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FAR helper - CPA Financial Accounting and Reporting Updated: 2023

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Exam Code: FAR CPA Financial Accounting and Reporting helper June 2023 by Killexams.com team

FAR CPA Financial Accounting and Reporting

Within the Blueprints, you will find the following information for each test section:
Content organized by Area, Group and subject along with score weighting
Sample task statements that represent what you may be asked to do when testing
Skill levels at which tasks are tested
Reference materials that support the sample task statements
Number of item types you must complete (multiple-choice questions, task-based simulations and written communication tasks)
Score weighting of each item type

Content area allocation Weight
I. Conceptual Framework, Standard-Setting and Financial Reporting 25–35%
II. Select Financial Statement Accounts 30–40%
III. Select Transactions 20–30%
IV. State and Local Governments 5–15%

Each test section is delivered in five smaller sections called testlets. Each testlet features different item types (see below) used to test your knowledge and skills. To learn more about how each section is organized, including when you can take a break, review the CPA test structure.

Exam Item Types
You will be tested during the CPA test using three types of test items that appear within specific testlets in each section.

Multiple-Choice Questions (MCQ)
The multiple-choice portions are presented in the first two testlets of each test section.

Task-Based Simulations (TBS)
Task-based simulations are condensed case studies that test accounting knowledge and skills using real life, work-related situations. All task-based simulations are intended to assess knowledge and skills that are appropriate for an entry-level accountant. There are three TBS testlets in the AUD, FAR and REG sections, and two TBS testlets in the BEC section.

Written Communication Tasks
Written communication tasks appear only in the BEC section of the CPA Exam. For each of three written communication tasks, you must read a scenario and then write an appropriate document relating to the scenario. The instructions state what form the document should take (such as a memo or letter) and its focus. Your response should provide the correct information in writing that is clear, complete and professional.

Each of the four test sections is broken down into five smaller sections called testlets. These testlets feature multiple-choice questions (MCQs) and task-based simulations (TBSs). In the case of BEC, you also have to complete three written communication tasks. The number of MCQs and TBSs tested varies depending upon the specific section taken. You will receive at least one research question (research-oriented TBS) in the AUD, FAR and REG sections. To complete them, you will have to search the related authoritative literature and find an appropriate reference.

cpa-exam-sections
Breaks
During each test section, you will be offered a 15-minute break after the first TBS testlet. This is about midway through the section (two hours). You may accept this break and pause the test timer or you may continue testing. To accept the break, click the “Take a Break” button. During this break, you must leave the testing room and follow all Prometric security rules. The test timer will restart when the 15-minute break ends.

In addition to the 15-minute break, you may also take optional breaks after all other testlets but you cannot pause the test timer. The timer will continue to run.

The Financial Accounting and Reporting (FAR) section of the Uniform CPA Examination (the Exam) assesses the knowledge and skills that a newly licensed CPA must demonstrate in the financial accounting and reporting frameworks used by business entities (public and nonpublic), not-for-profit entities and state and local government entities.
The financial accounting and reporting frameworks that are eligible for assessment within the FAR section of the test include the standards and regulations issued by the:
• Financial Accounting Standards Board (FASB)
• U.S. Securities and Exchange Commission (U.S. SEC)
• American Institute of Certified Public Accountants (AICPA)
• Governmental Accounting Standards Board (GASB)
• International Accounting Standards Board (IASB)
A listing of standards and regulations promulgated by these bodies, and other reference materials that are eligible for assessment in the FAR section of the Exam are included under References at the conclusion of this introduction.
Content organization and tasks
The FAR section blueprint is organized by content AREA, content GROUP and content TOPIC. Each group or subject includes one or more representative TASKS that a newly licensed CPA may be expected to complete in practice.
Tasks in the FAR section blueprint are representative. The tasks are not intended to be (nor should they be viewed as) an all-inclusive list of tasks that may be tested in the FAR section of the Exam. Additionally, it should be noted that the number of tasks associated with a particular content group or topic is not indicative of the extent such content group, subject or related skill level will be assessed on the Exam. For example, the subject titled “Notes to financial statements” in Area I includes two tasks that are intended to encompass the required disclosures for any subject in the FASB Accounting Standards Codification, while the group titled “Leases” in Area III includes eight tasks that are limited to the accounting requirements in the Leases subject of the FASB Accounting Standards Codification. The number of tasks included in the blueprint for this

group and this subject is not intended to suggest that “Leases” are more significant to newly licensed CPAs or will be tested more than the “Notes to financial statements.” Similarly, examples provided within the task statements should not be viewed as all-inclusive.
Content allocation
The following table summarizes the content areas and the allocation of content tested in the FAR section of the Exam:
Overview of content areas
Area I of the FAR section blueprint covers FASBs Conceptual Framework, FASBs standard-setting process and several different financial reporting topics. The financial reporting courses include the following:
• General-purpose financial statements applicable to for-profit entities, not-for-profit entities and employee benefit plans under the FASB Accounting Standards Codification
• Disclosures specific to public companies including earnings per share and segment reporting under the FASB Accounting Standards Codification and the interim, annual and periodic filing requirements for U.S. registrants in accordance with the rules of the U.S. SEC
• Financial statements prepared under special purpose frameworks as described in AU-C Section 800 of the Codification of Statements on Auditing Standards Area II of the FAR section blueprint covers the financial accounting and reporting requirements in the FASB Accounting Standards Codification that are applicable to select financial statement accounts.
• To the extent applicable, each group and subject in the area is eligible for testing within the context of both for-profit and not-for-profit entities. – If significant accounting or reporting differences exist between for-profit and not-for-profit entities for a given group or topic, such differences are in representative not-for-profit tasks in the blueprint.
Area III of the FAR section blueprint covers the financial accounting and reporting requirements for select transactions that are applicable to entities under the FASB Accounting Standards Codification and the IASB standards. • The testing of content under the IASB standards is limited to a separate group titled, “Differences between IFRS and U.S. GAAP.”
• To the extent applicable, the remaining groups in the area are eligible for testing within the context of both for-profit and not-for-profit entities. – If significant accounting or reporting differences exist between for-profit and not-for-profit entities, such differences are in representative not-for-profit tasks in the blueprint.
Area IV of the FAR section blueprint covers GASBs conceptual framework as well as the financial accounting and reporting requirements for state and local governments under the GASB standards and interpretations.
Section assumptions
The FAR section of the test includes multiple-choice questions, task-based simulations and research prompts. When completing questions in the FAR section of the Exam, candidates should assume that all of the information provided in each question is material. In addition, candidates should assume that each question applies to a for-profit business entity reporting under U.S. GAAP unless otherwise stated in the fact pattern for a question. For example, questions that apply to not-for-profit entities specify the nature of these entities
as “not-for-profit” or “non-governmental, not-for-profit.” Questions that apply to IFRS include phrases such as “under IFRS” or “according to IFRS.” Questions that apply to the state and local governments include phrases such as “local government,” “state,” “municipality” or “city.”
Skill allocation
The test focuses on testing higher order skills. Based on the nature of the task, each representative task in the FAR section blueprint is assigned a skill level. FAR section considerations related to the skill levels are discussed below.
Skill levels
Evaluation The examination or assessment of problems, and use of judgment to draw conclusions.
Analysis
The examination and study of the interrelationships of separate areas in order to identify causes and find evidence to support inferences.
Application The use or demonstration of knowledge, concepts or techniques.
Remembering and Understanding The perception and comprehension of the significance of an area utilizing knowledge gained Remembering and Understanding tasks are in all four areas of the FAR blueprint. These tasks, such as identifying transactions and financial reporting requirements, frequently require newly licensed CPAs to demonstrate their comprehension of accounting concepts and standards. Area IV has the highest concentration of remembering and understanding tasks.
• Application tasks are in all four areas of the FAR blueprint. These tasks, such as preparing journal entries and financial statements, frequently require newly licensed CPAs to use accounting concepts and standards to measure and recognize financial statement amounts.
• Analysis tasks are in Area I, Area II and Area III of the FAR blueprint. These tasks, such as reconciling account balances, interpreting agreements and detecting financial reporting discrepancies, frequently require newly licensed CPAs to demonstrate a higher level of interpretation. Area I and Area II have the highest concentration of analysis tasks.
The representative tasks combine both the applicable content knowledge and the skills required in the context of the work that a newly licensed CPA would reasonably be expected to perform. The FAR section does not test any content at the Evaluation skill level as newly licensed CPAs are not expected to demonstrate that level of skill in regards to the FAR content.
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FAR
CPA Financial Accounting and Reporting
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Question: 154
On January 2, 1993, Quo, Inc. hired Reed to be its controller. During the year, Reed,
working closely with Quo's president and outside accountants, made changes in
accounting policies, corrected several errors dating from 1992 and before, and instituted
new accounting policies.
Quo's 1993 financial statements will be presented in comparative form with its 1992
financial statements. This question represents one of Quo's transactions. List B
represents the general accounting treatment required for these transactions. These
treatments are:
. Cumulative effect approach - Include the cumulative effect of the adjustment resulting
from the accounting change or error correction in the 1993 financial statements, and do
not restate the 1992 financial statements.
. Retroactive or retrospective restatement approach - Restate the 1992 financial
statements and adjust 1992 beginning retained earnings if the error or change affects a
period prior to 1992.
. Prospective approach - Report 1993 and future financial statements on the new basis but
do not restate 1992 financial statements.
Item to Be Answered
Quo changed from LIFO to FIFO to account for its finished goods inventory. List B
(Select one)
A. Cumulative effect approach.
B. Retroactive or retrospective restatement approach.
C. Prospective approach.
Answer: B
Explanation:
Choice "B" is correct. A change in accounting principle should be shown in the retained
earnings statement of the earliest year presented as an adjustment of the beginning
balance. All prior year financial statements are recast.
Question: 155
On January 2, 1993, Quo, Inc. hired Reed to be its controller. During the year, Reed,
working closely with Quo's president and outside accountants, made changes in
accounting policies, corrected several errors dating from 1992 and before, and instituted
new accounting policies. Quo's 1993 financial statements will be presented in
comparative form with its 1992 financial statements. This question represents one of
Quo's transactions. List A represents possible clarifications of these transactions as: a
change in accounting principle, a change in accounting estimate, a correction of an error
in previously presented financial statements, or neither an accounting change nor an
accounting error.
Item to Be Answered
Quo changed from FIFO to average cost to account for its raw materials and work in
process inventories. List A (Select one)
A. Change in accounting principal.
B. Change in accounting estimate.
C. Correction of an error in previously presented financial statements.
D. Neither an accounting change nor an accounting error.
Answer: A
Explanation:
Choice "a" is correct. Change in inventory pricing method from FIFO to average cost is a
change in accounting principle.
Question: 156
On January 2, 1993, Quo, Inc. hired Reed to be its controller. During the year, Reed,
working closely with Quo's president and outside accountants, made changes in
accounting policies, corrected several errors dating from 1992 and before, and instituted
new accounting policies. Quo's 1993 financial statements will be presented in
comparative form with its 1992 financial statements. This question represents one of
Quo's transactions. List B represents the general accounting treatment required for these
transactions. These treatments are: . Cumulative effect approach - Include the
cumulative effect of the adjustment resulting from the accounting change or error
correction in the 1993 financial statements, and do not restate the 1992 financial
statements.
. Retroactive or retrospective restatement approach - Restate the 1992 financial
statements and adjust 1992 beginning retained earnings if the error or change affects a
period prior to 1992.
. Prospective approach - Report 1993 and future financial statements on the new basis but
do not restate 1992 financial statements.
Item to Be Answered
Quo changed from FIFO to average cost to account for its raw materials and work in
process inventories. List B (Select one)
A. Cumulative effect approach.
B. Retroactive or retrospective restatement approach.
C. Prospective approach.
Answer: B
Explanation:
Choice "B" is correct. A change in accounting principle should be shown in the retained
earnings statement of the earliest year presented as an adjustment of the beginning
balance. All prior year financial statements are recast.
Question: 157
On January 2, 1993, Quo, Inc. hired Reed to be its controller. During the year, Reed,
working closely with Quo's president and outside accountants, made changes in
accounting policies, corrected several errors dating from 1992 and before, and instituted
new accounting policies.
Quo's 1993 financial statements will be presented in comparative form with its 1992
financial statements. This question represents one of Quo's transactions. List A
represents possible clarifications of these transactions as: a change in accounting
principle, a change in accounting estimate, a correction of an error in previously
presented financial statements, or neither an accounting change nor an accounting error.
Item to Be Answered
Quo sells extended service contracts on its products. Because related services are
performed over several years, in 1993 Quo changed from the cash method to the accrual
method of recognizing income from these service contracts.
List A (Select one)
A. Change in accounting principal.
B. Change in accounting estimate.
C. Correction of an error in previously presented financial statements.
D. Neither an accounting change nor an accounting error.
Answer: C
Explanation:
Choice "c" is correct. Change from the cash method to the accrual method is a correction
of an error in previously presented financial statements.
Question: 158
On January 2, 1993, Quo, Inc. hired Reed to be its controller. During the year, Reed,
working closely with Quo's president and outside accountants, made changes in
accounting policies, corrected several errors dating from 1992 and before, and instituted
new accounting policies.
Quo's 1993 financial statements will be presented in comparative form with its 1992
financial statements. This question represents one of Quo's transactions. List B
represents the general accounting treatment required for these transactions. These
treatments are:
. Cumulative effect approach - Include the cumulative effect of the adjustment resulting
from the accounting change or error correction in the 1993 financial statements, and do
not restate the 1992 financial statements.
. Retroactive or retrospective restatement approach - Restate the 1992 financial
statements and adjust 1992 beginning retained earnings if the error or change affects a
period prior to 1992.
. Prospective approach - Report 1993 and future financial statements on the new basis but
do not restate 1992 financial statements. Item to Be Answered
Quo sells extended service contracts on its products. Because related services are
performed over several years, in 1993 Quo changed from the cash method to the accrual
method of recognizing income from these service contracts.
List B (Select one)
A. Cumulative effect approach.
B. Retroactive or retrospective restatement approach.
C. Prospective approach.
Answer: B
Explanation:
Choice "B" is correct. If comparative FS are issued, restate prior year's FS. If
comparative FS are not issued, restate prior year-end's retained earnings account by
"adjusting" (net of tax) the opening balance of the current retained earnings statement.
Note that when an error is corrected, retroactive restatement is used, and when there is a
change in accounting principle, retrospective restatement is done. However, this is only a
difference in terminology.
Question: 159
On January 2, 1993, Quo, Inc. hired Reed to be its controller. During the year, Reed,
working closely with Quo's president and outside accountants, made changes in
accounting policies, corrected several errors dating from 1992 and before, and instituted
new accounting policies. Quo's 1993 financial statements will be presented in
comparative form with its 1992 financial statements. This question represents one of
Quo's transactions. List A represents possible clarifications of these transactions as: a
change in accounting principle, a change in accounting estimate, a correction of an error
in previously presented financial statements, or neither an accounting change nor an
accounting error.
Item to Be Answered
During 1993, Quo determined that an insurance premium paid and entirely expensed in
1992 was for the period January 1, 1992, through January 1, 1994.
List A (Select one)
A. Change in accounting principal.
B. Change in accounting estimate.
C. Correction of an error in previously presented financial statements.
D. Neither an accounting change nor an accounting error.
Answer: C
Explanation:
Choice "c" is correct. Expensing insurance premiums when paid (rather than allocating
them to the periods benefited) is a correction of an error in previously presented financial
statements.
Question: 160
On January 2, 1993, Quo, Inc. hired Reed to be its controller. During the year, Reed,
working closely with Quo's president and outside accountants, made changes in
accounting policies, corrected several errors dating from 1992 and before, and instituted
new accounting policies.
Quo's 1993 financial statements will be presented in comparative form with its 1992
financial statements. This question represents one of Quo's transactions. List B
represents the general accounting treatment required for these transactions. These
treatments are:
. Cumulative effect approach - Include the cumulative effect of the adjustment resulting
from the accounting change or error correction in the 1993 financial statements, and do
not restate the 1992 financial statements.
. Retroactive or retrospective restatement approach - Restate the 1992 financial
statements and adjust 1992 beginning retained earnings if the error or change affects a
period prior to 1992.
. Prospective approach - Report 1993 and future financial statements on the new basis but
do not restate 1992 financial statements.
Item to Be Answered
During 1993, Quo determined that an insurance premium paid and entirely expensed in
1992 was for the period January 1, 1992, through January 1, 1994.
List B (Select one)
A. Cumulative effect approach.
B. Retroactive or retrospective restatement approach.
C. Prospective approach.
Answer: B
Explanation:
Choice "B" is correct. If comparative FS are issued, restate prior year's FS. If
comparative FS are not issued, restate prior year-end's retained earnings account by
"adjusting" (net of tax) the opening balance of the current retained earnings statement.
Question: 161
On January 2, 1993, Quo, Inc. hired Reed to be its controller. During the year, Reed,
working closely with Quo's president and outside accountants, made changes in
accounting policies, corrected several errors dating from 1992 and before, and instituted
new accounting policies.
Quo's 1993 financial statements will be presented in comparative form with its 1992
financial statements. This question represents one of Quo's transactions. List A
represents possible clarifications of these transactions as: a change in accounting
principle, a change in accounting estimate, a correction of an error in previously
presented financial statements, or neither an accounting change nor an accounting error.
During 1993, Quo increased its investment in Worth, Inc. from a 10% interest, purchased
in 1992, to 30%, and acquired a seat on Worth's board of directors. As a result of its
increased investment, Quo changed its method of accounting for investment in Worth,
Inc. from the cost method to the equity method.
List A
A. Change in accounting principle.
B. Change in accounting estimate.
C. Correction of an error in previously presented financial statements.
D. Neither an accounting change nor an accounting error.
Answer: D
Explanation:
Choice "d" is correct. A change from the cost method (less than 20% ownership) to the
equity method (20% or more ownership or a Board seat or other significant influence) of
accounting for investment in an investee is neither an accounting change nor an
accounting error. If it is not an accounting change, it cannot be a change in accounting
principle or a change in accounting estimate since those two types of changes are both
accounting changes.
There is a considerable amount of controversy on this particular answer. Some people
think that this change is a change in accounting principle (something certainly changed,
but was it the accounting principle?), and others think it is a change in accounting entity
(which is not one of the available answers; anyway, did the accounting entity actually
change or is it the same entity accounted for differently?). Under SFAS No. 154, a
change in accounting principle is treated retrospectively and a change in accounting
entity is treated retrospectively.
This kind of change (cost to equity) has never been specifically identified in any
accounting literature as either a change in accounting principle or a change in accounting
entity. The words "cost method" were never mentioned in APB 20 (other than the full
cost method for oil & gas companies, which is an entirely different subject), nor was it
mentioned in SFAS No. 154. It was, however, discussed in APB 18 (the pronouncement
for the equity method) in Paragraph 19m (bold added): "An investment in common stock
of an investee that was previously accounted for on other than the equity method may
become qualified for use of the equity method by an increase in the level of ownership
described in paragraph 17 (i.e., acquisition of additional voting stock by the investor,
acquisition or retirement of voting stock by the investee, or other transactions). When an
investment qualifies for use of the equity method, the investor should adopt the equity
method of accounting. The investment, results of operations (current and prior periods
presented), and retained earnings of the investor should be adjusted retroactively in a
manner consistent with the accounting for a step-by-step acquisition of a subsidiary."
What does all this mean? It means that, when there is a change in the percentage of
ownership that changes accounting from the cost method to the equity method, the
change is treated retroactively (just like changes in accounting entity used to be treated,
although they are now treated retrospectively). It does not say that the change is a change
in accounting principle or anything else. Nothing in SFAS No.154 changed this
treatment. So all this still makes Choice "d" correct. This whole issue might easily be
considered to be splitting hairs, at the very least. Some questions on the CPA test are
just that way. Most are not.
Question: 162
On January 2, 1993, Quo, Inc. hired Reed to be its controller. During the year, Reed,
working closely with Quo's president and outside accountants, made changes in
accounting policies, corrected several errors dating from 1992 and before, and instituted
new accounting policies. Quo's 1993 financial statements will be presented in
comparative form with its 1992 financial statements. This question represents one of
Quo's transactions. List B represents the general accounting treatment required for these
transactions. These treatments are:
. Cumulative effect approach - Include the cumulative effect of the adjustment resulting
from the accounting change or error correction in the 1993 financial statements, and do
not restate the 1992 financial statements.
. Retroactive or retrospective restatement approach - Restate the 1992 financial
statements and adjust 1992 beginning retained earnings if the error or change affects a
period prior to 1992.
. Prospective approach - Report 1993 and future financial statements on the new basis but
do not restate 1992 financial statements.
During 1993, Quo increased its investment in Worth, Inc. from a 10% interest, purchased
in 1992, to 30%, and acquired a seat on Worth's board of directors. As a result of its
increased investment, Quo changed its method of accounting for investment in Worth,
Inc. from the cost method to the equity method.
List B
A. Cumulative effect approach.
B. Retroactive or retrospective restatement approach.
C. Prospective approach.
Answer: B
Explanation:
Choice "B" is correct. The equity method of accounting is applied retroactively when the
investor has acquired 20% ownership. Prior to acquiring the ability to influence the
investee, the cost method is proper. The retroactive restatement approach does not mean
that this change is the correction of an error (which is now treated retroactively), a change
in accounting principle (which is now treated retrospectively), or a change in accounting
entity (which is now treated retrospectively). It just means that retroactive restatement is
the proper treatment.
Question: 163
According to the FASB conceptual framework, what does the concept of reliability in
financial reporting include?
A. Effectiveness.
B. Certainty.
C. Precision.
D. Neutrality.
Answer: D
Explanation:
Choice "d" is correct. The concept of reliability in financial reporting includes; neutrality,
representational faithfulness and verifiability.
Choices "a", "b", and "c" are incorrect, per the above.
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AICPA Accounting helper - BingNews https://killexams.com/pass4sure/exam-detail/FAR Search results AICPA Accounting helper - BingNews https://killexams.com/pass4sure/exam-detail/FAR https://killexams.com/exam_list/AICPA IMA's new chief has major plans for attracting more accountants

Michael DePrisco took over as president and CEO of the Institute of Management Accountants in early April, and he is hoping to expand the reach of the organization and its Certified Management Accountant credential as the accounting profession continues to experience a shortage.

He succeeded Jeff Thomson, who led the IMA for nearly 15 years as president and CEO. "Jeff's been a great partner," said DePrisco. "I've been working with him on ensuring a smooth transition. Jeff was at the helm for 15 years and really has done a wonderful job of helping IMA become a global organization. My priority as the new CEO is to ensure the long-term relevance and sustainability of the organization and, quite frankly, to ensure a leadership position globally for the next 50 to 100 years."

deprisco-mike-ima.jpg

IMA president and CEO Michael DePrisco

He plans to focus on delivering value to the IMA's members and stakeholders. "If we're making an impact on the individuals we serve, in terms of helping them upskill and reskill, and add value to their organization's success, then we'll grow as an organization and I think that is the winning formula for us as we move forward. It's been 60 days, and I've spent a lot of time listening to the community — whether it's practitioners, academicians, volunteers, board directors, or our staff — I'm having a lot of conversations to learn about the organization and to learn about the opportunities that we see in front of us."

First he wants the IMA to add value to every member to support their careers and professional development. A second area of focus is on looking at the IMA's product portfolio and how to expand it to help members distinguish themselves.

"Beyond the CMA, what else do they need to further differentiate themselves in the area of skill building," said DePrisco. "What do they need, perhaps as younger professionals just getting started, who may not be ready to take the CMA? Are there things that we can offer them to help them learn the language, learn the profession and gain some credibility to help them get to that next level."

His third area of focus will be on the IMA's community. "We have a robust community of chapters and volunteers located throughout the world who are champions for IMA and who are really in a unique position to deliver value locally in their communities," said DePrisco. "I think that is a real differentiator for IMA. I want to make sure that we're doing everything we can to support them, help them and ensure that we have a dynamic and vibrant community moving forward."

Attracting young accountants

Both the American Institute of CPAs and the IMA have seen declines in the number of people entering the accounting profession. The Financial Times reported that the number of CPA test takers in 2022 was a little over 67,000, down from 72,000 in 2021 and short of the AICPA's forecast of 74,000, the lowest level on record. The IMA also saw a 5% decline in CMA candidates in the U.S. last year.

"I think that, generally speaking, most organizations are trying to crack the code when it comes to how to attract more young people to the profession," said DePrisco. "Certainly, I think the accounting and finance profession has that challenge. We see various articles and headlines around the declining enrollment in accounting programs, and in general the declining enrollment in colleges and universities and things of that nature. But at the end of the day, the accounting and finance profession is really integral to helping businesses work and function and how value gets delivered today. I do think it provides a very solid career opportunity for individuals."

He sees the challenge as making young people more aware of the opportunities that the accounting and finance profession affords them today and to look past the stereotypes about what an accountant does. 

"We have to work through changing the perception of the profession and really demonstrating that accounting and finance professions are on the leading edge of what organizations are thinking about today, whether it's about how to optimize enterprise performance, how to mitigate risk, and respond to disruption, how to analyze data and turn data insights into actionable solutions, how to think about and report in a meaningful way on ESG-related matters," said DePrisco. "This is what management accountants do. They're on the front lines of helping organizations deliver value. That's the narrative that I think we have to be telling youngsters as they go through high school and college, and when they're considering various careers. That's something that the IMA is well positioned to do, with a large footprint in the academic space. We continue to invest heavily in student programs that raise awareness, that provide students opportunities to learn real skills, and experience what it's like to be in a corporate environment, whether it's through our student case competitions and other types of programs that we do. That's something that I really want to work with my team on relative to enhancing the brand, the reputation of the profession, and how we serve organizations worldwide."

One of the goals is to increase the number of students entering the accounting profession.

"The supply of accountants is just not meeting the demand, and there are a few reasons for that," said Dennis Whitney, senior vice president at the IMA. "Fewer students are majoring in accounting, and I think the problem is the perception of accounting. We need to show them that it's not just number crunching and checking that everything balances. It's also more strategic."

Some students and accountants are panic about their jobs being taken over by artificial intelligence programs.

"Some of the things that are happening now with AI, a lot of people talk about it as a threat to accounting, and I think it will eliminate some of the more mundane manual type tasks," said Whitney. "But actually, I think it's a great tool for the profession and will open up more interesting types of jobs, more strategic and decision-analysis type jobs. And I think if we can get that message across that being an accountant gives you the opportunity to be a business partner in a company, to help the company grow in a sustainable way. The second part of the equation is to show that accountants have a role in helping with sustainability. There's going to be a lot more reporting requirements on sustainability in the future, and accountants can help attest to the accuracy of that data. A lot of that data is not as clean as it is with financial data, so we can help with that. And then we can help a company make decisions on doing something that is more sustainable for the environment and for the company in the long term."

DePrisco is not an accountant himself, but he plans to leverage his background in education and management of a professional organization. He came to the IMA from the Project Management Institute, an association for the project, program and portfolio management profession, where he was operating officer and interim president and CEO starting in 2021. He worked with the PMI for a decade and prior to that was president of the Art Institutes, a group of art and design colleges. He served as campus president at three different Art Institute locations in the Mid-Atlantic region. Before that, he served as vice president of student affairs at Education Management Corporation.

"I've spent 30 years of my life and career in for-purpose organizations that are very much focused on helping individuals acquire skills, capabilities and competencies for personal professional growth, whether that was in a higher education environment, or whether that was at Project Management Institute, where I spent the last 10 years," he said. "I think that I bring a unique perspective from those different experiences to IMA, and I can help IMA accelerate some of their initiatives and plans relative to member acquisition, member retention, member value and so forth."

Rebuilding abroad

He sees the opportunity to help the IMA, which went through a strategic restructuring earlier this year and had an undisclosed number of layoffs, to transform further.

"Many organizations, not just IMA, coming out of the pandemic have been facing some headwinds relative to inflation, interest rate hikes and so forth where they're in a position where they realize that they need to make some challenging and difficult decisions relative to their staffing levels," said DePrisco. "Like many organizations, we did face a bit of a slowdown, mostly as a result of some of the challenges coming out of China, but other markets as well. We'll work through that. Our team is very much focused on the future. We feel very bullish and optimistic that the future's bright, and we have a team in place that's committed to making that happen. Some of the signals that we've seen from an economic and inflationary perspective suggest that the economy is unwinding from some of the challenges that we've been seeing, versus a bounce back or quick rebound, so we're planning accordingly. We're being very judicious in how we're looking at our spending and so forth, to ensure that we can maintain the staffing levels that we have today."

He acknowledged there have been some declines in membership, particularly in China. "If you look across our entire portfolio, membership is relatively flat, maybe declining a little bit, mostly due to some of the declines that we've seen in China," said DePrisco. "If you look at our membership trends regionally, we are seeing pretty much flat growth in the U.S. But in other parts of the world, we're seeing some really good growth, for example, in places like India, the Middle East, Europe and the Asia Pacific. So we remain optimistic that we have a really good value proposition to offer to the market, that we're offering individuals who join IMA an opportunity to not only get certified, but to be a part of a global community that values learning, networking and helping to lift the profession to new heights."

The dropoff in China seems to have been in part a result of the pandemic lockdowns keeping students and members from attending events. "Many of the lockdowns that occurred due to the pandemic really slowed down a lot of the training and testing availability," said DePrisco. "Now we're unwinding from that and slowly but surely getting the testing and training operations going again. We've seen some good signals. We're seeing China coming back relative to the number of people that are signing up to take the test, joining, renewing and so forth. But it's still down from where it was post COVID."

Among the areas of the world growing in membership are Dubai, Egypt, South Korea and India. "I just came back from Dubai, where I attended a chapter event where there were close to 400 individuals that showed up for a day of learning, networking and connection," said DePrisco. "Our Dubai chapter is one of the largest in our system and really doing some fantastic work. We've seen a lot of activity in Egypt, very much a lot of interest from students and young professionals in certification. We're working with our team on the ground in Egypt to generate opportunities for people to connect with chapter development. India is of course a big market with a strong chapter community there. We're seeing a lot of interest there from students and younger professionals who really see certification as a differentiator for them relative to career opportunities."

Certification growth

DePrisco plans to build on the IMA's certifications. "CMA is a 50-year-old certification," he said. "It's to me the gold standard for the professional management accounting area, and it's something that we will continue to move to focus on, invest in and ensure the long-term sustainability of that certification. We just completed a job task analysis where we looked at the curriculum, and based on feedback that we've gotten from experts around the world, we'll make some revisions and changes to the test curriculum to ensure that it's keeping pace with what's happening in industry. We're 100% committed to the CMA, but we've recognized that there's more that individuals want from IMA."

Some of the IMA's stakeholders have asked for entry-level types of fundamental courses and certifications they could earn before the CMA. For those that have a CMA, they are sometimes asked for other credentials so the IMA has been developing additional certifications in areas like data analytics, risk management, sustainability and diversity, equity and inclusion.

"We will continue to develop new offerings to meet those needs," said DePrisco. "We already have what I think are really one of a kind certificates in DE&I and sustainability best practices. We released a sustainability business practices certificate program last year. It's an excellent program. Anyone that has an interest in ESG and sustainability will get value out of that certificate. Our DE&I certificate is very much top of mind for a lot of organizations. It provides some really good information, scenarios and case studies for individuals to learn how to ensure their organization is diverse, equitable and inclusive."

As the new CEO of the IMA, DePrisco plans to take some of the lessons he learned while at PMI and apply them to the events at the IMA. "While at PMI, I had the opportunity to help that organization transform, and really think about how we could provide value to individuals in a changing professional association landscape, where people are looking for different ways to connect and affiliate," said DePrisco. "The model of perhaps coming together once a month and meeting in a certain city in a certain ballroom has been replaced by real-time meetings, whether they're virtual or in person, with digital delivery of products, services, knowledge and content. Even the landscape for events has changed. People seem to now favor more localized one-day drive-in events to take advantage of networking, learning, and content consumption, versus taking three, four or five days off and flying somewhere to attend an association type of experience. All of that is changing, and it requires professional associations like IMA to rethink the overall value proposition and how they can best serve stakeholders based on what they need and want today."

He noted that the IMA Women's Leadership Summit that recently took place in Nashville was a one-day event that attracted 200 individuals across the accounting profession to promote the role that women play in accounting and some of the challenges and opportunities the IMA sees for the profession. The IMA also hosts a Student Leadership Summit, a two-day event that brings hundreds of students from around the country together. The IMA events in China, India, the Middle East and Europe are also typically one- to two-day events. 

The IMA plans to hold its conference next week in Minneapolis, where it's expecting approximately 600 to 700 attendees. 

Mon, 05 Jun 2023 13:29:00 -0500 en text/html https://www.accountingtoday.com/news/imas-new-chief-has-major-plans-for-attracting-more-accountants
AICPA CPA test scholarship applications now open

The AICPA Foundation is offering more than $75,000 in scholarships for CPA test candidates and accounting students. 

The CPA test Scholarship is available to U.S. citizens or permanent residents who demonstrate financial need and seek a CPA license. Through the program, up to 50 AICPA student or CPA test candidate affiliate members will be granted up to $1,500 to help cover fees related to the test or preparatory courses and materials. 

"Becoming a licensed CPA is difficult enough without the added stress that some individuals experience due to financial strain," said AICPA vice president Mike Decker in a statement Thursday. "This scholarship is meant to help ease the minds of those in need. The CPA credential opens the door to many professional opportunities. We want all qualified, talented and diverse individuals to have the opportunity to take the test for this distinguished designation."

Applications for the CPA test Scholarship will be open from June 1 to September 30 for candidates who provide a copy of Notice to Schedule for at least one section of the CPA test and a copy of the receipt for their test application fees payment. As for preparatory courses and materials refunds, candidates must provide proof of purchase with their application. 

The AICPA and its foundation, which was founded in 1922 to promote the profession and its opportunities, also offer annual scholarships for college students and fellowships for Ph.D. candidates.

Thu, 01 Jun 2023 10:37:00 -0500 en text/html https://www.accountingtoday.com/news/aicpa-cpa-exam-scholarship-applications-now-open
SMB CFO Sentiment, Tracking Bad Debt, Apple Product Reveal

The commercial real estate sell-off may be coming to a head, as banks who carry these loans on their books may be looking to cash them out at a discounted rate.

As losses could reach as high as 8%, the questions about what CFOs should do with their company’s office spaces are becoming more pressing. Meanwhile, speculation continues about how long generative artificial intelligence will take to disrupt advanced economies. Can combining a more flexible workplace and AI-powered tools deliver a productivity boost in the next few years? We’ll have to wait and see.

Is the U.S. debt ceiling drama behind us? On Friday, credit rating firm Fitch said it was not removing the U.S. from “negative watch.” It explained that “repeated political standoffs around the debt limit and last-minute suspensions before the x-date (when the Treasury’s cash position and extraordinary measures are exhausted) lowers confidence in governance on fiscal and debt matters.”

On the lesser-known-holidays calendar, today is national moonshine day, followed by national fishing and boating week. So, if you like booze and boats, maybe you should consider requesting some PTO this week. But leave the piloting to the non-drinkers.

For those who tend to keep it more low-key, you can get outside and enjoy yourself for world environment day, first celebrated in 1973.

(Trial Balance is CFO’s weekly preview of stories, stats, and events to help you prepare.)

Part 1: Conference Season and the State of Finance for SMBs

Reporter Adam Zaki details the happenings and highlights at last week’s Gartner CFO & Finance Executive Conference and this week’s CFO Leadership Council conference East in Boston. (June 9)

Zaki will also cover a new Datarails survey being published this week, which shows how CFOs of SMBs are handling the current economic situation. The data also highlights how their opinions about the overall economy and its future greatly differ from those in charge of larger companies. (June 7)

Part 2: Economic Calendar

Monday —  The Apple Worldwide Developers Conference features CEO Tim Cook revealing possibly Apple’s biggest product launch since the iPad — a mixed-reality headset.

The Peterson Institute for International Economics holds a two-day conference on the macroeconomic impacts of climate action. Speakers include Jason Furman of the Harvard Kennedy School.

The AICPA & CIMA’s Engage 2023 accounting conference kicks off in Las Vegas (and online) and runs through Thursday.

Tuesday — The World Bank unveils the summer edition of its Global Economic Prospects report.

The three-day Bloomberg Invest conference starts, featuring some heavy hitters from the world of asset management.

The Financial Accounting Standards Advisory Council (FASAC) will meet to discuss segment reporting, accounting for and disclosure of software costs, and updates on other FASB projects. The meeting will be live-streamed from the FASB website.

Wednesday — The SEC holds an open meeting to discuss fraud prevention in security-based swaps; an amendment to the consolidated audit trail funding model for tracking securities transactions and broker-dealers; and the potential consolidation of new rules concerning credit ratings and alternative measures of creditworthiness.

Data on consumer credit and the U.S. trade deficit is due.

The OECD releases its economic outlook.

Thursday — Initial jobless claims numbers are projected to be flat with last week. 

At 10:15 a.m. Eastern, the House Committee on Education and the Workforce holds a hearing on “Examining the Policies and Priorities of the Department of Labor.” Julie Su (right), the nation’s acting secretary of labor, will be the featured witness.

Friday — Racing fans prepare for Saturday’s 24 Hours of Lemans road race in France, starting at 10 a.m. Eastern time.

Earnings this week — Ciena, J.M. Smucker, Cracker Barrel, Campbell Soup, J. Jill, Signet Jewelers, and China’s Nio.

Part 3: Uncollectible Debt 

June’s Metric of the Month column from APQC explores how to benchmark and track uncollectible balances to keep bad debt from eating into your cash reserves. APQC CFO Perry Wiggins points out the warning signs of uncollectible balances and describes some strategies for bringing in cash. (June 7)

Stat of the Week

42

The number of pending enforcement cases the Securities and Exchange Commission had to drop after it found one of its databases inadvertently let SEC enforcement staff view materials meant for commissioners and attorneys who advise the SEC on rulings.

Mon, 05 Jun 2023 09:51:00 -0500 en-US text/html https://www.cfo.com/trial-balance/2023/06/cfo-leadership-apple-aicpa-accounting-metric-of-month-uncollectible-debt/
New AICPA Chair Looks To Foster Innovation And Support The Next Generation Of Accounting Professionals
(MENAFN- PR Newswire) Okorie L. Ramsey
Elected as Chair of the American Institute of CPAs and the Association of
International Certified Professional Accountants

WASHINGTON, May 24, 2023 /PRNewswire/ -- Okorie L. Ramsey, CPA, CGMA, PMP, NACD.DC, Vice President, Sarbanes/Oxley for Kaiser Foundation Health Plan, Inc., and Kaiser Foundation Hospitals, is the new chair of the American Institute of CPAs (AICPA). He also will serve as chair of the Association of International Certified Professional Accountants, which combines the strengths of the AICPA and the Chartered Institute of Management Accountants (CIMA).

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Okorie Ramsey is the new chair of the AICPA
Okorie Ramsey is the new chair of the AICPA

Ramsey, a CPA who also holds the Chartered Global Management Accountant (CGMA) designation, was elected to the one-year AICPA volunteer post by the organization's governing Council, which concludes its Spring Council session tomorrow. Carla McCall, CPA, CGMA, managing partner of Alexander Aronson Finning CPAs, was voted in as the AICPA's vice chair.

"We are a profession of leaders," Ramsey said in his acceptance speech. "And it is our duty to guide people, firms, businesses and economies. Together, we can seize the moment and shape our future."

Ramsey listed three areas of focus for his term:

Innovation to advance the profession. Ramsey hopes to capitalize on the advancements made by the profession over the past few years by embracing and leveraging technology to streamline processes, increase efficiency and drive greater value. He also urges the profession to evolve through lifelong learning, business model transformation, and the CPA test itself. "Through CPA Evolution, we are on track for the January 2024 launch of the new CPA exam," he said. "There will be an increased focus on data and technology concepts in all test sections."

Instill integrity and trust into sustainability. Ramsey believes environmental, social and governance (ESG) is an area where professional accountants can drive meaningful change. He will encourage the AICPA and the Association to work with stakeholders to integrate responsible and sustainable practices into their businesses and operating models. "Our profession is more prepared than any other to drive strategic conversations on sustainability opportunities and risks," he said. "I believe this is a space where we can move from having a seat at the table to being at the head of the table."

Support the next generation and provide them enhanced opportunities to succeed. Ramsey
supports working together with other professional organizations, state CPA societies, colleges, high schools as well as firms and employers to create a more inclusive accounting and finance profession. He cites collaboration as a key to improving diversity within the profession and getting students interested in the accounting field. He noted that while progress has been made, there is much more work to do. "The profession needs you. And we need our young professionals to see you to understand the art of the possible," Ramsey said.

Ramsey served for the past year as the AICPA's vice chair and has held several other volunteer posts, including those on the AICPA Board of Directors, the Association Board of Directors, the AICPA and Association Audit and Finance Committee Chair, the AICPA Investments Committee and AICPA Council. He is a Lifetime member of the National Association of Black Accountants (NABA) and won NABA's Inaugural Core Values award in 2022. He also previously held roles as Past President of the California Society of CPAs Education Foundation Board of Trustees and Past Chairman of the Accounting Career Awareness Program, San Francisco Bay Area and is also a former adjunct professor for San Francisco State University's Master of Business Administration program.

Ramsey has a Bachelor of Science degree in Business Administration with a concentration in Accounting from San Francisco State University, and a Kaiser Permanente Executive Leadership Program Certificate from Harvard Business School. He is married and has two children. His interests include family time, music, investing, and mentoring young people to help them reach their full potential.

About the Association of International Certified Professional Accountants, and AICPA & CIMA

AICPA & CIMA, together as the Association of International Certified Professional Accountants (the Association), advance the global accounting and finance profession through our work on behalf of 689,000 AICPA and CIMA members, candidates and engaged professionals in 196 countries and territories. Together, we are the worldwide leader on public and management accounting issues through advocacy, support for the CPA license, the CGMA designation and specialized credentials, professional education and thought leadership. We build trust by empowering our members and engaged professionals with the knowledge and opportunities to be leaders in broadening prosperity for a more inclusive, sustainable and resilient future

SOURCE AICPA

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Wed, 24 May 2023 10:50:00 -0500 Date text/html https://menafn.com/1106309408/New-AICPA-Chair-Looks-To-Foster-Innovation-And-Support-The-Next-Generation-Of-Accounting-Professionals
Future of Finance: Upskilling is crucial, but mindset is the crux

From the formation of the Future of Finance Leadership Advisory Group (FFLAG) two years ago all the way through Monday's session at AICPA & CIMA ENGAGE 2023, finance leaders have consistently "FFLAGed" the talent pipeline and digital transformation as the top issues on their to-do list.

The search for solutions requires an abundance of skill — quite literally.

"Finding and retaining diverse talent, accelerating business and digital transformation, redefining how we measure value — they're all driving the need for new and enhanced skills. The finance team can't do things the way they used to."

Those were the words of Tom Hood, CPA/CITP, CGMA, executive vice president–Business Engagement & Growth for AICPA & CIMA, together as the Association of International Certified Professional Accountants. Hood and Barry Payne, director–External Relations, Management Accounting for AICPA & CIMA, took it upon themselves during the heart of the pandemic to jump-start the Future of Finance project, an initiative headed by 30-plus leaders from well-known companies such as Coca-Cola, Nike, and BP.

Their mission statement? "To transform the profession in its broadest context and reimagine the finance and accounting function of the future to power trust, opportunity, and prosperity."

The esteemed group that gathered at the Aria in Las Vegas certainly doesn't lack for skill, but they recognize that the set of skills needed for their workforce to succeed in the future is lacking.

And, as they say, the future is now.

"The epicenter of our ENGAGE presentation is the need for new and enhanced skills," Payne said in a pre-conference interview, pointing out that the need is critial for companies large and small. "Ultimately, what I want to leave folks with is that you need to seriously reevaluate the skill sets that your teams need to further drive the value you are providing to your business."

Payne hears a lot of talk, and understandably so, about tools that are in theory designed to streamline digital transformation and address the talent gap with the wonder of automation. But while these tools undoubtedly will play a pivotal role in the future of finance, Payne said they should be the last piece of the transformation puzzle for finance leaders.

"At the end of the day, it is important that you understand digital tools, of course it is, but really what precedes that is your mindset and how you interface with the business," Payne said. "Mindset, skill set, and tool set — quite often people think of those in the reverse order, but that's doomed to failure."

Why exactly is mindset so important in a future workplace where some tasks previously performed by humans may be performed by artificial intelligence (AI)?

"Mindset is the biggest item that leads to success in a business and digital transformation," Hood said. "We've been brought in by members of the Future of Finance group to provide an outside-in perspective because most finance teams are in their own little bubble. When leaders start these big automation journeys, employees think that their jobs are going to all get eliminated. Leaders have to get their people in the right mindset, or else people will try to put the brakes on these projects.

"What we're trying to do is send a message of moving up into this new value-added role. There's plenty of work for future finance and accounting professionals to do. But it's about mindset, and it's about skill set."

What skills exactly are we talking about?

"Strategic thinking, storytelling, data analytics — those show up as the top three skills pretty much all the time," Hood said. "That means your people have to say, 'OK, I know how to make the data right. But now I've got to spend more time understanding how to tell the story about the business with the data.'"

That value-added approach (which a Future of Finance participant recently wrote about) was a key takeaway delivered to ENGAGE attendees and will continue to be an approach explored by FFLAG.

"That's why we have this community — to help leaders navigate all of these issues," Hood said. "If BP is in the middle of a digital transformation, they could talk to Yelp and say, 'Hey, what are you doing about this?'

"That's the kind of stuff we're doing. We bring a thought leader in to start the conversation, and then they start to talk and share. That's how they're getting their knowledge, so they're staying ahead of things by the wisdom of the crowd."


— To comment on this article or to suggest an idea for another article, contact Bryan Strickland at Bryan.Strickland@aicpa-cima.com.

Mon, 05 Jun 2023 07:21:00 -0500 text/html https://www.journalofaccountancy.com/news/2023/jun/future-of-finance-upskilling-crucia-but-mindset-is-crux.html
How students view the accounting profession

In the last several years, the number of students majoring in accounting has declined significantly. The latest AICPA 2021 Trends report shows some sobering statistics, including a 2.8% decrease in accounting bachelor’s graduates in the 2019–2020 academic year, an 8.4% decrease in accounting master’s graduates, and a 17% decrease in new CPA test candidates. At many universities this trend seems to be continuing through 2022 and 2023.

While this decline clearly poses a challenge for educators in recruiting new students, its effects extend well beyond business schools. Other key stakeholders — including employers, businesses, and society — have only recently been forced to contend with a reduced accounting pipeline. Public accounting firms will find it harder to hire the number of new graduates they have typically recruited annually. In addition, the business community could suffer from having fewer professionals with accounting expertise. Lastly, current accountants may be asked to work longer hours to make up for the dwindling number of accounting professionals entering the workplace.

We, all accounting faculty members at Miami University in Oxford, Ohio, gathered data from more than a thousand of Miami’s students to help us better understand the nature of the problem and ultimately make more informed decisions to resolve it.

SURVEY BACKGROUND

Miami University is ranked among the top 50 national public universities by U.S. News & World Report and had an enrollment of more than 16,500 undergraduate students in 2021. Miami University’s student body largely takes classes in person on campus. Its accounting programs are well respected: Miami University’s accountancy bachelor’s and master’s programs consistently rank in the top 25 nationally.

During the fall semesters of 2021 and 2022, we asked students in Miami University’s “Introduction to Financial Accounting” and “Intermediate Financial Accounting I” courses to participate in an optional, anonymous survey about their perceptions of the accounting profession. These courses are taken by both accountancy and nonaccountancy majors, and we were curious to see how the profession is viewed by both groups of business students. We were also curious to note any differences in perception between accounting and nonaccounting majors.

The survey presented a series of statements asking students to indicate their agreement on a scale of 1, “Strongly disagree,” to 5, “Strongly agree.” The survey asked students about their perceptions related to job opportunities and salary potential in accounting, among other things. We collected and analyzed 1,411 responses. About 15% of the respondents had chosen to pursue a degree in accounting.

HOW STUDENTS VIEW THE ACCOUNTING PROFESSION

Overall, students agreed with statements suggesting that ample and varied job opportunities are available with an accounting degree (see the chart, “Students’ Perceptions of the Accounting Profession,” below). They also tend to agree that an accounting-related career can be intellectually challenging and fulfilling. Overall, students also agree that accountants have good earning potential right out of college, as well as good lifetime earning potential. The survey also showed that students disagree that the CPA test was the hurdle impacting their choice of major.

However, the survey results also reveal that students feel an accounting career requires longer hours and that the day-to-day tasks are less interesting than other business careers. In addition, an accounting degree is perceived to be harder to earn than degrees for some other business majors. Understanding these hurdles makes it easier to address the supply chain problem.

NONACCOUNTING MAJORS VIEW ACCOUNTING MORE NEGATIVELY

To better understand why business students chose to pursue or, more importantly, not to pursue an accounting degree, we performed statistical analyses on the responses of accounting and nonaccounting students. The discussion below highlights the startling differences between how these groups of students perceive the accounting profession.

Nonaccounting majors were much less likely to believe accounting has higher starting salaries or leads to higher career earning potential (questions 5 and 3, respectively). They also perceived that being an accountant requires working longer hours than other careers and provides fewer career opportunities than other majors (questions 7 and 1, respectively).

Perhaps even more concerning than the perceptions related to money is the fact that nonaccounting majors perceived an accounting career as being monotonous and less fulfilling (question 8), less interesting (question 10), and less intellectually challenging (question 2). Interestingly, accounting majors are more likely than nonaccounting majors to view an accounting major as more difficult than other majors (question 6).

Nonaccounting majors were also more likely than accounting majors to say the CPA test requirement made them not want to pursue an accounting degree (question 9).

WHAT THIS MEANS FOR THE PROFESSION

We also asked students when they chose their major. Fifty-two percent said they selected their major prior to entering college, while another 21% chose their major during their first year. Only 27% of students had yet to choose their major by the time they entered their second year.

Our data shows that we need to address these negative perceptions of the profession early. Accountancy departments should pursue several actions during students’ first year, if not earlier, to better explain accounting career opportunities and attract students to the major. These efforts likely will require significant involvement by the profession to better inform students and correct their commonly held misconceptions of the accounting profession.

WHAT CAN WE DO ABOUT IT?

The accounting supply chain problem will eventually affect a wide group of stakeholders. However, we all have an opportunity and a responsibility to do something to resolve it.

What can colleges and universities do?

Accounting faculty need to proactively engage students at a very early stage of career selection. We need to make sure that we share the objective facts about starting salaries and career salary growth, as well as the wide array of interesting career opportunities in the profession. Our data revealed that many students fail to perceive the fulfilling nature of the careers and employment opportunities that an accounting education can provide across industries (question 8) or the potentially highly interesting nature of accounting work (question 10). It is critical that faculty dispel these misconceptions so young students can make informed choices about their majors and careers.

What can members of the profession do?

The AICPA and other groups have developed materials that can be used as early as high school and the first year of college to show the true nature of accounting (see “AICPA Resources” for details). Students can also learn more about the profession at ThisWaytoCPA.com.

Accounting firms and individuals should volunteer to speak at high schools and universities and use their social media presence to share the exciting and diverse work they do. Industry groups and firms can provide transparency related to salary data (both early and at later career stages) and genuine hours worked. Widely sharing exciting accounting “success” stories is critical.

CONCLUSION

We encourage readers to explore other data around the accounting pipeline, including the previously mentioned AICPA 2021 Trends report, as well as the Center for Audit Quality’s recent study. We are in the early stages of discovery and encourage others to gather data and add input on this important topic.

Accounting is a great profession, and it is important to preserve it. It is on all of us to better inform students on the reality of our profession. Hopefully, if professors and professionals act now, we can address many of the perceptions and successfully increase the number of future accountants.


About the authors

William Brink, CPA, Ph.D., is an associate professor of accountancy; Tim V. Eaton, Ph.D., is the Arthur Andersen Alumni professor of accountancy; and Dan Heitger, Ph.D., is the Deloitte professor of accountancy, all at the University of Miami in Oxford, Ohio. To comment on this article or to suggest an idea for another article, email joaed@aicpa.org.


AICPA RESOURCES

Online resources

CPA Pipeline Research Roundup

CPA Pipeline Resources

Draft Plan to Accelerate Talent Pipeline Solutions

Academic Resource Hub

Article

What Everyone Can Do to Strengthen the Next Generation of CPAs,” JofA, Sept. 1, 2022

Podcast episodes

New Strategies to Grow the Profession’s Pipeline,” JofA, March 24, 2022

Lessons in Building the Accounting Pipeline From ENGAGE 2021,” JofA, July 29, 2021

Wed, 31 May 2023 20:06:00 -0500 text/html https://www.journalofaccountancy.com/issues/2023/jun/how-students-view-the-accounting-profession.html
AICPA & CIMA offer new learning tools to help finance professionals close the skills gap

Minerals Council South Africa this week announced the appointment of Mzila Mthenjane as its new CEO during the organisation's 133rd annual general meeting.

Mthenjane, who plans to leave his role as executive head for stakeholder affairs at Exxaro Resources to join the council, has more than 30 years of experience in the local mining industry.

Minerals Council President, Nolitha Fakude commented on Mthenjane's appointment saying: “We are pleased to appoint someone of Mzila’s experience and ability to the role of Minerals Council CEO. He has, in his three decades of involvement in the mining and financial industries, garnered the experience the Minerals Council needs for its next chapter in a rapidly changing world.

"He is coming in when the focus of all stakeholders is now more on EESG (economic, environment, social and governance) matters, with mining expected to play a significant role in this regard.”

Mthenjane replaces Roger Baxter who will end his nine-year term at the end of June. "Roger embodies a spirit of collaboration and selfless leadership synonymous with our predecessors and icons within our industry and specifically within the council," said Fakude.

"South Africa's mining industry is indebted to him for his passionate and principled leadership during some very challenging times during his tenure," she said.

Mining sector's contribution to the economy in 2022

Statistics from the Mineral Council show that the mining and quarrying sector spent R504bn in 2022 on buying goods and services. The industry grew employment to nearly 469,000 during 2022 from 460,000 the year before. Mining industry employees’ earnings of R174bn were higher than R165bn before. And the sector spent more than R5bn on human resources development, with a further R1.7bn paid to the skills development levy.

Fakude highlighted that in 2022, the industry contributed R484bn to the economy, up from R475bn the previous year. Exports, she said, increased to R877bn from R834bn in 2021. And for the second consecutive year, the value of production was above R1tn.

'Transnet catastrophe' derailing the industry

The sector, however, lost R50bn in revenue, emphasised Baxter, as a result of what he terms the "Transnet catastrophe".

"But that's not the real cost," he said. "The real cost to the country is R150bn in forfeited mineral exports [that would have been produced] if we had been operating those rail facilities at nameplate or enhanced nameplate capacity."

He welcomed President Cyril Ramaphosa's order to establish a national logistics crisis committee (NLCC), which will be responsible for coordinating the implementation of a Freight Logistics Roadmap. He said the committee will be critical in driving the structural reforms needed.

The mining industry accounts for 80% of Transnet Freight Rail’s annual revenue and half of Transnet’s group revenue.

Tue, 09 May 2023 12:00:00 -0500 en text/html https://www.bizcommunity.com/Article/196/634/238279.html
New AICPA Chair Looks to Foster Innovation and Support the Next Generation of Accounting Professionals

Okorie L. Ramsey Elected as Chair of the American Institute of CPAs and the Association of
International Certified Professional Accountants

WASHINGTON, May 24, 2023 /PRNewswire/ -- Okorie L. Ramsey, CPA, CGMA, PMP, NACD.DC, Vice President, Sarbanes/Oxley for Kaiser Foundation Health Plan, Inc., and Kaiser Foundation Hospitals, is the new chair of the American Institute of CPAs (AICPA). He also will serve as chair of the Association of International Certified Professional Accountants, which combines the strengths of the AICPA and the Chartered Institute of Management Accountants (CIMA).

Ramsey, a CPA who also holds the Chartered Global Management Accountant (CGMA) designation, was elected to the one-year AICPA volunteer post by the organization's governing Council, which concludes its Spring Council session tomorrow. Carla McCall, CPA, CGMA, managing partner of Alexander Aronson Finning CPAs, was voted in as the AICPA's vice chair.

"We are a profession of leaders," Ramsey said in his acceptance speech. "And it is our duty to guide people, firms, businesses and economies. Together, we can seize the moment and shape our future."

Ramsey listed three areas of focus for his term:

Innovation to advance the profession. Ramsey hopes to capitalize on the advancements made by the profession over the past few years by embracing and leveraging technology to streamline processes, increase efficiency and drive greater value. He also urges the profession to evolve through lifelong learning, business model transformation, and the CPA test itself. "Through CPA Evolution, we are on track for the January 2024 launch of the new CPA exam," he said. "There will be an increased focus on data and technology concepts in all test sections."

Instill integrity and trust into sustainability. Ramsey believes environmental, social and governance (ESG) is an area where professional accountants can drive meaningful change. He will encourage the AICPA and the Association to work with stakeholders to integrate responsible and sustainable practices into their businesses and operating models. "Our profession is more prepared than any other to drive strategic conversations on sustainability opportunities and risks," he said. "I believe this is a space where we can move from having a seat at the table to being at the head of the table."

Support the next generation and provide them enhanced opportunities to succeed. Ramsey supports working together with other professional organizations, state CPA societies, colleges, high schools as well as firms and employers to create a more inclusive accounting and finance profession. He cites collaboration as a key to improving diversity within the profession and getting students interested in the accounting field. He noted that while progress has been made, there is much more work to do. "The profession needs you. And we need our young professionals to see you to understand the art of the possible," Ramsey said.

Ramsey served for the past year as the AICPA's vice chair and has held several other volunteer posts, including those on the AICPA Board of Directors, the Association Board of Directors, the AICPA and Association Audit and Finance Committee Chair, the AICPA Investments Committee and AICPA Council. He is a Lifetime member of the National Association of Black Accountants (NABA) and won NABA's Inaugural Core Values award in 2022. He also previously held roles as Past President of the California Society of CPAs Education Foundation Board of Trustees and Past Chairman of the Accounting Career Awareness Program, San Francisco Bay Area and is also a former adjunct professor for San Francisco State University's Master of Business Administration program.

Ramsey has a Bachelor of Science degree in Business Administration with a concentration in Accounting from San Francisco State University, and a Kaiser Permanente Executive Leadership Program Certificate from Harvard Business School. He is married and has two children. His interests include family time, music, investing, and mentoring young people to help them reach their full potential.

About the Association of International Certified Professional Accountants, and AICPA & CIMA

AICPA & CIMA, together as the Association of International Certified Professional Accountants (the Association), advance the global accounting and finance profession through our work on behalf of 689,000 AICPA and CIMA members, candidates and engaged professionals in 196 countries and territories. Together, we are the worldwide leader on public and management accounting issues through advocacy, support for the CPA license, the CGMA designation and specialized credentials, professional education and thought leadership. We build trust by empowering our members and engaged professionals with the knowledge and opportunities to be leaders in broadening prosperity for a more inclusive, sustainable and resilient future 

View original content to obtain multimedia:https://www.prnewswire.com/news-releases/new-aicpa-chair-looks-to-foster-innovation-and-support-the-next-generation-of-accounting-professionals-301833639.html

SOURCE AICPA

© 2023 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

Wed, 24 May 2023 09:08:00 -0500 text/html https://www.benzinga.com/pressreleases/23/05/n32563344/new-aicpa-chair-looks-to-foster-innovation-and-support-the-next-generation-of-accounting-professio
AICPA & CIMA offer new learning tools to help finance professionals close the skills gap

AICPA® & CIMA® have announced the offering of a new CPE & Learning online platform to help accounting and finance professionals Boost and update their skills to take advantage of a digital accelerating business environment.

According to a 2021 World Economic Forum report, more than half of all employees worldwide will need to reskill or upskill by 2025. To address this need, the new system boasts single-platform availability, enhanced navigation and other tools that foster emerging technology–driven skills. It will provide access to the world’s largest accounting association’s learning content, including its portfolio of webcasts, certificates, guides and other CPE courses as a one-stop shop.

“The reimagining of our learning portfolio represented an opportunity for us to rethink, refresh and transform our approach,” says Michael Grant, AICPA & CIMA senior director of Learning Innovation & Assessment. “Our new system offers dynamic learning journeys, which will allow accounting and finance professionals to address the skills they need to remain relevant using consistently updated course material.”

AICPA & CIMA’s new learning system includes features such as:

- A full-featured mobile app for learning on the go

- A Learning Library where purchased content is categorized

- On-demand learning and webcasts available through a single platform

- One-click launch of courses and webcasts

- A webcast calendar used to book events quickly and track registrations

- More than 50 languages to choose from (for the interface)

“Addressing the rapidly growing global skills gap is an ongoing challenge faced by professionals, employers and firms throughout the accounting and finance profession. And attracting and retaining talent is also a top priority,” says Grant. “The profession at large, which has been focused on traditional accounting and finance skills, has found itself needing to complement these with new competencies in emerging fields such as data and digital literacy skills.”

In keeping with the continually changing business environment, new features will be released throughout 2023, including knowledge-exchange communities and dynamic learning journeys. These capabilities will enrich the learning experience, making it more social and collaborative by allowing learners to easily interact, share and discuss courses with peers and experts. The new system will offer more than 2,500 courses and webcasts.

About AICPA & CIMA, together as the Association of International Certified Professional Accountants

AICPA® & CIMA®, together as the Association of International Certified Professional Accountants® (the Association), advance the global accounting and finance profession through our work on behalf of 689,000 AICPA and CIMA members, candidates and engaged professionals in 196 countries and territories. Together, we are the worldwide leader on public and management accounting issues through advocacy, support for the CPA license, the CGMA designation and specialised credentials, professional education and thought leadership. We build trust by empowering our members and engaged professionals with the knowledge and opportunities to be leaders in broadening prosperity for a more inclusive, sustainable and resilient future.

Provided by SyndiGate Media Inc. (Syndigate.info).
Wed, 10 May 2023 12:04:00 -0500 en-ZA text/html https://www.msn.com/en-za/news/other/aicpa-cima-offer-new-learning-tools-to-help-finance-professionals-close-the-skills-gap/ar-AA1b1NqN
New AICPA Chair Looks to Foster Innovation and Support the Next Generation of Accounting Professionals

Okorie L. Ramsey Elected as Chair of the American Institute of CPAs and the Association of
International Certified Professional Accountants

WASHINGTON, May 24, 2023 /PRNewswire/ -- Okorie L. Ramsey, CPA, CGMA, PMP, NACD.DC, Vice President, Sarbanes/Oxley for Kaiser Foundation Health Plan, Inc., and Kaiser Foundation Hospitals, is the new chair of the American Institute of CPAs (AICPA). He also will serve as chair of the Association of International Certified Professional Accountants, which combines the strengths of the AICPA and the Chartered Institute of Management Accountants (CIMA).

Okorie Ramsey is the new chair of the AICPA

Ramsey, a CPA who also holds the Chartered Global Management Accountant (CGMA) designation, was elected to the one-year AICPA volunteer post by the organization's governing Council, which concludes its Spring Council session tomorrow. Carla McCall, CPA, CGMA, managing partner of Alexander Aronson Finning CPAs, was voted in as the AICPA's vice chair.

"We are a profession of leaders," Ramsey said in his acceptance speech. "And it is our duty to guide people, firms, businesses and economies. Together, we can seize the moment and shape our future."

Ramsey listed three areas of focus for his term:

Innovation to advance the profession. Ramsey hopes to capitalize on the advancements made by the profession over the past few years by embracing and leveraging technology to streamline processes, increase efficiency and drive greater value. He also urges the profession to evolve through lifelong learning, business model transformation, and the CPA test itself. "Through CPA Evolution, we are on track for the January 2024 launch of the new CPA exam," he said. "There will be an increased focus on data and technology concepts in all test sections."

Instill integrity and trust into sustainability. Ramsey believes environmental, social and governance (ESG) is an area where professional accountants can drive meaningful change. He will encourage the AICPA and the Association to work with stakeholders to integrate responsible and sustainable practices into their businesses and operating models. "Our profession is more prepared than any other to drive strategic conversations on sustainability opportunities and risks," he said. "I believe this is a space where we can move from having a seat at the table to being at the head of the table."

Support the next generation and provide them enhanced opportunities to succeed. Ramsey supports working together with other professional organizations, state CPA societies, colleges, high schools as well as firms and employers to create a more inclusive accounting and finance profession. He cites collaboration as a key to improving diversity within the profession and getting students interested in the accounting field. He noted that while progress has been made, there is much more work to do. "The profession needs you. And we need our young professionals to see you to understand the art of the possible," Ramsey said.

Ramsey served for the past year as the AICPA's vice chair and has held several other volunteer posts, including those on the AICPA Board of Directors, the Association Board of Directors, the AICPA and Association Audit and Finance Committee Chair, the AICPA Investments Committee and AICPA Council. He is a Lifetime member of the National Association of Black Accountants (NABA) and won NABA's Inaugural Core Values award in 2022. He also previously held roles as Past President of the California Society of CPAs Education Foundation Board of Trustees and Past Chairman of the Accounting Career Awareness Program, San Francisco Bay Area and is also a former adjunct professor for San Francisco State University's Master of Business Administration program.

Ramsey has a Bachelor of Science degree in Business Administration with a concentration in Accounting from San Francisco State University, and a Kaiser Permanente Executive Leadership Program Certificate from Harvard Business School. He is married and has two children. His interests include family time, music, investing, and mentoring young people to help them reach their full potential.

About the Association of International Certified Professional Accountants, and AICPA & CIMA

AICPA & CIMA, together as the Association of International Certified Professional Accountants (the Association), advance the global accounting and finance profession through our work on behalf of 689,000 AICPA and CIMA members, candidates and engaged professionals in 196 countries and territories. Together, we are the worldwide leader on public and management accounting issues through advocacy, support for the CPA license, the CGMA designation and specialized credentials, professional education and thought leadership. We build trust by empowering our members and engaged professionals with the knowledge and opportunities to be leaders in broadening prosperity for a more inclusive, sustainable and resilient future

Cision

View original content to obtain multimedia:https://www.prnewswire.com/news-releases/new-aicpa-chair-looks-to-foster-innovation-and-support-the-next-generation-of-accounting-professionals-301833639.html

SOURCE AICPA

Wed, 24 May 2023 09:05:00 -0500 en-US text/html https://finance.yahoo.com/news/aicpa-chair-looks-foster-innovation-210000620.html




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