January 2021
The Journal Entry
Leadership in a New Year
Standing Out and Providing Guidance in Changing Times
the journal entry | january 2021
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Mission,Vision,Values Mission The UACPA leadership supports and challenges members through advocacy, professional education, leadership development, networking, and community service to help them succeed in a competitive and changing world.
ExecutiveBoard president...................................................... Jay Niederhauser president-elect.................................................. Stacy Weight vice president................................................... Ray Langhaim treasurer.........................................Aubrey Bickmore Neeley secretary............................................................ Troy Runnells member-at-large.................................................. Nate Staheli
Vision
member-at-large.................................................Katrina Baird
At the UACPA, our vision is to be a world-class professional association essential to our members.
immediate past president...........................Monica Gardner
emerging professionals............................... Katie Chandler aicpa council........................................................... Paul Skeen ceo.......................................................................... Susan Speirs
We unite a vibrant community of CPAs to enhance the success of our members and champion the values of the profession; integrity, competency, and objectivity.
UACPAStaff
ceo.......................................................................... Susan Speirs
Values
communications/marketing and
Advocacy
cpe manager.......................................................April Deneault
The UACPA represents the profession at the legislature and other regulatory bodies and promotes the value of the CPA to employers, the business community, and the public at large.
editor of the journal entry......................... Amy Spencer financial director...................................................Tom Horn membership development................................Tyler Hodges
Leadership & Service The UACPA provides leadership and service within the profession, within the UACPA, and within the community.
Professional Development The UACPA supports and encourages continuing education and leadership development.
Professional Community The UACPA reinforces peer accountability to encourage members to maintain integrity and high ethical standards. ​​It provides member-to-member networking opportunities and networking opportunities with other professions. It values belonging to a distinguished organization and believes that we serve as the primary resource and point of contact for Utah CPAs.
Diverse Population Outreach The UACPA believes in reaching out to under-represented populations, those returning to the profession or choosing it as a second career, and other professions.
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The Journal Entry is published quarterly by the UACPA 136 S. Main Street, Suite 510 Salt Lake City, UT 84101 phone: 801-466-8022 email: mail@uacpa.org web: www.uacpa.org
UACPA Statement of Policy CPAs have common problems and interests. This magazine has been created to share information relating to the practice of accounting. The opinions, views and articles expressed in this magazine are not necessarily those of the Utah Association of Certified Public Accountants. This magazine should not be deemed an endorsement by the UACPA or its committees or editorial staff of any views, opinions or positions contained herein. Because of the complexity of tax laws and accounting transactions and the changing status of the law, as well as variations in practices and procedures among accountants, information in the magazine should not be used, acted or relied upon, as a substitute for independent accounting or legal research and advice.
Contents january 2021
New Members.......................................................................................... 4
Feature Story
Finding Leadership in a Pandemic
Movers & Shakers................................................................................... 5 CEO's Message........................................................................................ 6 President's Message............................................................................... 7
8
Guidance for a Better Year ................................................................... 8 By the Numbers: Leadership Development ..................................... 13 Making Time for What Matters........................................................... 14
By the numbers
Developing Leadership
Diversity and Inclusion as a Business Strategy............................... 18 Improving ROI With Attention To Mental Health ............................ 20 Repurchased Bonds Held for Resale................................................. 25
13 Meet a Member
Randy Allen, CPA
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Legislative Update................................................................................. 28
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Meet the UACPA Board........................................................................ 30 News From the Board........................................................................... 31 Meet the UACPA Staff........................................................................... 31 Comic: Generally Excepted.................................................................. 32 Meet a Member: Randy Allen, CPA..................................................... 33 Member Benefits/100% Membership Firms.................................... 34 Contact List/Classifieds....................................................................... 35
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NEW MEMBERS Congratulations to the following individuals who were approved for membership or affiliate status in the UACPA as of November 30, 2020. Nicole Jensen Avenues Financial
Tami Hansen Manti Telephone Company
Erica Adamson University of Utah
Eric Anderson S. Turnbow BDO, LLP
Jarom Call Myriad Genetics
Yi Feng WSRP, LLC
Henry Miles NICE inContact
Tyson Youngberg Zerapix LLC
Dante Oliveto Oliveto Consulting Group
Erin Winterton
Jeffrey Fitzgerald Deloitte Tax LLP Karlee Weeks DHF Financial Forensics, PLLC Joshua Freeman Eide Bailly, LLP Dustin Graham Ensign Peak Advisors Adam Eliason Eric Farnworth Julie Ernst Kimberly Ricks Benjamin Hong Ernst & Young LLP Savanna Wall Haynie & Company Zachary Beucher HOA West, LLC Michael Brown Jones Simkins, LLC Dakota King Judd, Holdaway & Associates Diante' Mitchell Nathan Bickmore Zack Buehner KPMG LLP Tanner Larson Hunter McKinlay Zachary Thomander Larson & Company, PC 4
David Carpenter Paul Mitchell Advanced Education
Chris Randall Jared Fry
Hillary Cunningham Jacob Fredrickson PWC, LLP
Lucy Beltran
Teresa Shepherd Shepherd Consulting LLC
Jean Beaulieu
Katrina Scott sPower Kaden Kuhni Strong & Strong, LC Paula Marsh TAB Bank Kevin Handy Brooke Butterfield Jessie Landgren Cade O'Neill Tanner Rasmussen Michael Kelly Tanner LLC Weston Curtis Telos Residential Treatment, LLC Spencer Powelson The Church of Jesus Christ of Latter-day Saints
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Madison Birtcher
Alan Lyon Arthur Taylor Richard Smith Tyler Campbell
STUDENTS Utah State University Devon Annis Westminster College Katheryn Jacox School Not Listed Adam Hewlett Sarah Priest Malynn Woolsey Brad Atkin Jason Pichea Devin Brooksby Alexandra Thomas
MOVERS & SHAKERS
Share your news by sending an email or press release to Amy Spencer, as@uacpa.org. Margaret Blackburn has been advanced to signing director at CliftonLarsonAllen. Margaret joined CLA in 2017 when Gallina LLP joined CLA. She has been in public accounting for 20 years and worked as an enrolled agent, providing tax services. When Margaret became a partner in a local CPA firm in 2007, she decided to pursue her CPA license. Prior to public accounting, Margaret worked in the private industry for more than 10 years.
Forbes has named the top accounting and tax firms for 2021 and four Utah-based firms were featured on this list. HintonBurdick and Squire have been recognized in the tax category; Larsen & Company, PC and Tanner LLC have been recognized for both the tax and accounting categories. This prestigious list is created by Statista which independently surveys tax and accounting professionals and their clients. This is the second year that Forbes and Statista have teamed up to create this list that features 278 firms. Utah Business Magazine featured Squire, Haynie & Company and Tanner LLC among their list of best companies to work for in 2020. Haynie & Company and Tanner LLC were also recognized by The Salt Lake Tribune on their list of the the top 100 workplaces in 2020.
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CEO'S MESSAGE Susan Speirs, CPA
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ello, 2021!
As we close a year that brought us the first global pandemic in more than a century, we have much to be grateful for. COVID-19 is the first global pandemic in the social media age, the first of the “alternative facts” era, striking at a time when politics and society were in a state of accelerated chaos. In Utah, we were able to overcome earthquakes, floods, fires, being away from family and friends, and the list goes on. We now have vaccines that have been approved and anticipate that case counts will go down. However, even if the physical spread of the disease is halted, we will have to contend with the long-term mental health effects of quarantine and social distancing. My heart has broke as I’ve conversed with many of you virtually or via our Utah Laws and Rules presentations as we’re all mentally spent. Our mental health experts have suggested that the power of positivity will do much to help us move forward and get out of the “funk” many have expressed they’re experiencing. The power of positivity has been defined as the “practice of being or tendency to be positive or optimistic in attitude.” Emerging research suggests people who practice positivity and gratitude together are more energetic and hopeful and experience more frequent positive emotions. A recent Psychology Today article states that, “people who are satisfied with life eventually have even more reason to be satisfied, because happiness leads to desirable outcomes at school and work, to fulfilling social relationships and even to good health and a long life.” Dr. Sonja Lyubomirsky, author of “The How of Happiness,” indicates that how we think about ourselves, our world and
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other people is more important to our happiness than the objective circumstances of our life. Research shows that positivity seems to protect against negative health outcomes because it reduces the effects that chronic stress has on our body. Many studies have found evidence of a link between positivity and improved health markers including lower blood pressure, reduced rate for cardiovascular disease, weight control, healthier blood sugar levels, increased lifespan and better coping skills during hardships and times of stress. As we come out of stressful situations, we find that we have a greater meaning for life and our connections become more important. We find ourselves being more grateful for simple things. Perhaps as we heal mentally from COVID-19, taking time to journal things for which we are grateful would be appropriate. 2020 was a year that gave us opportunity to be challenged and appreciate the small things. 2021 will give us the opportunity to expand what we have learned and accelerate to new levels in every facet of our lives. Cheers to a new year and a new beginning! n
PRESIDENT'S MESSAGE
Jay Niederhauser, CPA
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he year 2020 was a memorable year, but not necessarily in the way that we may have anticipated. I had looked forward to 2020 as the centennial year of the UACPA and a year of fun and celebration. However, it turned out to be very different. It was a less-thansubtle reminder of something that I recently read in the book "On Fire," by John O’Leary. He says, “You can’t always choose the path that you walk in life, but you can always choose the manner in which you walk it.” I have thought a lot about this quote and realize the importance of the way we choose to react to unexpected events and circumstances. There has been a lot of discussion this past year at the AICPA as well as the UACPA about the importance of diversity and inclusion in our profession. If you were like me, you may have found yourself thinking, “My firm is diverse. After all, we have both University of Utah and BYU fans in our office!” Or you might even have a token graduate from one of the other in-state universities!
After I graduated from Utah State University, I spent the first portion of my career in Salt Lake City, Utah; Houston and College Station, Texas; and Great Falls, Montana. When I first returned to Utah, my family was still in Montana. On weekends that I did not go to Montana to see my family, I visited various church congregations where I tried an interesting experiment. The first week, All kidding aside, I want to focus more on the concept I slipped in the back of the congregation and sat quietly of inclusion. I think we understand the concept of by myself. By the end of the services, no one had spoken diversity, but have we thought about the importance of to me or acknowledged that I was there. I had to admit inclusion? At one time, I was quite proud of the fact that our firm had a rather diverse population based on gender, that I did not feel at all welcome or included. The next ethnicity, educational background, and country of origin. week I arrived at the services early and stood by the back door greeting people as they arrived. People responded Sometime later, however, I was asked whether they all warmly and, by the end of the services, I had met and felt included. That really caused me to think, and I had talked with a number of people who all made me feel to admit that some of them probably did not. We can all think of times in our lives when we did not feel included. welcome and included. I realized that inclusion is a twoI recently overheard a conversation between my youngest way responsibility — it is up to us to include and to be included. son and my 5-year-old grandson, his nephew. They were discussing friends and my son asked, “Can I be your As we approach this new year, I hope that we all have friend?” My grandson’s reply was an emphatic “No!” My learned something from 2020 that will improve our son inquired, “Why not?” My grandson’s simple response lives and the lives of those around us. Let us all make a was, “Because you’re not my age!” How many times have conscious effort to be more tolerant and inclusive and to we rejected someone, either intentionally or otherwise, be included. n because they are different than we are in some way? the journal entry | january 2021
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LOOKING FORWARD WITH LEADERSHIP A
s many of us see an opportunity to rise like a phoenix from the ashes of 2020, it is equally important to provide a guiding light to others. In a time when leadership and guidance is needed most, the Leadership Academy alumni came together to inspire as we reimagine and reinvent ourselves in a new era.
I was recently reminded of a story about a man who promised his kids they could go to the circus. But the father, being a busy businessman, received an urgent business call the same day as the circus that needed his attention downtown. The children braced for disappointment. But the father said, “No, I won’t be down. It’ll have to wait.” The mother smiled and noted, “The circus keeps coming back, you know,” and the father responded, “I know, but childhood doesn’t.”
Eric Greene, CPA, CMA, CIA, CFE Director, Financial Reporting ZAGG Brands
As a busy father of three, this story hits home. It is so easy to be caught up in the busy-ness of work, family, house, and life. I feel like most days I am treading to keep my head above water, with the many demands thrown from several directions. But I remind myself the words of Thomas S. Monson: "The tiny fingerprints that show up on almost every newly cleaned surface, the toys scattered about the house, the piles and piles of laundry to be tackled will disappear all too soon and that you will — to your surprise — miss them profoundly.” Stress and responsibility, especially in our profession, is ever present. But we shouldn’t let them get in the way of what is most important in our lives. The advice I give myself is to act, to be more present, and to enjoy every day with my family, remembering to focus on the journey, not just the destination.
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feature
Kandice Lambert, CPA Corporate Controller Lucid Have you ever heard that feedback is a gift? Have you ever received feedback that felt like the exact opposite of a gift? Well, you’re not alone. While feedback can be incredibly beneficial, it’s worthless if not met with an open mind, humility and action. This year, I became especially aware of how essential feedback was to the success of my team. With the sudden switch to remote work, we found ourselves on countless Zoom calls and feeling uncomfortably isolated. Thanks to all in-person interactions disappearing overnight, I quickly realized all our Zoom calls were like looking into a mirror (literally), and I found many of us struggled to communicate freely. I often provided feedback to my team, but was I giving them the same opportunity? Was I taking a vested interest in what mattered to them? Was I asking them what they wanted me to stop, start and continue doing? The answer was, “not really,” so I made an adjustment. I started asking more about their lives, soliciting feedback, and thanking anyone who gave it to me. Little by little, I saw a door open by which people shared more and more with me. One employee fully embraced the opportunity, giving me feedback that hurt in the moment, but instantly opened my eyes to why I often felt like I was hitting a wall when trying to relate to my team. I thanked her, apologized, and made the adjustment. Appreciation for feedback has spread throughout my team, and now my direct reports employ this openness to feedback with their sub-teams. We work better together and are happier and more committed, even as the team grows and we are still fully remote. I have seen it in action long enough that I can honestly say, feedback is a gift. the journal entry | january 2021
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Dave Peaden, CPA Audit Senior Manager Eide Bailly LLP My wife and I were at a store in November and saw New Year’s party decorations already out and available for sale. We’ve never seen New Year’s decorations at the store so early! It is quite clear that everyone is ready for the end of 2020, and what may be the largest (socially distanced) New Year’s party ever. However, many of us are realizing that turning the clock to 2021 won’t just make life turn back to normal. 2021 is sure to bring many of the same challenges as 2020 and it will likely bring a few new ones as well. Here are three pieces of advice to anyone who wants to make 2021 a better year. • Try something new in 2021: Find a new hobby, activity, game or book genre in 2021. If that sounds too ambitious, try a new recipe or restaurant. • Don’t wait to get back to “normal.” Focus on the things that you enjoy and are grateful for instead of the things that are hard. Don’t worry about the trip you don’t get to take or the events you might miss out on. Instead, focus on the things you enjoy and can do. Spend more time doing those in 2021. • Spend 30 minutes each month (just six hours a year) thinking about your career and what career goals you have. It is easy to be so busy with the next task that we don’t take the time to plan where we want to take our own career and what skills we want to improve or develop.
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feature
Stephen Millet Controller ARUP Laboratories The pandemic has pushed our community, country and world to live differently. In the course of changing our lives, we were forced to make changes we didn’t want to, weren’t convenient or that we hadn’t even considered would work. Ultimately, lessons learned from these changes can give us an opportunity to face our future with confidence. I believe there is always positives that can be found, even during the uncertainties we’ve faced. It is important to add, an effort to find the positive is not meant to diminish the hardships and difficult career changes that some did not want to make in the midst of the pandemic. Other unwanted changes, like limited contact with friends and family, we are eagerly anticipating to end. Retail and food service companies had to find a way to fulfill an order while not allowing people into their store. This was, no doubt, an inconvenience. But now many
locations have curbside pickup and more sales derived from online. The increased accessibility will likely benefit them into the future. Working from home wasn’t even a possibility for some companies, but because of the pandemic, there are some companies who will likely never return to the office, even after the pandemic has ended. This can offer workers more flexibility in their schedules and encourages more efficient utilization of modern technology. In 2021, let us not require a pandemic to force us to innovate or think outside the box. It is hard to ignore the positive benefits we have gained in challenging conventional ways of doing business. We would do well to more readily consider alternative perspectives to the challenges we face in the future. May we continue to have creative ideas that we are more proactive to discover in the future. the journal entry | january 2021
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Amy Anholt, CPA CFO DentalSelect As we reflect on 2020, we each have a unique story to share. For many, our story will include the notes of heartbreak from a loss or losses, a difficult challenge or challenges, and/or postponing or transforming certain events due to the pandemic. From a professional perspective, the impact has been felt across the board. Thankfully, for most office professionals, we have found ways via technology to continue operating within our organizations. and I say to you, kudos! They certainly can happen, but it is much more difficult to do so virtually. Office professionals were forced to engage a remote workplace. We are well aware of the pros and cons of a As I look ahead, my attitude will be geared to expect the remote workplace. As a leader, it has been more difficult unexpected! We continue to hear things getting back to to promote and engage in collaborative and strategic “normal.” I am sure that when things return to “normal,” discussions with others. These discussions are often there will continue to be an aspect of this pandemic that invaluable. Beyond that, I miss being together with other will remain. For me, I look forward to a continued workprofessionals, co-workers and leaders in-person. There from-home opportunity which will be offered to our are certain experiences that cannot be replaced with a employees as a result of the pandemic. Additionally, if I’m virtual connection. However, there are some professionals being honest, I’m most excited about the aspect of seeing that have found the ability to continue these types of Imagine Dragons in concert again! collaborative discussions and strategy sessions virtually — 12
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By the
by the numbers
NUMBERS
These numbers, from the 2018 State of Leadership Development by Harvard Business Publishing, reflect 734 practitioners in Leadership & Development and Line of Business who were surveyed in 2017.
LEADERSHIP DEVELOPMENT PROGRAMS
63%
Millennials who say they lack leadership development
10,000
40%
Millennials who rate their current program as "Excellent"
Baby Boomers who reach the mandatory retirement age of 65 every day
25%
Companies that are confident that their company is effectively building digital leaders
30%
Organizations that say future leaders are trained to meet evolving challenges
31% Organizations that reported that it took individuals more than a year to complete leadership development program
83%
Organizations that acknowledge the importance of developing leaders at all levels Source: Leadership Development Trends 2019
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THERE ISN'T GOING TO BE MORE TIME
Why You Should Make Time To Accomplish More By Matt Klein, CPA, CGMA This article originally appeared in The Journal Entry in January 2016. It has been revisited and updated.
I
don’t believe that you don’t have time not to do things that will benefit you. You can’t afford not to do them!
Once we have figured out how to manage our time perfectly, the world will probably implode and cease to exist. It is a never-ending quest and this article was part seven of my 1,000-part quest to become better with my time and be a better employee, father, friend, and citizen of Utopia. It is easy to look back and see things I have done better, at things I still am not good at and ideas that I thought were good then but are flawed now. And that’s how it applies to me: What’s flawed for me isn’t necessarily right for you and vice versa. Take a small piece, implement it, and do it all over again. It was the appointment that wouldn’t go away. The project was an interesting one, but it would take a lot of time from several people and someone needed to champion it. At work, we were two months away and already 10 months overdue for our new ERP system to go live. Everyone was working overtime and focused only on the implementation. There just wasn’t enough time for other projects, and there wouldn’t be for maybe a year — or so I told myself. The meeting approached and I canceled it and specifically said I couldn’t commit to reschedule it in the near future. I received a reply with some joking comments about “excuses, excuses, but its all good.” I had overloaded him
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with important-sounding excuses to soften the blow of me telling him there wasn’t enough time. It promised to be a great project and a great tool for the company — the kind of stuff that gets a geeky accountant like me out of bed. Was I using time as an excuse and robbing Peter to pay Paul? If I didn’t make time now, would I ever make time? Enough was enough. I can still see myself sitting at his desk promising that I wouldn’t make excuses and I knew there would never be a better time. I was fully committed to him. I don’t remember if that was my first inkling of that thought, but it has stuck with me since that day. My perspective is so different now when I have conversations with a banker, attorney, auditor, software consultant, or one of the other people around the world who vie for a portion of my time. Before, I often found myself saying something like, “This is definitely something I’m interested in and want to do but just don’t have the time for right now. When I have more time after ‘X project’ or ‘Y deadline,’ then let’s talk.” This seemed to work most of the time, and I squeaked by with meeting all my required obligations but not making time for much else. My response now has changed along with my perspective — I feel liberated. At this point, let me warn you that I have not come up with a way to bend the space-time continuum, nor have I found a secret formula to make each day have 25 hours. What I did do was realize that I wasn’t helping my job or
my company to progress with my answer that did nothing more than put up a brick wall to block out change and innovation. I have read books and articles focusing on time management and made checklists until my pen ran out of ink. (I still do, checking things off feels good!) But until I took the advice of that sticky note on my monitor, “challenge the status quo,” I wasn’t applying any of the advice. What I’m proposing is that we prioritize our work lives such that we stop telling people that we will do it when we have more time. I realize that there will still be times when a deadline, vacation, or other occurrence will necessitate saying “not now.” However, instead of saying “later,” what if we actually made “later” happen now by scheduling an appointment for right after the busy event is over? Once things are on the calendars of all parties involved, the meeting is much more likely to happen. How many of you have been told “not now?” How many of you have said this? I’m not sure if I heard it more during my four years as an auditor or said it more during my four years as a controller. We all know how it feels to hear it, but that still doesn’t make us more hesitant to say it. The road will not be easy and someone will still get told that I don’t have time, but I am determined to change my initial response and try to make time to get involved in more things that interest me and will provide greater job satisfaction and growth for my company. What happens when you tell people that you don’t have time now or say “let’s talk later”? How does it make the other person feel? — They’re not important — Their project is not important — You’re more important than they are — You have no interest in their project — Others are more important — You lose credibility — You become the one who is really good at making up important-sounding excuses
time management
From my mistakes are born your steps: 1. Find time to make time.
2. Don’t make excuses as a cover-up. 3. Commit to the project like it’s your own (if you can’t, don’t do it at all — you can’t say “yes” to everything). 4. Communicate — everyone will appreciate the honesty The last step is the key. If your boss prioritizes your time differently for a few weeks, inform the team. If you’re not passionate about it, help find someone who is. If there are too many meetings, suggest meeting agendas for more concise time usage. Be honest. Fast forward a few years and you can see the project that started this article was never completed. I’m not sure I remember what it was, but I can still remember younger me trying to appear busy to appear important when what I really needed to do was manage my time better to be more efficient, more productive, and thus, more free. I am more honest, I try to plan my day, I use my calendar to schedule appointments to make sure they happen, I still get distracted by stock prices or football talk and I still say no to things I don’t want to do. Am I better than before? Absolutely! Could I be much better than I am now? Without a doubt! There will never be more time but we can take control of how we use our time. Endless opinions exist about how to schedule your day, whether or not to use a task list, when to read your emails, or how to be more productive. You have been living 24 hours a day and working 8 or more hours per day for a long time. You know what works for you. You have had good work days and bad work days. When forced to be good with time, you magically get everything done. Simply force yourself to be good with time all the time. Of course, you’ll need some help along the way, but you can’t eat the whole elephant in one sitting. Find some tools that work for you, apply them, and then find another tool, apply it, and the cycle continues. Don’t worry about what other people say about how often you
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should stand up every day or how many rows you should have on your spreadsheet. A few tips that have recently worked for me and might give you a good starting place: • I have a morning routine, mid-day check-in, and shut-down routine. I plan tomorrow out before I leave the office today and make sure that I’ve addressed any important emails or tasks. It gives me a chance to wind the day down and make sure I get out on time while also getting done what I need to. • I still use a task list, but I use it to draw ideas for tomorrow from, not to dictate what I do today. I use a box schedule (sometimes called a block schedule) to plan my day. I know what I should be working on during my whole day so there is never a question of what I should do or time to get lost in my email and never get important things done. Hint: it does not always work. • I removed distractions from my phone and email. I turned off all notifications on my computer when an email comes in — sometimes my email is not even open (gasp!). Your inbox is a place for other people to organize their agenda for your time. It’s your time, not theirs. I turned off most notifications on my phone. I get most of my news from reading the alerts on my phone but I can read those once or twice a day like the morning newspaper and not lose my train of thought every five minutes when my phone buzzes (check out “Indistractable” by Nir Eyal). I actually work on what I want to, what I meant to, and what I decided yesterday was important for today, not what someone else decided was important for me. (Disclaimer for my boss: I will always work on what is important for you.) If I say I don’t have time now, it’s probably because I don’t want to work on the project. I know I have said that a few times since I wrote this
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article the first time. I have switched a little bit of my focus to reclaiming my day, my time, and asking myself what is the most important thing I can do right now? For my employer, my family, my friends, or whatever I am doing with my time at that moment. I recently heard that when someone gives you time it means much more than someone who gives you money. You can make more money but you cannot make more time. Be present. Multi-tasking is a fancy way of saying “I am distracted in everything I’m working on.” Technology allows us to do many more things than before, but we need to be careful to be present in our meetings and with our families. Every morning I ask myself, “what is the most important thing I can do for my employer?” When I go home, I am going to start asking myself, “What is the most important thing I can do for my family?” I guess that means tonight I am starting on that barn door I’ve been promising my wife for two years. Never saying “no” has been one of the biggest contributors to my professional success, and I can’t believe it took me this long to realize that by saying “later” I had really been saying “no” all along. But remember, if you say “yes” to this, what are you saying “no” to? There are still only 24 hours in the day. You get to choose what to do with those hours. I have reclaimed time from my day, and I get more done in less time. What will you do with your time? n
Matthew W. Klein, CPA, CGMA is the finance director at Lifetime Products. He graduated from the University of Utah with a bachelor's and master's in accounting and began his career at Deloitte & Touche. Klein has been active in the UACPA and has served as past president and on other committees.
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DIVERSITY AND INCLUSION AS A BUSINESS STRATEGY Fostering Inclusivity Helps Company Culture By Julie Silard Kantor Reprinted with permission of the New Jersey Society of CPAs. njcpa.org
M
any organizations have come to recognize the impact of mentorship on advancing diversity and fostering inclusivity. But companies that want more diversity will need to mentor and sponsor more diversely. Mentoring, after all, helps employees develop a sense of belonging which is important to building a diverse and inclusive culture. For companies, the key is to create a company culture in which team members feel individually recognized, valued and committed while working toward common goals. That can be accomplished through mentoring initiatives focused on enriching relationships between cultural groups. On an individual basis, sponsorship is also equally important, wherein a sponsor takes an active role in championing a high-potential employee for growth opportunities within the organization.
The Value of Sponsorship and Mentoring While a mentor speaks with their mentee and shares from their invaluable learning, a sponsor speaks about their sponsee behind closed doors and champions him or her to others. Sponsors have a dramatic influence on an individual’s career advancement, company succession plans and elevating diverse leaders. Unfortunately, not all high-potential employees have equitable access to sponsors, and most leaders tend to mentor and sponsor in their own likeness. Research from McKinsey, the Center for Talent Innovation and the Boston Consulting Group have all shown that
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people of color, women, LGBTQ+ individuals and other under-represented groups often lack sponsors. Formal sponsorship programs engineer and ensure access to internal champions for high-potential employees. Simultaneously, these initiatives also help executives build their leadership skills and living legacies. In a 2016 Harvard Business Review article, “Why Diversity Programs Fail,� authors Frank Dobbin and Alexandra Kalev reported on the impact of mentoring, training, self-managed teams, diversity task forces and diversity managers on the representation of African American, Hispanic and Asian men and women at the manager level. The researchers found that mentoring had the largest impact of all strategies, resulting in an increase of representation of minorities at the manager level by 9% to 24%.
Diversity Issues A 2018 McKinsey study, Delivering Through Diversity, found gender diversity on executive teams is highly correlated with profitability and value creation. Companies in the top quartile for gender diversity on executive teams were 21% more likely to outperform on profitability and 27% more likely to have superior value creation. Women and minorities usually connect better with their mentors through formal mentoring programs. Formal programs offer an established, credible and supported way to mentor women and minorities. The most effective mentoring programs provide training on how
diversity and inclusion to have healthy boundaries in mentoring relationships and the role of unconscious bias in the workplace. Even so, numerous companies rely on informal mentorship. Although a lot of progress has been made, the website LeanIn.org disclosed in the article, “Men, Commit to Mentor Women” in 2019, that one in six male managers feels uncomfortable mentoring women. And 36% of men surveyed claimed that they have avoided mentoring or socializing with a woman at work because they were nervous about how it would look. Deloitte’s 2014 report, From Diversity to Inclusion: Shift from Compliance to Diversity as a Business Strategy, says that even though diversity programs have been around for decades, most companies still do not have a highly inclusive workplace. Deloitte’s research uncovered that companies want to shift from diversity as a program to diversity and inclusion as a business strategy. According to Deloitte, diversity is the measure and inclusion is the
mechanism. High-performing organizations recognize that the aim of diversity is not just meeting compliance targets but tapping into the diverse perspectives and approaches each individual employee brings to the workplace. A diverse workforce is a company’s lifeblood, and diverse perspectives and approaches are the only means of solving complex and challenging business issues. Moving beyond diversity to focus on inclusion as well requires companies to examine how fully the organization embraces new ideas, accommodates different styles of thinking, creates a more flexible work environment, enables people to connect and collaborate, and encourages different types of leaders. n Julie Silard Kantor is the founder and CEO of Twomentor, a high-impact training and development company focused on talent strategies for a diverse workforce. She can be reached at julie@twomentor.com.
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MENTAL HEALTH AND THE WORKPLACE New Approaches To Wellness That Help ROI By Owen Ashton, CPA, CPSS
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olting feelings struck my chest as I was driving home from work years ago. “Is this a heart attack?” I asked myself. I immediately changed direction to a hospital emergency room. Tests showed my heart to be quite healthy. “You have a very small chance of having heart problems over the next 10 years,” the doctor said. That was a relief, but what about those strange chest sensations? With the help of my wife, Becky, I determined it had been some kind of stress attack. I had a history with anxiety problems. Becky suggested they were likely related to work. I often felt like my job was in jeopardy. My boss at headquarters (on the other side of the country) liked to keep me on edge — a strange management style, I thought. On another afternoon, I became silently so upset at how he treated me during a telephone call that I left our offices and drove around for a few hours to calm down. I knew I should not let outside circumstances control how I felt. I sought counseling to help me develop healthier thinking habits. Perhaps you have experienced job stress like this. I’m sure I precipitated lots of stress in those working under my direction. Many years ago, there was a young man who fell asleep during meetings on multiple occasions. Also, his follow-up on assignments was quite poor. Rather than meet with him one-on-one to address these issues, I gave him a bad time, and he left the organization. Perhaps he had a sleeping disorder and I could have provided support to resolve the issue. Perhaps good follow-up skills were something he just hadn’t been exposed to but could have been taught. Another woman I hired had a difficult time understanding the mathematical concepts behind the
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economic value added model that I had developed for the company. Rather than spending time with her to walk through the mathematical underpinnings, I treated her with contempt and probably made her feel stupid. She wasn’t, but she left. When workers feel mistreated, misunderstood, or otherwise abused, this can cause trauma and can lead to adverse effects on individual functioning. Further, individuals who are predisposed to depression, anxiety, and other mental health conditions (and aren’t we all at least sometimes in our lives?) can be triggered so that these conditions are exacerbated, which also leads to poorer functioning. Unsupportive or hostile work environments not only put a burden on individual workers — or perhaps is traumatizing for the individual — they also burden productivity and organizational success. More and more research shows that these mental health matters significantly impact the organizational financial performance. This is because an organization’s workplace culture — and how that translates to how it feels to work there — is an amalgamation of the words and actions of all work associates, particularly of senior leaders as they set the example and the tone. They also make decisions that impact how easily workers can get professional treatment to help recover from mental health conditions. Treatment works! Untreated mental health conditions place an unneeded burden on everyone. I would not want to give the impression that individuals with mental health conditions are prone to be burdens on organizations. To the contrary, many are distinguished contributors. Nassir Ghaemi, a respected professor at Tufts University in Boston, writes that history
mental health demonstrates that dealing with mental health challenges helps build realism, resilience, empathy, and creativity in leaders. Think Lincoln, Gandhi, and Churchill. So, workers may need help in dealing with mental health challenges, but they also may be among an organization’s strongest contributors. Studies show the notion that leaders must balance between the human element and the bottom line is a false choice. Rather, investing in workplace mental health shouldn't be viewed as too ethereal and touchy-feely for hard-nosed, bottom line-oriented CPAs and corporate finance leaders. It is a matter that needs serious attention. It should be more than a temporary focus during this especially stressful time of a pandemic.
Deloitte Study
Long before COVID-19 hit, some organizations were investing significantly in workplace mental health. In 2019, Deloitte Canada published a whitepaper entitled, “The ROI in workplace mental health programs: Good for people, good for business.” The paper reported that Bell Canada, with 52,000 employees, launched a mental health initiative in 2010 which had resulted in a $4.10 return for every dollar invested. And yes, that’s Canadian dollars. The Deloitte paper reported that a study of the stock performance of S&P 500 Index companies showed that over a six-year period, companies with high health and wellness scores appreciated by 235% compared to the overall index appreciation of 159%. ROI improves via better employee performance. Companies with a focus on mental health show less absenteeism, turnover, and presenteeism. Further, costs for healthcare benefits and disability claims decline. In a survey by Mind Share Partners, 60% of employee respondents said that their productivity at work was affected by their mental health. They reported difficulty concentrating, avoiding social activities, difficulty thinking, reasoning and deciding, taking longer to do tasks, and less responsiveness to email and other communications. The survey stated that depression costs U.S. companies on the average $5,500 per year per person in productivity losses.
I can relate to this. As I’ve aged, I find it more difficult to push through workdays when I am mentally not feeling well. I recall arriving at work feeling awful. I didn’t want to miss too many days, so I gutted things through. I had two goals: 1) Survive the day until I could go home to bed, and 2) Not let on to anyone how awful I felt and how unproductive I was. Back in those days, I was the poster child for presenteeism. The Deloitte report states that millennials tend to be more anxious and less optimistic than their elders, in a large part due to the pervasiveness of bad news via technology. Accordingly, the need for leaders to pay attention to the mental health of their workers is becoming more acute. Some prefer the term “mental fitness” over “mental health.” They see “mental fitness” as broader — meaning a state of well-being and having a positive sense of how one feels, thinks, and acts. The term “mental health” to some is scary and “only applied to other people.” So what does a focus on mental health, or mental fitness, look like? Efforts often include: Leadership Buy-in and Training Any meaningful change must come down from the top. Leadership that promotes mental health must be modeled by senior leaders. Organizations that have shown the best return typically have mental health as a top priority for leadership training. Topics include emotional intelligence, fairness, integrity, how to support psychological health and safety, communication, collaboration, problem solving, and conflict management. The leadership embraces a trauma-informed approach, as described below. Mental Health Treatment Coverage in Company-Provided Health Plans and Employee Assistance Programs Organizations ensure that their benefits plans include mental health treatment resources with low out-ofpocket costs that encourage employees to get help. They also provide high quality employee assistance programs that are easily accessible and responsive to employee needs.
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Employee Awareness About Mental Health and Anti-Stigma Campaigns In the 1990s and early 2000s, a 15-year period over which I received counseling for depression and anxiety, I never once submitted a claim for reimbursement to my employer’s medical benefits plan. I was afraid that if my supervisors knew about my mental health conditions, it could be career limiting. I once sat in an informal meeting with the COO of a smaller organization when he disparagingly referred to issues of the CEO’s children that he knew about through his review of medical claims. Can you imagine the fear that triggered in me? Right now may be a great time for organizations to consider increasing their focus on mental fitness. Multiple resources to help have emerged recently.
Salt Lake Chamber of Commerce and Utah Community Builders
In October 2020, the Salt Lake Chamber's nonprofit foundation, Utah Community Builders, launched its "Workforce Resilience Through Mental Fitness" initiative. Clark Ivory, CEO of Ivory Homes, and Lisa Eccles, President and CEO of the George S. and Dolores Dore Eccles Foundation, hosted the launch event. This campaign will provide Utah business leaders with information, tools, and resources to improve the mental fitness of their employees, thus elevating the mental and emotional resilience of Utah’s workforce, and by extension all Utahns. In that launch event, Johnny Hanna, CEO of Homie, related his personal story of seeking therapy for mental health challenges. He shared his experiences openly and said that this has improved the well-being of many in his organization. “As a society, we have neglected our minds. We have normalized personal hygiene and keeping physically fit, but we have ignored our mind and being mentally fit," he said. “I know as leaders we have an obligation to lead on issues like this. ... I hope you can join us in helping to eliminate the stigma by being a vulnerable leader and by introducing mental fitness principles to your coworkers.”
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About 10 years ago, I decided to write and publish a book about my journey to recovery from chronic depression and anxiety. For many years, I was unaware of my situation. My dear wife saw things in me that I didn’t and encouraged me to begin counseling. As noted above, I continued psychotherapy on and off over several years. It helped me get to a much better place, and this was exhilarating! I felt for other individuals who were still stuck — perhaps unknowingly as I was — and I wanted to help them. I contemplated how going public about my journey would impact my career. I feared that I would no longer be hirable for positions in corporate finance management. I decided it was worth it. Since then, I haven’t tested the waters in corporate finance; mental health advocacy has been my career. But can you imagine the thrill I feel to see the Salt Lake Chamber take up this initiative and for the CEO of a respected Utah company to openly tell his story?
Room Here
In 2019, multiple tragic suicides rocked Utah's high tech business community. There was a feeling that a better conversation around mental health was needed. This was addressed last summer by Trent Mano and Rachel Merrill as they launched Room Here, a 501(c)(3). Their website encourages organizations to make a pledge to promote mental fitness by taking these steps: 1) Measure the company’s mental health culture, 2) Make a clear plan to improve, and 3) Share what is learned with the community. About 100 organizations have signed the pledge! Visit Roomhere.org for business and community resources.
Trauma-Informed Utah
A major study undertaken in the U.S. by Kaiser Permanente and the Center for Disease Control in the 1990s found a strong correlation between traumatic events during childhood called adverse childhood experiences (ACEs) and lifelong negative outcomes. ACEs include various kinds of abuse as well as parental substance use, divorce, incarceration, mental illness, and domestic violence. The survey asked participants to identify which of 10 specific ACEs they had experienced before the age of 18. The researcher then compared
mental health those to negative outcomes later on in life for the study participants. They found a strong correlation between higher scores of ACEs and physical and mental health problems, suicide, career struggles, unstable family relationships, poverty, and homelessness. A similar study was undertaken in Utah a few years ago. It found that individuals who scored zero ACEs had an occurrence of chronic depression of 15% while individuals with four or more had an occurrence of 45%. Further, of those individuals with a zero ACEs score, 7% experienced chronic obstructive pulmonary disease (COPD) compared to 17% of those who scored four or more. The correlation on family economics was also significant. While only 10% of Utah’s general population has ACE scores of five or higher, 46% of the individuals receiving financial assistance from Utah’s Department of Workforce Services scored five or higher. Incidentally, I scored 4/10 on the ACE test, which, I believe, is a major factor in my experiencing chronic depression and anxiety. Fortunately, many positive mitigating factors shielded me from being more impacted. With these findings in mind, the federal Substance Abuse and Mental Health Services Administration (SAMHSA) concluded that addressing trauma was key to reducing and treating mental health conditions. Accordingly, it developed an approach that is called Trauma-Informed Care (TIC) or the Trauma-Informed Approach (TIA). Here are the six key principles SAMHSA outlined: • Safety — Every individual feels physically and psychologically safe • Trustworthiness and transparency — Operations and decisions are conducted with transparency to build trust among all stakeholders • Peer support — Individuals with lived experiences with trauma are available to provide mutual support • Collaboration and mutuality — Partnering and the leveling of power differences between staff members help establish more meaningful relationships from top to bottom.
• Empowerment, voice, and choice — Individual strengths are recognized and built upon • Cultural, historical, and gender issues — The organization recognizes and actively addresses past stereotypes and biases Many believe that TIA should not be limited to the area of preventing and treating mental health conditions. On the contrary, it’s believed that these principles should be adopted throughout healthcare, in education, in parenting, and in business. To this end, in 2017, Gov. Herbert and the legislature designated Utah as a trauma-informed state and encouraged all citizens to be trauma-informed. I was recently asked to serve on a steering committee to develop a center to promote and support traumainformed approaches throughout Utah. This is so exciting. Beginning a couple of years ago, I have worked part time for the state of Utah Division of Substance Abuse and Mental Health (DSAMH) as a career and education counselor for individuals in recovery from mental health conditions and substance use disorders. I’ve found this quite rewarding during the sunset of my career. But the best part of the job is working with a number of enlightened people. As you might imagine, many in the group are mental health and substance use disorder professionals. They tend to give a lot of attention to how their co-workers are doing — especially mentally. As you might expect, everyone tends to be fairly transparent about how they really are feeling. I feel comfortable telling my supervisor, Sharon Cook, when I’m having a bad day. She encourages me to keep up on my self-care and to take vacation or sick time when I need it. This feels so amazing! Late last summer when our team hadn’t met together in the flesh for months, she held a team meeting in a park. Camp chairs were placed in a circle — physically distanced, of course. She launched into a creative campfire program (without a real campfire) that warmed our hearts. I still have a cardboard cutout campfire that she hand-crafted hanging in my home office. She brought individually packaged treats, and even remembered my special ketogenic diet. Her preparation demonstrated that she cared about each of us personally. the journal entry | january 2021
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Pam Bennett, my supervisor’s supervisor, is a highlyeducated, brilliant professional who accomplishes amazing things. But the first time I attended a group work meeting with her, she spoke of what she saw as her personal weaknesses in completing her responsibilities. I recall that her genuine modesty and openness was downright shocking! I don’t know if my jaw dropped. I was used to bravado and self-promotion in dogeat-dog environments where no one ever admitted to any chinks in their armor. Since that first meeting with Pam, I’ve found that she’s always this way — and it endears everyone to her. Her approach creates a healthy, productive environment of cooperation and teamwork where everyone helps and supports each other. Achieving team goals is much more important than who individually gets the credit. I don’t have a lot of one-on-one contact with the director of DSAMH, Doug Thomas, but when I do, the interaction is always positive. One day when he happened to be passing by, he paused for a moment and said, “Owen, how may I help you today?” I knew he meant it. His emails to our whole staff are not always task-focused. He shares tips for self-care. Last March at the beginning of telework, he started an email chain sharing photos of our favorite pets. (My share was a stretch. It was the moose along the mountain hiking trails east of my home — the nearest thing Becky and I have for a pet.) He always has an open-door policy even now during telework. He’s very approachable, admits it when he feels he’s made a mistake, and acts like he believes he’s just one of us. As I’ve thought back over my 30 years working at large CPA firms and in finance management positions, I’ve worked under some great leaders. Intuitively, they seemed to follow TIA principles before it was even a thing. But that hasn’t been the norm. You’ve probably witnessed, as I have, these clichés in action (and I’m sorry if they are too graphic and don’t follow TIA recommendations to avoid trauma-provoking words): “Being thrown under the bus”; “Throwing other bodies
out in front of you so the lions eat them first”; “Blood running under the door” as leaders discuss compensation and direction; “Stepping on others to climb the corporate ladder.” I haven’t witnessed anything like these things during my time at DSAMH. From top to bottom, leaders make themselves vulnerable and accessible. I’d march up any hill right behind any one of them! Now some may say that the kind of leadership I’ve found at DSAMH just isn’t practicable in the rough-and-tumble world of for-profit enterprises. Maybe they are right. But I’m idealistic enough to think that we all could do better — and our organizations would be better for it. I believe that over the years I’ve changed for the better in how I interact with others, so I think everyone else can too. And I believe that the new mental fitness in the workplace initiatives coming to Utah can help us. I’ve witnessed how more enlightened leadership has impacted my state of mind as I work. Right now, I’m more motivated than ever to try to perform well and really give my best to help achieve organizational goals. Not surprisingly, I’m happy to report that I haven't made any trips recently to the ER, and I’m no longer the poster child for presenteeism. n
Owen Ashton, CPA, CPSS, is a career and education counselor in the peer support program with the state of Utah Division of Substance Abuse and Mental Health and a Certified Peer Support Specialist at Silverado Counseling Services. He is serving as the president of the National Alliance on Mental Illness (NAMI) Utah. He authored the book, "Rising Above Fog: A Riveting True Story of Personal Triumph." He previously worked in auditing for KPMG and Deloitte. He and his wife of 45 years, Becky, have seven children and 29 grandchildren.
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BOND, REPURCHASED BOND Repurchased Bonds Held for Resale By Sheldon R. Smith and Marty D. Van Wagoner, CPA
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n occasion, a company will buy back its own bonds before the maturity date, recognizing a gain or loss on the repurchase. Generally, this buyback is done with the intent to retire the bonds and get the liability off the company’s balance sheet. However, on rare occasions, it is conceivable a company could buy back bonds with the intent to hold those bonds for a time and then reissue them. We look into such a transaction and analyze the related accounting.
Early Retirement of Debt
A company’s economic situation may have changed over the time bonds are outstanding, and early retirement may become advantageous. A company can retire its bonds early either by paying the call price for callable bonds or by purchasing its own bonds in the open market. One reason for retiring bonds early would be to avoid the continued interest payments over time. A company may also want to retire its bonds early if the call price is less than the current market price. If a company has some excess cash, retiring bonds may be a good use of this cash. Additionally, a company may want to retire bonds if it will improve its debt ratios, perhaps to meet or maintain debt covenant requirements. While financial leverage, when deployed successfully, can enhance firm value, sometimes a company’s strategy may include deleveraging if the debt load is too high.
Early Debt Repurchase Without Retirement
What if a company repurchased its own bonds but held them for possible resale prior to maturity, especially if the maturity date is many years in the future? Why might a company choose this option? If economy-wide market interest rates increase, driving down the price of bonds, a company might buy back, but not retire, its bonds at a gain. If the maturity date is still many years in the future, it is possible market interest rates could decrease over the next few years, allowing the company to resell the bonds at a much higher amount than the repurchase price. Alternatively, a company’s bond price could be driven down by a decreased credit rating due to a public lack of confidence of repayment. If the company can raise the cash to buy back all or some of the bonds, contrary to expectation, it could possibly do so at a significantly reduced price. The buyback of those bonds could demonstrate to the public that it is financially stronger than presumed, so its credit rating might increase. It could then reissue those bonds, without the issuance costs associated with a new issuance, at a much higher price. Such scenarios would result in very positive cash flows for an entity. Just as with treasury stock, an entity needs to be cautious with the repurchase of bonds and watch for potential legal pitfalls. Insider trading accusations are of great concern, of course. An entity and its directors, officers, and certain shareholders are subject to Section
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16 of the Securities and Exchange Act of 1934, Rule 10b-18, also known as the “safe harbor” rule, and Regulation FD. In addition, care must be taken to avoid classification of the repurchase as a “tender offer” unless the tender offer rules are followed. In addition to these issues, an organization must be careful to avoid accusations of inappropriate earnings management. Some scenarios under which bonds may be repurchased and not retired may just be a ploy to manage earnings. However, if a company buys back its bonds to hold them with the possible intent to resell them in the future, perhaps after several years, mostly to avoid interest payments or temporarily use excess cash, this may be considered a legitimate corporate strategy.
Income Statement Treatment
As with bonds repurchased for retirement, an argument can be made for the immediate recognition of the gain or loss if bonds are repurchased and held for resale. But other methods of accounting for the gain or loss could also be considered. We wondered about recognizing the gain/loss immediately but reversing it out if the bonds are resold later before maturity. However, we found no satisfactory way to account for any reversal. Alternatively, an entity could defer the recognition of the gain/loss until the bonds are actually retired early, mature, or are reissued. Deferring the gain/loss in a Deferred Gain account (liability) or a Deferred Loss account (asset) also does not make much sense. Unrealized holding gains/losses on available-for-sale security investments are deferred from the income statement until the actual sale of the investment by including the deferred amount in other comprehensive income (OCI). It is possible that the deferred gain/ loss on repurchased bonds held for resale could also be considered “unrealized” and stored in accumulated other comprehensive income (AOCI) until the later disposition of those bonds, either through retirement, maturity, or reissuance. A deferral may better represent the intent of the organization to hold the bonds for resale or later retirement so that the recognition of the gain or loss more closely matches the final disposition of the instrument. One potential drawback of this method
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is that a company could arbitrarily choose when to declare the bonds retired when it seems most beneficial to recognize that gain or loss in the income statement. Another idea is to defer the gain or loss and recognize it over the remaining (original) life of the bonds. This could again be done by putting the “unrealized” gain or loss in AOCI and gradually transferring it to the income statement over the remaining original life of the bonds. However, we believe it might make more sense to recognize any remaining gain or loss at the time of reissuance, maturity, or retirement.
Balance Sheet Treatment
How should the repurchased bonds be treated on the balance sheet if they are held for possible resale? If the debt is retired, the actual liability is reduced, so an argument could be made that the debt should be reduced similarly for bonds repurchased but held for resale. After all, they are not currently outstanding. A possible way to classify these repurchased bonds would be in an investment asset account. But it may be difficult to argue that you can invest in your own bonds and treat it as an asset. FASB provides some guidance for bonds repurchased and not retired. Accounting Standards Codification (ASC) 405-20-40-1 refers to the derecognition of a liability, which can happen in a few specific situations, including “Reacquisition by the debtor of its outstanding debt securities whether the securities are cancelled or held as so-called treasury bonds.” However, ASC 405-20-40-1 lacks clarity, as the term “treasury bonds” does not appear any other time in the ASC except in reference to U.S. Treasury bonds. Therefore, although it seems that FASB intended this usage to refer to a company’s bonds that are repurchased and held for possible resale, that meaning is not clarified elsewhere by the codification. In addition, the term “so-called” can be ambiguous as well. Merriam-Webster includes two definitions of that term, with the two definitions being almost the opposite of each other. One definition is “commonly named,”
bonds with an example of “the so-called pocket veto.” The other definition is “falsely or improperly so named,” with an example of “deceived by a so-called friend.” Therefore, it is not obvious whether FASB is implying that “treasury bonds” is an improper name for a company’s bonds repurchased and held for resale or if it is implying that it is a common name for such bonds. Since the term is not otherwise used in the codification, that may imply it is not a common name. However, since the term “treasury stock” is in common usage, it might be assumed that a company’s own bonds that are repurchased and held for resale could also be commonly called “treasury bonds.” Although not allowed by the ASC, perhaps the repurchased bonds should be held in a contra liability account. This treatment would recognize that the bonds are not currently outstanding but that they could possibly be resold later. This treatment would be similar to how treasury stock is presented in a contra equity account. However, it might be confusing to refer to these bonds as “treasury bonds,” as they could then be confused with U.S. Treasury bonds. On the other hand, it would also indicate a difference between bonds that are retired and derecognized compared to repurchased bonds that are held for possible resale.
Marty D. Van Wagoner, CPA, has more than 30 years of experience in public accounting. He is currently a managing partner of Mountainside Accounting & Consulting and professional-in-residence faculty at Utah Valley University. He is also adjunct faculty in the MBA program of Roseman University and teaches professional education courses across the country.
Sheldon R. Smith is a professor of accounting at Utah Valley University. He earned his B.S., MAcc, and MBA degrees from Brigham Young University and his Ph.D. degree from Michigan State University. He teaches financial accounting classes. He is also involved in research projects and provides service to both UVU and outside academic organizations.
Conclusion The ASC seems to have a definitive treatment for bonds repurchased and not retired. These bonds are derecognized in the financial statements, with a corresponding gain or loss recognized in the income statement. However, this article has raised conceptual questions about whether this is the best possible method of accounting for this type of transaction. Other accounting methods are presented that could be considered as alternatives to derecognition, which might provide better information to financial statement users. n
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A
AN UNCERTAIN LEGISLATIVE SESSION FOR UNCERTAIN TIMES We Must Be Flexible Going Into a New Year
By David peterson, Ryan peterson and Craig peterson
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s 2020 has ended (It’s about time!), we set our sights on 2021 with a new president in the White House (maybe), a new governor (definitely), a 17% turnover in the legislative body, and the general legislative session in the midst of a pandemic. At the writing of this article, the United Kingdom has approved Pfizer’s vaccine, which means one of three things as you read this: 1) It is working and vaccines are proliferating around the world and the pandemic is finally coming to an end, 2) It didn’t work and it is back to the drawing board so put your mask back on but look at the bright side, you still get to do your virtual meetings in your pajama pants, or 3) It worked for a time. And then there was a terrible side effect of the vaccine and the zombie apocalypse that many of us have been preparing for has finally happened and all of the research I conducted in my basement (playing Xbox) is finally going to pay off! Needless to say, this year has brought us challenges we could not have imagined but, as Clint Eastwood says in “Heartbreak Ridge,” “You Improvise. You adapt. You overcome.” Excellent advice for a recon platoon of Marines and excellent advice for every business, community, family, and individual on the planet. The general election saw statewide voter turnout topping 90% with more than 1.5 million of the state’s 1.7 million registered voters casting their ballot; breaking a record that has stood since 1960 when the state first started keeping records. Utahns sent two incumbent Congressman back to Washington (Rep. John Curtis and Rep. Chris Stewart) and two freshmen (Blake Moore from the 1st district and Burgess Owens from the 4th district), which flipped Republican after Ben McAdams held the seat for the last two years. While the legalization of marijuana wasn’t on this year’s ballot, you did vote to make seven amendments to the state’s constitution. Some of the more noteworthy amendments included Constitutional Amendment C, which removed the ability for slavery or involuntary servitude to be used as a punishment for a crime from the state constitution. Constitutional Amendment E preserves the individual right to hunt and fish subject to regulation and establishes hunting and fishing as the preferred way to manage wildlife. Finally, Constitutional Amendment G amends the constitution to expand the use of money from income tax and intangible property tax to support children and people with a disability. This final amendment gives the legislature a bit of flexibility to use income tax revenue,
advocacy normally earmarked solely for educational purposes, and use it to provide social services for the disabled. So, what will the 2021 Utah Legislative Session look like? Capitol Hill is still closed to the public and will be, for the most part, when the legislative session begins on January 19. We’ve met with members of both the House and Senate and while there is still a significant amount of uncertainty regarding most of the particulars, we’re fairly confident the 2021 general legislative session will be executed as it has in previous years. With almost 800 bill files opened, there will be more plexiglass, less access to legislators, and no school children on Capitol Hill. The State Office Building, which sits behind the Capitol, has been converted to house additional committee rooms. A reservation system designed to allow in-person public comment is being tested so constituents will still be allowed to participate in the legislative process. However, the third and fourth floors of the Capitol, which hold the House and Senate floor, the public gallery, and all legislative leadership offices will be closed to the public. The one significant change that has not occurred is the use of college interns. According to legislative leadership, interns from colleges and universities across the state will converge on Capitol Hill to assist legislators throughout the session. The question begs to be asked; is it smart to surround 104 lawmakers with an average age that reflects both their experience and wisdom, with a group of individuals widely recognized in the media as the most dangerous demographic for the spread of the virus? As previously mentioned, the plan is to execute the legislative session as it has in previous years but something about plans and mice and men keep running through my head.
David Peterson is a partner and attorney with Peterson Consulting Group. He received a B.S. degree from Brigham Young University, his J.D. from the University of Toledo, and his LL.M. from The Judge Advocate General's Legal Center and School. He has served on Active Duty and with the Army National Guard for more than 20 years and currently holds the rank of Major. Ryan Peterson is the managing partner of Peterson Consulting Group. He has been a contract lobbyist in the state of Utah for the last 12 years. He received a degree in economics from the University of Utah with a focus on statistics and econometrics. He is an avid golfer and resides in Salt Lake City.
Craig Peterson, senior partner of Peterson Consulting Group, has been involved in legislative processes for almost 40 years as a State Representative, State Senator, and Republican Senate Majority Leader. During the past 20 years, he has been a lobbyist, successfully representing a broad spectrum of clients. Craig and his sons Ryan and David have become a strong political voice for their clients.
During my time on active duty, we adopted a form of the Marine’s Semper Fi. It was called Semper Gumby — always flexible. If this pandemic has taught us anything, it has taught us how to find alternatives or workarounds, and we fully expect a legislative session full of opportunities to improvise, adapt, and overcome. As always, we cannot overstate the importance, even during a pandemic, of the eyes and ears of association members who provide valuable information which facilitates our legislative mission. It is the combined efforts of a dedicated association which will ensure our success in the coming general legislative session. Stay healthy, stay safe, be patient, and smile under your mask. n the journal entry | january 2021
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MEET THE EXECUTIVE BOARD
What Is a TV Series or Movie You Recommend? Jay Niederhauser President
"With COVID, my wife and I have found ourselves watching a lot of late-evening television. We have watched all 12 seasons of 'Heartland' and all 8 seasons of 'Chicago Fire.' I have to admit that, at this time of year, we always end up watching more very-predictable Hallmark Christmas movies than I would care to admit!"
Aubrey Bickmore Neeley Treasurer "I really enjoy watching family videos, both old and new. It is fun to look back and see different times and seasons of life!"
Ray Langhaim Vice President "I have not been able to watch much TV, but I watched all of the seasons of 'Alone' on Apple TV and Hulu. I love the survivor type shows. I do not know what it is about the Hallmark channel, but it seems to be on all the time in my house. I try to change it to sports but seems to turn back by itself."
Katrina Baird Member-at-Large "It’s an oldie, but I am always up for 'Three Amigos.' There is nothing greater than shooting an invisible swordsman, telling an old woman to sew like the wind, or having a turtle say, 'goodnight, Ned.' We’ve recently shown this movie to our kids, and having them start quoting the movie makes my heart happy!"
Stacy Weight President-Elect
Monica Gardner Immediate Past President
"This year I have loved getting all caught up on 'The Blacklist!' I could watch it over and over."
"One series that I can watch over and over is 'The Office' — 'bears, beets, Battlestar Galactica' — never gets old."
Paul Skeen AICPA Council
"I do not have any series on TV that I can watch repeatedly. That said, I have never tired of any of the Rocky movies (except 'Rocky V') or any of the 'Bourne' movies (except the fake one with Jeremy Renner). 'Happy Gilmore' must be watched over and over for good golf course quotes."
Susan Speirs CEO "…Bond, James Bond. Sean Connery, may you rest in peace."
Not pictured: Troy Runnells (Secretary), Nate Staheli (Member-at-Large), and Katie Chandler (Emerging Professionals) 30
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BOARD BULLETS
News From the UACPA Board The following actions were taken by the executive board at the last board meeting.
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A summary of AICPA Fall Council was given. The AICPA has been heavily involved with state societies in the PPP loan application and forgiveness process. We continue to wait for legislation that will clarify how the loans will be treated from a financial reporting and tax reporting standpoint. There was also much discussion regarding diversity and inclusion and the role our profession needs to play as we will continue to see our nation change to a “majority minority” in coming years. Barry Melancon participated as we sought insights as to the CPA Pipeline, CPA Evolution and CPA burnout and mental health issues that we are currently facing. Our profession continues to have a strong reputation. Advice and suggestions were given as we are updating our strategic plan as to where to spend resources and energy. Discussion was held regarding updating our bylaws to reflect updated information on professional conduct and our JEEP (Joint Ethics Enforcement Program) with the AICPA. We will work with the AICPA to draft appropriate language and receive approval from the executive board before putting it to a vote with our Leadership Council in January 2021. An update of our strategic plan was presented for review and comments by the board. This comes after several virtual focus group meetings from the strategic planning task force and surveys. The plan will be presented at the January Leadership Council meeting.
MEET THE UACPA STAFF
What Is a TV Series or Movie You Recommend? april deneault cpe manager "The shows I watch over and over are 'The Office' and 'Friends.' I’ve probably seen each entire series at least 10 times and they still crack me up."
tyler hodges membership development coordinator "Rachel got me sucked into a Canadian drama about a horse trainer called 'Heartland.' Yes, it is as cheesy as it sounds. I find myself liking the silly drama. If I were to pick one show to binge watch, it would be 'The Mandalorian.' That sounds better for a guy in his 20s to be into."
amy spencer marketing/communications "There are so many! I have enjoyed the German series 'Dark' and the mockumentary about vampires, 'What We Do in the Shadows.' I love bingeable series like 'Parks and Rec' and 'Friends," and British comedies like 'Miranda,' 'Friday Night Dinner' and 'Toast.' "
tom horn financial director "I did get hooked on 'Yellowstone.' I watched the first two seasons earlier this year and now watch the current season."
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STAY CONNECTED It's Almost Time To Renew Your UACPA Membership We thank you for your continued support of the profession. The UACPA staff works tirelessly to deliver everything you need to be successful. Here is how we have supported you in the past year: •
Advocacy. We have worked with the AICPA on PPP loan forgiveness, and with the Office of the State Auditor eliminating the uploading of work papers.
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Virtual Conferences. Our conferences moved online and maintained the high quality content you expect from us.
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Communication. In a year filled with breaking news, we delivered important information via email on PPP, CARES Act, Utah's initatives on the pandemic and much more.
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Celebrating 100 Years of the UACPA. Although we did not celebrate in person, members received a commemorative pin and “party in a box” via mail. Gov. Gary Herbert presented a proclamation for our celebration and the Salt Lake Chamber did a ribbon cutting.
PLEASE UPDATE YOUR CONTACT INFORMATION AT UACPA.ORG 32
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MEET A MEMBER
Randy Allen, CPA R
andy Allen, CPA, MBA, CGFM, CGMA, began his career at KPMG, but soon went to work in internal audit with Salt Lake County where he worked for 30 years. He has returned to public accounting and is working at WSRP as an assurance associate. Randy and his wife have six children and five grandchildren. As an avid waterskier, Randy enjoys teaching them and says “We ski almost ‘til ice forms and start up again soon as it thaws.”
What Led You To Become a CPA? I started at the U of U to be a dentist. Accounting seemed a good backup, and when time for dental school arrived, needing two more years of chemistry and biology made me enter the workforce to take care of family. Doubt I’ll ever become a dentist, but I do wear braces and enjoy watching my kids have dental surgeries! What Do You Like About Volunteering With the UACPA? After years of attending UACPA
conferences, I thought I’d better get off my butt and get involved. Then I found myself enjoying the folks at the UACPA offices so much I’ve been “helping” for as many years as I can remember. One of my fondest memories is talking with Gail Miller and having Thurl Bailey ask me “if he could take a picture of me with him” (thought that was a little backward). What nice people!!!
What Would Surprise People To Know About You? I am a Certified Pirate – licensed and
the whole works. I tell my grandkids I’m what they call a “good pirate” meaning I look for ways to help people. Not sure they believe that. They do know I like George Strait and country music. I also like big band stuff.
What One Book Has Influenced You? The “Book of Mormon.”
What Are Some of Your Goals? Learn as
much as possible as quickly as possible, and don’t be afraid to admit I don’t know everything. There are few experts, if any, but a lot of folks know a lot more than me. The only way for me to keep learning is to keep asking questions. Personally, I want my family and friends to know I love them and want to help them however possible. Professionally, I want my associates to know I love them and want to help them however possible, too. My main goal is to help and serve someone somehow some way.
What Advice Do You Live By?
“Keep your nose clean.”; “If a job is once begun, never quit until it’s done. Be the job great or small, do it right or not at all,”; and “Tell my wife I love her at least once a day” n the journal entry | january 2021
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Member Benefits
The UACPA Honors 100% Membership
Beehive Insurance
Congratulations to the firms and businesses currently participating in the UACPA's 100% membership program. This demonstrates their commitment to the profession, to the association's high ethical standards and a commitment to lifelong learning.
The UACPA's Affinity Partners help you get the most out of your membership Groups with 2 to 100 eligible employees can participate in medical, dental, vision, telehealth and voluntary onsite programs through this plan. For more information, contact Todd Valentine at 801-743-7788 or tvalentine@beehiveinsurance.com.
Constant Contact
Constant Contact gives you the tools to send branded emails, sell products and build a website. UACPA members receive an additional 10% off the standard prepay discounts. Learn more at UACPA.org under the Member Benefits Marketplace.
National Affinity Service
Identity protection experts have you covered for $12.95 per month or $16.95 per month for a family. Visit healthwealth.fit/ uacpa_infoarmor.
CCH
UACPA members receive a discount on the U.S. Master Tax Guide and more. Visit cchgroup.com and use code Y3819.
Camico
The Mutual Insurance Company offers UACPA members a variety of benefits. To learn more, call 800-652-1772 or email inquiry@camico.com.
Office Depot/Office Max
UACPA members can save up to 80% on office products, printing, technology and furniture. Visit officediscounts.org/ uacpa to learn more.
Paychex
Paychex, Inc., a leading provider of integrated human capital management solutions for payroll, benefits, human resources, and insurance services offers UACPA Members. For more info, visit Paychex.com/accounting-professionals. Learn more about member benefits by talking to Amy Spencer at as@uacpa.org or by calling 801-466-8022.
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the journal entry | january 2021
PUBLIC PRACTICE • CBIZ • Cook Martin Poulson • Davis & Bott • Eide Bailly • Haynie & Company • Hinton Burdick • Jones Simkins • PricewaterhouseCoopers • Savage Esplin & Radmall • Squire • Stayner Bates & Jensen • Tanner, LLC INDUSTRY • LDS Church Auditing Department Firms with 10 or more full-time CPAs are eligible to be a part of the 100% membership program. Learn more by talking to Tyler Hodges at 801.466.8022 or thodges@ uacpa.org.
Find Jobs & Candidates Explore listings at uacpa.org/jobs
Get your job posted for 30 days by sending the description to Amy Spencer, as@uacpa.org
Volunteer in 2021 Is "give back to the profession" on your list of things you want to do in a new year? The Utah Association of CPAs has a number of opportunities where you can volunteer your time through committees and chapters. To nominate yourself, visit uacpa.org/ volunteer or email mail@uacpa.org with the committees you are interested in. Some UACPA Committees Chapter Leadership Financial Literacy Nonprofit Committee CPAs in Business & Industry Executive Board Awards Task Force Conference Planning Task Force Golf Tournament Task Force
Classified Ads To place your classified advertisement and reach Utah CPAs, contact the UACPA at mail@uapca.org. Utah Practice For Sale: gross revenues shown: Ogden, UT CPA $774K - Tax 60%, accounting 40%, cash flow near 50%. For more information, please call 1-800-397-0249 or visit www.APS.net to see listing details and register for free email updates. THINKING OF SELLING YOUR PRACTICE? Accounting Practice Sales is the leading marketer of accounting and tax practices in North America. We have a large pool of buyers, both individuals and firms, looking for practices now. We also have the experience to help you find the right fit for your firm, negotiate the best price and terms and get the deal done. To learn more about our risk-free and confidential services, call Ryan Pannell with The Holmes Group at 1-800-397-0249 or email Ryan@APS.net.
the journal entry | january 2021
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UTAH ASSOCIATION OF CPAS
Nonprofit Org.
136 S. MAIN STREET, SUITE 510
U.S. Postage
PAID
SALT LAKE CITY, UT 84101
Salt Lake City, UT Permit No. 1996
2021
LEADERSHIP ACADEMY NOV. 10 – 12
CPAs will find the tools and training needed to propel them into the future at this intensive and rewarding retreat. Twenty new professionals will be accepted to participate in this exclusive opportunity. More details will be available in the April issue of The Journal Entry.
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the journal entry | january 2021