Accounting education

Accounting Today is issuing a call for nominations for its annual Top 100 Most Influential People in Accounting list.

I just returned from a three-day trip to my undergraduate university and my 50th reunion. Yes, you read that right. Fifty years. Okay, so I started college at 10. About 400 showed up for this clambake and the most startling thing of all is that I recognized nobody and they probably felt the same about me. To the credit of the planning committee, the name badges draped around our necks not only had our names, including any nicknames known in school at that time in 1954, but also our graduation picture. That made it much easier to recognize people. I would simply go up to some unknown face, look at the picture on the name tag, and say “Hey, Bill, I know you.” And then lift my eyes to his face and say, “But you I don’t know.” What a wakeup call. Interestingly enough, if I talked to 10 people, only one—one mind you—was still working. The other nine had all “retired.” I put quotes around the word “retired” because retirement is not in my lexicon. I believe in changing lifestyles but sitting home, watching Oprah, and eating bon bons is not my ideal life. I would have to keep the brain going and the muscles in the body stimulated. Now, of those 10 people, the one who is still working is not doing it by choice. He is working because he “has to,” meaning he doesn’t have the funds to “pack it in”…another phrase commonly used at this reunion. The other nine? Catch this. None of them went to a financial planner. They used their accountants to determine what the income flow was (Social Security, pensions, securities, savings, et al) against what the expenses would be. This is a complete turnabout with what is going on today where Baby Boomers are flooding to financial planners and the financial planning niche is the fastest growing one in the industry. Why is that? One thing to keep in mind. At the time my colleagues decided to put a brake to the 9-5 grind, the economy was in good shape, stocks were up, there was pretty solid economic growth. This was all pre-9/11 and pre-Iraq, because the majority of my colleagues stopped full-time work by the time they turned 60, some 12 years ago. Today, the economy is panting, stocks are taking a beating, cost of living is sky-high, and everyone is running scared. A different world from one decade to another. What I found also fascinating is that my classmates were not living like Donald Trump. They were comfortable with enough money for their basic needs and at least one vacation (not more than $5,000) a year. Many had moved to other parts of the country to keep costs down. They were extracting only about five percent from any pension plans; in effect, living off the interest rather than the principal. And oddly enough (and maybe it’s the generation), nobody was scrimping and saving to leave a big fortune to kids and grandkids. “Shrouds have no pockets,” said one classmate. “You can’t take anything with you. I’m spending every last cent.” Another chimed in with “Hey, my kids make more than I did.” But, these weren’t cries of bitterness. They were statements of fact. I think the most telling aspect of this reunion and the one that woke us all up was a particular dinner where the university president offered a slide show in which he talked about our class and what we had and didn’t have when we came to school as freshmen in 1954. Up there on the screen the only electronic equipment we saw was the record player spinning 78s and 45s, and the old Underwood manual typewriter with those red/black spools that had to be changed quite frequently. And then he showed us what the kids of today have: computers, desktop and wireless, Blackberries, Blueberries, iPods, DVDs…it went on and on and on…and we all groaned. “Yeah, look at what we had and now look at what these kids have.” Everybody griping until the president ended with these words: “And you people should have no regrets, for after all, you invented all of this.” End of story. See you in another 50? Sure. Take two and hit to right.

The American Institute of CPAs has awarded research grants to accounting and management professors from the University of California, Rice University and the University of Melbourne, Australia.

The House Ways and Means Select Revenue Measures Subcommittee held hearings on bills that would encourage employers to automatically enroll their employees in individual retirement account plans.

Olympic gold medalist Wendy Lansbach Boglioli gave a thought-provoking talk last week at the New York State Society of CPAs’ Personal Financial Planning and Eldercare Conference about the importance of long-term care insurance.

We all want to do more productive, efficient work.

The Securities and Exchange Commission plans to launch an ambitious project to re-examine how companies and other entities should make financial disclosures to take advantage of the latest technologies.

We all want to do more productive, efficient work.

Bob Graham paid a visit to the American Institute of CPAs' Spring Council Meeting last month to learn more about what the profession was doing, especially in the way of education for the newly approved forensic accounting credential as well as international accounting. A former U.S. senator, Florida governor, and presidential candidate, he recently opened the Bob Graham Center for Public Service at the University of Florida. Sen. Graham spoke to WebCPA about his views on education in the accounting profession.

We all want to do more productive, efficient work.

Try this on for size. A new study shows that of some one million 401(k) portfolios, some 69 percent of participants have portfolios with inappropriate risk or diversification, 36 percent hold high concentrations of company stock, and 33 percent fail to contribute enough to receive the full company match. While groups of participants are taking full advantage of their 401(k) plans, participants with lower salaries, lower plan balances, and those closer to retirement tend to make the most costly mistakes.

Cohen & Co. has acquired Mercurio & Bridgford, expanding the Ohio-based firm's presence in Florida.

Citigroup settled a longstanding civil complaint from the Securities and Exchange Commission over improper accounting during the economic crisis in Argentina in late 2001.

The Institute of Management Accountants Foundation for Applied Research plans to provide nearly $100,000 in funding to two new research projects in management accounting.

All eyes are on the Securities and Exchange Commission as it prepares to issue a detailed roadmap this summer for the transition to International Financial Reporting Standards, but some representatives gave hints about what might be in that roadmap at a conference held by the Financial Accounting Standards Board in New York.

The Internal Revenue Service has issued a notice providing guidance on the effect of adding liquidity facilities to support auction rate preferred stock on the equity character of the stock.

After floating the proposal roughly one year ago, the American Institute of CPAs has approved the creation of the Certified in Financial Forensics credential, a new designation that will include expertise in a range of areas such as bankruptcy and insolvency, computer forensics, economic damages, family law, fraud investigations and litigation support.Approval for the credential — which will be the fourth offered by the institute, joining the Personal Financial Specialist, the Accredited in Business Valuation and the Certified Information Technology Professional — was approved at the annual meeting of Spring Council here.

IPRO ONE ACQUIRES OWNERSHIP IN HBK SORCE FINANCIALiPro One has reached an agreement to purchase an ownership interest in HbK Sorce Financial, an investment advisory and wealth management firm with more than $1 billion in assets under management.

With all the recent brouhaha over the subprime controversy and claims that mark-to-market accounting contributed to or even caused problems for investors in collateralized debt obligations, lots of people have been commenting on the relative usefulness of original cost and estimated market/fair value.One of the recurring themes raised by the chorus of critics (who shall remain nameless) is that original cost is preferable because it’s more reliable than estimated value.

In 1994, the Governmental Accounting Standards Board established standards for public employee pension plans. Government and public employers have to report and account for pension benefits costs.However, until recent years, there was no such standard in place for other post-employment benefits for state and local government workers.