NEWS HIGHLIGHTS FOR THURSDAY - 6.3.16

By:
Maya Lindsay
Published Date:
Jun 3, 2016

NYSSCPA Members in the News

Gary Carpenter (Syracuse)
More grandparents assisting in college costs
The Bulletin
A college education — even at a highly rated private institution — was once regarded as a relatively affordable route to lifelong prosperity, but in recent years it has become a hobbling financial burden for many families. To avoid a potential reduction in aid, grandparents could postpone sending 529 proceeds until the last two years of college, suggests Gary Carpenter, a Syracuse, New York-based certified public accountant and executive director of the National College Advocacy Group, a nonprofit focused on college financing.

Other Accounting and Finance News Stories

Radical Changes Are on the Way for Investment Banks
Wall Street Journal
For a glimpse of the future of investment banking, just look at the recruiting section of J.P. Morgan Chase & Co.’s website. It lists 123 positions open in sales, trading and research—world-wide—and only 30 in New York City. But there are more than 2,000 postings in technology.

How to prepare for new accounting rules on revenue
The Business Journals
Accounting rules changes have an insidious way of affecting companies far beyond their accounting departments. The new standard for revenue recognition is just the latest example. That’s why company leaders would be wise to start planning now for the new standard that becomes effective for years beginning after Dec. 15, 2017 for public companies and Dec. 15, 2018 for private companies (calendar year 2018 for public companies and calendar year 2019 for private companies).

Big Bank Breakups: Don’t Buy the Hype
Wall Street Journal
Break up the big banks? Don’t count on it. Sure, talk of smashing the biggest U.S. banks into pieces seemingly has an air of inevitability around it. Politicians on both sides of the aisle are anti-big-bank. There is no love lost for them on Main Street.

IRS Regulations Provide Guidance for New Voluntary Certification Program; Application Process for Professional Employer Organizations Opens July 1
IRS.gov
The Internal Revenue Service today released temporary and proposed regulations implementing a new voluntary certification program for professional employer organizations (PEOs). The regulations, available today in the Federal Register, carry out legislation enacted in late 2014 requiring the IRS to establish a voluntary certification program for these organizations.

CEO Pay Shrinks 4.6% but Offers Weak Reflection of Performance
Wall Street Journal
Median pay for chief executives of the biggest U.S. companies slipped 4.6% last year, but the link between annual compensation and shareholder returns remained weak. A Wall Street Journal analysis of S&P 500 companies found that none of the year’s 10 highest-paid CEOs ran one of the 10 best-performing companies. Only three of those executives led a company ranked among the top 10% in total shareholder return.

Department of Labor Finalizes New Overtime Regulations: DOL Substantially Raises Salary Thresholds Used in Determining Overtime Exemptions but Does Not Change Regulations Defining Duties Required of Exempt Employees
Sullivan & Cromwell LLP
On May 18, 2016, the Department of Labor released its long-awaited revisions to its overtime regulations.  The final rule, which takes effect on December 1, 2016, was the result of a process that began in March 2014 when President Obama issued a directive to the Secretary of Labor to revise existing overtime regulations, with the express purpose of increasing the number of workers who qualify for overtime payments.

Economic Optimism Rebounds From 3-Year Low
CFO
Business executives’ sentiment about the growth prospects for the U.S. economy has rebounded after two relatively gloomy quarters, according to the second-quarter AICPA Economic Outlook Survey. More than one-third (37%) of survey respondents expressed optimism about their organization’s anticipated performance for the coming year, up from a three-year low of 28% last quarter. Also pointing upward were profit and revenue expectations, AICPA said.

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