F L O R I D A
ThankYou for continuing to be a part of the
FICPA family.
How will you make the most of your investment? www.ficpa.org/Benefits
There’s still time to renew your FICPA benefits:
www.ficpa.org/Renew
108 Years and Counting
florida C P A
TODAY
contents J U LY / A U G U S T 2 0 1 3
VOLUME 29, NUMBER 4
A P U B L I C AT I O N O F T H E F LO R I DA I N S T I T U T E O F C E R T I F I E D P U B L I C A C C O U N TA N T S
22
cover story
Photo and cover photo by Tim Breaseale
departments
Leading Through Collaboration and Continuity Ken Strauss becomes FICPA’s 86th Chair
features
17 News briefs 27 DOR update 28 Staff reports 32 Marketplace 34 On the move
14
6
AICPA’s New Financial Reporting Framework to Help Main Street Businesses
8
Meet the 2013-2014 Executive Committee
14
The Ultimate Bizcation Conference Offers Mega Fun, Mega Learning, Mega Choices
18
The New Goodwill and Intangible Assets Testing Rules ASUs Amend Topic 350
8 FLORIDA CPA TODAY
www.ficpa.org
3
F L O R I D A
PRESIDENT/CEO Deborah L. Curry, CPA, CGMA SR. DIRECTOR OF MARKETING & COMMUNICATIONS Jan Dobson, CAE, IOM EDITOR Suellen D. Wilkins GRAPHIC DESIGNER Loleta K. Bolden PUBLICATIONS COORDINATOR Dianne Dearduff EDITORIAL COMMITTEE Michael S. Kridel, CPA, chair David J. Hochsprung, vice chair Douglas E. Day, CPA • Lynda M. Dennis, CPA Casey A. Fletcher, CPA • Troy Y. Manning, CPA Vicki H. Meyer, CPA William C. Quilliam, CPA, Ph.D. All articles submitted to Florida CPA Today are subject to technical review, Editorial Committee review, space availability and editing requirements and restrictions. Please contact the editor before submitting unsolicited manuscripts. Florida CPA Today publishes letters to the editor in its Members’ Forum. For information about the guidelines, visit www.ficpa.org/letterstoeditor. Statements expressed herein are those of the identified authors and not necessarily those of the Florida Institute of Certified Public Accountants, Inc., nor should statements be considered endorsements of products, procedures or otherwise. The FICPA reserves the right to reject any editorial material or paid advertising that does not meet Florida CPA Today criteria or detracts from its ethical and professional standards. Florida CPA Today is published bimonthly by the Florida Institute of Certified Public Accountants, Inc., P.O. Box 5437, Tallahassee, FL 32314. Telephone: (850) 224-2727 or (800) 342-3197. (Street address: 325 West College Ave., Tallahassee, FL 32301.) Visit our website at www.ficpa.org. This magazine is provided to members of the FICPA. No specific amount of your dues, either expressed or implied, is for this publication. This magazine is not available for purchase by either FICPA members or nonmembers. For display advertising information, contact the FICPA Marketing Department at (850) 224-2727, Ext. 270. © 2013 by the Florida Institute of Certified Public Accountants, Inc. All rights reserved. Reproduction in whole or part is prohibited without the express written consent of the FICPA.
4
JULY/AUGUST 2013
se ng tinui ing licen 13 Mega Disney n o c as 0 in om ed , it w s need r the upc e in the 2 ary Hotel l a o n h w lg fo or ssio many on hours gh to indu Contemp profe g n w o o i l t fel uca g am enou t the y my Bein sional ed ortunate as held a b as d e s s f ork w such a res w p profe al, I was e which w x h e as e muc her hat w ed. how ing toget who mad renew onferenc w w a d s n C br ,I ose da tend CPE . rence embers to all of th ience hat we at e r f e d n p l o r o x f t t c m e s Wo ide o s MAP mmittee gratitude I had nference t t e u a h o t h w co up just our e co ucts From the best tting any of th express were eir prod e s s r n f o i t ibi ted ut th nt to nd m one o d exh itors abo all. ticipa A staff a others wa n r a a p s r P d ng it h nso xhib ings Havi y the FIC avor. I an e spo ask the e an exhib h t b ve th t i e a t e d i m d h . n s t n t o n o r o e t n a d fac th f he ar p eet ssful p eve e the could m k and for to he ate and t k i g succe thumbs-u l n i I c clim e we nce, fresh n ba this a as re conomic nfere s becaus ing to ru o w c t I o e e room t hav ng th ions. ut of our ere tw nont a w t e n Duri nference s withou r ew the abo rese k o e on, s to the n onday reat p speakers g. the c our brea k g o e p v u s M e a in g nters troduced roved on that ers g lunchtim n is head durin e k s a e e r sp d io AP e o in app er p te an f the ofess adlin ICPA wh hich was little GA ding in th on e h All o he keyno re the pr e d hea )w t e aite he A at th ress e wh ndes of t ork (FRF long aw re finally note add nt topic from ion of wh t a l e r e t uld mew e th we a e key geme ck La direc h I co me, Chu orting Fra may not b unkie but o gave th ice mana rs in our g u o j h th r ct or ge ep Even uck out f ancial R his may o an A & A SPHR, w f this pra nd mana o , t n a t i s T s that ritative F e week. . I am no l Ahlrich elevancy partners ious c r r r n ted e autho conferen gging fo e was Ka saw the e our new e b I e b r e eat ave of th ve been b hen, the rations.” and will uld h ith two gr o c t T e a wha yw we h irection. tiple Gen o who are with nd Frida d l t s r u t s e h a M n a s. rig aging tions r win hursday ional a s e t s n h c t e a e f o T xp “M pro t off on . our e urren ulled counting ormative ellow c f p n h e o as to sion. t e i c ac itt inf ere s rk w comm diting and ning and profe hat w noted. etwo t e n c s t n o i t n e u ta eve and ties o be onfer s of a enter rtuni staff s. rtant as one t o o A The c g session ere very p p P p m w C ce n any o ther i Summit he FI conferen o t m closi ers who w e e d r c a e ew ship . Sin reat is, I h speak , ther ’s Leader unity r more g t of th n r i l o l d p a op n fo pate men p of on an t we are i artici . The Wo p On to d e I s t s ha ns pa pec nd w essio , you roll, I ex e c n Beyo he CPE s e a on t onfer with his c ittees are t d e s comm u mis If yo nference oment. m o the c s for the k Than s Peter Fred i Wachee Week
“If you missed this conference, you passed on an opportunity.”
-Fred Peters, CPA FICPA Member
Join us back at Disney’s Contemporary Resort in June 2014 – conference date coming soon!
www.ficpa.org/megacpe
AICPA’s New Financial Reporting Framework to Help Main Street Businesses By Bob Durak, CPA, CGMA AICPA director of private company financial reporting
J
une 10 marked a significant change in the financial reporting landscape for America’s for-profit, ownermanaged businesses – the backbone of the nation’s economy. On that day, the AICPA released the Financial Reporting Framework for Small- and Medium-sized Entities, a game-changing new reporting option enabling financial statements that are robust yet relevant for smaller businesses that are not required to use GAAP. The FRF for SMEsTM accounting framework delivers financial statements that provide meaningful information to owners of private companies and the users of their financial statements in a reliable and simplified way so they can make informed business or credit decisions. The FRF for SMEsTM framework offers small business owners an alternative to current non-GAAP reporting options. The other special-purpose frameworks, such as income tax or cash basis of accounting, remain and will continue to play an important role in non-GAAP reporting. Main Street businesses and their stakeholders looking for comprehensive and consistent financial statements may want to explore the FRF for SMEsTM accounting option. Opportunities and implications for CPAs The FRF for SMEsTM accounting framework reinforces CPAs’ reputation as credible, knowledgeable professionals who apply the most up-to-date accounting 6
JULY/AUGUST 2013
tools and practices to provide information that is tailored to clients’ or employers’ needs. Using the framework, CPAs can produce financial statements that clearly and concisely report what a business owns, what it owes and its cash flow – exactly the information small business owners and their stakeholders want. Because it’s based on a blend of traditional accounting principles and accrual income tax methods, the FRF for SMEsTM is intuitive and understandable. Some of the framework’s key features are: • Historical cost as the primary measurement basis; the framework steers away from costly fair-value measurements and impairment testing • Management has an appropriate level of choice in selecting accounting policies that best meet their financial statement users’ needs
• There are fewer prescriptive, detailed rules • Disclosure is adequately informative, but not excessive Importantly, the framework avoids topics that generally aren’t relevant to small businesses, such as comprehensive income and variable-interest entities. It focuses on the accounting and financialreporting topics that small- and medium-sized private companies typically encounter, and in a way that reflects their environment. Marketplace acceptance Millions of private companies now have the FRF for SMEsTM framework as an additional accounting option in the non-GAAP space. The AICPA long has heard from CPAs, business owners and financial-statement users that relevance and understandability need to be priorities in financial reporting. The FRF for SMEsTM reporting option answers those calls in the marketplace. Efforts to educate key audiences on the framework are under way, explaining the framework and highlighting its benefits. The AICPA has begun a targeted communications and advertising campaign to small businesses, bankers and others. In addition, many state societies and CPA firms are working to boost awareness and discussing the opportunity the framework presents to the small-business community and its stakeholders. Free resources have been created to help small businesses and financial-statement users understand the FRF for SMEsTM option, and CPAs have access to those resources to support their efforts with clients, employers and others. Looking ahead For smaller companies with limited resources and specific financial reporting needs, the FRF for SMEsTM framework offers a stable platform that won’t be subject to frequent amendments or updates. CPAs can put it to work, confident in the knowledge that it is a reliable choice that will minimize complexity and enhance understandability. Because the framework is not authoritative or required, it may be used immediately. Download a free copy of the framework to see if it’s the best financial reporting option for your clients or employers who don’t need GAAP financial statements. FCT Bob Durak oversaw development of the AICPA’s FRF for SMEsTM framework. Previously, he staffed the Private Company Financial Reporting Committee, a joint effort of the AICPA and the Financial Accounting Standards Board. Durak also recently helped staff the CPA profession’s Blue Ribbon Panel on Standard Setting for Private Companies. FLORIDA CPA TODAY
Related Resources CPAs can download the FRF for SMEsTM framework and related educational resources for free. Use the toolkit to discuss the framework with clients, employers and financial-statement users. Among the materials you’ll find in the CPA toolkit are: • Illustrative CPA reports • Illustrative financial statements • Comparisons of the framework to GAAP, tax basis of accounting and IFRS for SMEs • Backgrounder • Flier for clients and users of financial statements • Sample cover letters, FRF for SMEs logo for firms’ use and other marketing materials • PowerPoint slide deck and short summary video for presentations • FAQs • Introduction to the framework • Checklist for using the toolkit For more information, visit www. aicpa.org/FRF-SMEs; follow hashtag #MainStFinancials on Twitter; or email FRFforSMEs@aicpa.org.
www.ficpa.org
7
From FICPA communications staff reports
Meet the 2013-2014
Executive Committee The FICPA’s 2013-2014 Executive Committee (EC) is comprised of FICPA Board Chair Ken Strauss and seven directors. Deborah Curry, FICPA President/CEO, serves as secretary-treasurer and non-voting EC member. The Committee implements the Board of Governors’ policies and oversees the Institute’s activities. Here are the Committee members’ thoughts about pressing issues and making a difference through the FICPA. For a personal glimpse, see pages 10-12.
JEFF BARBACCI Why are you involved in the FICPA, and why do you think other members should be as well? When I first moved to Tallahassee, Thomas Howell Ferguson encouraged me to join the FICPA’s State and Local Government Committee. That year, our committee was involved in writing and advocating legislation that would impact auditors serving the state and local government industry. I quickly learned how a few people, or even one person, could have a big impact at the state level. I also learned that the FICPA goes to great lengths to protect the accounting profession in Florida. Being a part of that process, and among leaders in our profession, has been a tremendously valuable experience. The benefit gained from volunteering with the FICPA far outweighs the time commitment. Regardless of their age or career stage, every CPA should consider volunteering.
BETHANY CARR How would you like to see the FICPA develop and grow during the next year, and in future years? I’d like to see our membership grow in numbers and in activity level. The more members who are involved, the more we can do as an organization to support Florida CPAs and provide them with additional value. Having more members also means we can be more effective in our advocacy efforts. Protecting the CPA franchise is of utmost importance. Our governmental affairs team is excellent, but they could be far more effective if we, as members, were more active in advocacy and having our voices heard.
ED DUARTE How would you like to see the FICPA develop and grow during the next year, and in future years? I’m excited about the introduction of the Mega CPE Conference this summer. I believe it’s wonderful to hold 8
JULY/AUGUST 2013
the conference at a venue that attracts members and their families, and I trust that the CPE topics were educational, appropriate and affordable. Continuing education is one of the FICPA’s top services, and I think we’ll continue to find ways to deliver these quality products to our members. In the future, I’d like to see the FICPA collaborate with another state organization to co-host CPE conferences in our beautiful state. I’d also like more events and communication among the leaders, members and Young CPA Committee. These young leaders are the future of our profession. With the FICPA and their insightful ideas, we should welcome all members to facilitate the Institute’s ongoing success.
ABBY DUPREE What advice do you have for FICPA members who wish to attain a leadership position at the FICPA. How do they get started? All they really need to do is express their interest. I strongly recommend getting involved at the local chapter level or joining a committee. Don’t just be mildly involved – be actively involved. Show up for meetings, help plan events, speak up, give input and ask questions. The local chapters generally are looking for volunteers to serve on their Boards. This is a great way to get started.
JOEY EPSTEIN Why is protecting the CPA franchise a critical issue and what role does the FICPA play in that? Our franchise/certificate is the one thing that sets us apart from everyone else. We cannot ever let this become “diluted.” The FICPA is our eyes and ears in Tallahassee. Our governmental affairs team is on top of all legislation, and potential legislation, that may affect us. Without the FICPA, no one would be monitoring these issues on our behalf. This is a never-ending process.
Jeff Barbacci
Bethany Carr
Joey Epstein
Ed Duarte
Marshall Gunn Jr.
MARSHALL GUNN JR. Why are you involved in the FICPA, and why do you think other members should be as well? It seems like every publication you read has an article about social media and networking. Everyone is trying to “crack the code” on networking. Years ago, when dinosaurs roamed the earth and work papers were on stone tablets, we had FICPA chapter meetings, accounting shows and annual meetings. Oh, we still do! During the years I’ve met wonderful people I now call friends. I’ve discovered CPAs who are outstanding sources of knowledge, and who send me referrals when my knowledge is useful. These relationships, resources and networking opportunities have made my experiences with the Institute fun and rewarding.
PAT PATTERSON JR. What have you found to be the most challenging aspects of being a Florida CPA in today’s business climate? The most challenging aspect of being a Florida CPA in today’s business climate is staying current on A&A issues and technology situations. Every single professional FLORIDA CPA TODAY
Abby Dupree
Pat Patterson Jr.
Jim Thielen
standard that CPAs are expected to be current on has changed. This includes GAAP codification; the Audit Clarity Standards; SSARS 19 and SSARS clarity for compilation and review; attestation standards; quality control; peer review and international standards. Most of the other non-A&A standards also have changed. When these changes are combined with ever-changing technology issues, we have a mild form of controlled chaos that CPAs are expected to handle professionally, and well.
JIM THIELEN How would you like to see the FICPA develop and grow during the next year, and in future years? I would enjoy watching the FICPA become the go-to resource for our membership, especially our members in industry, as well as in academia and public practice. Currently, most of our members are small practitioners. To realize our full potential as an organization, we must strive to be relevant to all our licensees. We should continue working to identify members’ needs and look for ways to increase our membership numbers among various practice areas. And as always, our future success lies in our younger CPAs. ➡ www.ficpa.org
9
Jeff Barbacci
Bethany Carr
PROFESSIONAL
PERSONAL
Thomas Howell Ferguson Tallahassee
Ed Duarte
Cavanaugh & Co., LLP Sarasota
Mallah Furman Miami
• If I could, I would write a book about: How to fish and not catch anything. • The best (or worst) advice I ever received was: Best – Know the answer to the question before you ask it. That way you can intelligently evaluate the response. • If I had to choose one word to describe myself, it would be: Direct • Which do you prefer? o Macs or PCs? PCs o Red or white wine? Red
• If I could, I would write a book about: I’d write a murder mystery. I love to escape into a great mystery. • The best (or worst) advice I ever received was: Best – Be willing to try and don’t worry what others think. So often we’re afraid to try something new because we’re afraid of failure, or how we’ll look to others. That fear can prevent us from having amazing new experiences in life. • If I had to choose one word to describe myself, it would be: Exacting. I set high expectations for myself and others. • Which do you prefer? o Macs or PCs? PCs o Red or white wine? White
• If I could, I would write a book about: Motivational skills • The best (or worst) advice I ever received was: Worst – One of my professors said accounting wasn’t my forte and advised me to seek another profession. This was fuel and motivation for me to prove him wrong. Good thing I didn’t listen to him. • If I had to choose one word to describe myself, it would be: Loyal • Which do you prefer? o Macs or PCs? PCs o Red or white wine? Red
Barbacci is a shareholder and director of assurance services with Thomas Howell Ferguson in Tallahassee. He has been with the firm for more than 18 years and specializes in not-forprofit and government auditing and consulting.
Carr is a manager for Cavanaugh & Co., LLP in Sarasota. She began her career as an auditor for governmental, non-profit and small-business clients but has transitioned to taxation, providing tax services for individuals, corporations, partnerships and trusts.
Barbacci has been involved in FICPA leadership for more than 12 years, and is serving his 10th term on the FICPA Board of Governors. He is a past chair of the State Legislative Policy Committee; was the first chair of the Young CPAs Committee; and helped transition the State & Local Government Committee to its current Section structure. Barbacci also is a regular FICPA speaker on topics such as internal controls; government accounting and auditing; and board responsibilities.
Carr began her FICPA service in 2004 as a member of the Young CPAs Committee and as a trustee for the FICPA Educational Foundation. Currently, Carr is serving her fifth term on the FICPA Board of Governors. She also has served on various FICPA committees and has chaired the Audit Committee and Women’s Leadership Committee. In 2008, Carr was named one of CPA Technology Advisor’s 40 Under 40. She is the current treasurer of Rotary Club of Sarasota Bay and the Rotary Club of Sarasota Bay Foundation, and a graduate of Leadership Sarasota County.
Duarte is an audit senior manager with Mallah Furman. He has 13 years of experience in a range of professional services including audit, accounting, financial reporting and consulting. He specializes in audits and businessadvisory services for several industries, as well as environmental; industrial; and emergency-response services, including oil-spill response.
10 JULY/AUGUST 2013
Duarte has served public (SEC) and privately held companies. His experience includes Sarbanes-Oxley compliance; business combinations; business-process improvements; international financial reporting standards; and due-diligence engagements. He is a member of the Board of Directors of the Cuban-American CPA Association and Foundation, and vice president of the Florida International University School of Accounting Alumni Affinity Council.
Abby Dupree
Joey Epstein
PROFESSIONAL
PERSONAL
Carroll and Company, CPAs Tallahassee
Marshall Gunn Jr.
McGladrey Fort Lauderdale
GunnChamberlain, PL, CPAs and Gunn & Company Investment Management Inc. Jacksonville
• If I could, I would write a book about: encouraging others to find laughter and happiness in their life. • The best (or worst) advice I ever received was: Best – Don’t sweat the small stuff. Life is too short. • If I had to choose one word to describe myself, it would be: Happy • Which do you prefer? o Macs or PCs? PCs o Red or white wine? Red
• If I could, I would write a book about: Something sports related. Maybe something like, “The History of the Chicago Bears – From a Lifetime Fan’s Perspective.” • The best (or worst) advice I ever received was: Best – When I was trying to choose a major in college, my father said, “If you want to go into business, major in accounting. You can do anything in business if you have an accounting background.” • If I had to choose one word to describe myself, it would be: ORANGE! • Which do you prefer? o Macs or PCs? PCs o Red or white wine? Definitely good reds
• If I could, I would write a book about: Basic financial advice (Oh, I already have, twice!) • The best (or worst) advice I ever received was: Best – You can have everything you want in life as long as you focus on helping others obtain what they want. Worst – Your CPA practice will fail within one year. (That was 35 years ago). • If I had to choose one word to describe myself, it would be: Blessed • Which do you prefer? o Macs or PCs? PCs o Red or white wine? White
Dupree has been a tax partner with Carroll and Company, CPAs since 2002 and has been with the firm since 1994. She specializes in tax planning and preparation for individuals, businesses and non-profit organizations. She also specializes in state and federal campaign finance compliance and reporting.
As a director for McGladrey, Epstein provides accounting, tax and consulting advice to law firms and other professional-service organizations, as well as other closely-held entities. His other primary responsibility is business development for the firm in South Florida. He has handled income- and sales-tax audits and has assisted clients with exit strategies. He is certified in Florida sales and use tax and holds a Health and Life, including Variable Annuity Insurance License from the State of Florida.
Gunn is president of GunnChamberlain, PL, CPAs and Gunn & Company Investment Management Inc. He provides consulting, financial and taxplanning services to individuals, businesses, retirement plans, foundations and trusts.
Epstein serves on the Florida CPA/ PAC Board of Trustees and is serving his fifth term on the FICPA Board of Governors. He has served on the FICPA State Legislative Policy Committee for 20 years and has chaired it several times. Epstein is a Board member and treasurer of Business for the Arts of Broward. He also holds volunteer positions with several other philanthropic organizations.
He has served as chairman of the Florida Board of Accountancy and of the FICPA Investment Policy and Personal Financial Planning committees. He serves on numerous not-for-profit or charitable foundation boards, including FreshMinistries Inc. and Give Kids the World Village.
Dupree graduated from Florida State University in 1992, became a CPA in 1996 and has been actively involved in the FICPA since 2002. She has served in each of the Tallahassee Chapter officer positions; as a member of the State Legislative Policy Committee; and as chair of the FSU Accounting Conference Committee. She is a graduate of Leadership Tallahassee Class 29 and is a board member of the North Florida Chapter of the Children’s Home Society. She also serves as finance chair for Holy Comforter Episcopal School. Dupree lives in Tallahassee with her son, Matthew.
FLORIDA CPA TODAY
CPA Magazine listed Gunn as one of the 100 most influential CPAs in America and one of the seven most influential CPA/Financial Planners in America. He is the author of The Money of Love and Take Charge of Your Financial Life!
Gunn frequently is called upon as an expert witness. ➡
www.ficpa.org
11
Pat Patterson Jr.
Jim Thielen
PROFESSIONAL
PERSONAL
Award-winning, nationally recognized author, speaker and discussion leader
Thielen Plus Tax and Business Consulting Tallahassee
• If I could, I would write a book about: the adventures of a CPE discussion leader. • The best (or worst) advice I ever received was: Best – On being honorably discharged from the U. S. Air Force, I was advised to enter public accounting and become a CPA. • If I had to choose one word to describe myself, it would be: Honest • Which do you prefer? o Macs or PCs? PCs o Red or white wine? Red
• If I could, I would write a book about: My childhood. Being the youngest of 11, there’s quite a bit to write about. • The best (or worst) advice I ever received was: Best – Collectively, the lessons from the Andy Griffith Show. • If I had to choose one word to describe myself, it would be: Heart • Which do you prefer? o Macs or PCs? I use both, but prefer PCs. o Red or white wine? Cabernet
Patterson is an award-winning, nationally recognized author, speaker and discussion leader for continuing education courses and numerous state societies. He has experience at the national CPA-firm level and as an adjunct university professor.
Thielen is a partner with Thielen Plus Tax and Business Consulting in Tallahassee. Thielen is a former chairman of the Florida Board of Accountancy, serving from 2003 to May 2007.
Patterson holds an MBA from the University of North Florida and has been president of Patterson & Associates, PA for more than 30 years. His firm provides auditing, accounting, consulting and tax-preparation services. The AICPA has recognized the firm for work in the “virtual office” field. Patterson is a member of the FICPA CIRA Section, as well as numerous other committees and sections, and is a member of the FICPA Educational Foundation Board of Trustees. He has been named an FICPA Outstanding Discussion Leader and has received the FICPA’s Writing Excellence Award. He has also received the New York Society of CPAs’ Distinguished Discussion Leader Award.
Since 1999, Thielen has served several terms on the FICPA Executive Committee and Board of Governors, as well as a three-year term on the Finance and Office Advisory Committee. He served as president of the Tallahassee Chapter from 1998 to 1999 and as regional vice president for two terms ending in 2001. Thielen is serving his sixth term on the FICPA Board of Governors. Thielen has served as a trustee for the Florida CPA/Political Action Committee (PAC)-North since 2001 and as president of the North PAC since 2009. He also is a member of AICPA Council, representing Florida for a three-year term. FCT
Visit the FICPA website to read each Committee member’s complete bio.
12 JULY/AUGUST 2013
Access Florida CPA Today Archives Online For your convenience, Florida CPA Today articles from 1997-present are posted on the FICPA’s website at www. ficpa.org/Content/ Members/Tools/ Publications/FCT/ Archives.aspx. The archives provide a variety of previously published information, including technical articles written by member CPAs, legislative updates, DOR and IRS updates and much more.
The Ultimate Bizcation
Conference Offers Mega Fun, Mega Learning, Mega Choices By Jan Dobson, FICPA senior director of marketing and communications
W
alt Disney said, “If you can dream it, you can do it.” And do it they did – some 600-plus participants of the 2013 FICPA Mega CPE Conference moved into Disney’s Contemporary Resort and surrounding luxury hotels June 11-15. One participant said she was welcomed by a giraffe outside her hotel room window at Disney’s Animal Kingdom® Lodge. Some came for Mega hours of CPE and found them for as low as $11.25 per credit hour. No one left without their fill of up to 30 hours of CPE and 12 hours of bonus, on-demand credits – an amazing 14,125 credit hours in all. “I was very impressed with the Mega Conference this year,” said attendee Lisa Seiffer of Signature Brands, LLC in Ocala. “I went to last year’s conference, and everything (this year) seemed to be bigger and better than the prior year, truly ‘mega’ in all respects. I love that it was at Disney, I’m a HUGE Disney fan.” More than 60 attendees traveled from as far away as Guam, Puerto Rico, Michigan and Colorado to partake in all that the Mega CPE Conference offered. From the Richard Petty Driving Experience® to the Women’s Leadership Summit Fashion Show or the Meet Your Mentoring Match event, attendees and their guests were treated to abundant choices of how to spend their time. CPAs and their families downloaded the free Mega CPE app., using it to plan their learning and leisure. FICPA member Martha Ford tweeted, “Disney Magnolia Golf Course was beautiful…great excursion at the @FICPA Mega Conference.” A major feature of Mega was the “conference-within-a-conference” format. Three previously stand-alone events joining the CPE lineup were the State Tax Conference; the Employee Benefits Conference and the Women’s Leadership Summit. “The venue was great; all the State Tax Conference attendees got a chance to participate in other CPE content,” said Mega Conference speaker and State Tax Section member Joe Handy of North Miami. On Wednesday morning, the registration desk was the center of activity as hundreds of attendees efficiently checked in. Everyone received a Mega Conference drawstring backpack, compliments of Bisk Education, FATCA Consultants, Liberty Mutual and the FICPA. After checking in, participants had their choice of almost two dozen CPE experiences, including the State Tax and Employee Benefits conferences, ethics and more. Thursday’s agenda ended with a Welcome Reception – compliments of platinum sponsor Rogers, Gunter, Vaughn Insurance – and optional dine-around-Orlando excursions. Past President Jose Valiente of CliftonLarsonAllen, LLP in Tampa presented Women to Watch Awards for the Emerging and Experienced leaders (see the sidebar on page 15). After the general session, attendees scattered in all directions, visiting with more than 40 vendors and choosing from almost 20 CPE topics. Dr. Sean Snaith of UCF’s Institute for Economic Competitiveness presented an economic update while attendees dined on steak in the sumptuous Fantasia Ballroom. ➡ Pg.16 14 JULY/AUGUST 2013
Awards Abound at Mega CPE Conference The Mega CPE Conference was the perfect venue for recognizing those who have made a significant contribution to the accounting profession and to the FICPA. At the Thursday morning keynote address, FICPA Past President Jose Valiente presented the Women to Watch Awards. Stephanie Martin with Lewis, Birch & Ricardo in Clearwater received the Emerging Leader Award and Karen Mosteller received the Experienced Leader Award. Mosteller is a partner at Markham Norton Mosteller Wright & Company in Fort Meyers. Before a full house at the Thursday luncheon, FICPA President/CEO Deborah Curry and Board Chair Scott Price honored Dr. Daniel Tschopp as the FICPA’s Outstanding Educator. Tschopp, an associate professor of accounting at St. Leo University, is enriching the learning environment for accounting students by infusing technology into the classroom. On Friday morning, Chair Price welcomed Rep. David Richardson, CPA and presented him with a laminated copy of the cover of the May/June 2013 issue of Florida CPA Today. The cover featured Richardson and his fellow CPA legislators, Reps. Michael Bileca and Dan Raulerson. After the FICPA’s Annual Meeting, Price recognized outgoing Board of Governors’ members Dan Hevia, Keith Jones, Mike Pender, Elgin Polo, Terry Seaton and Jose Valiente. Price also presented Outstanding Chair and Outstanding Committee awards in recognition of significant contributions made to the Institute this year. The recipients were: OUTSTANDING COMMITTEE CHAIRS • Gary Fracassi, Mega CPE Conference • Tony Palermo, Employee Benefits Conference • Steve Morrison, Accounting Principles and Auditing Standards • Robert Watson, Peer Review
OUTSTANDING COMMITTEES • Accounting Principles and Auditing Standards • Editorial • Federal Taxation • FICPA Investment Policy • Peer Review • State and Legislative Policy
At the FICPA Magical Evening! Dinner and fireworks show, Price honored FICPA Past President Richard Berkowitz of Berkowitz Pollack and Brant, LLP, with the Outstanding CPA in Public Service Award. Berkowitz was recognized for his exceptional support to students, education and an array of South Florida community programs. Price also presented Special Chair Service awards to four people who were instrumental in making 2012-13 a successful year for the Institute. “I’m thankful for the guidance and support of these people for helping prepare me for my role as Chair,” Price said. The recipients were: • • • •
Mary H. Price, Price’s Mother Donna Son, FICPA Chief Financial Officer Stam Stathis, FICPA 2011-12 President Glenn Thomas, FICPA Chief Operating Officer FLORIDA CPA TODAY
www.ficpa.org
15
➡ Continued from Pg. 14
Sponsors (see the sidebar below), vendors and attendees enjoyed relaxed, yet productive connections at exhibitor displays in the main conference corridors. Three conference receptions also were held in the sleek hallways of Disney’s Contemporary Resort, affording attendees and vendors a cozy setting to unwind. “The FICPA MEGA Conference perfectly integrated the professional development coursework platform with networking opportunities with peers and exhibitors offering services to increase business productivity,” said Mary Ellen Hutcheson, vice president and treasurer of the Edyth Bush Charitable Foundation in Winter Park. Epcot® was the site of the FICPA Magical Evening! – an elegant dinner and fireworks display underwritten by platinum sponsors AON Insurance Service and CNA Insurance. Marking closing night of Mega Conference 2013, more than 140 gathered to celebrate Chair Scott Price’s leadership during the past year and welcome Ken Strauss as 2013-14 Chair during the traditional passing of the gavel ceremony. After dinner, participants enjoyed the pageantry of the IllumiNations: Reflections of Earth fireworks, laser and water show at Epcot® from a private viewing area. On Saturday, some attendees and their families headed to area attractions while others opted for up to four more hours of CPE on topics including “The Dumbest Things People Do to Hide their Money – Finding Hidden Assets and Income in Divorce” to identity theft, mobile-device security and a panel discussion on the Future of A&A. “Engaging and distinguished speakers discussed global, technological and specialized topics which benefit CPAs in their mission to add value and create innovative solutions,” said Hutcheson. ”A world-class educational experience at a world-class location!” The Mega Conference returns to Disney’s Contemporary Resort at Walt Disney World® Resort in June 2014. More information will be available soon at www.ficpa.org/CPE. FCT
MEGA THANKS For the planning and financial support from the following: Mega CPE Conference Planning Committee Gary Fracassi, Chair Ed Grossman Jeff Barbacci Marshall Gunn Dave Bergstein Allison Harrell Mark Brechbill Dan Hevia Fred Brown Anne Marie Hicks Lynda Dennis Michael Kridel Rich Franz Dan Levine
Bill Maloney Dave Moja Ray Monteleone Tony Palermo Pat Patterson Michael Rosciam
State Tax Conference Planning Committee & Chair Marty Kaye Employee Benefits Conference Planning Committee & Chair Tony Palermo Platinum Sponsors Rogers Gunter Vaughn Insurance www.rgvi.com AON Insurance Services www.aon.com CNA Insurance www.cna.com Silver Sponsor Hill Ward Henderson www.hwhlaw.com 16 JULY/AUGUST 2013
Mega Sponsors Ameriprise Financial www.ameriprise.com Bisk Education www.bisk.com FATCA Consultants www.fataconsultants.com Fowler White Boggs www.fowlerwhite.com Liberty Mutual Insurance www.libertymutual.com LTC Global www.ltcglobal.com
NEWS
briefs
From FICPA staff reports
FICPA honors Thomas with farewell barbeque
Get listed
On June 30, FICPA Chief Operating Officer Glenn Thomas retired after 31 years of service. Internships put your firm on the map for the state’s newest talent. The FICPA’s new Internship Opportunity Engine helps members find the right intern.
At the Mega CPE Conference in June, FICPA member Dave Dennis of the Florida Board of Accountancy (BOA) honored Thomas with a BOA resolution remembering his lifetime public service and recognizing his promotion of the highest ethical standards in the accountancy profession. FICPA staff members honored Thomas with a farewell barbeque luncheon in May at FICPA headquarters in Tallahassee. Thank you for your service, Glenn. We’ll miss you!
FCT
FICPA COO Glenn Thomas enjoys his farewell barbecue luncheon in May at the FICPA headquarters in Tallahassee.
FICPA Database Administrator Sue Johnson, who also does catering, baked a cake reflecting Glenn’s interests.
Through the Opportunity Engine, member CPA firms can expand their applicant pools by posting internship listings for free. The tool also allows our Student Members to search and apply for internships at member firms. We’ve already got a list going! Join your colleagues on the Opportunity Engine and bridge the gap between top student talent and CPA firms. Visit www.ficpa.org/ opportunityengine to post your available internships. Include a description and desired skills to find qualified applicants. It’s a quick and easy way to attract some of the state’s best young talent. FCT
Member discovers sunken treasure FICPA member David Carr of Cape Coral recently made an interesting discovery off the coast of Southwest Florida. While boating, Carr noticed some seaweed growing in a straight line – which isn’t natural. It turned out to be a shipwreck sitting at the mouth of the Caloosahatchee River. Because of Carr’s discovery, Florida’s Bureau of Archaeological Research has alerted the Fish and Wildlife Conservation Commission about the site. Although the wreckage remains unidentified, Carr believes it’s at least 150 years old. The Commission hopes to organize a team to identify the wreck and unravel the enigma. FCT FLORIDA CPA TODAY
www.ficpa.org
17
The New Goodwill and
18 JULY/AUGUST 2013
ASUs Amend Topic 350
Intangible Assets Testing Rules By Yanick J. Michel, CPA, CGMA, peer reviewer
T
he guidance about the impairment testing, valuation and disclosure of goodwill and other indefinitelived intangible assets has changed many times during the past 10 years. This article briefly compares the previous guidance contained in the Accounting Standards Codification (ASC) 350 Intangibles - Goodwill and Other with the most recent amendments and presents the new testing rules for qualitative impairment assessment for goodwill and other indefinite-lived intangible assets. Neither Accounting Standard Update (ASU) No. 2011-08 Testing Goodwill for Impairment nor ASU 2012-02 Testing Indefinite Lived Intangible Assets for Impairment changed the quantitative tests for goodwill or indefinite-lived intangible assets, respectively. The change is that both ASUs provide public and nonpublic entities with the option to first use management’s judgment in a qualitative assessment of the changes relevant to the fair value before proceeding to quantitative calculations. However, an organization may, at its sole discretion, elect to bypass the qualitative assessment for any goodwill reporting unit or indefinite-lived intangible asset in any period and not have to evaluate the qualitative factors. The organization still may elect to use the qualitative assessment for any goodwill reporting unit or indefinite-lived intangible asset in subsequent periods. ➥
FLORIDA CPA TODAY
www.ficpa.org
19
Background Prior to ASU 2011-08, the Financial Accounting Standards Board (FASB) guidance required an organization with goodwill to complete an annual two-step process involving a thorough quantitative analysis of each of its reporting units to determine whether impairment had occurred. The process was complex and costly, and often required the use of external valuation specialists. The business community criticized the guidance for its complexity and cost. Amendment No. 1 – ASU 2011-08 To alleviate the cost and complexity of performing the annual two-step goodwill impairment testing, FASB introduced ASU No. 2011-08. This allowed an organization to first perform a qualitative impairment assessment for each reporting unit before proceeding to Step 1 of the quantitative test, if necessary. In other words, an entity no longer was required to calculate the fair value of a reporting unit unless management had determined that it was “more likely than not” that its fair value was less than its carrying value. The concept of the “more likely than not” threshold represents a likelihood greater than 50 percent that impairment had occurred. This qualitative assessment includes industry- and company-specific factors, several examples of which are described in the ASU. Amendment No. 2 – ASU 2012-02 ASU 2011-08 resulted in establishing two different sets of rules for impairment testing. The business community criticized that position again. In response, FASB re-deliberated, and in July 2012 released ASU 2012-02. ASU 2012-02 made impairment testing similar for goodwill and the indefinite-lived intangible assets by providing management with the option of first using a qualitative assessment for impairment testing before proceeding to any quantitative methodology. It also used the same concept of the “more likely than not” threshold outlined in ASU 2011-08. 20 JULY/AUGUST 2013
Qualitative impairment assessments Consider these situations According to the new guidance, here are examples, although not inclusive, of events and circumstances an entity should consider in its qualitative impairment assessment. Take them into account when evaluating whether it is “more likely than not” that carrying value exceeds fair value. Note that ASU 2012-02 has slightly enhanced language, and that the last two apply only to goodwill. a. Cost factors such as increases in raw materials, labor or other costs that have a negative effect on future expected earnings and cash flows. b. Overall financial performance, such as negative or declining cash flows, or a decline in actual or planned revenue or earnings compared with actual and projected results of relevant prior periods. c. Legal, regulatory, contractual, political, business or other factors, including assetspecific factors. d. Other relevant entity-specific events such as changes in management, key personnel, strategy or customers; contemplation of bankruptcy; or litigation. e. Industry and market considerations such as a deterioration in the environment in which an entity operates; an increased competitive environment; a decline in market-dependent multiples or metrics (in absolute terms and relative to peers); a change in the market for an entity’s products or services; or a regulatory or political development. f. Macroeconomic conditions such as deterioration in general economic conditions; limitations on accessing capital; fluctuations in foreign exchange rates; or other developments in equity and credit markets.
g. Events affecting a reporting unit, such as a change in the composition or carrying amount of its net assets; a more-likelythan-not expectation of selling or disposing all, or a portion, of a reporting unit; the testing for recoverability of a significant asset group within a reporting unit; or recognition of a goodwill impairment loss in the financial statements of a subsidiary that is a component of a reporting unit. h. If applicable, a sustained decrease in share price (consider in absolute terms and relative to peers). There are other examples an entity should consider in a qualitative impairment assessment for goodwill and indefinite-lived intangible assets. For more information refer to ASU 35020-35-3F and ASU 350-35-18C, respectively, at www.fasb.org. In the currently simplified guidance of ASU 350, an entity may opt first to perform a qualitative assessment of its goodwill and indefinite-lived intangible assets before performing the costlier and more complex quantitative impairment testing. If the qualitative assessment indicates that goodwill or the indefinite-lived assets have been impaired, the organization must proceed to the quantitative tests, which have not been impacted by ASU 2011-08 nor ASU 2012-02. As noted here, the frequency with which organizations should test for impairment does not change. However, the examples of events and circumstances in the revised standard replace those currently used for interim impairment tests.
and not-for-profit organizations that have indefinite-lived intangible assets other than goodwill. Early adoption is permitted provided that, for public entities, its financial statements for the most recent annual or interim period have not yet been issued. Early adoption is permitted provided that, for non-public entities, its financial statements have not yet been made available for issuance. ASU 2011-08 became effective for annual and interim impairment tests performed for fiscal years beginning after Dec. 15, 2011. It applies to all public, private and not-for-profit organizations with goodwill. Early adoption is permitted, provided the entity has not yet issued its financial statements for the period that includes its annual test date. FCT Yanick J. Michel is the managing director of Y. J. Michel and Associates, PA. She serves as vice chair of the FICPA’s Accounting & Auditing Section Steering Committee and is a past chair of the Institute’s Accounting Principles and Auditing Standards Committee. She was named CPA Ambassador by the AICPA/FICPA in 2008. She also was a college instructor for five years and taught intermediate accounting and finance courses to students already engaged in the accounting profession. The author would like to thank Brion L. Sharpe, CPA for providing the required technical review of this article before publication.
Know effective dates, impacted organizations ASU 2012-02 is effective for annual and interim impairment tests performed for fiscal years beginning after Sept. 15, 2012. It applies to all public, private FLORIDA CPA TODAY
www.ficpa.org
21
COVER
story
Leading Through Collaboration and Continuity Ken Strauss becomes FICPA’s 86th Chair By Suellen Wilkins, Florida CPA Today editor, and Jan Dobson, FICPA senior director of marketing and communications
T
oastmasters International is a non-profit educational organization helping people of all backgrounds to become more confident in front of an audience, and to develop leadership skills. Winewatch is a local wine boutique in Fort Lauderdale. Raising charitable funds while running in a coat and tie – well, that’s unique. What do these seemingly unrelated things have in common? They represent defining components of Kenneth J. Strauss – the FICPA’s 86th Board Chair. For Strauss, collaboration and continuity are at the center of everything. From raising two daughters with his wife of 37 years, Mindy, to raising funds for accounting students through the FICPA Educational Foundation, for Strauss, success always comes from focused team effort.
Photo by Tim Breaseale
Past President Jose Valiente, Board Chair Ken Strauss and Strauss’ wife, Mindy, enjoy the 2012 FICPA Annual Convention in Brewster, Mass.
Strauss enjoys attending wine-tasting events at Winewatch in Fort Lauderdale. His friend and client Andrew Lampasone is the shop’s proprietor.
22 JULY/AUGUST 2013
“We enthusiastically welcome Ken to the role of FICPA Chairman,” said FICPA President/CEO Deborah Curry, CPA, CGMA. “His passion and service to our organization is evident and a credit to the profession. He has played an important part in the success of our Foundation by increasing awareness and raising scholarship funds for accounting students. His devotion makes him a respected leader among FICPA members.” As director of taxation and personal financial strategies for Berkowitz Pollack Brant Advisors and Accountants in Fort Lauderdale, Strauss has
learned firsthand the remarkable results that an interdisciplinary team of CPAs and other financial specialists can achieve. The firm clearly is doing something right. Inside Public Accounting has named the entity a Best of Top 50 Firms in America 14 times, and it has been a perennial Accounting Today Top 100 Firm since 1995. The firm also has been recognized by Florida Trend as a Best Company to Work For. Born and raised in Brooklyn, N.Y., in the East Rockaway area of Long Island, Strauss met his wife while attending Boston University. She’s from Long Island and works as an occupational therapist. Their oldest, Michelle, graduated from New York University and is a doctor of physical therapy. Their youngest, Stephanie, earned her degree from LIM Fashion College in New York City and works in the industry. “The best thing about having children is seeing them smile, seeing them succeed and spending time with them,” he said. “The most difficult is being a good parent and leading them in the right direction. We had good kids so it wasn’t all that tough. You feel their pain as they go through things, but Mindy and I have been pretty lucky.” Strauss received his bachelor’s degree from Boston University in 1975 and his masters in taxation from Florida International University in 1981. He majored in accounting because he believed it was a good entry into the business world, he said. He thought understanding financial statements would give him better insight into the backbone of many companies. What Strauss likes most about the profession is the constant opportunity to work on new things. “I don’t like the mundane – I like a new challenge,” he said. “I’m always learning, reading and trying to be better. The accounting profession allows you to do that. That’s what I love about it.” Strauss’ drive toward steady self-improvement has served him – and the FICPA – very well. ➡ FLORIDA CPA TODAY
Giving the gift of opportunity
Strauss’ work is instrumental to Foundation
Ken Strauss has served on the FICPA Educational Foundation Board of Trustees since 1996 and was instrumental in changing the way it operated with regard to fundraising. He served on the Formation Committee for the 1040K Run, the Foundation’s first big fundraising event, and his hard work and dedication have been at the heart of the run for 24 years. “Ken’s countless hours of volunteer service to the FICPA have made a real difference in the profession, and in the value the FICPA provides its members,” said Foundation Past President Monte Kane, CPA/PFS, CFF of Kane & Company, PA in Miami. “His all-inclusive management style will make him an outstanding Board Chairman.” “The future of our profession is in our young CPAs,” Strauss said. “The Foundation helps students become CPAs – and telling them our stories gives them a goal. FICPA member Bethany Carr received an Ed Foundation scholarship, became a trustee and now is a member of our Executive Committee. “Seeing kids succeed has been a passion in my career,” he said, “and my fellow trustees have been so motivating. I’ve had great opportunities, and I like seeing them available to others.” www.ficpa.org
23
COVER
story
“I came up through the North Dade/ South Broward Chapter and learned a lot about corporate structure,” he said. “I learned how Boards work, how voting takes place and how people work together to achieve common goals. “In the public sector, you’re encouraged very early in your career to get involved with some sort of club or cause. You have to build a client base, which necessitates getting out in the community. FICPA volunteerism is a great way to do that, but there are two myths associated with it. “Myth No. 1 is that it’s a waste of time because volunteering won’t help you build your business. My largest client, Ron Bergeron Sr., is a real estate developer and one of the most connected people in Florida. I met him through a CPA in the Gold Coast Chapter in the 1980s. His business is a direct result of my FICPA networking and volunteerism. “Myth No. 2 is that FICPA volunteerism won’t help your career. I met my firm partner Richard Berkowitz through the FICPA 25 years ago. I en-
joyed his company and respected his knowledge. When I became unhappy with my former firm, I was able to join Richard’s firm. I wouldn’t be sitting in the chair I’m in without him.” Strauss is a personal financial specialist, certified financial planner and registered investment advisor known for his expertise on taxation. Having lectured extensively, he frequently has been selected as an FICPA Outstanding Discussion leader. A writer, he has been published in professional journals and coauthored the Disaster Area Practice Guide, an AICPA industry guideline. The Tax Advisor voted Strauss’ article on “Fiscal Year Non-Conformity” as Best Article of the Year. Strauss says he is grateful for the unique opportunities that being an active FICPA member have provided him. A member of the AICPA governing Council, he also is serving his 13th term on the FICPA Board of Governors and is a 17-year member of the FICPA Educational Foundation Board of Trustees. He has been known to have a toe on the Foundation’s annual 1040K race
start line, a briefcase in hand and that infamous coat and tie atop his running shorts (see the sidebar on page 23). Strauss took office as FICPA board chair on July 1. He is the 86th FICPA member to serve in this position. “I think it takes someone who has a lot of patience and a love for the profession, and really wants to give back their time,” Strauss said. “I’ve encountered obstacles but I’ve never let them get in the way because of my love for the profession and my dedication. I was on my first FICPA committee in 1980. I enjoy what I do, and it gives me a good feeling of giving back and helping lead the profession.” Regarding his priorities for the Institute, Strauss has two words: continuity and relevance. He said he’ll continue working on FICPA projects that already are under way. “The Board of Governors has spent several years developing a long-term plan. My job is to help us pursue the established goals. “I think focusing on the organization as a whole should be our priority now, he said, “and I believe our biggest challenge is to be the most relevant provider of CPE for FICPA members. We’re looking at different ways of doing things and the Mega Conference is a perfect example. We spent a lot of time and money, and
24 JULY/AUGUST 2013
Strauss’ daughters, Stephanie (left) and Michelle, enjoy a Marlins baseball game at Marlins Park in Miami.
it was a success. We have a lot of competition, but we need to be the best – and offer fun in conjunction with our CPE opportunities.
connect with, and who will guide you, makes that road a lot clearer. Whatever I can do to facilitate that, I’m happy to do.”
“There a few things I’d love to see happen this year,” he said. The insurance exchange, which is brand new under the Affordable Health Care Act, will be effective Jan. 1. We are developing the exchange internally and it’s going to be a great member benefit. Our goal is to make the FICPA valuable to members through projects and programs we’ve worked on together.”
Strauss’ firm also is passionate about helping young CPAs thrive, and he firmly believes developing good interpersonal skills is key.
.Strauss believes one of the most important things the FICPA leadership can do is to develop strong personal relationships and connections with chapter members and officers. “I truly believe that if you see yourself as an emerging or future leader in the FICPA, it’s hard to envision the path,” he said. “Having a mentor you can FLORIDA CPA TODAY
“Anyone who wants to succeed in public accounting should sharpen their soft skills. They matter,” he said. People who can interpret what others say, and can connect with them, are going to be successful in public accounting.” Strauss is his firm’s director of training. When the firm was looking for a way to develop future leaders, Strauss recommended they use Toastmasters materials. The firm formed the BPB Talking Heads, and Strauss was the first president. The group continues today, he said, and runs much like the FICPA chapters. ➡ www.ficpa.org
25
COVER
story
“My firm partners supported me, loved the program and continue supporting it,” he said. “The growth I’ve seen makes me smile cheek to cheek.” The firm also holds quarterly leadership development programs for staff and seniors and recently adopted a new initiative to be a “high performance firm.”
respect and trust of your colleagues and your clients. Our philosophy is that if we recruit the right people and give them the opportunity to succeed, they’ll help us grow the firm and we’ll create a lifelong learning environment. And our staff will be prepared when they’re out in the community.
“We adopted this as our pledge to ourselves,” Strauss said. It means every member of the firm is passionate about doing better. It’s about getting and staying on a path of continuous improvement, and realizing that it’s more of a journey than a destination.
“I’ve learned that in business, the risks are worth the effort,” he said. “It took me a while to realize how important leadership is in a person’s career. So many of us spend our first few years with our heads down, learning technical skills. Like many others, I didn’t start looking broadly at my career until later.”
“Everything is about people,” he said. “To move up, you have to earn the
Learning about wine is a hobby Strauss has enjoyed since college
26 JULY/AUGUST 2013
and he began collecting wine in 1997. He and his wife frequent Cafe Max in Pompano Beach and got to know the restaurant’s sommelier, Andrew Lampasone. When Lampasone became the proprietor of Winewatch in Fort Lauderdale, Strauss began giving him business advice. Now, they’re mutual clients. “Wherever you volunteer and spend your time, that’s going to be the place you have the best chance of getting business for yourself and your firm,” Strauss said. “I’ve been able to do that in fun environments, and it’s benefitted me personally and professionally. I’m honored, excited and ready to serve as the custodian and fiduciary of our great organization.” FCT
D O R update
Corporate Income Tax Estate Tax Machinery and Equipment Natural Gas Fuel Sales Tax Holiday
Legislature Acts on Five Revenue-related Issues
T
he 2013 Florida Legislature acted on these matters related to the Florida Department of Revenue (DOR). • Corporate Income Tax – Generally called “piggyback,” the law updates the references in the Florida Income Tax Code to conform to the U.S. Internal Revenue Code in effect beginning Jan. 1, 2013. The current bill decouples the bonus depreciation and enhanced expensing provisions of the current code and spreads the deductions over seven years. • Estate Tax – Retroactively eliminates the requirement that an estate file a tax return when no tax is due.
FLORIDA CPA TODAY
By Renee Watters, DOR public information officer
• Machinery and Equipment – Eliminates the sales tax on qualifying purchases of machinery and equipment that manufacture tangible personal property for sale. The tax exemption applies to industries classified under North American Industry Classification System codes 31, 32 and 33. Effective April 30, 2014 through April 30, 2017. • Natural Gas Fuel – Creates a new part under Chapter 206, Florida Statutes, titled Natural Gas Fuel. The bill repeals the annual decal fee program for motor vehicles powered by alternative fuels effective Jan. 1, 2014. It also establishes a fuel tax structure for natural gas as a motor fuel similar to that for diesel fuel beginning Jan. 1, 2019, thereby exempting natural gas fuel taxes for five years. The bill also exempts natural gas fuel from state sales tax. • Sales Tax Holiday – The Legislature authorized a sales tax holiday Aug. 2-4. Clothing that is $75 or less per item; school supplies that are $15 or less per item; and personal computers and related accessories that are $750 or less and purchased for noncommercial home or personal use will be exempt from the tax collected in Chapter 212, Florida Statutes. DOR will send registered Florida sales-tax dealers a Tax Information Publication (TIP) with a list of qualifying purchases before the holiday. FCT For more information about the 2013 Legislature’s actions related to DOR, see DOR’s Post-Legislative Review in July at dor.myflorida. com/dor/. TIPs also will be available online for all law changes. www.ficpa.org
27
STAFF
reports
Governmental Affairs By Rivers Buford, FICPA director of governmental affairs, and Justin Thames, governmental affairs manager
A new day in campaign finance reform And keeping CPAs out in front
D
uring the FICPA’s annual dues renewal process, many members contribute to the Florida CPA/PAC to support political candidates who will best represent the interests of the CPA profession. Gov. Rick Scott recently signed House bill 569, by Rep. Rob Schenck, into law, making substantial changes to Florida’s campaign finance laws. The Florida CPA/PAC, and many CPAs, must navigate these changes in the coming months. Soon after the signing, the Florida Division of Elections notified all registered Committees of Continuous Existences (CCEs) of the first compliance deadline. As of Aug. 1, 2013, CCEs are prohibited from accepting contributions. The FICPA Governmental Affairs Department will provide guidance on the new regulations and additional
upcoming deadlines to members who serve as, or are interested in becoming, campaign finance treasurers. We encourage members to monitor the FICPA’s bi-weekly e-newsletter, NewsFlash, for more information about the new provisions in the law. Here are other notable changes: • An increase in maximum campaign contribution limits from $500 to $1,000 for local and state races. • An increase in maximum campaign contribution limits for statewide office from $500 to $3,000. • A repeal of CCEs and the creation of a new category of political committees. • Increased reporting requirements for campaigns and the new political
committees, from a quarterly filing with the Florida Division of Elections to a monthly reporting schedule. • Candidates now may use office account funds for the services of a CPA or an attorney. The increases in maximum campaign contributions will amplify the need for CPAs to participate in the Florida CPA/PAC. This will help ensure that candidates seeking elected office are well educated about the profession. The 2012 elections began with more than 390 candidates for the Florida House and Senate. Each year, candidates complete a questionnaire about the profession and provide names of local CPAs who actively support their campaigns. Florida CPA/PAC Trustees review all candidates, as well as recommendations
submitted by CPAs from the various districts, to ensure the PAC supports candidates who will help maintain the trust and esteem of the Florida CPA license. CPAs’ participation in FICPA and Florida CPA/ PAC advocacy efforts ensure that the profession continues to thrive in Florida. To become involved or to contribute, contact the FICPA Governmental Affairs Department at (850) 224-2727, Ext. 202, or govaffairs@ficpa.org. Contributions or dues to the Florida CPA/ PAC are voluntary and are not a requirement of FICPA membership. Contributions to the Florida CPA/PAC are political contributions and are not deductible for federal income-tax purposes. FCT
Educational Foundation By Jason Zaborske, FICPA educational foundation development director and Brittany Butler, event coordinator
Suncoast Scramble scores a hole in one
W
ith more than 120 players participating, the FICPA Educational Foundation Suncoast Scramble was a huge success. With outstanding attendance, beautiful weather and great net28 JULY/AUGUST 2013
working, we couldn’t have asked for a better event. The CPA Champions Cup is presented to the CPA team with the lowest net score. The defending 2012 winner
– Jeff Bauman, CPA of Kingery & Crouse CPAs – gave up the trophy to the new champions. The 2013 winner was PDR CPAs with teammates Brian Gunderson, CPA; Charlie Polansky, CPA;
Matt Low, CPA; and Jeremy Flynn. The names of the team sponsor and members will be etched on a plate and attached to the cup. They’ll return in 2014 to defend their championship.
From FICPA staff reports
John Rurkowski, Dan Depies, Larry Huckstep and Chris Gardner of Rutenburg Realty received the award for first place gross. Special thanks go to our sponsors, who helped make this event such a success. Presenting PENSERVCO Eagle Suncoast Chapter Birdie Plus Coastal Consulting Oppenheimer Funds Rutenberg Realty
New Members
Birdie ADP Advanta IRA Services Atlantic & Pacific Realty Bank of Tampa BankUnited Chambers Financial Group Charity Works Clark Capital CliftonLarsonAllen LLP Columbia Funds
Money Run brings some fun to Key Biscayne The Foundation held its 24th annual race April 20 in Bill Baggs State Park on beautiful Key Biscayne. With hundreds of runners participating and a new Kids Fun Run, there was something for everybody.
The FICPA happily welcomes many new members throughout the year. To see a list of members who have recently joined, visit the FICPA website at www.ficpa.org/ meetnewmembers.
FLORIDA CPA TODAY
Flaharty & Associates Florida Institute of CPAs PNC Bank Risk Avoidance Managers RS Funds Seaside National Bank Synovus Bank – St. Pete USAmeriBank Waddell & Reed Warren, Averett, Pender, Newkirk & Company
Hole A-lign Fifth Third Bank Garcia & Ortiz, PA KeriCureInc. MidFlorida Credit Union Purvis, Gray & Co.
The event wouldn’t be possible without our loyal sponsors. We
look forward to another successful run in 2014, when the event will celebrate 25 years! FCT
FICPA Chapter West Coast Chapter
FCT
Who were the fastest CPAs in Florida? Our fastest female CPA was Oria Lacayo of MDCPS, with a time of 24:43. The fastest male was Roger Davis of EisnerAmper with a time of 19:32. Both represented accountants and runners well. The Foundation was happy to give out two scholarships this year. Becker Professional Education also gave out scholarships. www.ficpa.org
29
STAFF
reports
Sun, golf and networking Join us in the Keys The Foundation will hold its Fifth Annual Family Retreat at Ocean Reef in Key Largo July 25-28. Grab the family and head to the Florida Keys to promote the CPA profession and get to know other families. This fun, relaxing weekend will include a golf tournament, cocktail parties and a moonlight beach luau dinner with keynote speaker George Gulisano, the Foundation’s 20132014 president.
something for everyone. There are three championship golf courses; a luxurious spa and fitness center; pristine beaches and pools; boundless aquatic adventures; a dozen scrumptious restaurants and lounges; and memorable nighttime activities for the whole family. This is guaranteed to be a weekend to remember. The price for this exciting event is only $155 per night. This event sells out every year and rooms are going fast, so book yours today! FCT
“It’s a wonderful opportunity to network with other CPAs and spend time with family and friends in one of Florida’s most naturally beautiful destinations,” Gulisano said.
For room reservations, contact Ocean Reef Club at (800) 741-7333 or reservations@oceanreef.com and mention the FICPA Educational Foundation Retreat. If you wish to attend the Beach Luau, please contact Luisa at Ocean Reef.
Located just 45 minutes from Miami, Ocean Reef Club is a five-star, 2,500-acre private equity resort with
For more information, including a retreat agenda, visit www.ficpa.org/ oceanreef.
Join the Foundation for food, fun and networking opportunities July 25-28 at Ocean Reef Club in Key Largo.
FICPA OFFICIAL NOTICE In compliance with Article XI, Section 6 of the FICPA Bylaws, be it known that a regular meeting of the Board of Governors of the Florida Institute of Certified Public Accountants will be held Thursday, September 26, 2013, at 10:00 a.m. at the Greater Ft. Lauderdale/Broward County Convention Center, Ft. Lauderdale, FL. 30 JULY/AUGUST 2013
You look good in jeans! Wear them Oct. 25 Wear your jeans and help a good cause. Any Florida accounting firm can celebrate Jeans for Scholarships by scheduling a casual jeans day on Oct. 25 (or anytime). Suggested contributions are $5 and $10 for individuals and can be matched by the organization, institution or firm. Like all Foundation events, proceeds will help provide scholarships to deserving accounting students. Firms that become Scholarship Wranglers are listed as official sponsors on the FICPA website. Please participate and join our growing list of Wranglers. We thank the firms that already have participated!
FLORIDA CPA TODAY
Alberni Caballero & Company, LLP Carr, Riggs & Ingram, LLC – Destin -Miramar Beach Carr, Riggs & Ingram, LLC – Winter Park Cherry Bekaert LLP CliftonLarsonAllen, LLP Collier, Jernigan & Goedert, PA CS&L CPAs – Bradenton GAG Consulting, Inc. Glickstein Laval Carris, PA Hill Barth & King, LLC – Sarasota Ira M Herschbein, CPA, PA KPMG LLP Markham Norton Mosteller Wright & Co. Moore Stephens Lovelace, PA Ocariz, Garrastacho, Hevia & Mercer, LLP Vizcaino, Gitlin & Zomerfeld, LLP
FCT
www.ficpa.org
31
MARKET
place
Positions available City of Opa-locka seeks a finance director/controller, CPA required; MBA, MS preferred. Min 5 yrs progressive senior mgmt exp in municipal government financial operations. Administers all city financial functions; provides financial planning assistance to the city manager & city commission. Public-service oriented w/tactful effective resolution skills. Working knowledge of GASB & GAAP. Maintains a system of financial control, comprehensive financial reporting, internal auditing, investment & debt mgmt to protect the city’s financial condition. Will have high degree of integrity & high sense of personal professional ethics. Previous auditing exp preferred. Knowledge of accounting systems required. Email resume to employment@opalockafl.gov. City of Opa-locka seeks an assistant finance director. General supervision of municipal accounting in the finance department. Work includes the exercise of considerable judgment in planning, installing, revising & maintaining accounting procedures. Coordinates the preparation of the annual Comprehensive Financial Report & other financial statistical reports. Min requirements: master’s degree from an accredited college or university in accounting, public finance, public administration or a closely related field; at least 5 yrs of progressive municipal governmental accounting exp; supervisory responsibilities. Must have thorough knowledge of GAAP & GASB 34, CPA required. Email resume to employment@opalockafl.gov. CPA 10+ yrs exp; proficient w/tax filings for all entity types & desktop softwares; flexible schedule part-time 2-3 days per week, NE Tampa area, perfect for semi-retired or sole practitioner. Reply w/ resume & contact info to cpanetampa@ gmail.com. Boca Raton firm specializing in tax, writeup & business valuation seeks Florida CPA/ABV w/own book to join for eventual ownership. To apply contact bocacpas@ gmail.com.
Palm Beach County local CPA firm seeking a CPA or candidate w/a min of 3 yrs of solid tax exp to be a key member of the tax department & transition retiring partner’s tax & small business clients. Casual & friendly work environment. Future ownership possibility as part of firm’s succession plan. Small book of business a plus. Reply to kenf@ffkcpa. com. Chief Operating Officer – Bush Ross, PA, a law firm based in Tampa, is seeking an experienced COO. This position will report to the managing partner & will be responsible for managing business functions as well as the overall operations of the law firm. The ideal candidate will have a min of 10 years of exp & 5 yrs in a professional services environment. He or she will be a graduate of a recognized college or university w/major coursework in business administration, management, accounting or finance. The candidate must have knowledge of professional service organizations & exp managing business operations such as finance, accounting, human resources, technology, facilities, insurance & marketing. We offer competitive compensation & benefits. If you possess the required exp, send your resume to shancockphillips@ bushross.com. Strict confidentiality will be maintained. Only candidates contacted for an interview will receive a response. Bush Ross is an equal opportunity employer. Williams Parker, a 45 attorney law firm in Sarasota, is seeking candidates for a tax & probate paralegal position. This position will work w/attorneys in a high-volume, complex probate & trust administration practice. Exp in preparation of Forms 706-Estate Tax Returns is required. A min of five yrs exp in estate & trust administration required. A bachelor’s degree in accounting required & CPA preferred. Email resume to staffrecruiting@williamsparker.com.
Ahearn Jasco + Company, one of Broward’s oldest & most recognized public accounting firms, is hiring for two positions. Supervisor or senior auditor; previous exp & responsibility for the full scope of the audit & accounting engagements from planning through completion. Bachelor’s degree in accounting. CPA or actively pursuing CPA certification, by sitting for all scheduled exam sections. Five plus yrs of recent exp in a CPA firm. Recently supervised financial statement audits of privately held companies. SEC audit & financial reporting is a plus. Tax preparation exp (corporations, partnerships & individuals) a plus. Staff supervisory & project leadership exp. Strong working knowledge of GAAP. Ability to manage multiple priorities, deadlines & budgets. Tax accountant w/ 2 yrs of exp in public accounting. Compiled F/S through the tax preparation of individual, corporate, partnership & S corp returns will be required. We offer motivated graduates a competitive salary & benefits & a friendly, team oriented environment to start achieving their accounting goals. Visit our website at www.ahearncpa.com & send resumes to hr@ahearncpa.com. Ownership opportunity – Central Florida firm with revenue of $1.5 million seeking a talented individual to join our succession team. Ideal candidates will have an entrepreneurial spirit, along with strong client management, tax, accounting and business-consulting skills. This is an outstanding opportunity for the right person. Replies will be held in strict confidence. Reply to reply@ficpa.org and reference file number M PA 07 08 13.
Office space Quality Ft. Lauderdale CPA firm seeking CPA w/established or growing practice for ofc sharing w/eye toward future affiliation. Email inquiries to ajcpapa@aol. com or call Cary at (954) 985-1040.
For complete classified policies, visit www.ficpa.org/Content/CPAResources/ClassifiedsJobs/Classifieds.aspx. 32 JULY/AUGUST 2013
St. Petersburg CPA located on Central Avenue has ofc space to share. Looking for a CPA w/either tax or accounting & auditing practice for possible future affiliation. Reply to cpa. stpete3848@gmail.com.
Specializing exclusively in the brokerage of CPA firms, we have no upfront fees. List your firm w/a professional. Call David Akins, CPA, at (877) 2770272. Visit our website at www. ProfessionalCPAbroker.com.
Practices wanted for purchase or merger CPA looks to purchase tax through review practice in S Fla. Revenue $150,000 to $1,000,000. Reply to info@ joegormleycpa.com. Growing S Fla. CPA firm looking to purchase a practice from a retirementminded CPA in Dade Cnty. Favorable purchase terms offered w/continuing employment opportunities available. Please contact Jeffrey Taraboulos at info@ksdt-cpa.com or (305) 670-3370. North of Tampa suburb retiring partner in 2-partner firm wants buy-out or merger. Emphasis on business accounting & personal taxes. Very motivated. Need seasoned tax pro to synergize w/businessfocused co-partner. Email info/background to dukewayne287@yahoo.com. A retirement-minded W Volusia CPA interested in merging w/eye toward short-term withdrawal. Reply to the FICPA at reply@ficpa.org and reference B PW 07 08 13. Are you working too many hours? Would you like to slow down or retire? Established Daytona Beach-area CPA office w/extra manpower desires per diem work in tax prep, bookkeeping, consulting, special projects, peer review prep or auditing. Merger/purchase possible. Reply in confidence to DaytonaCPAS@gmail.com.
For sale
Successful transitions require experienced, confidential, professional services you can trust. This is what Akins Professional Brokerage provides.
FLORIDA CPA TODAY
Buy-Sell-Merge-Finance your practice w/ U.S.A.’s No. 1 Accounting Brokerage Firm. Selling practices in Florida for 30+ yrs. Cash buyers waiting. Practices available include: Clearwater $250,000+; Coral Gables $450,000 (sold); Panama City $150,000+; Crystal River $250,000 (sold); Bradenton $350,000; Orlando-Jacksonville East Coast area $1,600,000 (sold); TampaZephyrhills area $150,000+; Gainesville $800,000; TampaTemple Terrace $275,000; Ft. Myers-Naples $675,000 (sold). Many others. Contact Erwin Rosenblatt (772) 692-8746 or Leon Faris (800) 729-9031 w/ Professional Accounting Sales or visit our website at www. cpasales.com. Growing turnkey CPA practice in Treasure Coast area. Write-up, payroll, individual, business & estate tax work. No reviews or audits. Ofc location can be leased or purchased. Reply to florida.cpa@att.net, replies kept confidential. Tax practice for sale – $180,000 (Palm Beach Cnty) – business opportunity for bilingual Florida CPA. Owner wants to continue working for 1 or 2 more tax seasons, but an exit strategy is needed. CPA must have ability to provide substantial down payment. This is small tax/accounting practice w/the ability to grow w/the right partner. Respond to reply@ficpa.org and reference file number B FS 07 08 13.
www.ficpa.org
33
ON THE
move Transitions Coral Gables: Cherry Bekaert LLP announces that David W. Appel has been named the managing partner of the firm’s South Florida practice.
Alexandria Davis
Gainesville: James Moore is pleased to announce that Brendan McKitrick has been hired as an associate accountant.
Jeremy P. Applegate
Miami: Alonso & Garcia PA has been confirmed as a member firm of Russell Bedford International. Miami: Kaufman Rossin & Co. announces the addition of director Nick Hartofilis. Nick Hartofilis
Gwynne M. Lewis
Ocala: Duggan, Joiner & Company PA announces that Jeremy P. Applegate has been named partner/ shareholder, and that Sheila A. Bartczak and Gwynne M. Lewis have been promoted to the position of manager. Stuart: Roegiers, Goldin, Chappel, Nall & Associates announce the addition of Edward H. Brockschmidt to their staff.
Who’s News Averett Warmus Durkee announces that the firm again has completed their comparative study on the financial performance of timeshare homeowner associations (HOAs) in Florida.
Edward H. Brockschmidt
34 JULY/AUGUST 2013
Edward H. Brockschmidt, of Roegiers, Goldin, Chappel, Nall & Associates in Stuart has achieved the designation of Certified Public Accountant in Florida.
Brad Gould
Brad Gould of Dean, Mead, Minton & Zwemer in Fort Pierce recently served as the moderator of the Current Developments Program given by the S Corporation Committee of the American Bar Association’s Section of Taxation. The program was given at the Section’s annual meeting in Washington, D.C. Kerkering, Barberio & Co. in Sarasota announces that the firm was selected as the April 2013 Insignia Award recipient. The award is presented to a member of The Greater Sarasota Chamber of Commerce in recognition of excellence in customer relations and longterm support of the Chamber.
Alexandria Davis of CS&L CPAs in Sarasota has passed the Certified Public Accountant exam to obtain the CPA license.
Trey Long of James Moore in Gainesville has joined the Gainesville Quarterback Club.
Miguel G. Farra of Morrison Brown Argiz & Farra LLC in Miami has been selected as one of the top 100 U.S. wealth advisors by the British publication Citywealth magazine.
Laura Tatem of CBIZ and Mayer Hoffman McCann PC has been named to the Board of Directors of the Humane Society of Tampa Bay. She also serves on the society’s Finance Committee. FCT
For more news about members and other Florida CPAs, visit CPAs in the Spotlight at www.ficpa.org/Content/News/Spotlight.aspx. The space for Who’s News, Transitions and other announcements published on this page is limited to news focusing on promotions and new hires for FICPA members; speeches by members at professional conferences; and other firm news, such as recognition of business achievements. We do not publish FICPA committee appointments as a part of this feature because of space limitations. Submissions for On the Move can be emailed to communications@ficpa.org.
Class Act Courses Join the FICPA for high-quality CPE conferences at four of Florida’s premier universities. Enjoy charming campuses and maybe even a walk down memory lane as you meet your CPE requirements with topnotch instructors at these convenient locations. It’s a great time to network with other Florida CPAs too!
University of South Florida
Florida Gulf Coast University
Florida State University Fall
University of Florida
Accounting Conference Oct. 24-25, 2013 Tampa Accounting Conference Nov. 7, 2013 Tallahassee
Accounting and Tax Conference Oct. 31-Nov. 1, 2013 Ft. Myers – Estero Accounting Conference Nov. 7-8, 2013 Gainesville
Register Today! To register online, visit ficpa.org/cpe. For more information, call (800) 342-3197 (in Florida), or (850) 224-2727.
F L O R I D A
Florida Institute of Certified Public Accountants P.O. Box 5437 Tallahassee, FL 32314-5437