NewsFlash May 18, 2017

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FICPA Representatives Attend AICPA Council Meeting

The FICPA is going to be live from Washington! FICPA President/CEO Deborah Curry, CPA, CGMA and the AICPA Florida Delegation will be attending the AICPA governing Council’s spring 2017 meeting May 21-23. The FICPA will be broadcasting video and covering the event on social media to keep you informed about what’s going on.

Follow all the action starting this Sunday via the exclusive webpage here!


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Ransomware’s Aftershocks Feared as U.S. Warns of Complexity

By David E. Sanger, Sewell Chan and Mark Scott
The New York Times
nytimes.com

The components of the global cyberattack that seized hundreds of thousands of computer systems last week may be more complex than originally believed, a Trump administration official said Sunday, and experts warned that the effects of the malicious software could linger for some time.

As a new workweek started Monday in Asia, there were concerns the malicious software could spread further and in different forms, with new types of ransomware afflicting computers around the globe.

To read the full article, click here.

The FICPA wants to help you and your firm be prepared for the ever-growing list of cyber threats. If you suspect your firm has been the victim of a data breach, please contact your insurance carrier, broker or agent. The FICPA provides members with access to Professional Liability Insurance & Supplemental Cyber Coverage that has been endorsed by our organization and the AICPA. To learn more and apply for a quote, click here.


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Court Reinstates Workers’ Comp Rate Increase

The day after lawmakers closed out the 2017 Legislative Session without making changes to Florida’s workers’ compensation system, the First District Court of Appeals (DCA) issued a ruling reversing a lower court’s ruling and officially reinstated the 14.5 percent workers’ comp rate increase. The increase originally took effect in December 2016.

The DCA made its ruling on the National Council on Compensation Insurance (NCCI) and Office of Insurance Regulation (OIR) v. James Fee case. Fee is a workers’ comp trial attorney.

Fee filed a lawsuit against NCCI and OIR arguing they violated the Sunshine Law while determining the rate increase associated with two Florida Supreme Court rulings. Days before the rate increase was to take effect, the Leon Circuit Court invalidated the 14.5 percent workers’ comp increase under the grounds the Sunshine Law had been violated. After the case was appealed to the First DCA, a stay was issued, allowing the rate increase to take effect. The First DCA found NCCI and OIR complied with the multiple elements of the Sunshine Law and the rate increase should take effect.

Several Florida business coalitions have weighed in on the workers’ compensation rate increase, including the Florida Chamber of Commerce, of which the FICPA is a member. To read a recent Florida Chamber article on this issue, click here.


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New Guidance on Accounting for Leases – Difference Between ASC 842 and 840

From Accounting Policy and Practice Report

By Jeffrey Ellis
Bloomberg BNA
bna.com

ASC 842 is effective for fiscal years beginning after Dec.15, 2018 (i.e., Jan.1, 2019, for a company with a calendar year end), including interim periods within those fiscal years, for public business entities; not-for-profit entities that have issued, or are a conduit bond obligor for, securities that are traded, listed or quoted on an exchange or an over-the-counter market; and employee benefit plans that file financial statements with the Securities and Exchange Commission. For all other reporting entities, ASC 842 is effective for fiscal years beginning after Dec. 15, 2019 and is effective for interim periods within fiscal years beginning after Dec.15, 2020.

To read the full article, click here.


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Losses Disallowed Where S Corp Not Indebted to Shareholder

By Mark D. Puckett, CPA/PFS
Editor: Kevin D. Anderson, CPA, J.D.
The Tax Adviser
thetaxadviser.com

In Hargis, T.C. Memo. 2016-232, the Tax Court held that an S corporation shareholder could not claim losses from several wholly owned S corporations due to insufficient basis. The shareholder’s participation as a co-maker or guarantor of his S corporations’ borrowings did not increase his basis because the indebtedness didn’t run directly to him.

To read the full article, click here.


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GASB Issues Rules for Accounting for Certain Debt Extinguishment

By Ken Tysiac
Journal of Accountancy
Journalofaccountancy.com

GASB issued a new standard Monday for state and local government to apply when accounting for extinguishment of debt prior to its maturity.

In Statement No. 86, Certain Debt Extinguishment Issues, GASB establishes rules for accounting for transactions in which cash and other monetary assets acquired with only existing resources are place in an irrevocable trust for the sole purpose of extinguishing debt.

Current GASB standards already provide guidance for accounting and reporting when cash and other monetary assets acquired with the proceeds of refunding bonds are placed in a trust for the future repayment of outstanding debt.

The guidance GASB issued Monday addresses situations in which only existing resources (and no bond proceeds) are used to acquire cash and other monetary assets placed in a trust for the future repayment of outstanding debt.

The debt, cash, and other monetary assets placed in trust are no longer reported on the financial statements when debt is defeased in substance. But governments are required to disclose information in the notes to the financial statements about debt that has been defeased in substance.

In addition, Statement No. 86 provides guidance related to prepaid insurance on debt that is extinguished and notes to the financial statements for defeased debt.

The standard takes effect for reporting periods beginning after June 15, 2017 and GASB encourages earlier application.

Ken Tysiac (Kenneth.Tysiac@aicpa-cima.com) is a JofA editorial director.


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Potential State Tax Consequences of the Final and Temporary Sec. 385 Regulations

By Scott D. Smith, J.D., LL.M. and Jenni Regimbal, CPA
Editor: Kevin D. Anderson, CPA, J.D.
The Tax Adviser
thetaxadviser.com

Based on how states conform (or not) to IRS regulations for purposes of state income tax, the recently issued regulations under Sec. 385 could have material consequences for state corporate income tax (and possibly other state and local taxes), even if an exception applies for federal tax purposes. The IRS issued final and temporary regulations (T.D. 9790) on Oct. 13, 2016.

What follows is a high-level overview of certain provisions in the regulations that could have state corporate income tax consequences. It is important to understand the regulations consist of a number of complex provisions and exceptions, including ordering, transition and operating rules.

To read the full article, click here.


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How to Reduce the Pressures at Work

By Sabine Vollmer and Ken Tysiac
Journal of Accountancy
Journalofaccountancy.com

You know the feeling: You’re working longer and harder – like a tax accountant whose busy season never ends. But at the close of the day, tasks are left undone because you didn’t get to them or because you’re waiting for somebody else to finish his or her part in the workflow.

Accountants, auditors, and finance executives may feel this way for several good reasons. New standards and regulations, technological advances and expanded duties are changing the profession and adding complexity and challenges. But even though CPAs may be increasingly busy, there are ways for them to avoid being swamped.

To read the full article, click here.


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Nominate a Colleague
FICPA Outstanding Accounting Educator & Government CPA Awards

The FICPA will present its Outstanding Educator Award during the Accounting & Business Show in Fort Lauderdale and its Outstanding CPA in Government Award during the State & Local Government Accounting Conference in Orlando.

We need your help in recognizing your colleagues for extraordinary service to the profession! Click below to learn more and submit nominations of your fellow FICPA members.

Don’t wait – the deadline to nominate is June 1, 2017.

Nominate an Outstanding Educator | Nominate an Outstanding CPE in Government | Learn More


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Has Your Membership Category Changed?

 

 

  • Did you recently become partner?
  • Did you open your own company?
  • Did you move out of state?
  • Did you retire?
  • Are you newly certified and need to upgrade your student or associate membership?

Call us at (800) 342-3197, Ext.1 or email msc@ficpa.org so we can update your record.

Thank you so much for your membership and support. We truly appreciate your partnership.


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Wolters Kluwer Offers Members 40% Off Select CCH® Publications

Offer Ends June 30, 2017

With leading titles in taxation, accounting, estate planning and more, Wolters Kluwer’s 100+ CCH® publications offer expert information to help you stay on top of industry and market-leading developments. CCH Publications are available in print and eBook formats.

From now through June 30, 2017, FICPA members can receive exclusive early-bird pricing on select titles for savings of 40 percent! Click below to visit their website and sign in to claim this offer.

Claim Offer


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Summer Vacation Cluster (Up to 20 CPE)
July 27-29, 2017
Orlando • Online Simulcast

 

 

Earn up to 20 hours of CPE credit and take a long weekend and enjoy Disney's Grand Floridian Resort & Spa. This extravagant waterfront getaway features a full-service spa, multiple pools and live music nightly. It’s perfect for those seeking an escape from reality and also for those looking to plan a family vacation. If that's not enough, you won't believe our special conference room rate.

Register today to choose from nine four-hour sessions, including ethics, led by our featured speakers!

Learn More
Ask Us: Member Service Center (800) 342-3197 | (850) 224-2727 | CPEevents@ficpa.org


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Mega CPE Conference (Up to 40 CPE)
June 14-17, 2017
Orlando or Online

 

 

Our beyond-great room rate expires next week – reserve yours today!

Join us at the Gaylord Palms Resort, and you’ll be less than 10 minutes from the gates of Walt Disney World® Resort and less than 30 minutes from SeaWorld® Orlando and Universal Orlando Resort™© plus countless restaurants, shopping and other attractions. If you need to be somewhere else, you can join us online for up to three full days of education in the Simulcast.

CPAs from Florida and beyond know the Mega CPE Conference is a great place to learn the latest and catch up on credits while on vacation. Don’t miss everything that’s included:

  • Up to 32 hours of CPE plus the opportunity to earn up to eight bonus online hours with your registration
  • 53 breakout sessions covering everything from forensic accounting to corporate finance to cybersecurity and more
  • Keynote addresses from Robert Weissert, executive vice president of Florida TaxWatch; and Tim Christen, past chairman of the AICPA Board of Directors
  • Four conferences in one: This year’s Mega CPE Conference also includes the State Tax Conference, Employee Benefits Conference and Women’s Leadership Summit
  • Four early-bird sessions
  • Four general sessions
  • Four hours of ethics
  • And so much more

Save hundreds by booking your room at the Gaylord Palms with our special conference rate by Friday, May 26, 2017. If you've never been to Mega, you can save an additional $55 by using promo code NEWMEGA17 when you register to attend 16 CPE hours of more!*

Register to Attend in Person | Simulcast – Day 1 | Simulcast – Day 2 | Simulcast – Day 3 | Learn More
Ask Us: Member Service Center (800) 342-3197 | (850) 224-2727 | msc@ficpa.org


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Tech Tip
Create Out-of-Office Replies in Outlook 2016 for POP or IMAP Accounts

www.groovypost.com

If you work in a corporation, chances are your email mailbox is running on a corporate email server your IT team manages. If so, setting up automatic out-of-office replies is simple and can be done in just a few steps.

If you’re a home user running Outlook with a POP or IMAP email account (i.e. Yahoo, Gmail or Outlook.com) you still can create auto-replies. However, there’s a bit more work involved.

To read the full article with images, click here.


Look for the next issue of FICPA NewsFlash June 1, 2017.

Comments or Suggestions?

We are interested in your comments or suggestions. Please email communications@ficpa.org.