have witnessed their colleagues’ transgressions, the percentage of those believing that their leaders are honest drops to 61 percent.

“Workplace ethics is not an abstract concept, but a critical part of a healthy company,” said David Rhind, general counsel North America, Hudson Highland Group. “Even with clear ethics policies in place, companies must create a culture of integrity throughout the organization by providing both the means and the mandate to report concerns. When senior executives lead by example, employees are more likely to follow suit.”

Other key findings include:

Government workers are more likely than their entrepreneurial and private enterprise counterparts to report that they have seen coworkers engage in unethical or illegal behavior (38 percent compared to 29 percent and 31 percent, respectively).
On average, those making less than $40,000 annually are less likely to feel their company’s leadership behaves with honesty and integrity — 65 percent compared to 74 percent nationally.
Men under the age of 40 and African-American workers have witnessed significantly more ethical misconduct by co-workers (42 percent and 36 percent respectively).
Only a quarter (26 percent) workers over age 50 have witnessed unethical behavior, and nearly eight in ten (77 percent) believe that their leaders behave with honesty and integrity.

The Hudson ethics in the workplace survey is based on a national poll of 2,099 U.S. workers and was compiled by Rasmussen Reports, LLC, an independent research firm (RasmussenReports.com). A more detailed data report is available at http://www.hudson-index.com.

Hudson, one of the world’s leading professional staffing, outsourcing and human capital solution providers, also publishes the Hudson Employment Index(SM), a monthly measure of the U.S. workforce’s confidence in the employment market. Next month’s Hudson Employment Index(SM) will be released on November 2, 2005.

Hudson

Hudson delivers specialized professional staffing, outsourcing, and human capital solutions worldwide. From single placements to total solutions, the firm helps clients achieve greater organizational performance by assessing, recruiting, developing and engaging the best and brightest people for their businesses.

Hudson is a division of Hudson Highland Group, Inc. one of the world’s leading professional staffing, retained executive search and human capital solution providers. The company employs more than 3,800 professionals serving clients and candidates in more than 20 countries through its Hudson and Highland Partners businesses. More information is available at http://www.hudson.com.

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