Submit Your Nominations for the Outstanding Educator Award

The Outstanding Accounting Educator Award is given annually by CalCPA and the California CPA Education Foundation to salute those college and university professors who have:
• Demonstrated excellence in teaching and have distinguished themselves through active service in accounting professional organizations; and
• Distinguished themselves by having made a significant contribution to the growth and enhancement of the education profession through course development or research relating to study, teaching and practice of accountancy.

Make a nomination.

Achieving International Convergence in the Calculation of EPS

The International Accounting Standards Board published for public comment proposals to simplify the calculation of earnings per share (EPS) and to eliminate differences between the methods required by International Financial Reporting Standards and U.S. accounting standards to calculate EPS.

The proposals are part of the short-term convergence project that the IASB is conducting jointly with FASB, which has issued a revised Exposure Draft of a proposed Statement of Financial Accounting Standards, Earnings per Share, an amendment of FASB Statement No. 128. This proposal seeks to improve financial reporting by clarifying and simplifying the method of calculating earnings per share, while promoting the international convergence of accounting standards by eliminating major differences that exist between FASB Statement No. 128, Earnings per Share, and International Accounting Standard 33, Earnings per Share.

Comments on both proposals are due by Dec. 5. Learn more from the IASB or FASB.

HUD Revises Parts of its Consolidated Audit Guide

The U.S. Department of Housing and Urban Development issued its revisions to Chapter Three, HUD Multifamily Housing Programs, and Chapter Four, HUD Multifamily Hospital Program of the Consolidated Audit Guide for Audits of HUD Programs. The new chapters are effective and can be used upon issuance. However, the requirements in Chapter Three will apply to audits of profit-motivated sponsors/entities with fiscal years ending on or after Dec. 31, 2008.

Go online for further information.

SEC Solicits Comments for PCAOB AS 6

The SEC recently published a notice to solicit comment on the PCAOB’s proposed rule, Auditing Standard No. 6, Evaluating Consistency of Financial Statements and Conforming Amendments (AS 6). The PCAOB adopted AS 6 and an accompanying set of amendments to its interim auditing standards on Jan. 29, 2008

AS 6 and the related amendments update and clarify the auditor’s responsibilities to evaluate and report on matters relating to the consistency of the financial statements and align the auditor’s responsibilities with FASB Statement No. 154, Accounting Changes and Error Corrections. AS 6 enhances auditor reporting on accounting changes and corrections of misstatements by more clearly distinguishing between these events.

The comment period for the notice of filing ends Aug. 26.

Accounting and Auditing Can’t-Miss Courses

• Staff Training for Accounting and Auditing (Semi-Senior): Aug. 20–22, San Francisco
• FIN 46R Variable Interest Entity Consolidation Rules: Aug. 28, Burbank
• Small-Business Accounting Standards Update and Review: Sept. 3, Bakersfield
• Internal Control Essentials for Financial Managers, Accountants and Auditors: Aug. 29, Burbank
• Searching for Fraud—Assessing Risk and Addressing Red Flags: Aug. 21, San Francisco Peninsula and Sept. 4, Bakersfield
• Finding and Evaluating Frauds—A Case Study Approach: Aug. 27, San Jose
• Audit Sampling—Statistical and Non-Statistical Practical Applications: Aug. 27, Los Angeles Airport
• The Sarbanes-Oxley Act—The Second Wave: Aug. 29, San Francisco

PCAOB Adopts Rules for Succeeding to Registration Status of Predecessor Firm

The PCAOB adopted rules and a corresponding form that govern when a firm would be allowed to succeed to the registration status of a predecessor firm following a merger or other change in the registered firm’s legal form.

Under Section 102(a) of SOX and PCAOB rules, a public accounting firm must be registered with the PCAOB in order to prepare or issue audit reports for public companies or to play a substantial role in the preparation or furnishing of such audit reports. To become registered, a public accounting firm files an application for registration on PCAOB Form 1, which the Board may approve or disapprove. The rules and form (PCAOB Form 4) recently adopted identify the circumstances in which the registration status of a registered firm may continue in effect even after the firm’s legal form has changed or the firm has combined with another firm, without the new legal entity needing to apply for registration on Form 1.

Learn more.

PPI Survey: Did You Participate?

The Bureau of Labor Statistics is conducting a survey of accounting firms to update and improve information on the profession for the Producer Price Index (PPI.) and has reached out to many CPA firms in California. The survey shows price change over time, in index form only, for accounting and auditing services. The PPI is widely used for industry price comparisons, LIFO calculations, contract escalation, forecasting and other applications.

Firm names or identifiable information is never released and all price data collected are completely confidential. Data are collected by personal visit, conducted in a professional and time sensitive manner.

The PPI is major economic indicator, and if you were selected as part of the sample group, we recommend participating in this worthwhile program.

If you have any questions, contact Sam Pence PPI manager at (415) 625-2289 or Pence.Sam@bls.gov.

New Member Benefit: Discounted Home and Auto Insurance

Mercury Insurance, the third largest auto insurer in California, is exclusively offering CalCPA members a 10 percent discount off Mercury’s insurance rates, plus members will get up to an additional 15 percent off when insuring both home and auto. Members will receive a mailing in early August with more details.

Get a free quote.

CAMICO Names New Officers

CAMICO announced that Ric Rosario will become CEO, effective January 1, 2009. Rosario will succeed John A. Dodsworth, CPA, who, in a planned move, will retire June 30, 2009, after which he will continue to be a member of the company’s board of directors Dodsworth served as CAMICO’s chief executive since the company’s inception in 1986.

Rosario, 50, joined CAMICO in 1992 and has served as a Vice President since 1996 and as an Executive Vice President since 2006.

Weigh in and Win $100 Gift Card

CalCPA wants to serve you better. Please take our 3-minute California CPA magazine survey. It will help us provide you with a more targeted magazine. Complete the survey (only 10 questions) and enter your name to win $100 cash gift card.