AICPA 2010 Annual Report and Financials

8/8/2019 AICPA 2010 Annual Report and Financials

1/64

2009-2010 AnnuAl RepoRt

is ...My AICPA


2/64

Message rom the Chairman and President & CEO 1

Advocating on Behal o the Public Interest,

Members and Proession 7

Setting 21st Century Standards 11

Making a BIG Impact 15

Providing Members the Tools to Succeed 19

Securing the Future through Leadership 23

Financial Statements 29

Table of Contents


3/64

Message romthe Chairman and President & CEO

As we meet with members across

the country, we hear stories

about how committee service has

provided valuable opportunitiesor networking and learning.

Others share stories o how

their work with our 360 Degrees

o Financial Literacy campaign

has touched the lives o people in their communities.

Many underscore their need and appreciation or our

educational resources. Whether it is reading our daily,

weekly and monthly publications; expanding your

competencies through our conerences; saving money

with our anity programs; or utilizing any o our myriad

other oerings, members rom around the nation have

ound that the AICPA plays an invaluable role in their

proessional lives.

You are part o a diverse group engaging in a wide

range o activities, pursuing numerous priorities and

holding dierent expectations Still, we strive to help

each one o you perorm at the highest levels, serve

the public interest, stay inormed on important issues

aecting CPAs and achieve success. Thats what the

AICPA means to us.

Were proud o how well the Institutes eorts reect

all your varied interests Our work centers around

what youve told us you wanted through member

surveys, ocus groups and personal contact. Advocacy in

Washington and an improved website consistently came

out on top and we delivered or you on both this past

year, along with many other things youve cited.

As the largest and most respected proessional

organization or CPAs, the AICPA ought tirelessly

or you and the public on Capitol Hill and on Main

Street, in spite o the lingering recession and

bumpy recovery It truly was the

busiest year that we can recall

or legislative activity. But it was

worth it because we achievedsome signicant victories that

honor the public interest and

protect CPAs unique unction in

the United States or businesses

and individuals. For example,

thanks to a monumental eort,

Robert R Harris, CPA/CFF|Chairma f h Bard

What does the

AICPA meanto you?


4/64

Congress agreed to recognize CPAs customary and

usual services when it crated bills or the Consumer

Financial Protection Bureau (CFPB) as part o sweeping

nancial reorm legislation. Covering CPAs nancialadvice and counsel to clients, as well as nancial-literacy

discussions, under the CFPB would have resulted in

duplicative and unnecessary regulation in light o CPAs

appropriate regulation by state boards o accountancy.

Likewise, we helped preserve private sector, independent

standard setting or the Financial Accounting Standards

Board (FASB) by stopping a legislative amendment that

would have jeopardized it. The Center or Audit Quality

(CAQ), which is aliated with the AICPA, joined in

that eort.

We also deended our members who serve or

work or private companies by being the strongestadvocate or change in the fnancial reporting

standard-setting process to accommodate

dierences or private companies The AICPA

led the call or a new blue-ribbon panel to make

recommendations on the uture o private company

nancial reporting. Unlike previous eorts that ocused

on making changes in existing or proposed standards

or private companies, the panels work will lead to a

policy-level decision. The panels recommendations,

which are expected by the end o 2010, will include

whether a separate board is needed to set

private-company standards, and we believe it is. The

18-member panel already has decided that the statusquo is not an option, meaning appropriate changes to

GAAP are more likely than ever. The AICPA created

the panel with the Financial Accounting Foundation,

FASBs parent organization, and the National Association

o State Boards o Accountancy.

Furthermore, we continue to shape standard setting

by identiying practice issues, providing accounting

and auditing guidance, and moving standard

setters to take action For instance, the convergence

projects by the FASB and the International Accounting

Standards Board (IASB) will mean signicantchanges in nancial reporting in the uture. Revenue

recognition and leases are but two that aect virtually

all businesses. We not only are commenting on the

proposals to make sure they will be eective and can

be implemented, but also are developing summaries,

guides, videos and FAQs so you will be ready when

these major standards are released by the end o 2011.

Another standards initiative this year that is

important to note relates to the convergence o

accounting standards just mentioned. As International

Financial Reporting Standards (IFRS) move closer to

eventual adoption or U.S. public companies, the AICPA

continues to help you prepare or the new nancial

reporting system. Daily IFRS updates are posted to ourIFRS resources website, IFRS.com, which also houses

articles, FAQs, a backgrounder, videos, a monthly

newsletter, training courses and more. Not surprisingly,

our semiannual IFRS Readiness Survey shows you

continue to improve your amiliarity with IFRS. Nearly

hal (47%) o CPAs in the spring 2010 survey said they

already have basic knowledge o IFRS, an advancement

rom 39% who had basic knowledge in October 2008.

At the same time, theres been a decline in those saying

they have no knowledge o IFRS; 16% now versus 30%

in October 2008. These trends are important because

IFRS already is an active nancial reporting ramework in

this country. In act, IFRS questions will start to appearon the CPA Exam in 2011 and a certicate program to

demonstrate IFRS knowledge is under development.

Many o you are tax practitioners and we have been

intensely involved on numerous tax issues Regarding

the new Internal Revenue Service (IRS) tax-return preparer

registration program proposed earlier in 2010, our primary

goal was to make sure CPAs did not bear undue regulatory

burdens. Thus, as the IRS initially considered aspects o the

program, we strongly opposed the redundant examination

and continuing proessional education requirements or

CPAs, and the IRS agreed. We are continuing to work with
http://www.aicpa.org/Advocacy/Issues/Pages/FASBIndependenceandFairValueAccounting.aspxhttp://www.thecaq.org/http://www.thecaq.org/http://www.fasb.org/jsp/FASB/Page/SectionPage&cid=1176156684820http://www.ifrs.com/http://www.aicpa.org/InterestAreas/Tax/Resources/IRSPracticeProcedure/Pages/RegistrationofTaxPreparer.aspxhttp://www.aicpa.org/InterestAreas/Tax/Resources/IRSPracticeProcedure/Pages/RegistrationofTaxPreparer.aspxhttp://www.aicpa.org/InterestAreas/Tax/Resources/IRSPracticeProcedure/Pages/RegistrationofTaxPreparer.aspxhttp://www.aicpa.org/InterestAreas/Tax/Resources/IRSPracticeProcedure/Pages/RegistrationofTaxPreparer.aspxhttp://www.ifrs.com/http://www.fasb.org/jsp/FASB/Page/SectionPage&cid=1176156684820http://www.thecaq.org/http://www.thecaq.org/http://www.aicpa.org/Advocacy/Issues/Pages/FASBIndependenceandFairValueAccounting.aspx


5/64

the IRS regarding additional guidance that may extend

similar treatment to non-signing preparers who serve

under a qualiying individual in certain proessional rms,

such as a CPA rm. Furthermore, preventing conusionin the marketplace about what consumers are getting

with the varying tax preparers who would be listed with

the IRS is a priority as well and one o the reasons weve

asked the IRS to delay implementation o the exam or any

practitioner. We believe slowing down, getting it right and

doing a cost/benet analysis will help the IRS make the

correct decisions. Youve been an important part o this

whole process thousands o you wrote to the IRS about

your concerns ater a special AICPA News Update outlined

our issues.

Moreover, we agreed with you that our inormation,

tools, news and resources have to be easily andquickly accessible or them to provide value to you

Were especially pleased with the debut this year o a

completely new AICPA.org. Based on member input,

user needs and industry best practices, the website

eatures improved search, enhanced navigation, the

selection o AICPA publications and emails, videos,

social media, RSS eeds, content ratings and more

member-exclusive content. In addition, the new

My Account unctionality enables you to easily

manage your membership online.

Other AICPA websites unveiled redesigns, too

Our nancial-literacy website or consumers,

360 Degrees o Financial Literacy, now oers the

public personalized tools and inormation to bettermanage their nances. Since its April 2010 launch, it has

been honored with two awards and averages 125,000

visits per month. The acclaimed student recruitment

website Start Here, Go Places. introduced a FutureMe

eature to enable students to learn about various career

paths. A new website, This Way to CPA, launched in

September 2010, ocuses on college students and

young proessionals studying or the CPA Exam.

As a ounding organization o the Enhanced

Business Reporting Consortium, a member o the

World Intellectual Capital Initiative network, weve

long ocused on sustainability, an area o businessreporting that considers the environmental and

social aspects o conducting business along with

proftability We have enjoyed much success this year

engaging our proession on this issue. The world is

looking to us or advice and guidance in this area.

We are the proessionals best positioned to see the

connections among strategy, risk, nancial perormance

and reporting all essential elements o sustainability

reporting, as well as more transparent corporate

reporting in general. We strongly supported orming

the International Integrated Reporting Committee

to oversee development o a globally accepted

integrated reporting model. The AICPA is a membero The Prince o Wales Accounting or Sustainability

Project (A4S), a consortium o public and private entities

around the globe. As part o A4S, the AICPA is one

o the ounding members o the Accounting Bodies

Network ormed in 2010 to support the work o the A4S

in the accounting proession worldwide. A hands-on

workshop was developed to help participants design

a strategic sustainability initiative at their companies.

A new webpage was created to house inormation

and resources regarding sustainability accounting,

sustainability reporting, sustainability assurance, tax and

other services. An overview o sustainability and our

involvement is summarized in Integrated Reporting

A New Model for Corporate Reporting.

Members in business and industry also could turn

to a number o tools the AICPA provided, including

guidance on the implications o Standard & Poors

considering enterprise risk programs in credit

reviews o non-fnancial issuersWhite papers on the

critical issues o enterprise risk management, internal

control and corporate governance were published to

help CPA nancial executives and government
http://www.aicpa.org/Pages/Default.aspxhttp://www.360financialliteracy.org/http://www.startheregoplaces.com/http://www.thiswaytocpa.com/http://www.aicpa.org/INTERESTAREAS/ACCOUNTINGANDAUDITING/RESOURCES/EBR/Pages/EnhancedBusinessReporting.aspxhttp://www.aicpa.org/INTERESTAREAS/ACCOUNTINGANDAUDITING/RESOURCES/EBR/Pages/EnhancedBusinessReporting.aspxhttp://www.wici-global.com/http://www.aicpa.org/InterestAreas/BusinessIndustryAndGovernment/Resources/Sustainability/Pages/Sustainability%20Accounting,%20Reporting,%20Assurance%20and%20Other%20Services.aspxhttp://www.aicpa.org/InterestAreas/BusinessIndustryAndGovernment/Resources/Sustainability/Pages/Sustainability%20Accounting,%20Reporting,%20Assurance%20and%20Other%20Services.aspxhttp://www.aicpa.org/InterestAreas/BusinessIndustryAndGovernment/Resources/Sustainability/Pages/IntegratedReporting-ANewModelforCorporateReporting.aspxhttp://www.aicpa.org/InterestAreas/BusinessIndustryAndGovernment/Resources/Sustainability/Pages/IntegratedReporting-ANewModelforCorporateReporting.aspxhttp://www.aicpa.org/InterestAreas/BusinessIndustryAndGovernment/Resources/CorporateGovernanceRiskManagementInternalControl/DownloadableDocuments/ERM_and_credit_ratings.pdfhttp://www.aicpa.org/InterestAreas/BusinessIndustryAndGovernment/Resources/CorporateGovernanceRiskManagementInternalControl/DownloadableDocuments/ERM_and_credit_ratings.pdfhttp://www.aicpa.org/INTERESTAREAS/BUSINESSINDUSTRYANDGOVERNMENT/RESOURCES/Pages/default.aspxhttp://www.aicpa.org/INTERESTAREAS/BUSINESSINDUSTRYANDGOVERNMENT/RESOURCES/Pages/default.aspxhttp://www.aicpa.org/InterestAreas/BusinessIndustryAndGovernment/Resources/CorporateGovernanceRiskManagementInternalControl/DownloadableDocuments/ERM_and_credit_ratings.pdfhttp://www.aicpa.org/InterestAreas/BusinessIndustryAndGovernment/Resources/CorporateGovernanceRiskManagementInternalControl/DownloadableDocuments/ERM_and_credit_ratings.pdfhttp://www.aicpa.org/InterestAreas/BusinessIndustryAndGovernment/Resources/Sustainability/Pages/IntegratedReporting-ANewModelforCorporateReporting.aspxhttp://www.aicpa.org/InterestAreas/BusinessIndustryAndGovernment/Resources/Sustainability/Pages/IntegratedReporting-ANewModelforCorporateReporting.aspxhttp://www.aicpa.org/InterestAreas/BusinessIndustryAndGovernment/Resources/Sustainability/Pages/Sustainability%20Accounting,%20Reporting,%20Assurance%20and%20Other%20Services.aspxhttp://www.aicpa.org/InterestAreas/BusinessIndustryAndGovernment/Resources/Sustainability/Pages/Sustainability%20Accounting,%20Reporting,%20Assurance%20and%20Other%20Services.aspxhttp://www.wici-global.com/http://www.aicpa.org/INTERESTAREAS/ACCOUNTINGANDAUDITING/RESOURCES/EBR/Pages/EnhancedBusinessReporting.aspxhttp://www.aicpa.org/INTERESTAREAS/ACCOUNTINGANDAUDITING/RESOURCES/EBR/Pages/EnhancedBusinessReporting.aspxhttp://www.thiswaytocpa.com/http://www.startheregoplaces.com/http://www.360financialliteracy.org/http://www.aicpa.org/Pages/Default.aspx


6/64

Barry C Melancon, CPA|prsid & Ceo

organizations as they ace challenges in these areas. The

AICPA also produced a primer on health-care reorm to

help you lead your organization to success. Our quarterly

economic outlook survey, widely distributed to themedia, continues to showcase CPA nancial executives

as broad-based businesspeople with expertise on the

countrys economy and market orces.

Do you work in a small or regional frm? The PCPS Client

Service Resource Center and the Economic Podcast series

were designed to help you address client retention, ee

pressures, cost cutting and other critical issues. In addition,

our subsidiary, CPA2Biz, helped small- and medium-rm

members better serve clients and increase revenue with

improved use o cloud computing. Thanks to three new

alliances established this year in the AICPA Trusted

Business AdvisorSM Solutions program, you can accessleading-edge technology or audit conrmations,

tax-document automation and workfow management.

Partnering with CPA2Biz, the AICPA launched a

technology solution that makes it easier or you to track

the status o your CPE and chart pathways or improving

your competencies Through the AICPA Learning Center,

you can quickly access more than 100 AICPA CPE sel-study

courses, web events and virtual conerences, as well as obtain

transcripts and print certicates o completion. More eatures

will be rolled out over the coming months, including a

compliance tracker and rm-administration customizations.

As you can see, your AICPA is our AICPA and vice versa

We have continued to keep our ocus on your needs and

what you look to us or so you can succeed. Please join us in

celebrating all o the AICPAs accomplishments and activities

this past year designed to deliver the value you demand and

deserve rom your membership. We proudly present our

2009-2010 Annual Report, titled My AICPA is

Robert R. Harris, CPA/CFF Barry C. Melancon, CPA

Chairman President & CEO
http://www.aicpa.org/Research/HCR/Pages/HealthCareReform.aspxhttp://www.aicpa.org/Research/HCR/Pages/HealthCareReform.aspxhttp://www.aicpa.org/InterestAreas/PrivateCompaniesPracticeSection/Resources/ClientServiceResourceCenter/Pages/default.aspxhttp://www.aicpa.org/InterestAreas/PrivateCompaniesPracticeSection/Resources/ClientServiceResourceCenter/Pages/default.aspxhttp://www.aicpa.org/InterestAreas/PrivateCompaniesPracticeSection/Resources/EconomicPodcastSeries/Pages/default.aspxhttp://clientsolutions.cpa2biz.com/OnDemand/http://clientsolutions.cpa2biz.com/OnDemand/http://clientsolutions.cpa2biz.com/OnDemand/http://clientsolutions.cpa2biz.com/OnDemand/http://www.cpa2biz.com/AST/AICPA_CPA2BIZ_Browse/Store/OnlineSubscriptions.jsphttp://www.cpa2biz.com/AST/AICPA_CPA2BIZ_Browse/Store/OnlineSubscriptions.jsphttp://clientsolutions.cpa2biz.com/OnDemand/http://clientsolutions.cpa2biz.com/OnDemand/http://www.aicpa.org/InterestAreas/PrivateCompaniesPracticeSection/Resources/EconomicPodcastSeries/Pages/default.aspxhttp://www.aicpa.org/InterestAreas/PrivateCompaniesPracticeSection/Resources/ClientServiceResourceCenter/Pages/default.aspxhttp://www.aicpa.org/InterestAreas/PrivateCompaniesPracticeSection/Resources/ClientServiceResourceCenter/Pages/default.aspxhttp://www.aicpa.org/Research/HCR/Pages/HealthCareReform.aspx


7/64

Were proud ohow well the

Institutes eorts refect all

your varied interests. Our work

centers around what youve

told us you wanted through

member surveys, ocus groups

and personal contact.

Robert R Harris, CPA/CFF and Barry C Melancon, CPA


8/64

Advocating on Behalf of the

Public Interest, Members

and Profession

The Institute relentlessly endeavors to protect

its members and the public interest rom

unnecessary regulatory burdens, as well as

promote awareness o and confdence in the

integrity and competence o CPAs


9/64

Inuencing Financial Regulatory Reorm

Financial regulatory reorm was one o

Washingtons top priorities this year, making

it perhaps the AICPAs busiest time ever or

legislative advocacy The Institute successully

orchestrated the deeat o a proposed aiding

and abetting amendment that could have

extended civil liability to secondary parties, such

as accountants, in securities lawsuits. Support rom

state CPA societies, rms and ederal key person

contacts boosted the eort.

The AICPA also was victorious in its work to

help Congress understand that CPAs already are

sufciently regulated, enabling the proession to

escape duplicative and unnecessary rules under the

Consumer Financial Protection Bureau or CPAs

customary and usual accounting services.

At the same time, the AICPA oered strong

and unequivocal support or the continued

independence o the FASB to keep the

accounting standard-setting process ree o

political pressure. The CAQ, which is aliated with

the AICPA, joined in this eort.

On another front, the Institute opposed eorts to

weaken some o the investor protections under

section 404(b) o the Sarbanes-Oxley Act, which

requires that a companys annual report include

an auditors attestation report on managements

assessment regarding internal controls over

nancial reporting. In the end, only companies

with market capitalization o $75 million or less

are exempt rom the requirement.

Supporting the PCAOB

When a Supreme Court ruling in June eectively

afrmed the Public Company Accounting

Oversight Boards (PCAOB) constitutionality,

AICPA President and CEO Barry Melancon called

it a victory or investors and or the accounting

proession He added that the court rejected a

transparent attempt to undermine the post-Enron

reorms that have served our nancial markets

well. Under the ruling, board members now are

subject to at will removal by the Securities and

Exchange Commission (SEC).

Representing Members Tax Interests

The Institute raised critical questions about the

IRSs initiative to register tax-return preparers

The IRS agreed with the AICPAs argument that its

examination and continuing proessional education

requirements duplicated existing licensing

requirements or CPAs. The AICPA is continuing to

work with the IRS regarding additional guidance

that may extend similar treatment to non-signing

preparers who serve under a qualiying individual

in certain proessional rms, such as a CPA rm.

The Institute also plans to continue working with

the IRS to ensure that the public is not misled

about the assumed qualications or experience o

tax preparers listed with the IRS, which is one o

the reasons the AICPA has asked the IRS to delay

implementation o the exam or any practitioner.

Advocating on Behal o the Public Interest,Members and Proession
http://www.aicpa.org/Advocacy/Issues/Pages/AidingandAbettingLiability.aspxhttp://www.aicpa.org/Advocacy/Issues/Pages/AidingandAbettingLiability.aspxhttp://www.aicpa.org/Advocacy/Issues/Pages/AidingandAbettingLiability.aspxhttp://www.aicpa.org/Advocacy/Issues/Pages/AidingandAbettingLiability.aspxhttp://www.thecaq.org/http://www.aicpa.org/InterestAreas/Tax/Resources/IRSPracticeProcedure/Advocacy/DownloadableDocuments/AICPAUserfeecomments.pdfhttp://www.irs.gov/taxpros/article/0,,id=210909,00.htmlhttp://www.irs.gov/taxpros/article/0,,id=210909,00.htmlhttp://www.aicpa.org/InterestAreas/Tax/Resources/IRSPracticeProcedure/Advocacy/DownloadableDocuments/AICPAUserfeecomments.pdfhttp://www.thecaq.org/http://www.aicpa.org/Advocacy/Issues/Pages/AidingandAbettingLiability.aspxhttp://www.aicpa.org/Advocacy/Issues/Pages/AidingandAbettingLiability.aspx


10/64

The Instituteraised criticalquestions aboutthe IRSs initiativeto register tax-

return preparers. Even though the AICPA urged the IRS to drop

its plans to require companies to disclose

uncertain tax positions (UTP) in their annual tax

returns, the IRS moved orward with requiring such

disclosures. However, the nal guidance includes

many changes and modications rom the initial

proposal, refecting comments the IRS received

rom the AICPA, other organizations and taxpayers.

For example, instead o the required disclosureregime being eective or 2010 or taxpayers with

assets o $10 million or more as initially proposed, it

will now be phased in over a ve-year period based

on a corporations asset size. In addition, there is

no reporting o a maximum tax adjustment, no

reporting o the rationale and nature o uncertainty

in the concise description o the position and no

reporting o administrative practice tax positions.

The AICPA continues to work with the IRS on the

UTP requirements. Access AICPA comment letters,

all o the IRS pronouncements on uncertain tax

positions and AICPA coverage o the issue rom anAICPA resource page.

In a letter to the Senate Finance Committee

and the House Ways and Means Committee,

the AICPA in early 2010 urged ast action on

estate and generation-skipping transer taxesto prevent continuing uncertainty and delays in

estate planning and administration The Institute

also oered Congress a priority list o suggested

reorms in estate and git taxes. CPAs grappling

with estate tax gap administration issues could

turn to a variety o practical ree resources,

including a webinar, PowerPoint presentation

and inormative articles The Institute also

partnered with the National Association o Estate

Planners and Councils to promote estate planning

to practitioners and their clients by oering web

seminars and resources during Estate PlanningAwareness Week.

Our Tax Reorm Alternatives or the 21st

Century study, published late last year,

discussed the reasons that change is needed,

enumerated reorm options and examined income

versus consumption taxes and other related issues.

The AICPA spoke out against a proposed

amendment that would tax income and gain

rom an investment services partnership interest

not as capital gains but as ordinary income.

The AICPA called or repeal o a section o the

new health care law that requires businesses

to report to the IRS any purchase worth $600

or more. The Institute argued that compliance

would be burdensome and costly or small

businesses, and that the inormation would not be

o meaningul value in collecting unpaid taxes.

Long an advocate against tax strategy patents,

the AICPA renewed its call or legislationbanning them AICPA President and CEO Barry

Melancon in June noted that even though the

Supreme Court decision in Bilski v. Kappos strikes

down one business method patent, it did not go

ar enough, and the U.S. Patent and Trademark

Oce continues to issue tax strategy patents.
http://www.aicpa.org/interestareas/tax/resources/irspracticeprocedure/pages/disclosureofuncertaintaxpositions.aspxhttp://www.aicpa.org/InterestAreas/Tax/Resources/TrustEstateandGift/Advocacy/Pages/EstateTaxReformLettersandStudies.aspxhttp://www.aicpa.org/interestareas/tax/resources/trustestateandgift/toolsandaids/pages/webinarson2010estatetaxissues.aspxhttp://www.aicpa.org/InterestAreas/Tax/Resources/TaxLegislationPolicy/TaxReformStudies/DownloadableDocuments/Tax%20Reform%20Alternatives%202009.pdfhttp://www.aicpa.org/InterestAreas/Tax/Resources/TaxLegislationPolicy/TaxReformStudies/DownloadableDocuments/Tax%20Reform%20Alternatives%202009.pdfhttp://www.aicpa.org/InterestAreas/PersonalFinancialPlanning/Membership/DownloadableDocuments/TaxExtenders061510.pdfhttp://www.aicpa.org/Press/PressReleases/2010/Pages/AICPASupportsRepealofBurdensomeTaxInformationReportingMeasure.aspxhttp://www.aicpa.org/Press/PressReleases/2010/Pages/AICPASupportsRepealofBurdensomeTaxInformationReportingMeasure.aspxhttp://www.aicpa.org/InterestAreas/PersonalFinancialPlanning/Membership/DownloadableDocuments/TaxExtenders061510.pdfhttp://www.aicpa.org/InterestAreas/Tax/Resources/TaxLegislationPolicy/TaxReformStudies/DownloadableDocuments/Tax%20Reform%20Alternatives%202009.pdfhttp://www.aicpa.org/InterestAreas/Tax/Resources/TaxLegislationPolicy/TaxReformStudies/DownloadableDocuments/Tax%20Reform%20Alternatives%202009.pdfhttp://www.aicpa.org/interestareas/tax/resources/trustestateandgift/toolsandaids/pages/webinarson2010estatetaxissues.aspxhttp://www.aicpa.org/InterestAreas/Tax/Resources/TrustEstateandGift/Advocacy/Pages/EstateTaxReformLettersandStudies.aspxhttp://www.aicpa.org/interestareas/tax/resources/irspracticeprocedure/pages/disclosureofuncertaintaxpositions.aspx


11/64

In the wake o major health care reormlegislation, the Institute last spring published

Health Care Reorm What It Means or CPAs.

This primer helps CPAs in practice and in industry

understand the implications o the new law to

eectively advise their clients or organizations.

Institute members once again could take

advantage o updated tax season campaign

resources that help educate clients about tax

law changes, including a brochure, a speech and

a PowerPoint presentation. Firms can imprint their

names and logos on the brochure.

Advocating or Our Members

Under the Federal Trade Commissions (FTC) Red

Flags rule, organizations that could be dened

as creditors or nancial institutions generally must

implement written programs to prevent identity

thet. The FTC had taken the position that CPAs

were subject to the rule, but in light o AICPA and

state society advocacy, along with the AICPA ling

a lawsuit against the FTC, enorcement o the

Red Flags rule has been delayed. However, since

the Red Flags rule may apply to CPAs clients and

employers, the AICPA created a comprehensive

resource page to help members understand the

rule and how it may apply to them, when and i it

ever becomes eective.

In a tremendous success story or the

proession, two additional states have enacted

legislation that allows CPAs licensed in another

state to practice in their state, bringing the total

to 47 Legislation is pending in two additionalstates. The Institute continues to work with the

remaining jurisdictions to advocate or mobility

legislation, and also is ocusing on implementation

in states that have passed it.

Comment points rom the AICPA and the

CAQ were reected in fnal amendments

to SEC rules on custody and recordkeeping

under the Investment Advisers Act o 1940. The

Institute recommended a reduced scope, risk-

ocused approach to surprise examinations and

revisions in proposed internal controls examinationrequirements.
http://www.aicpa.org/Research/StudiesandPapers/DownloadableDocuments/Health%20Care%20Reform%20short%20article%205_11_10.pdfhttp://www.aicpa.org/Career/Marketing/Pages/CPAmarketinghomepage.aspxhttp://www.aicpa.org/Career/Marketing/Pages/CPAmarketinghomepage.aspxhttp://www.aicpa.org/News/FeaturedNews/Pages/UpdateonRedFlagsRule%E2%80%93EnforcementDelayforAICPAMembersinPublicPractice.aspxhttp://www.aicpa.org/InterestAreas/InformationTechnology/Resources/Privacy/FederalStateandOtherProfessionalRegulations/FairandAccurateCreditTransactionsActof2003/Pages/Red%20Flags%20Rule%20Guidance.aspxhttp://www.sec.gov/rules/final/2009/ia-2968.pdfhttp://www.sec.gov/rules/final/2009/ia-2968.pdfhttp://www.aicpa.org/InterestAreas/InformationTechnology/Resources/Privacy/FederalStateandOtherProfessionalRegulations/FairandAccurateCreditTransactionsActof2003/Pages/Red%20Flags%20Rule%20Guidance.aspxhttp://www.aicpa.org/News/FeaturedNews/Pages/UpdateonRedFlagsRule%E2%80%93EnforcementDelayforAICPAMembersinPublicPractice.aspxhttp://www.aicpa.org/Career/Marketing/Pages/CPAmarketinghomepage.aspxhttp://www.aicpa.org/Career/Marketing/Pages/CPAmarketinghomepage.aspxhttp://www.aicpa.org/Research/StudiesandPapers/DownloadableDocuments/Health%20Care%20Reform%20short%20article%205_11_10.pdf


12/64

Setting 21st Century

Standards

The Institute is proactive in the development,

revision and updating o standards to meet

the needs o the 21st century CPA proession

inuencing standard setters and crating guidance

or more eective implementation o standards


13/64

Enhancing Financial Reporting Standards

In an eort to examine the uture o fnancial

reporting or private companies rom a

policy-level perspective and decide whether

separate, stand-alone standards or a separate

standard-setting board were necessary, the

AICPA, along with the Financial Accounting

Foundation and the National Association o

State Boards o Accountancy (NASBA), ormed

a blue-ribbon panel The panel, which solicited

public comments rom constituents o private

company nancial reporting, plans to make itsrecommendations by the end o 2010.

The AICPA continues to lead the way insupporting serious consideration o adoption

o International Financial Reporting Standards

(IFRS) or US public companies In a statement

on the SECs Work Plan to incorporate IFRS into the

U.S. nancial reporting system, the AICPA voiced

its support or a single set o high-quality,

globally accepted fnancial reporting standards

and the thoughtul and concrete steps the

Commission is taking to prepare or the transition.

The AICPAs IFRS website continues to provide

resources and inormation or members. The manytimely and practical tools include a wiki, which

In an eort to examine the utureo nancial reporting or privatecompanies rom a policy-level

perspective and decide whetherseparate, stand-alone standards or aseparate standard-setting board werenecessary, the AICPA, along with theFinancial Accounting Foundation

and the National Association oState Boards o Accountancy, ormeda blue-ribbon panel.

Setting 21st CenturyStandards
http://www.aicpa.org/News/FeaturedNews/Pages/BlueRibbonPaneltoExamineAccountingStandardsforPrivateCompaniesinUS.aspxhttp://sec.gov/spotlight/globalaccountingstandards.shtmlhttp://www.ifrs.com/http://wiki.ifrs.com/http://wiki.ifrs.com/http://www.ifrs.com/http://sec.gov/spotlight/globalaccountingstandards.shtmlhttp://www.aicpa.org/News/FeaturedNews/Pages/BlueRibbonPaneltoExamineAccountingStandardsforPrivateCompaniesinUS.aspx


14/64

debuted this year, that compares IFRS or Smalland Medium-sized Entities with corresponding

sections o US GAAP.

To maintain high standards in ederal

government fnancial reporting, the AICPA

governing Council in May 2010 authorized the

continued recognition o the Federal Accounting

Standards Advisory Board (FASAB) as a standard

setter under Rule 203 o the AICPA Code

o Proessional Conduct FASAB sets ederal

government accounting standards that are used by

ederal agencies and by the ederal government inthe preparation o nancial statements.

The AICPA Webcast XBRL Preparing or

Phase II and Detailed Tagging, alerted public

companies to the issues surrounding an SEC

requirement The January presentation was

designed or chie nancial ocers; controllers;

accounting and nance managers; and CPAs

working with clients who prepare nancial

statements. Its goal was to help them comply with

the SECs rule to submit nancial statements in

eXtensible Business Reporting Language (XBRL), an

Internet-based standard. The AICPA has endorsed

and supported XBRL rom its inception.

Providing Guidance on Standards

The AICPA Reliability Project in 2008 considered

the need or changes in the standards or

compilation and review engagements.

o Partially in response to that project, theAccounting and Review Services Committee

in December 2009 issued Statement on

Standards or Accounting and Review

Services (SSARS) No 19, Compilation and

Review Engagements, which makes the most

signicant changes to the compilation andreview standards since 1978.

o Among the most important changes, SSARS

No 19 allows CPAs to disclose in the

accountants compilation report the reasons

or an independence impairment It also

separates review guidance and compilation

guidance.

o The abundant implementation resources

available to practitioners include a summary

o SSARS No 19 and two white papers:Signicant Change to Compilation Reporting

Requirements When Independence Is Impaired

and Understanding Internal Control and Internal

Control Services.

Ater listening to member eedback, the

Auditing Standards Board (ASB) agreed to push

the eective date o the standards developed

under the Clarity Project to periods ending

ater Dec 15, 2012 Because o the postponed

eective date, members would have sucient and

appropriate time to educate and train their sta

and to properly incorporate the standards into their

audit methodologies. The ASB launched its Clarity

Project in 2007 to make the auditing standards

simpler to read, understand and apply, as well as

to converge them with International Standards on

Auditing published by the International Auditing

and Assurance Standards Board (IAASB).

To ease implementation, the AICPA split the

guidance contained in Statement on Auditing

Standards (SAS) No 70, Service Organizations,into two separate standards:Statement on

Standards or Attestation Engagements (SSAE) No. 16,

or use by service auditors; and a new claried SAS

or user auditors. To promote better understanding

o these changes, the AICPA developed an FAQ on
http://www.aicpa.org/INTERESTAREAS/ACCOUNTINGANDAUDITING/RESOURCES/COMPREVIEW/COMPREVGUIDANCE/Pages/CompilationandReviewServices-Guidance.aspxhttp://www.aicpa.org/InterestAreas/AccountingAndAuditing/Resources/CompReview/CompRevStds/DownloadableDocuments/SSARS19/SSARS_19_Summary.pdfhttp://www.aicpa.org/InterestAreas/AccountingAndAuditing/Resources/CompReview/CompRevStds/DownloadableDocuments/Reliability/SSARS_19_White_Paper.pdfhttp://www.aicpa.org/InterestAreas/AccountingAndAuditing/Resources/CompReview/CompRevStds/DownloadableDocuments/Reliability/SSARS_19_White_Paper.pdfhttp://www.journalofaccountancy.com/Issues/2009/Sep/White+Paper+Understanding+Internal+Control+and+Internal+Control+Services.htmhttp://www.journalofaccountancy.com/Issues/2009/Sep/White+Paper+Understanding+Internal+Control+and+Internal+Control+Services.htmhttp://www.aicpa.org/InterestAreas/AccountingAndAuditing/Resources/AudAttest/AudAttestGuidance/DownloadableDocuments/Clarity_Project_QAs.pdfhttp://www.aicpa.org/InterestAreas/AccountingAndAuditing/Resources/AudAttest/AudAttestGuidance/DownloadableDocuments/Clarity_Project_QAs.pdfhttp://www.cpa2biz.com/AST/Main/CPA2BIZ_Primary/AuditAttest/Standards/SSAEs/PRDOVR~PC-023035/PC-023035.jsphttp://www.cpa2biz.com/AST/Main/CPA2BIZ_Primary/AuditAttest/Standards/SSAEs/PRDOVR~PC-023035/PC-023035.jsphttp://www.aicpa.org/InterestAreas/AccountingAndAuditing/Resources/AudAttest/AudAttestStndrds/ASBClarity/DownloadableDocuments/Clarified_SASs/Clarified%20SAS%20Service%20Organizations_Effective%20Date%20Change_Clean.pdfhttp://www.aicpa.org/InterestAreas/AccountingAndAuditing/Resources/AudAttest/AudAttestStndrds/ASBClarity/DownloadableDocuments/Clarified_SASs/Clarified%20SAS%20Service%20Organizations_Effective%20Date%20Change_Clean.pdfhttp://www.aicpa.org/InterestAreas/AccountingAndAuditing/Resources/AudAttest/AudAttestGuidance/DownloadableDocuments/Final%20Service%20Orgs%20FAQ.pdfhttp://www.aicpa.org/InterestAreas/AccountingAndAuditing/Resources/AudAttest/AudAttestGuidance/DownloadableDocuments/Final%20Service%20Orgs%20FAQ.pdfhttp://www.aicpa.org/InterestAreas/AccountingAndAuditing/Resources/AudAttest/AudAttestStndrds/ASBClarity/DownloadableDocuments/Clarified_SASs/Clarified%20SAS%20Service%20Organizations_Effective%20Date%20Change_Clean.pdfhttp://www.aicpa.org/InterestAreas/AccountingAndAuditing/Resources/AudAttest/AudAttestStndrds/ASBClarity/DownloadableDocuments/Clarified_SASs/Clarified%20SAS%20Service%20Organizations_Effective%20Date%20Change_Clean.pdfhttp://www.cpa2biz.com/AST/Main/CPA2BIZ_Primary/AuditAttest/Standards/SSAEs/PRDOVR~PC-023035/PC-023035.jsphttp://www.cpa2biz.com/AST/Main/CPA2BIZ_Primary/AuditAttest/Standards/SSAEs/PRDOVR~PC-023035/PC-023035.jsphttp://www.aicpa.org/InterestAreas/AccountingAndAuditing/Resources/AudAttest/AudAttestGuidance/DownloadableDocuments/Clarity_Project_QAs.pdfhttp://www.aicpa.org/InterestAreas/AccountingAndAuditing/Resources/AudAttest/AudAttestGuidance/DownloadableDocuments/Clarity_Project_QAs.pdfhttp://www.journalofaccountancy.com/Issues/2009/Sep/White+Paper+Understanding+Internal+Control+and+Internal+Control+Services.htmhttp://www.journalofaccountancy.com/Issues/2009/Sep/White+Paper+Understanding+Internal+Control+and+Internal+Control+Services.htmhttp://www.aicpa.org/InterestAreas/AccountingAndAuditing/Resources/CompReview/CompRevStds/DownloadableDocuments/Reliability/SSARS_19_White_Paper.pdfhttp://www.aicpa.org/InterestAreas/AccountingAndAuditing/Resources/CompReview/CompRevStds/DownloadableDocuments/Reliability/SSARS_19_White_Paper.pdfhttp://www.aicpa.org/InterestAreas/AccountingAndAuditing/Resources/CompReview/CompRevStds/DownloadableDocuments/SSARS19/SSARS_19_Summary.pdfhttp://www.aicpa.org/INTERESTAREAS/ACCOUNTINGANDAUDITING/RESOURCES/COMPREVIEW/COMPREVGUIDANCE/Pages/CompilationandReviewServices-Guidance.aspx


15/64

SSAE No. 16 and a related webcast, along with anarticle explaining the transormation o SAS No. 70.

To help members respond to market and customer

needs, the AICPA also developed a ramework or

reports on a service organizations nancial and

non-nancial controls, called Service Organization

Control (SOC) Reports (ormerly known as SAS 70).

This series includes three reporting options: SOC 1

or SSAE 16, or reports on controls at a service

organization that have an impact on a user entitys

internal control over nancial reporting; SOC 2

or reports on controls at a service organization

over security, availability, processing integrity,condentiality or privacy; and SOC 3, a report

covering the same subject matter as SOC 2, but in

a short-orm, general-use ormat that can be used

in a service organizations marketing eorts.

The AICPA revised its Statements on

Standards or Tax Services (SSTSs) to respond

to practitioners comments and incorporate

needed updates Among the changes, the

revised SSTSs now speciy that the standard or

undisclosed tax positions is the higher o the

standard o the applicable taxing authority or arealistic possibility o success. Additionally, the

revised SSTSs refect an increase in the standard

or disclosed positions rom not rivolous to

reasonable basis. The statements oer CPAs

guidance on appropriate tax practice standards

and demonstrate the proessions commitment to

high-quality tax services.

Promulgating Ethics

The AICPA Proessional Ethics Executive

Committee issued Interpretation No 101-17,

Networks and Network Firms, under

Rule 101, Independence, to provide guidance

to frms that orm networks with other frms

and entities to enhance their capabilities to

provide proessional services Implementation

guidance claried how to use the rules in practice.

The AICPA launched an Ethics Codifcation

Project that will reormat and enhance theproessions ethics guidance literature to make

it more intuitive and user-riendly, as well as

consider convergence o U.S. ethics standards with

international rules where appropriate.
http://www.aicpa.org/News/FeaturedNews/Pages/SASNo70Transformed%E2%80%93ChangesAheadforStandardonServiceOrganizations.aspxhttp://www.aicpa.org/InterestAreas/Tax/Resources/StandardsEthics/StatementsonStandardsforTaxServices/Pages/default.aspxhttp://www.aicpa.org/InterestAreas/Tax/Resources/StandardsEthics/StatementsonStandardsforTaxServices/Pages/default.aspxhttp://www.aicpa.org/InterestAreas/ProfessionalEthics/Community/ExposureDrafts/DownloadableDocuments/2007August13ExposureDraftFinalAdoptedProposals.dochttp://www.aicpa.org/InterestAreas/ProfessionalEthics/Resources/Tools/DownloadableDocuments/Ethics%20Division%20Network%20Firm%20Implementation%20Guidance.docxhttp://www.aicpa.org/InterestAreas/ProfessionalEthics/Resources/Tools/DownloadableDocuments/Ethics%20Division%20Network%20Firm%20Implementation%20Guidance.docxhttp://www.aicpa.org/InterestAreas/ProfessionalEthics/Community/DownloadableDocuments/2010AprilEthicsCodificationProject.docxhttp://www.aicpa.org/InterestAreas/ProfessionalEthics/Community/DownloadableDocuments/2010AprilEthicsCodificationProject.docxhttp://www.aicpa.org/InterestAreas/ProfessionalEthics/Community/DownloadableDocuments/2010AprilEthicsCodificationProject.docxhttp://www.aicpa.org/InterestAreas/ProfessionalEthics/Community/DownloadableDocuments/2010AprilEthicsCodificationProject.docxhttp://www.aicpa.org/InterestAreas/ProfessionalEthics/Resources/Tools/DownloadableDocuments/Ethics%20Division%20Network%20Firm%20Implementation%20Guidance.docxhttp://www.aicpa.org/InterestAreas/ProfessionalEthics/Resources/Tools/DownloadableDocuments/Ethics%20Division%20Network%20Firm%20Implementation%20Guidance.docxhttp://www.aicpa.org/InterestAreas/ProfessionalEthics/Community/ExposureDrafts/DownloadableDocuments/2007August13ExposureDraftFinalAdoptedProposals.dochttp://www.aicpa.org/InterestAreas/Tax/Resources/StandardsEthics/StatementsonStandardsforTaxServices/Pages/default.aspxhttp://www.aicpa.org/InterestAreas/Tax/Resources/StandardsEthics/StatementsonStandardsforTaxServices/Pages/default.aspxhttp://www.aicpa.org/News/FeaturedNews/Pages/SASNo70Transformed%E2%80%93ChangesAheadforStandardonServiceOrganizations.aspx


16/64

Making a BIG Impact

The Institute helps business, industry and

government members with their proessional

needs, providing strong support on timely

business issues, as well as resources and expertise

on need-to-know industry subject matter


17/64

Members Lighting the Way

CPA decision-makers have their pulse on

the business environment and the market

orces at work The quarterly AICPA Business &

Industry Economic Outlook Survey, conducted in

collaboration with the UNC Kenan-Flagler Business

School, examined viewpoints on the current

economy, the state o individual organizations

and anticipated uture economic prospects and

challenges. Survey results are widely distributed to

the media, educating the public about economic

issues and showcasing CPAs leadership innancial matters.

Managing Risk

The economic crisis and perceived insufcient

company control systems have led to a growing

demand or thought leadership on enterprise

risk management (ERM). To help CPAs address

this market need where CPAs could ll an

important role, the AICPA has developed a new

webpage on ERM housing numerous resources or

members in business, industry and government.

A special briewas published to provide an

update on Standard & Poors plan to integrate

evaluations o ERM programs into its credit review

process or non-nancial corporate issuers.

As an active member of the Committee of

Sponsoring Organizations o the Treadway

Commission (COSO), the AICPA participated in

preparing a paper rom COSO titled EectiveEnterprise Risk Oversight: The Role o the Board

o Directors, which examined the challenges

or boards and the benets o enterprise risk

management.

To nd out how audit committees, CFOs and

others are addressing ERM globally in their

organizations, the AICPA and the Chartered

Institute o Management Accountants (CIMA)surveyed their business and industry members

in partnership with the Enterprise Risk

Management Initiative at North Carolina State

University (the NCSU ERM Initiative) The results

o the survey were published jointly by the AICPA,

CIMA and the NCSU ERM Initiative in Enterprise

Risk Oversight: A Global Analysis. The report

indicates that universally, nancial executives are

eeling pressure to re-evaluate and improve their

overall approach to enterprise risk management.

A Government Accountability Brie, EnterpriseRisk Management: Is it Relevant to Government?,

explained that the need or robust enterprise

risk oversight is relevant to all types and sizes o

organizations, including governmental entities.

Examining Fraud

Another study the AICPA worked on as a

member o COSO was Fraudulent Financial

Reporting: 19982007, An Analysis o US

Public Companies,a comprehensive analysis

o 347 alleged accounting raud cases the SEC

investigated between January 1998 and December

2007. The studys results are useul to boards o

directors, external auditors, investors, regulators

and other key stakeholders in their eorts to

prevent, deter and detect raudulent nancial

reporting. The AICPA oered a webinar and a

PowerPoint summarizing the studys ndings.

Leading the Sustainability Conversation

The Institute already has made signicant strides in

becoming a thought leader in the sustainability

area and is a prime source o sustainability

resources or the accounting proession As a

ounding member o the internationally ocused

Enhanced Business Reporting Consortium (EBRC),

and having established the Special Committee on

Making a BIG Impact
http://www.aicpa.org/InterestAreas/BusinessIndustryAndGovernment/NewsAndPublications/Pages/EconomicOutlookSurveys.aspxhttp://www.aicpa.org/InterestAreas/BusinessIndustryAndGovernment/NewsAndPublications/Pages/EconomicOutlookSurveys.aspxhttp://www.aicpa.org/INTERESTAREAS/BUSINESSINDUSTRYANDGOVERNMENT/RESOURCES/ERM/Pages/default.aspxhttp://www.aicpa.org/InterestAreas/BusinessIndustryAndGovernment/Resources/CorporateGovernanceRiskManagementInternalControl/DownloadableDocuments/ERM_and_credit_ratings.pdfhttp://www.aicpa.org/ForThePublic/AuditCommitteeEffectiveness/DownloadableDocuments/COSOBoardsERM_FINALRELEASEVERSION82409.pdfhttp://www.aicpa.org/InterestAreas/BusinessIndustryAndGovernment/Resources/ERM/DownloadableDocuments/Enterprise%20Risk%20v3.pdfhttp://www.aicpa.org/InterestAreas/BusinessIndustryAndGovernment/Resources/ERM/DownloadableDocuments/Enterprise%20Risk%20v3.pdfhttp://www.aicpa.org/InterestAreas/BusinessIndustryAndGovernment/Resources/GovernmentResourceCenter/DownloadableDocuments/GovAccBrief_feb10_linked.pdfhttp://www.aicpa.org/InterestAreas/BusinessIndustryAndGovernment/Resources/GovernmentResourceCenter/DownloadableDocuments/GovAccBrief_feb10_linked.pdfhttp://www.coso.org/documents/COSOFRAUDSTUDY2010.pdfhttp://www.coso.org/documents/COSOFRAUDSTUDY2010.pdfhttp://www.coso.org/documents/COSOFRAUDSTUDY2010.pdfhttp://www.coso.org/documents/COSOFRAUDSTUDY2010.pdfhttp://video.webcasts.com/events/aicp001/34988/http://www.aicpa.org/InterestAreas/AccountingAndAuditing/Resources/AudAttest/AudAttestGuidance/DownloadableDocuments/Fraud_Study_Overview.pdfhttp://www.aicpa.org/InterestAreas/BusinessIndustryAndGovernment/Resources/Sustainability/Pages/Sustainability%20Accounting,%20Reporting,%20Assurance%20and%20Other%20Services.aspxhttp://www.aicpa.org/INTERESTAREAS/ACCOUNTINGANDAUDITING/RESOURCES/EBR/Pages/EnhancedBusinessReporting.aspxhttp://www.aicpa.org/INTERESTAREAS/ACCOUNTINGANDAUDITING/RESOURCES/EBR/Pages/EnhancedBusinessReporting.aspxhttp://www.aicpa.org/InterestAreas/BusinessIndustryAndGovernment/Resources/Sustainability/Pages/Sustainability%20Accounting,%20Reporting,%20Assurance%20and%20Other%20Services.aspxhttp://www.aicpa.org/InterestAreas/AccountingAndAuditing/Resources/AudAttest/AudAttestGuidance/DownloadableDocuments/Fraud_Study_Overview.pdfhttp://video.webcasts.com/events/aicp001/34988/http://www.coso.org/documents/COSOFRAUDSTUDY2010.pdfhttp://www.coso.org/documents/COSOFRAUDSTUDY2010.pdfhttp://www.coso.org/documents/COSOFRAUDSTUDY2010.pdfhttp://www.aicpa.org/InterestAreas/BusinessIndustryAndGovernment/Resources/GovernmentResourceCenter/DownloadableDocuments/GovAccBrief_feb10_linked.pdfhttp://www.aicpa.org/InterestAreas/BusinessIndustryAndGovernment/Resources/GovernmentResourceCenter/DownloadableDocuments/GovAccBrief_feb10_linked.pdfhttp://www.aicpa.org/InterestAreas/BusinessIndustryAndGovernment/Resources/ERM/DownloadableDocuments/Enterprise%20Risk%20v3.pdfhttp://www.aicpa.org/InterestAreas/BusinessIndustryAndGovernment/Resources/ERM/DownloadableDocuments/Enterprise%20Risk%20v3.pdfhttp://www.aicpa.org/ForThePublic/AuditCommitteeEffectiveness/DownloadableDocuments/COSOBoardsERM_FINALRELEASEVERSION82409.pdfhttp://www.aicpa.org/InterestAreas/BusinessIndustryAndGovernment/Resources/CorporateGovernanceRiskManagementInternalControl/DownloadableDocuments/ERM_and_credit_ratings.pdfhttp://www.aicpa.org/INTERESTAREAS/BUSINESSINDUSTRYANDGOVERNMENT/RESOURCES/ERM/Pages/default.aspxhttp://www.aicpa.org/InterestAreas/BusinessIndustryAndGovernment/NewsAndPublications/Pages/EconomicOutlookSurveys.aspxhttp://www.aicpa.org/InterestAreas/BusinessIndustryAndGovernment/NewsAndPublications/Pages/EconomicOutlookSurveys.aspx


18/64

Enhanced Business Reporting beore that in 2003,the AICPA has long ocused on sustainability, which

considers the environmental and social aspects o

conducting business along with protability.

The AICPA last year became one o the ounding

members o the Accounting Bodies Network o

The Prince o Wales Accounting or Sustainability

Project (A4S). The orums principles promote

integrated or connected reporting reporting

that links an organizations sustainability impacts

with its nancial perormance more clearly,

concisely and consistently.

The AICPA also strongly supported theormation o the International Integrated

Reporting Committee, created to oversee

development o a globally accepted integrated

reporting model.

The AICPA last all submitted a comment

letter to the Climate Disclosure Standards

Board (CDSB), a consortium o business and

environmental organizations, on the boards

drat ramework or Climate Change Reporting

AICPA sta members were invited to join the

boards technical working group developing theramework.

The AICPA last year became oneo the ounding members o theAccounting Bodies Network oThe

Prince o Wales Accounting orSustainability Project. The orumsprinciples promote integrated orconnected reporting reportingthat links an organizations

sustainability impacts with itsfnancial perormance moreclearly, concisely and consistently.
http://www.accountingforsustainability.org/aboutus/http://www.accountingforsustainability.org/aboutus/http://www.journalofaccountancy.com/Web/20103165.htmhttp://www.journalofaccountancy.com/Web/20103165.htmhttp://www.aicpa.org/InterestAreas/BusinessIndustryAndGovernment/Resources/Sustainability/DownloadableDocuments/CDSB%20Framework%20Comments_AICPA%20Final_11%2011%2009.pdfhttp://www.aicpa.org/InterestAreas/BusinessIndustryAndGovernment/Resources/Sustainability/DownloadableDocuments/CDSB%20Framework%20Comments_AICPA%20Final_11%2011%2009.pdfhttp://www.cdsb-global.org/http://www.cdsb-global.org/http://www.accountingforsustainability.org/aboutus/http://www.accountingforsustainability.org/aboutus/http://www.accountingforsustainability.org/aboutus/http://www.accountingforsustainability.org/aboutus/http://www.accountingforsustainability.org/aboutus/http://www.accountingforsustainability.org/aboutus/http://www.cdsb-global.org/http://www.cdsb-global.org/http://www.aicpa.org/InterestAreas/BusinessIndustryAndGovernment/Resources/Sustainability/DownloadableDocuments/CDSB%20Framework%20Comments_AICPA%20Final_11%2011%2009.pdfhttp://www.aicpa.org/InterestAreas/BusinessIndustryAndGovernment/Resources/Sustainability/DownloadableDocuments/CDSB%20Framework%20Comments_AICPA%20Final_11%2011%2009.pdfhttp://www.journalofaccountancy.com/Web/20103165.htmhttp://www.journalofaccountancy.com/Web/20103165.htmhttp://www.accountingforsustainability.org/aboutus/http://www.accountingforsustainability.org/aboutus/


19/64

The Institute joined with the CDSB, A4S and12 major accounting institutes around the

world in sending an open letter to political

leaders attending the United Nations Climate

Change Conerence in Copenhagen. It called or

a single set o universally accepted standards or

climate change-related disclosures. The Institute

also commented on an IAASB paper addressing

assurance on greenhouse gas statements.

Other helpul resources or members include

guidelines on environmental accounting and

scenario planning, and a web presence or theAICPA sustainability initiative, providing a variety o

resources to help CPAs understand sustainability

accounting, reporting, assurance, tax and other

sustainability issues. These resources and the

AICPAs activities demonstrate that sustainability

is not about the politics o going green, but

about the strategic and nancial reporting aspects

being driven by marketplace demands rom both

consumers and investors, with CPAs staking their

ground in this emerging area.

Addressing Government Members Needs

Recognizing that members in government ace

issues and challenges dierent rom members in

business and industry, several specic resources

were developed or this group. One is the

Government Accountability Brie,Internal Controls:

Just the Start o a Fraud, Waste and Abuse

Prevention Program, which discusses the need or

and importance o raud prevention programs in

government.

A PowerPoint presentation encouragingstudents to pursue an accounting career in

government has been given at various universities

and organizations by the Government Perormance

and Accountability Committee. Top 5 Reasons

Government Accounting Provides a Great Career

has been downloaded more than 10,000 times

by members.
http://www.ifac.org/Guidance/EXD-Details.php?EDID=0132http://www.aicpa.org/InterestAreas/BusinessIndustryAndGovernment/Resources/Sustainability/Pages/Sustainability%20Accounting,%20Reporting,%20Assurance%20and%20Other%20Services.aspxhttp://www.aicpa.org/InterestAreas/BusinessIndustryAndGovernment/DownloadableDocuments/internalcontrolsjustthestart.pdfhttp://www.aicpa.org/InterestAreas/BusinessIndustryAndGovernment/DownloadableDocuments/internalcontrolsjustthestart.pdfhttp://www.aicpa.org/InterestAreas/BusinessIndustryAndGovernment/DownloadableDocuments/internalcontrolsjustthestart.pdfhttp://www.aicpa.org/InterestAreas/BusinessIndustryAndGovernment/Resources/GovernmentResourceCenter/DownloadableDocuments/Careers_in_Government_Presentation_Final.ppthttp://www.aicpa.org/InterestAreas/BusinessIndustryAndGovernment/Resources/GovernmentResourceCenter/DownloadableDocuments/Careers_in_Government_Presentation_Final.ppthttp://www.aicpa.org/InterestAreas/BusinessIndustryAndGovernment/Resources/GovernmentResourceCenter/DownloadableDocuments/Careers_in_Government_Presentation_Final.ppthttp://www.aicpa.org/InterestAreas/BusinessIndustryAndGovernment/Resources/GovernmentResourceCenter/DownloadableDocuments/Careers_in_Government_Presentation_Final.ppthttp://www.aicpa.org/InterestAreas/BusinessIndustryAndGovernment/DownloadableDocuments/internalcontrolsjustthestart.pdfhttp://www.aicpa.org/InterestAreas/BusinessIndustryAndGovernment/DownloadableDocuments/internalcontrolsjustthestart.pdfhttp://www.aicpa.org/InterestAreas/BusinessIndustryAndGovernment/DownloadableDocuments/internalcontrolsjustthestart.pdfhttp://www.aicpa.org/InterestAreas/BusinessIndustryAndGovernment/Resources/Sustainability/Pages/Sustainability%20Accounting,%20Reporting,%20Assurance%20and%20Other%20Services.aspxhttp://www.ifac.org/Guidance/EXD-Details.php?EDID=0132


20/64

Providing Members the

Tools to Succeed

The Institute places critical importance on

member development and advancement With

resources and tools covering every dimension o

the CPA proession, the AICPA aords members

countless opportunities to improve their skills

and knowledge, regardless o their area o

specialization


21/64

Accessing Technology or Members

To provide members with up-to-the-minute

news and resources, the AICPA, in close

collaboration with CPA2Biz, in May launched

its new AICPAorg website It eatures enhanced

navigation and search unctions that oer a

more personalized experience and better meet

CPAs inormation needs. Built with leading-edge

technology, the sites many enhancements include

RSS eeds; social media access and live updates;

member-only content; sel-service membership

prole management; enhanced search; AICPATV; and easy and comprehensive subscription

management o publications and emails.

Three new alliances oered AICPA members

access to leading-edge cloud technology

solutions Conrmation.com is a paperless

web-based solution designed to make audit

conrmations more ecient and less risky.

Copanion oers tax document technology

that allows rms to standardize tax preparation

workfows and improve productivity. XCM Solutions

is a pioneer in work-management and workfow

technology or the accounting proession. These

newly added alliances join Apptix, Bill.com,

Intacct and Paychex as part o CPA2Bizs Trusted

Business AdvisorSM Solutions platorm

web-based solutions transorming the way CPAs

conduct business and work with clients. Many

educational webinars and white papers available

through the Trusted Business Advisor Program and

website helped CPA rms think more strategically

about how best to package and position client

services via cloud-based services, and how to bestimplement these workfow improvement tools

throughout their rms.

With the launch o the new AICPA Learning

Center, powered by CPA2Biz, members can get

instant online access to AICPA CPE sel-study

courses, live web events and virtual conerencesThey also will be able to easily track the status

o their CPE courses and access transcripts and

certicates o completion on demand. Additional

eatures include competency pathways to help

members gain the knowledge and skills to chart

their careers. Development o a CPE compliance

tracker and rm administration customizations also

are under way.

Reaching Across Borders

In a step that will promote cross-border

practice by streamlining the process through

which qualifed accountants become certifed

and licensed in each others countries, the U.S.

International Qualications Appraisal Board, a joint

body o the AICPA and NASBA, signed a ve-year

Mutual Recognition Agreement with the New

Zealand Institute o Chartered Accountants in 2009.

There are similar existing agreements with Canada,

Mexico, Ireland and Australia.

The AICPA/CICA Privacy Task Force, ormed

with the Canadian Institute o Chartered

Accountants, issued the Generally Accepted

Privacy Principles to supersede the existing

AICPA and CICA Privacy Framework Known as

GAPP, the principles help organizations design and

implement sound privacy practices and policies.

To provide members with news and insights

on global issues, the new International page

on the revamped AICPAorg oers access to

timely publications, the perspectives o theAICPA international community, educational

opportunities and a quick link to IFRS.

Providing Members the Tools to Succeed
http://www.aicpa.org/Pages/Default.aspxhttp://clientsolutions.cpa2biz.com/OnDemand/http://clientsolutions.cpa2biz.com/OnDemand/http://clientsolutions.cpa2biz.com/OnDemand/http://clientsolutions.cpa2biz.com/OnDemand/http://www.cpa2biz.com/AST/AICPA_CPA2BIZ_Browse/Store/OnlineSubscriptions.jsphttp://www.cpa2biz.com/AST/AICPA_CPA2BIZ_Browse/Store/OnlineSubscriptions.jsphttp://www.aicpa.org/InterestAreas/InformationTechnology/Resources/Privacy/GenerallyAcceptedPrivacyPrinciples/Pages/Generally%20Accepted%20Privacy%20Principles.aspxhttp://www.aicpa.org/InterestAreas/InformationTechnology/Resources/Privacy/GenerallyAcceptedPrivacyPrinciples/Pages/Generally%20Accepted%20Privacy%20Principles.aspxhttp://www.aicpa.org/InterestAreas/International/Pages/IntlLanding.aspxhttp://www.ifrs.com/http://www.ifrs.com/http://www.aicpa.org/InterestAreas/International/Pages/IntlLanding.aspxhttp://www.aicpa.org/InterestAreas/InformationTechnology/Resources/Privacy/GenerallyAcceptedPrivacyPrinciples/Pages/Generally%20Accepted%20Privacy%20Principles.aspxhttp://www.aicpa.org/InterestAreas/InformationTechnology/Resources/Privacy/GenerallyAcceptedPrivacyPrinciples/Pages/Generally%20Accepted%20Privacy%20Principles.aspxhttp://www.cpa2biz.com/AST/AICPA_CPA2BIZ_Browse/Store/OnlineSubscriptions.jsphttp://www.cpa2biz.com/AST/AICPA_CPA2BIZ_Browse/Store/OnlineSubscriptions.jsphttp://clientsolutions.cpa2biz.com/OnDemand/http://clientsolutions.cpa2biz.com/OnDemand/http://www.aicpa.org/Pages/Default.aspx


22/64

Serving Our Small-Firm Members

According to the 2009 PCPS CPA Firm Top Issues

Survey, client retention ranked as the top issue or

CPA rms o all sizes. In light o this challenge, the

Private Companies Practice Section (PCPS) this

year unveiled the PCPS Client Service Resource

Center, a comprehensive source o tools and

inormation on issues including client retention,

billing and collection, client advisory boards andee pressures, among other topics.

PCPS also oered practitioners timely

inormation and advice in the Economic Podcast

series. The presentations, which eature tips

rom experienced CPAs, tackled topics such as

opportunities in a recession, nancial metrics or

todays CPA rm, cost-cutting and helping clients

address economic declines.

Growing Resources or Financial Planners

Given the importance o Roth IRA conversion

planning in 2010, the AICPA Personal Financial

Planning (PFP) section provided a wealth o

resources to help CPAs advise clients PFP

section members have access to the more

than-200-page The Rebirth of Roth: A CPAs

Ultimate Guide to Client Care, decision charts,

a simple Roth conversion calculator, discountedsophisticated sotware, recordings and materials

rom a comprehensive Roth web seminar series,

as well as access to articles and audio recordings

to help guide their clients as they consider Roth

conversions.

To encourage the competency o young

proessionals in PFP, the AICPA sponsored a

new annual scholarship that allows a young CPA

to attend the AICPA Advanced Estate Planning

Conerence The Institute also created targeted

resources to encourage qualied new planners toenter the proession.

Given the importance o Roth IRAconversion planning in 2010, theAICPA Personal Financial Planningsection provided a wealth o resourcesto help CPAs advise clients.
http://www.aicpa.org/InterestAreas/PrivateCompaniesPracticeSection/Resources/FirmStrategyandPlanning/Pages/2009%20PCPS%20CPA%20Firm%20Top%20Issues%20Survey.aspxhttp://www.aicpa.org/InterestAreas/PrivateCompaniesPracticeSection/Resources/FirmStrategyandPlanning/Pages/2009%20PCPS%20CPA%20Firm%20Top%20Issues%20Survey.aspxhttp://www.aicpa.org/InterestAreas/PrivateCompaniesPracticeSection/Resources/ClientServiceResourceCenter/Pages/default.aspxhttp://www.aicpa.org/InterestAreas/PrivateCompaniesPracticeSection/Resources/ClientServiceResourceCenter/Pages/default.aspxhttp://www.aicpa.org/InterestAreas/PrivateCompaniesPracticeSection/Resources/ClientServiceResourceCenter/Pages/default.aspxhttp://www.aicpa.org/InterestAreas/PrivateCompaniesPracticeSection/Resources/EconomicPodcastSeries/Pages/default.aspxhttp://www.aicpa.org/InterestAreas/PersonalFinancialPlanning/Resources/RetirementPlanning/Pages/Roth%20IRA%20Conversions%20Podcast.aspxhttp://www.aicpa.org/INTERESTAREAS/PERSONALFINANCIALPLANNING/RESOURCES/PRACTICECENTER/YOUNGEMERGINGCPAFINANCIALPLANNERS/Pages/default.aspxhttp://www.aicpa.org/INTERESTAREAS/PERSONALFINANCIALPLANNING/RESOURCES/PRACTICECENTER/YOUNGEMERGINGCPAFINANCIALPLANNERS/Pages/default.aspxhttp://www.aicpa.org/InterestAreas/PersonalFinancialPlanning/Resources/RetirementPlanning/Pages/Roth%20IRA%20Conversions%20Podcast.aspxhttp://www.aicpa.org/InterestAreas/PrivateCompaniesPracticeSection/Resources/EconomicPodcastSeries/Pages/default.aspxhttp://www.aicpa.org/InterestAreas/PrivateCompaniesPracticeSection/Resources/ClientServiceResourceCenter/Pages/default.aspxhttp://www.aicpa.org/InterestAreas/PrivateCompaniesPracticeSection/Resources/ClientServiceResourceCenter/Pages/default.aspxhttp://www.aicpa.org/InterestAreas/PrivateCompaniesPracticeSection/Resources/FirmStrategyandPlanning/Pages/2009%20PCPS%20CPA%20Firm%20Top%20Issues%20Survey.aspxhttp://www.aicpa.org/InterestAreas/PrivateCompaniesPracticeSection/Resources/FirmStrategyandPlanning/Pages/2009%20PCPS%20CPA%20Firm%20Top%20Issues%20Survey.aspx


23/64

The PFP section added resources to helpadvance member knowledge and opportunities

A dedicated webpage reviews legislative and

regulatory news in nancial regulatory reorm and

other key areas. Section members now have ree

access to Inside Information, a newsletter rom

respected author and consultant Bob Veres. Ten

new PFP Networking Groups launched this year

allow members to share inormation and ideas. To

oster member competency, the AICPA developed

a new Personal Financial Specialist (PFS) examreview course that provides sel-study CPE at a

nominal cost. The Institute also established a

PFP champion program to engage and equip

passionate advocates or this discipline across the

country and added new participants to the PFS

media spokesperson program, oering this group

hands-on media training.
http://www.aicpa.org/InterestAreas/PersonalFinancialPlanning/Membership/Pages/Advocacy.aspxhttp://www.aicpa.org/PUBLICATIONS/NEWSLETTERS/INSIDEINFO/Pages/default.aspxhttp://www.aicpa.org/InterestAreas/PersonalFinancialPlanning/Community/Pages/PFP%20Networking%20Groups.aspxhttp://www.cpa2biz.com/AST/Main/CPA2BIZ_Primary/CareerPersonalDevelopment/PRDOVR~PC-757000/PC-757000.jsphttp://www.cpa2biz.com/AST/Main/CPA2BIZ_Primary/CareerPersonalDevelopment/PRDOVR~PC-757000/PC-757000.jsphttp://www.aicpa.org/InterestAreas/PersonalFinancialPlanning/Community/Pages/Members%20in%20the%20News.aspxhttp://www.aicpa.org/InterestAreas/PersonalFinancialPlanning/Community/Pages/Members%20in%20the%20News.aspxhttp://www.aicpa.org/InterestAreas/PersonalFinancialPlanning/Community/Pages/Members%20in%20the%20News.aspxhttp://www.aicpa.org/InterestAreas/PersonalFinancialPlanning/Community/Pages/Members%20in%20the%20News.aspxhttp://www.cpa2biz.com/AST/Main/CPA2BIZ_Primary/CareerPersonalDevelopment/PRDOVR~PC-757000/PC-757000.jsphttp://www.cpa2biz.com/AST/Main/CPA2BIZ_Primary/CareerPersonalDevelopment/PRDOVR~PC-757000/PC-757000.jsphttp://www.aicpa.org/InterestAreas/PersonalFinancialPlanning/Community/Pages/PFP%20Networking%20Groups.aspxhttp://www.aicpa.org/PUBLICATIONS/NEWSLETTERS/INSIDEINFO/Pages/default.aspxhttp://www.aicpa.org/InterestAreas/PersonalFinancialPlanning/Membership/Pages/Advocacy.aspx


24/64

Securing the Future

through Leadership

The AICPA works to ensure the CPA proession

continues to grow and ourish, generating a

large pool o talented individuals to pursue

accounting careers In addition, the Institute oers

members opportunities to help others move

orward, whether through improving their fnancial

knowledge or providing economic assistance


25/64

Looking Forward

As part o its commitment to protect the

public interest and maintain CPAs respected

reputation, the AICPA stepped up its eorts

to promote licensure, creating tools and

inormation or those taking the exam and

working toward greater consistency in licensure

regulation among the states The Institute also

is involved in helping the academic community to

develop best practices in accounting education.

ThisWaytoCPAcom, a new website, exploresthe multiple career paths in the CPA proession

as well as provides guidance on becoming a

CPA Some o the key eatures o the site include

mock job interviews and rsum tips, scholarship

inormation, state-by-state CPA licensure

requirements and real CPA proles. There also

is a timeline that outlines the exam process and

a orum where questions can be posted and

answered by other users.

Start Here, Go Places has garnered more

than 175,000 unique visitors since its relaunch

in the summer o 2009 Many visitors come to the

award-winning site rom partner organizations and

state CPA societies. The For Teachers section

o the website was eatured at our national

educator conerences that reached more than

400 high school educators, guidance counselors

and community college educators, providing more

inormation about careers in accounting. More

than 700 educators have registered on the website

as a result.

A special section on the new AICPAorg

describes the many career options open

to CPAs It includes career assessment tools

that highlight the requirements or any number

o specializations.

The AICPA secured an extension o the UniormCPA Examination contract through 2024 It not

only allows the Institute to provide content or

the exam, but also laid the groundwork or an

improved exam The AICPA developed methods

that will allow timely updates to the exam content

that refect changes in entry-level practice. This

process will allow the AICPA to keep the exam

up-to-date and relevant or generations o CPAs

to come. The exam establishes a high standard

or entry in the proession, protecting both the

proession and the public. As a key element o

proessional development, the new This Wayto CPA website or college students and young

proessionals illustrates urther the importance o

the exam in ones career path.

The American Accounting Association and the

AICPA ormed the Pathways Commission to

study possible uture paths o higher education

or those seeking entry into the accounting

proession. The commission is using a supply

chain approach; members o the supply chains

consist o individuals and representatives rom

organizations that have an impact on the variouscurrent accounting education pathways and will

assess and address the challenges educators and

practitioners ace when teaching and training

uture accounting proessionals over their lietime.

To ensure young CPAs will be prepared to be

the proessions next generation o leaders, a

CPA younger than the age o 36 was appointed

to every AICPA volunteer committee In addition,

the second class o young CPAs was selected to

attend the AICPAs Leadership Academy to learn

the skills needed to lead their organizations,

communities and the accounting proession.

Securing the Future through Leadership
http://www.aicpa.org/INTERESTAREAS/ACCOUNTINGEDUCATION/Pages/AEC.aspxhttp://www.thiswaytocpa.com/http://www.startheregoplaces.com/http://www.startheregoplaces.com/http://www.aicpa.org/CAREER/CAREERPATHS/Pages/CareerPaths.aspxhttp://www.aicpa.org/Press/PressReleases/2010/Pages/CPAExamContractRenewedintheUSThrough2024.aspxhttp://www.thiswaytocpa.com/http://www.thiswaytocpa.com/http://www.aicpa.org/Press/PressReleases/2010/Pages/AAAandAICPACreatePathwaysCommission.aspxhttp://www.aicpa.org/Press/PressReleases/2010/Pages/AAAandAICPACreatePathwaysCommission.aspxhttp://www.thiswaytocpa.com/http://www.thiswaytocpa.com/http://www.aicpa.org/Press/PressReleases/2010/Pages/CPAExamContractRenewedintheUSThrough2024.aspxhttp://www.aicpa.org/CAREER/CAREERPATHS/Pages/CareerPaths.aspxhttp://www.startheregoplaces.com/http://www.startheregoplaces.com/http://www.thiswaytocpa.com/http://www.aicpa.org/INTERESTAREAS/ACCOUNTINGEDUCATION/Pages/AEC.aspx


26/64

The Accounting Doctoral Scholars (ADS)Program completed its third recruiting year

on Oct 1, 2010 Sixty applicants were selected

to attend the ADS Orientation Conerence in

Chicago. O those attending the conerence, 30

were selected as ADS Program Scholars and will

be enrolling in Ph.D. programs beginning in the

all o 2011. They will join the 56 ADS Program

Scholars who have enrolled in Ph.D. programs

since 2008. The ADS program helps bridge the gap

between practitioners and educators by recruiting

uture doctoral-level educators who have practical

experience in auditing and tax.

The AICPA governing Council in May

unanimously authorized a proposed bylaw

amendment or a vote by the membership to

modernize the requirements to join the AICPA

as a voting member The change, overwhelmingly

approved by members with more than 81% o the

vote, recognizes the diverse work environments

o todays accounting proessionals, provides

consistency in AICPA admission requirements

in light o disparate CPA certication/licensure

requirements among states and gives youngerproessionals an earlier and closer association

with CPAs.

Improving Peoples Lives

Demonstrating its continuing commitment to

improving the fnancial literacy o all Americans,

the AICPA launched a new 360 Degrees o

Financial Literacy website to oer the publicpersonalized tools and inormation to better

manage their nances and make intelligent

nancial decisions. Among other enhancements,

the site eatures a new My 360 tool that

allows registered users to create a customizable

dashboard o articles and resources to help them

make inormed nancial decisions and connect to

local nancial education events organized by their

state CPA societies. Since the April 2010 launch,

the site has won two awards, boasts more than

10,000 registered users and averages 125,000

visits a month.

The AICPA teamed with the Society or Human

Resource Management to create the frst national

award that recognizes employers that have

implemented fnancial education programs or

their sta The award was created last spring on a

recommendation rom the workplace subcommittee

o the Presidents Advisory Council or Financial

Literacy. Corporate, not-or-prot and government

organizations are eligible to be selected or the

Workplace Financial Education Award.

The AICPA donated $40,000 to Habitat or

Humanity International on behal o the CPA

proession to assist in the ongoing recovery

eort in Haiti The donation was made possible by

AICPA member contributions to its disaster relie

program: CPAs in Support o America Fund Inc.

The Institutes unding was used to help 10 amilies

repair and reconstruct their homes.
http://www.adsphd.org/http://www.adsphd.org/http://www.360financialliteracy.org/http://www.360financialliteracy.org/http://www.adsphd.org/http://www.adsphd.org/


27/64

The AICPA teamed with the Societyor Human Resource Managementto create the frst national awardthat recognizes employers that haveimplemented nancial education

programs or their sta.


28/64

Ofcers

Robert R. Harris, CPA, Chairman

Paul V. Stahlin, CPA, Vice Chairman

Ernest A. Almonte, CPA, Immediate Past

Chairman

Barry C. Melancon, CPA, President and

CEO

Directors

For Three Years (2009-2012)

Allyson B. Baumeister, CPA

Rodney M. Harano, CPAMark L. Hildebrand, CPA

Jerey R. Hoops, CPA

William A. McKenna Jr.*

William D. Schneider Sr., CPA

For Two Years (2009-2011)

Terry E. Branstad*

Richard J. Caturano, CPA

Patricia Cochran, CPA

F. Carter Heim, CPA

Henry R. Keizer, CPA

Karen V. Pincus, CPA

For One Year (2009-2010)

Wynne E. Baker, CPA

Timothy L. Christen, CPA

Bob Graham*Paula C. Hanson, CPA

Kenneth M. Hughes, CPA

Robert J. Laux, CPA

Jimmy J. Williams, CPA

* Public Members

Board o Directors 2009-2010


29/64

finAnCiALS2009-2010 AnnuAl RepoRt


30/64


31/64

2010 Total AICPA Voting Membership

Public Accounting

Business and Industry

Government

Education

Retired & Misc.

42%

42%

3%

2%

11%

348,051 Members Membership in Public Practice

Firms with one member

Firms with 2-9 members

Firms with 10 or more members

25 largest frms

154,941 Members

18

26

22

34

Sources and Occupations of AICPA Membership

AICPA Voting Membership Since 2001

322,000 324,000 326,000 328,000 330,000 332,000 334,000 336,000 338,000 340,000 342,000 344,000 346,000 348,000

2003

2002

2004

2005

2006

2007

2008

2010

2001

2009

348,051

338,687

334,372

330,525

327,135

334,635

335,111

336,081

337,867

342,562

09-10 AnnuAL RepoRt


32/64

Mmbrsh h AiCpA s a uqu ad rsal xrc

r ach ur 369,000 mmbrs. th AiCpA wrks vry day

rvd mmbrs wh h rsurcs, rma ad ladrsh

ha abl hm rvd valuabl srvcs h hghsrssal mar b h ublc as wll as mlyrs

ad cls. i ulllg hs mss, h AiCpA cusd hs yar

dvlg umrus rsurcs sur s dvrs mmbrsh.

th AiCpA cud b vgla rcg s mmbrs

ad h ublc rs rm ucssary r udd

rgulary burds. r xaml, h AiCpA, wh sur rm

sa CpA scs, rms ad dral ky rs cacs,

dad a r cra a rva rgh ac r adg

ad abg ha culd hav xdd cvl lably scdary

ars, such as accuas, scurs lawsus. W als w

scal rcg r CpAs udr h wly crad Csumr

acal prc Burau r hr cusmary ad usualsrvcs. urhrmr, w cu wrk clsly wh h iRS

s ax rarr rgsra rgram ad w hld rsrv

rva scr, dd sadard sg r h acal

Accug Sadards Bard (ASB) by sg a lgslav

amdm ha wuld hav jardzd .

th AiCpA cus ak a acv rl shag h sadards

gvrg h rsss wrk. Ms ably, h AiCpA k h

lad crag ad srvg a ladmark blu rbb al

xlr ad mak rcmmdas rgardg h uur

sadard sg r rva cmas. W als submd

cmm lrs ky rsd accug ad audgsadards, such as hs rlasd r ublc cmm by h

ASB ad h iraal Accug Sadards Bard udr h

accug sadards cvrgc rjc. scal 2010 acvs

als cludd surg h Scurs ad exchag Cmmsss

Wrk pla ublc cmas ssbl ras iraal

acal Rrg Sadards, ad advcag r wrldwd

rrg sadards r clma chag-rlad dsclsurs as

ar a ys susaably acvs. Addally, h AiCpA

s cually crag w rsurcs ha wll hl rar mmbrs

r rsd chags rssal sadards.

Makg asy r yu hav quck accss ur ws, rma

ad ls s ssal hlg yu b rm yur mmbrshad rm all ha h AiCpA ds yur bhal. Durg scal 2010,

w rducd h w AiCpA.rg wbs, rasrmg hw w

cmmuca wh ur mmbrs. th s cluds a array w

aurs dsgd hl ur mmbrs g h rgh rma

a h rgh m, such as h slc AiCpA ublcas ad

mals; a My Accu ucaly maag yur mmbrsh

asly l; RSS ds; scal mda accus wh lv udas;

ad AiCpA tV, amg hrs. i add, h AiCpAs 360 Dgrs

acal Lracy ad Sar Hr, G placs. wbss wr

rdsgd rvd hacd aurs ad mrvd racvyA w wbs, ths Way CpA, was lauchd Smbr 2010

hl accug suds, graduas ad yug rssals

say cusd cug hr carr dvlm ad hghlgh

h mrac akg h CpA exama (h exam).

A dald accu ur brad rag acvs s rvdd

hs Aual Rr, ad s mra lac hs Maagms

Dscuss ad Aalyss h cx h achvms ad

challgs xrcd durg scal 2010. our al rag

rvu xcdd $200 mll r h hrd cscuv yar. i

add, ur rgular vg ad al mmbrsh rachd

rcrd brakg umbrs, r h scd yar a rw, xcdg

348,000 ad 369,000 mmbrs, rscvly, 2009 ad 2010.

REPORT ON OPERATIONS

Investments

i scal 2010, h AiCpAs vsms rl grw by

arxmaly $12 mll rm h rr yar as a rsul

mrvd mark cds ad h rvsm dvdds

ad rs ard. th rl s wll dvrsd acrss

quy ad xd cm scurs ad h AiCpA rmas

dlg acvly mrg h rrmac ad allca

s vsms, arrsh wh s vsms cmm.

Computerized CPA Examination

th exam s dlvrd hrugh a r-ary agrm (Agrm)

bw h naal Assca Sa Bards Accuacy,

prmrc ad h AiCpA. th AiCpA accus r h exam

a brak-v bass vr h l h Agrm, whch was

xdd 2024 durg scal 2010.

scal 2010 als markd h urh sragh yar whr h exams

rvu xcdd css currd. Accrdgly, css qual h

rvu rcgzd h curr yar hav b xsd, wh

h xcss rvu vr xss $14.9 mll rcgzd as

a rduc drrd css. As such, a July 31, 2010, h balac

arxmaly $18.3 mll drrd css s rfcd

h Cmbd Sam acal ps. Sc h exam

lauchd 2004, h drrd ass balac s arxmaly

$21 mll lwr ha maagms rjcs rsd

Cucl h all 2005 du hghr cadda vlum ad

lwr xss.

Managements Discussion and Analysis

AiCpA: finAnCiALS


33/64

Professional Development &

Member Service Conferences 15%Professional Examinations 13%Publications 12%Regulation & Legislation 11%General Management 11%Technology 10%Other 8%Technical 7%

Organization & MembershipDevelopment 5%Communications & Public Relations 4%Other Financial Charges 4%

Total Expenses by Activity

Operating Revenue by Activity

Membership Dues 50%Professional Development

& Member Service

Conferences 19%Professional Examinations 11%Publications 11%Investment &

Other Income 9%

50%

15%

13%

12%

11%11%

10%

8%

7%

5%

4%4%

11%

19%

9%

11%

09-10 AnnuAL RepoRt


34/64

thr ma acrs ac h rcvrably drrd css

asscad wh h exam ad ar sd aually r marm

(1) uur cadda vlum; (2) uur rc crass; ad (3) cs

maagm. Gv hs acrs ad h acal rrmac

scal 2010, h rjcs cu rfc h AiCpAs

bl ha h drrd css asscad wh h exam wll b

ully rcvrd vr h l h Agrm.

th cadda cs ak h exam s s by ach lcsg

jursdc ad currly rags bw $848 ad $1,142,

assumg a cadda aks all ur ars. th AiCpA currly

ars $95 r sc r $380 r a cadda akg all

AICPA 2010 Annual Report and Financials

Documents

Transcript of AICPA 2010 Annual Report and Financials