June 1999 Issue

American Accounting Association Discusses New Regulation Issues

By James L. Craig, Jr., CPA

Accounting educators received a comprehensive review of new developments in accounting regulation at the American Accounting Association's northeast regional meeting at the University of Rochester. In a session sponsored by the NYSSCPA and the Administrators of Accounting Programs, Fong Chan, NYSSCPA director of governmental affairs, Virgil Webb, AICPA associate counsel, and Michael Gary Hilf, State Education Department deputy director of prosecutions, discussed the accountancy reform movement gaining momentum throughout the country.

The third edition of the Uniform Accountancy Act, developed by the AICPA and NASBA, is at the core of nationwide state licensing legislation reform. Webb gave an overview of the UAA and the changes from earlier versions that, in his view, will have a profound effect on the structure of the profession. Chan and Hilf discussed the two bills that have been introduced in the Legislature to update New York state's CPA licensing laws. The NYSSCPA bill incorporates many of the concepts of the UAA, while the State Education Department bill focuses primarily on modernizing the definition of scope of practice that the state regulates.

Also at the regional meeting, NYSSCPA Executive Director Louis Grumet, NYSSCPA Counsel and Director of Technical Services James A. Woehlke, and CPA Journal Editor-in-Chief James L. Craig, Jr., gave an update on professional issues. Grumet invited academics to join with the Society in areas of mutual professional concern.

Earlier in the program, Warren Gurtman, human resources managing director for the New York office of American Express Tax and Business Services (TBS) and partner of Goldstein Golub Kessler LLP (GGK), explained the changes in operations that have occurred because of TBS's acquisition of GGK's accounting practice.

"We are basically doing the same things that we did before the acquisition, but now we have greater resources and a national presence," Gurtman said. In counterpoint, Thomas Riley, a Syracuse CPA, told the academics why his firm remained independent.

Jean Fealey, with State Education Department, responded to questions from accounting administrators about complying with the 150-hour education requirement for licensure that takes effect in 2009.