MSCPA Foundation Awards 2009 Scholarships · MSCPA Foundation Awards 2009 Scholarships Scholarship checks totaling $17,000 have been mailed to accounting students at Mississippi colleges

MISSISSIPPI SOCIETY OF CERTIFIED PUBLIC ACCOUNTANTS

VOLUME XLVIII SEPTEMBER 2009

MSCPA Foundation Awards 2009 ScholarshipsScholarship checks totaling $17,000

have been mailed to accountingstudents at Mississippi colleges anduniversities. Members of the MSCPAAwards, Education & ScholarshipsCommittee reviewed and approvedapplications in July from students atinstitutions which award accountingdegrees. Scholarships are then reviewedby a Foundation Trustee and fundedthrough the MSCPA EducationFoundation.

To be eligible, students must bemajoring in accounting, havecompleted their junior year inpreparation for their senior year orgraduate study, be a Mississippi resident,excel academically, be recommended bya professor, have a financial need andbe involved in campus activities.

The scholarships include three$1,000 scholarships to graduatestudents: the Ross/Nickey Scholarshipand two Gary E. Thornton MemorialScholarships. This year undergraduatescholarships for $2,000 were awarded tostudents at seven colleges/universities.

One scholarship winner is selectedto receive the Hamp King Award. Thisaward was established to recognize andhonor the memory of the late HampKing who served as Mississippi’s State

Auditor for manyyears. Julia RayeJesuit of Madisonwas selected for thishonor and willreceive a secondscholarship checkin November fromthe Mississippi TaxInstitute Trustees.Julia attends

Millsaps College where she has a 4.0 inaccounting and a 3.847 overall. AtMillsaps, she is active in Wellspring, acommunity service on campus forFreshmen; Kappa Delta, serving as

Assistant Treasurer, SisterhoodCommittee, Treasurer; Beta Alpha Psi,Treasurer; and Beta Gamma Sigma,Catholic Student Association, Circle K-Treasurer; and College Republicans. Inthe community, she has volunteeredwith Stewpot Communities Services,Habitat for Humanity, New OrleansRelief Work (Hurricane Katrina),mentoring at an elementary school,Midtown volunteer work, assisted GirlScouts, St. Joseph Catholic Church, andvolunteering at a nursing home withchurch.

Scott Andrew Stewart of Madisonwas named the recipient of the ThomasA. Ross/Robert L. Nickey Scholarship,established in 1998 to honor theircontributions to the accountingprofession. Ross, who died in 2007, wasan MSCPA Past President, long-timepractitioner and former State Boardmember. Nickey, who died in 2003,served as Executive Director of theMSCPA for 23 years. Scott attends theUniversity of Mississippi where he has a

Virginia Lois Carpenter

Julia Raye JesuitHamp King Award Winner

Whitney Lauren Gill

Jennifer Michelle Scott

Patricia Diane Commarato

Holly C. Grames

Scott Andrew Stewart

Christopher Drew Edwards

Shala Sa’Briel Harris

Elizabeth Ann Youngblood

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2010 MSCPAAnnual Convention

June 24-27, 2010Sandestin Golf& Beach Resort

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Mississippi Society of Certified Public Accountants September 2009

Publishedby the

Mississippi Society of Certified Public Accountants

306 Southampton RowThe Commons

Highland Colony ParkwayRidgeland, MS 39157

PHONE: (601) 856-4244FAX: (601) 856-8255

E-MAIL ADDRESS: [email protected]

OFFICERS

PresidentBob Cunningham, Jackson

Vice President/President-ElectSim Mosby, Natchez

SecretarySusan Riley, Hattiesburg

TreasurerLee Adams, Jackson

Immediate Past-PresidentJan Lewis, Jackson

Executive DirectorJack O. Coppenbarger

The CPA Newsletter is the officialpublication of the Mississippi Society ofCertified Public Accountants. TheNewsletter invites articles of interest to theprofession and gives credit to the author;however, it reserves the right to editarticles for correct spelling, wording andpunctuation.

Opinions expressed are not necessarilythe official policy of the MSCPA.Advertising is accepted in good faith thatthe product/services are of value stated.

Central Chapter Contributes $10,000Central Chapter has contributed $10,000 to the MSCPA with $5,000 designated tothe Education Foundation for scholarships and $5,000 to the Building Fund.Presentation of the check was made during their August meeting to MSCPA PresidentBob Cunningham. With President Cunningham is Central Chapter President MaryLambdin along with Chapter officers Diana Hardin, VP of Programs and President-Elect, and Giselle Stromgren, VP of Membership.

Welcome New MembersNew MSCPA members include

Jeremy Allen Bishop, Karla DemaraisDuckworth, Adam Edward Milner,Matthew Stephen Sasser, JiaVonne Scott,Mark Alan Thornton, and Scott M.Wilson.

Now completing the membershipprocess are:

Charles R. Byram was born inVicksburg and received his Bachelor ofScience in Business Administration fromthe University of Southern Mississippi.He is a Senior Manager with Haddox,Reid, Burkes & Calhoun in Jackson.

Nicole Lynn Cleveland was born inBay St. Louis and received a Bachelor ofScience in Business Administration fromthe University of Southern Mississippiand MBA from Loyola University ofNew Orleans. She is an Accountant Iwith Mississippi Power Company inGulfport.

James Russell Gainspoletti wasborn in Cleveland and received his BBAfrom Delta State University. He is onthe staff of Gainspoletti and Associates,

P.A. in Cleveland.John Eric Hester was born in

Jackson and earned degrees inpsychology and accounting from theUniversity of Mississippi. He is on thestaff of Williams, Weiss, Hester & Co. inJackson.

Brandi Lauren Holley was born inYazoo City and received a BA in arthistory from the University ofMississippi. She is on the staff ofChurch, DeVoe & Associates, PLLC inOxford.

Jeffery Wayne Horner was born inJackson and received an A.A. degreefrom Hinds Community College and hisBachelor and Master of Accountancydegrees from the University ofMississippi. He is a Health CareAssurance Manager with Horne LLP inJackson.

Margaret Corban King was born inNew Orleans and received her BusinessAdministration degree from MillsapsCollege. She is a Bureau Director with

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September 2009 Mississippi Society of Certified Public Accountants

www.koerbercompany.com • Toll Free: 888.655.8282103 Madison Plaza • Hattiesburg, Mississippi 39402

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Payroll & PractitionerLiaison Meeting SetNov. 19 in Tupelo

IRS Stakeholder Liaison is planning aPayroll & Practitioner Liaison Meeting (PLM)in Tupelo, MS on Thursday, November 19,2009 from 9:30 a.m. to Noon. The IRS, incooperation with Renasant Center for IDEAsand the Mississippi Small BusinessDevelopment Center, invites you to plannow to attend this PLM.

The PLM will be held at the RenasantCenter for IDEAS at 398 East Main Street inTupelo. IRS Functions already committed tomake presentations include CriminalInvestigation, Appeals and StakeholderLiaison. Ellen Dolby, Director, Gulf StatesArea, Field Collection, will give apresentation. Other IRS functions expectedto confirm soon include Examination,Collection and either TIGTA or the ReturnPreparer Coordinator. In addition, theMississippi State Tax Commission will likelygive an update. Please R.S.V.P. as space islimited. Call or email either Martha Swindlewith Renasant Center for IDEAs at (662) 823-4336 [email protected] or James “Mark”Craven, IRS Stakeholder Liaison, at (601)292-4858 [email protected]. More detailsto follow in early October.

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4.0 in accounting and a 4.0 overall. Hehas served as President of Students for aSafe Ride; Recording Secretary-BetaAlpha Psi; and member of Phi KappaPhi, Mortar Board, Beta Gamma Sigma,Ole Miss Ambassador, Student AlumniCountil, Lambda Sigma, and AlphaLambda Delta. He served as a Leader atSummer Camp in Jambville, Francethrough the Children’s InternationalSummer Village.

Two graduate students have beennamed winners of the Gary E. ThorntonMemorial Scholarships, established in1999 by Gary’s widow, Cathy. Gary wasan active MSCPA member and formerchair of the Governmental A&ACommittee. He died in March of 1999.Whitney Lauren Gill of Oxford attendsMississippi State University where shehas a 3.75 in accounting and a 3.82overall. She is active in Beta Alpha Psi,serving as Vice President and attendingthe regional and national meetingswinning a runner-up in Best Practices

Competition at national; Beta Gamma,Finance Assistant; Beta Gamma Sigmaand Phi Kappa Phi. She took part in amission trip to Salerno, Italy in 2007, isactive in Habitat for Humanity and is astudent member of AICPA. JenniferMichelle Scott of Lena attendsMississippi College where she has a 4.0in accounting and a 4.0 overall. Shewas a member of Mu Alpha Theta andPhi Theta Kappa while attending EastCentral Community College. At MC,she was active in Delta Mu Delta HonorSociety for Business Students, Alpha ChiHonor Society, and the AccountingSociety. Active in Clifton BaptistChurch in Forest, she teaches VacationBible School, Sunday School, MissionFriends and sings in the adult choir.

The following undergraduatewinners of $2,000 scholarships are listedalphabetically:

Virginia Lois Carpenter ofVicksburg attends Mississippi Collegewhere she has a 4.0 in accounting and a3.919 overall. While attending HindsCommunity College, she was a memberof Phi Theta Kappa, junior college

AWARD WINNERSCONTINUED FROM PAGE 1

honor society, and Alpha Beta Gamma,business honor society. She is currentlya member of the MC AccountingSociety, Delta Mu Delta, a businessadministration honor society, and thePhi Theta Kappa Alumni Chapter. Shehas participated in the Relay for Life in2006 and 2009, the American CancerSociety’s “Strides Against Breast Cancer”in 2008 and the Muscular DystrophyAssociation’s “Stride and Ride” in 2008.

Patricia Diane Commarato ofMadison attends Mississippi StateUniversity where she has a 4.0 inaccounting and a 3.96 overall. At MSU,she is a member of the CampusActivities Board, serving as SpecialEvents Division Head; MSU ConcertChoir, MSU Chamber Singers, BetaAlpha Psi, and Delta Gamma, serving asAssistant to VP Finance.

Christopher Drew Edwards ofMeridian attends the University ofMississippi where he has a 3.67 inaccounting and a 3.93 overall. He is amember of Phi Theta Kappa and activein Intramural Basketball, Intramural

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Football, College Republicans, and aparticipant in the Scholars Bowl.

Holly C. Grames of Petal attendsthe University of Southern Mississippiwhere she has a 4.0 in accounting and a3.847 overall. She is a member of BetaGamma Sigma and is a volunteer leaderfor the Boy Scouts of America in theCub Scouts Program.

Shayla Sa’Briel Harris of Newtonattends Jackson State University whereshe has a 3.0 in accounting and a 3.6overall. She is a National Dean’s ListScholar, member of Alpha LambdaDelta Honor Society and theAccounting Society. She is a volunteerfor Toys for Tots and participated in aCanned Food Drive.

Elizabeth Ann Youngblood ofCleveland attends Delta State Universitywhere she has a 4.0 in accounting and a3.92 overall. She is a Delta State HonorsFellow; member of Delta Delta Deltaserving as Athletics/Intramurals Chair2008, Social Chair 2009; Phi Eta Sigma,Freshman Honor Society; StudentGovernment Association, Spirits andTraditions Committee member; StudentAccountants and BusinessAdministration, Secretary 2009; DeltaMu Delta, Accounting Honors Society,College of Business Dean’s AdvisoryCouncil and the Wesley Foundation.She is active in the United MethodistChurch in Batesville, Relay for Life,Missions in Binghamton, Tennessee andon the Mississippi Gulf Coast, andactive in St. Jude philanthropicactivities.

AWARD WINNERSCONTINUED FROM PAGE 5

Our Members in the NewsMarion H. Gray, Jr., of Madison has been named Chief Financial Officer of

Franchise Services of North America, Inc. FSNA is a publicly traded company listedon the TSX Venture Exchange. The company and its subsidiaries own the followingbrands: U-Save Car & Truck Rental; U-Save Car Sales, Rent-A-Wreck of Canada, AutoRental Resource Center, Xpress Rent a Car and Peakstone Financial Services.

u u uIn July 2009, Jim Koerber, CPA/ABV, CVA, CFE, CFF was an invited speaker at the

Mississippi College School of Law’s Marathon CLE. Koerber spoke on “EvaluatingPersonal Injury & Wrongful Death Damage Calculations” to over 100 attorneysattending the seminar, which was held in Jackson, Mississippi. Koerber is ashareholder with The Koerber Company, PA, a Hattiesburg, Mississippi CPA firm,which provides forensic, valuation, and litigation services to attorneys, CPAs, andtheir clients.

u u uHorne LLP, a top 50 accounting and business advisory firm in the United States

has announced the election of Tommy Butler to the firm’s Board of Directors. Butlerjoined HORNE in 1998 and has more than 30 years of experience in publicaccounting. He serves as the partner in charge of core services, overseeing offices inMississippi and Tennessee. Butler is a member of the American Institute of CertifiedPublic Accountants, Mississippi Society of Certified Public Accountants and theLegislative Committee of Certified Public Accountants. Active in his community,Butler is committed to organizations such as the Newcomen Society of the UnitedStates, the Mississippi Juvenile Diabetes Research Foundation, and is chairman-electof Junior Achievement of Mississippi’s Board of Directors. He serves on theMississippi College Business Advisory Board, Junior League of Jackson AdvisoryBoard, and is chairman of the Madison County Foundation. Butler is a graduate ofMississippi College.

the Department of Medicaid in Jackson.Toni Murphy is a graduate of

Dillard University with a B.A. inBusiness Administration and of theUniversity of New Orleans with a degreein accounting. She is a Senior AuditorII with Bruno & Tervalon, LLP inJackson.

Caleb Lee Nicholson was born inHattiesburg and received Bachelor andMaster of Accountancy degrees from theUniversity of Mississippi. He is an

Internal Auditor with Blue Cross BlueShield of Mississippi in Flowood.

Janice A. Saunders was born inNatchez and received a Bachelor ofBusiness Administration from theUniversity of Mississippi and anAccounting Certificate from MississippiCollege. She is a Manager with White& Company in Jackson.

Daniel Hardin Scarbrough wasborn in Flowood and received Bachelorand Master of Accountancy degreesfrom Mississippi State University. He isa Supervisor with BKD, LLP in Jackson.

WELCOME NEW MEMBERSCONTINUED FROM PAGE 2

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Recognize anOutstandingEducator

The Awards, Education &Scholarships Committee is seekingnominations for the OutstandingEducator Award for 2009-2010.

Each year the committeerequests nominations for selectionof an educator who has madesignificant contributions as anaccounting instructor. Thatindividual is honored during theMSCPA Annual Business Meetingat Convention in June.

Nominations should besubmitted in writing to beconsidered by the committee.Send your nominations toOutstanding Educator, c/o MSCPA,306 Southampton Row, Ridgeland,MS 39157 to the attention ofKaren Moody, CommitteeChairman.

Vehicle Donation Program ContinuesCash for Clunkers may have ended, but the Mississippi Kidney

Foundation is continuing to accept charitable donations of unwantedvehicles, including cars, trucks or boats, running or not. The Kidney KarsProgram, now in its 17th year, is fast approaching the $2,000,000 mark infunds raised, as well as the 4,000 mark of donated vehicles.

“People donate for a variety of reasons. Some are tired of paying taxesand insurance on a car that they no longer want or need. Many timesrepair bills are too high or the trade-in values are too low,” said GailSweat, executive director of the Mississippi Kidney Foundation. “Oftenpeople are just not willing to go through the hassle of trying to sell thecar themselves and having strangers come to their house for a test drive.”

When you itemize on your taxes, the IRS allows the deduction of whatthe car sells for at auction or $500, whichever is higher.

“We were not really affected by the Cash for Clunkers Program becausethose cars had to be in driveable condition,” said Sweat. “Most of the carswe receive are not running, and our program is convenient because weprovide free towing.”

For more information, call the Mississippi Kidney Foundation at (601)981-3611.

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PDFs: More Than You Thought Possible Thomas G. Stephens, Jr., CPA.CITPINTRODUCTION

Since their introduction over twodecades ago, PDF files have ascended tothe forefront of document storage andarchiving and now serve as the de factostandard in most of the documentmanagement systems used byaccountants and finance professionals.The reasons for this are many, but arecentered around the fact that PDFdocuments are hardware, software, andoperating system independent – that is,a user can read and work with a PDF fileregardless of the type of computer oroperating system in use. What manydo not understand is that PDF files alsoserve many purposes other than just ameans of storing documents. From fill-in forms to a mechanism for documentreview and collaboration to afoundation for multimedia documents,the capabilities of PDF files are muchgreater than many think possible. Inthis article, we examine some of thelesser-known possibilities of workingwith PDF documents.

COLLABORATING WITH PDFSOne of the pervasive myths related

to PDFs is that users cannot change theinformation inside the document. Infact, PDFs are, by default, unsecureddocuments and, accordingly, users canalter them in any number of ways. Thisability to edit PDF files is exactly whatmakes PDFs an ideal tool forcollaborating with others.

One means of collaborating with

PDFs involves sending the PDF to othersvia email for commenting and markup.To do so, in Adobe Acrobat Standard orhigher, select the Comments menu andchoose Attach for Email Review. Next,specify the email addresses of therecipients and send the file. Thismethod allows you to track thecomments made by others andincorporate these comments back intothe original document.

Another very easy way to collaborateon PDFs is to use Adobe’s freeAcrobat.com service as the means fordistributing documents to others. WithAcrobat.com, users upload thedocument securely to an Adobe serverand provide invitations for others toedit and mark up the document on theserver. Two advantages of usingAcrobat.com instead of the email-basedreview process include:

1) You can easily track who hascommented on the document andsend reminders to those that havenot responded, and

2) Every reviewer of the documentcan see the comments and editssuggested by all other users.

The ability to collaborate on PDFdocuments is a key feature foraccountants using PDFs in preparing taxreturns. For example, working papersrelated to the tax return could bescanned/converted/saved as a PDF andthen routed to the appropriate teammember for review and approval. Staff

members can easily clear review notesinside the PDF and the PDF filemaintains a thorough record of all notesand their disposition.

USING PDFS TO COLLECT DATAVirtually all businesses use forms as

tools for collecting and summarizinginformation. Purchase orders, invoices,tax documents, and employmentapplications are all examples ofcommonly used forms. In some cases,these forms are preprinted, and usersmanually input data; in other cases,software applications – accountingapplications, for example – generatethese forms, and users print or storethem for future recall. However, in anincreasing number of cases, PDFdocuments are the foundation of theseforms.

Among the many advantages ofusing PDF files as the basis for formsare:

• PDF forms can be created anddistributed for virtually zero out-of-pocket costs to mostorganizations;

• PDF forms support "green"initiatives by reducing paperconsumption;

• Users can construct PDF formseasily from existing electronicdocuments and paper-basedforms, as well as from scratch;

• PDF forms are easy to distribute

continued on page 6

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BRIAN SCHMITTLINGCPA/ABV, CVA, CFE, CFF

via servers, e-mail, or web-baseddelivery methods;

• PDF forms are relatively easy tosecure;

• Numerous options exist forcollecting and managinginformation entered into PDFforms; and

• Users can import data collectedvia PDF forms into many softwareapplications.

Though users of Adobe AcrobatReader can fill in existing PDF forms,creating forms requires Adobe AcrobatStandard or higher, or PDF software ofsimilar capability available from othercompanies. If using Acrobat Standard orhigher, users can create forms in one ofthree ways:

1) From an existing electronicdocument. To create a form from anexisting electronic document, includinga Microsoft Office Word document,select the Form Wizard from the Formsmenu and choose An existingelectronic document. Acrobat will

“read” your existing document andconvert it into a fill-in PDF form.Though some minor touch-up may benecessary for the final product, in mostcases Acrobat does a remarkably goodjob of converting the document into aform and recognizing all of the fields.

2) From an existing paperdocument. Choose A paper form fromthe Form Wizard to convert an existingpaper form into a fill-in PDF form.During this process, Acrobat promptsyou to scan your existing paper form;upon scanning the paper form, Acrobatwill convert the document into a fill-inPDF form, similar in fashion to theprocess described for converting anexisting electronic document.

3) From scratch or from atemplate. If the form you wish to createdoes not already exist in some fashion,choose No existing form from theForm Wizard. Choosing this optionallows you to create a form from“scratch” or from a predefined templatein Acrobat.

Regardless of the method used tocreate a form, most users will find theprocess of creating forms, distributingthem, and collecting data to be

PDF POSSIBILITIESCONTINUED FROM PAGE 9

surprisingly easy and efficient.

WORKING WITH MULTIMEDIAIN PDFS

Users can easily add multimediacontent – such as video and sound clips– to PDF files. Doing so will help toengage the reader of the PDF documentand to ensure that your intendedmessage is both heard and understood.To add a multimedia object, chooseTools, Multimedia and then the typeof object you will add – 3D, Flash,Sound, or Video. Next, click and dragon the PDF to select where you wantthe multimedia object to appear. Thenbrowse to the file you wish to add orenter the URL that points to thelocation of streaming media you wishto play inside the PDF.

When adding multimedia to a PDFdocument, users can access a series ofAdvanced Options that provide choicesfor greater control over how themultimedia will appear and playbackinside the PDF. Included in theseoptions are how the reader will startand stop the playback, the appearanceof the multimedia within the PDF, and

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Young CPA Conference Held September 1The first annual Young CPA Conference was held Sept. 1 at the

Mississippi Sports Hall of Fame Museum in Jackson with approximately 85attending. Participants that evening were joined by members of the YoungJackson Lawyers Group to attend the Mississippi Braves game. Conferencespeakers included Susan Harris, MSBPA Executive Director, Mississippi Rules& Regulations; MSCPA President Bob Cunningham and Past President JanLewis with an MSCPA update; Charley Rafferty, Reducing the Risk ofIdentify Theft; Mark Morgan, Beginnings of Fraud Examination; JulieLaperouse, “Wish I Could Be a Better Speaker but I’m t-t-terrified”; and StateAuditor Stacey Pickering, Keys to Effective Leadership for YoungProfessionals. Young CPA Network committee members who planned themeeting included Melanie Morrow, President; Jonathan Hagood, VicePresident; Mary Beth Mayer, Secretary; Shanell Watson, TechnologyCoordinator; Tom Walker, Joy Shideler, Kent Raulston and Jessica Williams.

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IFRS for Small and Medium-sized Entities (SMEs)What is IFRS for SMEs?

The July 2009 release of InternationalFinancial Reporting Standards (IFRS) forSmall and Medium-sized Entities (SMEs) is amajor event in the adoption of internationalstandards by U.S. companies. Since theAICPA’s May 2008 recognition of theInternational Accounting Standards Board(IASB) as a standard-setting body, IFRS forSMEs automatically becomes an acceptablebasis for accounting in the United States.

Prior to the release of IFRS for SMEs,professionals studying the U.S. adoption ofIFRS generally concluded that publiccompanies would lead the way in the U.S.adoption. However, since the SEC has madeit clear other problems are more pressingright now, it is quite possible that privatecompanies, not public ones, will lead theU.S. adoption of international standards.

The IASB intended IFRS for SMEs to bethe acceptable standard that mostcompanies would use. The standards settersenvisioned that companies with publicaccountability would use full IFRS and allother for-profit entities would use IFRS forSMEs. The IASB defined publicaccountability to mean public companiesand those holding assets in a fiduciarycapacity for outsiders such as banks, creditunions, insurance companies, broker dealersand mutual funds. They defined SMEs aseveryone else. Thus, their definition of“small and medium-sized entities” has littleto do with size. A huge closely heldcompany might fall under IFRS for SMEswhile a small public company might besubject to full IFRS.

The IASB estimates that 95% of theworld’s for-profit entities would use IFRS forSMEs. The IASB acknowledged thatlegislatures and standard-setting bodies ofeach jurisdiction would make the decisionabout which entities would use each of thetwo IFRS standards. No internationalstandards yet exist for not-for-profit entities.

What You Need To KnowThe good news is that IFRS for SMEs is

relatively short. Presented on an odd-sized6”x 93/4” paper with a tiny 8.5-point font,the full text runs only 231 pages1. Thiscompares to some 2,500 pages for full IFRSand 25,000 pages for U.S. GAAP. IFRS forSMEs is not some severely scaled-downstandard designed for third world countries,but a comprehensive principles-basedstandard.

Other good news is that most of thestandards discussed in IFRS for SMEs willseem familiar and common sense to U.S.accountants. There will be few unfamiliar

terms2. These are among the key provisions:Inventory Valuation – Inventory

under IFRS is valued at lower of cost orselling price less cost to sell (net realizablevalue). While similar to the “lower of costor market” used in U.S. GAAP, this is aharder analysis to perform due to the addedrequirement of estimating selling costs.

Fair Value Accounting forProperty, Plant and Equipment(PP&E), which is one of the majordifferences between full IFRS and U.S. GAAP,is not an option under IFRS for SMEs. Usinghistorical cost is the only option. However,this is not the same historical costmethodology used by U.S. GAAP whereaccountants routinely ignore residual valueand employ depreciable lives that sometimesrepresent merely half of economic reality.Under IFRS historical cost, companies adjustboth useful lives and residual value ascircumstances change.

While it will take most accountants wellunder an hour to understand the principlesof IFRS historical cost accounting for PP&E,the amount of work to implement thisstandard may be considerable.

Revenue Recognition for SMEs closelyresembles full IFRS, which consists ofrelatively few principles-based standards.Unlike rule-based U.S. GAAP, IFRS expectsaccountants to apply and interpret revenuerecognition principles to their owncompany’s situation.

Financial Statement Presentation –IFRS for SMEs specifies the following basicfinancial statements:

• Statement of Financial Position• Statement of Comprehensive Income• Statement of Changes in Equity• Statement of Cash FlowsThe standard also provides companies an

alternative that allows them to show profitand loss on a separate statement fromcomprehensive income. In addition, when acompany’s only changes in equity are toretained earnings and dividends, they maycombine the Statement of Changes inEquity with the Income Statement.

The current IFRS standards specify whatmust appear on financial statements, butnot how companies must present them.Current IFRS will have little affect on USfinancial statement presentation. However,the current FASB/IASB’s financial statementformatting joint project could completelyremake financial statements as accountantsworldwide know them today.

While not well known, despite aprominent article in the November 2008Journal of Accountancy, this joint project

would remake all of the basic financialstatements used in the United States today.The project has been controversial,particularly in view that the Statement ofFinancial Position would no longer reflect abalanced “Assets = Liabilities and Equity”format.

Like the changes to accounting for PP&E,understanding the potential changes tofinancial statements is likely to be easywhen compared to the work involved inimplementing the changes. The proposedchanges to financial statement formattingare not minor and may require completelydifferent financial reporting software thanyou are currently using. Thus, companiesshould only undertake new informationtechnology projects with a full knowledge ofthese potential financial reporting changes.

Footnotes – IFRS for SMEs specifiesFinancial Statement footnotes must be in asystematic order and that companies mustcross-reference them to the financialstatements. This is a common-senseenhancement to financial statementreadability.

Plan for the FutureProfessionals who follow accounting

standards generally agree that the UnitedStates will adopt IFRS. The only real issue iswhen. There also seems to be a consensusthat the time accountants spendunderstanding the new standards will onlybe a small fraction of the work involved inthe conversion effort. Most people estimatethat IFRS conversion will involve an effortwhose magnitude will rival implementationof Sarbanes-Oxley. Some estimates havebeen much higher.

Lessons learned from implementationsin the United Kingdom tell us that mostcompanies:

• Under-estimated the amount of workinvolved in converting to IFRS

• Started their conversion projects tolate and

• Failed to involve other departments,particularly IT early enough in theprocess.

While we do not yet know whencompanies in the United States will convert,we know that it is not too soon to beginthinking about the conversion process inour own companies.

John L. Daly, MBA, CPA, CMA, CPIM is a Chelsea,Michigan based management consultant who has taughtcontinuing professional education seminars since 1995. Hewas previously CFO of a tier 1 automotive parts supplier anda large restaurant chain. Mr. Daly is the author of Pricing forProfitability, published by Wiley & Sons and is a frequentspeaker on financial management topics for ExecutiveEducation, Inc.

By John L. DalyExecutive Education, Inc.

1 Get the .pdf version from IASB.org. You will be able to read this standard best on a portrait mode monitor at a 150% magnification. 2 Among these are biological assets and venturer. Biological assets are the living products such as livestock, crops and timber of a company engaged in agriculture. A venturer is a company

involved in a joint venture.

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whether controls for items such as Play,Rewind, and Pause will be visible in theplayback window.

As with the collaboration and formscapabilities discussed above, addingmultimedia to PDF documents issurprisingly easy, even for novice users,and offers tremendous potential toenhance the effectiveness of your PDF-based communications.

SUMMARYPDF files are clearly in the

mainstream of technology used byaccountants and other financeprofessionals. Yet, many everyday users

of PDFs view them only as a means ofstoring and archiving documents. Asdiscussed in this article, the capabilitiesof PDF documents extend far beyondsaving documents for future recall. Putthe real power behind PDFs to work foryou today by taking advantage of thefeatures discussed in this article alongwith many of the other advancedcapabilities of PDFs. You will be muchmore productive for doing so!

Mr. Stephens is a shareholder in K2 Enterprises, wherehe develops and presents technology-related continuingprofessional education programs to accounting andfinance professionals across the United States. Youmay reach him at [email protected].

PDF POSSIBILITIESCONTINUED FROM PAGE 10

AICPA Guide HelpsBusinesses InvestigateFraud

The mechanics of a fraud investigationand associated ramifications for businessprofessionals are the theme of The Guide toInvestigating Business Fraud, the latest bookpublication from the American Institute ofCertified Public Accountants’ SpecializedPublications Group.

Authored by a team of seasonedprofessionals from Ernst & Young’s FraudInvestigation and Dispute Services (FIDS)Practice, the guide delivers practical,actionable guidance on fraud investigationsfrom the discovery phase through resolutionand remediation.

“The decade’s high-profile scandals, withthe Bernard Madoff Ponzi scheme being themost recent, underscore exactly how criticalit is for CPAs and the business owners,controllers and managers they advise tounderstand what to do when fraud hits,how a fraud investigation works, and howto avoid problems during the investigation,”said Arleen Thomas, AICPA senior vicepresident – member competency anddevelopment. “This book provides a veryclear framework.”

Thomas added that a June report by theFederal Bureau of Investigation, in whichthe FBI disclosed that it had opened morethan 100 new cases involving corruptbusiness practices in the previous 18months, emphasizes the need for the newguidance.

Ernst & Young Principal Ruby Sharma,the main editor and a contributing author,notes the book, which collects theknowledge of 18 firm contributors, tookover two years to develop.

“This book is the result of manyprofessionals’ hard work and draws upontheir extensive experience,” she said. “Thisbook is for forensic accountants, litigationattorneys, corporate boards andmanagement, audit committees, students ofaccounting and anybody interested inunderstanding the risk of fraud and itsmultiple implications."

In 14 chapters arranged to track the timesequence of an investigation and allanchored to a central case study, The Guideto Investigating Business Fraud answers fourbasic questions:

• How do fraud experts examine andwork a fraud case?

• How do you reason and makedecisions at critical times during theinvestigation?

• How do you evaluate a case andinteract with colleagues?

• How do you handle preventive anti-fraud programs?

In addition to Sharma, the editors areMichael H. Sherrod, senior manager, RichardCorgel, executive director; and Steven J.Kuzma, Americas Fraud Investigation andDispute Services chief operating officer.

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CLASSIFIEDSBKD, LLP, one of the 10 largest CPA andadvisory firms in the U.S., is looking forexperienced audit and tax professionals forits Mississippi offices. Candidates must haveCPA or be CPA eligible. For a closer look atBKD, please visit www.bkd.com.

u u uCPA FIRM seeking experienced or entry levelauditors that live in the Central to SouthDelta region of Mississippi. Competitivesalary and benefits with limited travel. Noovernight trips or weekend work. Reply inconfidence to File #401, c/o MSCPA, 306Southampton Row, Ridgeland, MS 39157.

u u uThe firm of GranthamPoole CPAs, a recentrecipient of the Mississippi Business Journal’sprestigious 2006 One of the Best Places toWork in Mississippi award, is looking forgreat staff additions. We will be increasing ournumber of tax professionals this summer. Ifyou love tax preparation and planning andenjoy taking excellent care of clients, we mayhave a home for you. Full time, seasonal, andpart-time staff members are all valued atGranthamPoole. Competitive salary, partnertrack, great benefits, and excellentopportunity for advancement all makeGranthamPoole an outstanding place towork! Send resumes to 6360 I-55 North, Suite101, Jackson, MS 39211, fax to 601-957-9599or email [email protected].

u u uCome join the Wolfe, McDuff, & Oppieteam – the firm of choice on the MississippiGulf Coast. We have openings at all levels,each with opportunities for advancement.We are looking for ambitious, energetic andself-starting individuals who seek a career inpublic accounting. You must be comfortableworking in a laid-back, flexible environment.We offer competitive salaries, bonusopportunities, great benefits and excellentgrowth opportunities. Send your resume [email protected] or fax to 228-762-4498.

u u uAlexander, Van Loon, Sloan, Levens &Favre, PLLC, a Gulf Coast based CPA firm,Finalist for the 2006 Best Places To Work inMississippi award, is accepting resumes’ forSenior In-Charge Level Auditors.Competitive salary, great benefits,limited travel and overtime –outstanding place to work! Sendresume’ to the following address (No Calls):Mail to: Attn: Cindy Moore, 9490 ThreeRivers Road, Gulfport, MS 39503; E-mail:[email protected]; Fax: (228) 863-1165

u u uHADDOX REID BURKES & CALHOUNPLLC seeks experienced audit and taxprofessionals interested in a rewarding careerwith one of the most established andrespected CPA firms in the Jackson area.Excellent benefit package, competitive salary,and opportunity for advancement. Flexiblework schedule is an option. Contact Debbie

The OFFICE OF THE STATE AUDITORseeks an experienced audit professional to filla Manager position in the Financial &Compliance Audit Division, Education AuditSection. The minimum requirements are abachelor’s degree from an accredited four-yearcollege or university plus five (5) years ofrelated experience, which must includeexperience in accounting and auditingstandards and financial reporting. A CPA ispreferred, and strong written and oralcommunication skills are necessary. Foradditional information, please contactTommy Vickers, CPA, Director, EducationAudit Section at (601) 576-2666, or via e-mailat [email protected].

u u uTann, Brown & Russ Co. PLLC, located inJackson, MS, is looking for experiencedprofessionals who are interested in working inthe area of forensic accounting and litigationsupport services. Audit and/or income taxbackground is a plus. We offer competitivecompensation, excellent benefits, very littletravel and an opportunity for advancement.Send resume to Allen Holiman, 415 E. CapitolStreet, Jackson, MS 39201 or e-mail [email protected].

u u uGulf Coast CPA firm of Culumber,Fletcher, Harvey & Associates, P.A. seeks entrylevel and experienced accountants. Faxresume to 228-863-6952, email [email protected] or mail to 2300 20thSt., Gulfport, MS 39501.

u u uFred T. Neely & Co, CPAs is seeking a seniorlevel audit and tax professional. Competitivesalary, excellent opportunity foradvancement, great benefits package andno travel. Please send resume to P O Box894, Greenwood, Ms 38935-0894

u u uWm. F. Horne & Co., PLLC is seeking a full-time senior audit manager for Hattiesburgand Laurel, Mississippi area. Excellentbenefits and competitive salary withopportunity for advancement. To apply,email resume to [email protected] or faxto 601-649-5233.

u u uMay & Company, LLP in Vicksburg islooking for highly motivated tax and auditprofessionals. We offer competitivecompensation, excellent benefits andopportunities for advancement in a relaxedenvironment. May & Company is extremelyemployee friendly with paid overtime orcomp time, minimal overnight travel, andopportunities in tax preparation andauditing. Mail resumes with confidence toAttn: Human Resources, P.O. Box 821568,Vicksburg, MS 39182-1568 or email [email protected].

u u u

Holbrook ([email protected]) or mailresume in confidence to P.O. Drawer 22507,Jackson, MS 39225-2507. For moreinformation, visit our website atwww.hrbccpa.com.

u u uKPMG LLP seeks experienced auditprofessionals interested in a rewarding careerwith one of the largest and most dynamicCPA firms in the world. Competitivecompensation, excellent benefits and ampleopportunity for advancement are offered.Mail resumes in confidence to 188 E. CapitolStreet, Suite 1100, Jackson, MS 39201, [email protected] , or visit our website atwww.kpmg.com.

u u uJACKSON CPA FIRM of Breazeale, Saunders& O’Neil, Ltd. is seeking experienced auditand tax professionals, both full time and parttime. Our staff enjoys state-of-the-arttechnology, intellectually challengingassignments and meaningful opportunities toenhance professional and personal skills.In addition to an excellent compensationpackage, we offer a family atmosphere with astrong emphasis on client-centeredprofessionalism. Send resume in confidenceto P. O. Box 80, Jackson, MS 39205-0080.FAX 601-355-9003.

u u uCALCULATORS PLUS is now handling theMonroe Calculators and supplies CallChester Wasser at 601-709-0371 or 888-264-3939 for more information and special CPApricing.

u u uJIM BURFORD, AGENT FOR ACCOUNTINGPRACTICE SALES - WHERE PRACTICESELLERS AND BUYERS MEET!!! We have alending source that will lend 100% ofpurchase price of accounting practices plusoperating funds, 10 year loan amortizationperiod, with no down payment, to party thathas good credit and at least 2 years of relativeexperience. An excellent opportunity to openyour own office or expand an existing office.ACCOUNTING PRACTICES FOR SALE: MS practice Gross $1,020,000 * SoutheasternLA practice Gross $382,000 * VicksburgPractice Gross $86,000 * Ocean Springs Gross$270,000 * Practice 1 hour south of TupeloGross $85,000 * Lake Charles, LA Gross$558,000 * Jackson Purchase Area of KY Gross$758,000.Thinking of selling? We have qualified buyerswaiting and an ever expanding data base ofqualified buyers and 100% cash out financingavailable to close the sale of your practicewithin 90 days. TO LIST YOUR PRACTICEWITH US OR TO CHECK OUT OURCURRENT LISTINGS Call me, JIM BURFORD,CPA TOLL FREE (800) 340-7002 or visit ourwebsite at www.accountingpracticesales.comor e-mail me at [email protected]

CLASSIFIEDS

PRSRT STDU.S. POSTAGE

PAIDJACKSON, MSPERMIT #814

Mississippi Society of Certified Public Accountants

and its Education Foundation306 Southampton RowRidgeland, MS 39157

Documents

MSCPA Foundation Awards 2009 Scholarships · MSCPA Foundation Awards 2009 Scholarships Scholarship checks totaling $17,000 have been mailed to accounting students at Mississippi colleges