The Trusted Professional

October 1998 Articles

SEC Chairman Criticizes Financial Reporting Abuses
In a strong criticism of public companies, auditors, and audit committees, Securities and Exchange Commission Chairman Arthur Levitt took issue with what he termed "earnings management," the use of controversial accounting methods to manipulate earnings to meet analyst's expectations. (Article)

SED Says Restrictions on Commissions Are Unenforceable
In a departure from its long-held view prohibiting commissions, the State Education Department recently said it does not have jurisdiction to discipline CPAs who accept commissions for services outside the state education law's defined scope of practice. (Article)

State Board Studies UAA
The New York State Board for Public Accountancy devoted the bulk of its four-hour September meeting to the Uniform Accountancy Act proposals and their impact on the profession in New York. In particular, the board considered the experience requirement, the acceptance of commissions, non-CPA ownership rules, and the CPA=CPA provision. (Article)

President's Commentary (Article)

Managing Partners Size Up UAA
In a continuing effort to solicit input from the membership about the Uniform Accountancy Act, NYSSCPA President George Foundotos met with the managing partners from large local and regional accounting firms across the state to gain more feedback on specific UAA provisions. (Article)

Member Input Given to Board
NYSSCPA President George Foundotos spearheaded a broad grassroots effort to hear members' viewpoints on the Uniform Accountancy Act. All 11 chapters held either special UAA forums or executive board meetings. President Foundotos, Executive Director Louis Grumet, and other Society leaders have spoken at and attended many of these events. (Article)

Century Business Services Enters NY Market
Century Business Services recently announced that it will acquire the CPA firm Saltzer Lassar Piccinnini & Co. LLP (SLP), which represents Century's first New York City-based acquisition. (Article)

Experience in State Comptroller Office Accepted for CPA License
The New York State Board for Public Accountancy approved a memorandum of understanding with the Office of the State Comptroller to grant equivalent licensure experience for CPA candidates in the comptroller's office. (Article)

Views in the News with Barry C. Melancon, President and CEO, American Institute of CPAs
(Article)

CPA Journal Symposium to Examine Auditor Independence
Prompted in part by the recent scrutiny of the accounting profession by the Securities and Exchange Commission (see related story on page 1), the next CPA Journal Symposium will examine auditor independence. The event, which will take place on December 17 in New York City, will address the SEC's actions and the progress of the Independence Standards Board (ISB). (Article)

Society Website Revamped
The NYSSCPA recently unveiled its redesigned website, www.nysscpa.org, that combines the resources of its three former sites with additional services in a more user-friendly format. (Article)

Reduce Dues With Membership Campaign
NYSSPCA members can reduce their dues and win other rewards and prizes by participating in this year's member-get-a-member campaign and encouraging friends and colleagues to join the Society. (Article)

Industry Members Voice Views on UAA
In his ongoing effort to gain feedback on the Uniform Accountancy Act from diverse segments of the NYSSCPA membership, President George T. Foundotos held a focus group with members in industry. (Article)

New Major Medical Plan Offers $5,000,000 Coverage
To address members' needs for more medical insurance options, the NYSSCPA has introduced a new major medical plan that provides up to $5,000,000 lifetime protection per person. (Article)

COAP Helps Further Profession's Diversity
Close to 100 new students joined alumni ranks of the Career Opportunities in the Accounting Profession (COAP) program after completing the 12th annual residency at Pace University's Pleasantville campus and the second Long Island residency at Hofstra University, both held in June. The Pace program graduated 56 minority students, up from 43 in 1997, and the Hofstra program graduated 42, up from 30 its first year. (Article)

SEC Defines Improper Conduct
The Securities and Exchange Commission has amended Rule 102(e), under which the SEC can censure, suspend, or bar certain professionals, including accountants, for various types of misconduct, including intentional conduct, highly unreasonable conduct, and repeated instances of negligent conduct. (Article)

Society Leaders Reach Out to Chapters
One of the goals of NYSSCPA President George T. Foundotos is to strengthen the ties between the Society's leadership and the 11 chapters across the state. An active member of the Suffolk Chapter himself, including serving as its president, Foundotos attended all the chapters' organizational meetings to meet with the local officers, committee chairs, and other leaders. (Article)

Member In The News
(Article)

Understanding the Legislative Process in New York State
With election day approaching, the NYSSCPA reminds members that the legislative process in New York is a complicated one. Each year, the New York Senate and Assembly consider up to 2,000 bills, respectively; however, only a small fraction become law. (Article)

HUD Responds to Criticism of New Year-End Reporting Scheme
The U.S. Department of Housing and Urban Development (HUD) recently agreed to a 120-day filing deadline for the first year of its changes in year-end reporting for multi-family residential projects, as a result of criticism to the initial proposal from the accounting profession, including comments from the NYSSCPA and AICPA. Both groups continue to press HUD to make the 120-day deadline permanent. (Article)

The Deriviatives Debate and FASB:A Brief History in Time (Article)

Society Presents New 1998-99 Committee Chairs (Article)

Continued Scrutiny for Derivatives Standard
Over 10 years and 245 pages later, the Financial Accounting Standards Board released its long-awaited, controversial, and complex standard on derivatives accounting, Statement No. 133, Accounting for Derivative Instruments and Hedging Activities. Statement No. 133 becomes effective for all fiscal quarters of all fiscal years beginning after June 15, 1999. For companies operating on a calendar year, the new standard becomes effective January 1, 2000. (Article)

Disclosure Guidance from SEC, ASB, and GASB
As the millenium approaches, more and more guidance is available on addressing the Year 2000, or Y2K, problem that could cause computers to cease working on January 1, 2000 due to programming errors that may not recognize two-number years after '99. In recent months, the Securities and Exchange Commission, the Auditing Standards Board, and the Government Accounting Standards Board each have issued recommendations regarding disclosure considerations for an organization's Y2K readiness. (Article)

Ethics and Regulations Q & A (Article)

ASB Rescinds Segment Information Standard
The Auditing Standards Board recently voted to rescind Statement on Auditing Standards No. 21, Segment Information, effective for audits of financial statements to which Statement of Financial Accounting Standards No. 131, Disclosures About Segments of an Enterprise and Related Information, has been applied. (Article)

New York State Association of CPA Candidates
The Board of Directors of the New York State Association of CPA Candidates, welcomes the new program year with excitement and anticipation. It is our intention to capitalize on our successes of last year and bring to our members events and programs that will help them make the right choices in their professional development. (Article)

Personal Financial Planning for Young Accountants
The New York State Association of CPA Candidates hosted a seminar on personal financial planning presented by Bruce Milove CPA/PFS, of Access Financial Planning, in Clifton, New Jersey. The session focused on how financial planning will play an increasing role for CPAs in the future. (Article)

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