State Board Report

November 2011

The many accomplishments of David A. Costello over his 17 years at NASBA’s helm were the focal points of NASBA’s 104th Annual Meeting, held at the Opryland Hotel in Nashville, October 23-26, 2011. The meeting’s theme, “Ad Astra,” to the stars, signifies the soaring visions that Mr. Costello has encouraged during his time as NASBA President and Chief Executive Officer. The Annual Meeting had 206 Board members and associates in attendance, 49 State Board staff members, plus spouses, friends, guests and NASBA staff resulting in a total registration of 456.

Nashville Former Governor, and Former Nashville Mayor, Philip Bredesen welcomed the NASBA meeting attendees and told them that in the winter of 1996 he had traveled to New York City to meet with President Costello and convince him to move the Association to Nashville. He observed that there exists today a lack of public trust in government and he urged the State Board members to restore that trust by going above and beyond what is expected of them.

The CPA profession’s credibility is due in large measure to the State Board process, NASBA Chair Michael T. Daggett observed. “Your responsibilities do not stop at the doors of the board room,” he stated. He briefly reviewed some of the Association’s achievements within the last year: proposed revisions to Standards for Continuing Professional Education Providers; Uniform Accountancy Act and Model Rules guidance on CPA firm names; 36 Boards fully participating in the Accountancy Licensee Database; fourth International Forum for Accountancy Regulators; final report of FAF/AICPA/NASBA Blue Ribbon Panel on Private Company Standard Setting; multiple comment letters sent to other regulators and standard setters; sale of Professional Credentials Services; and the selection of Ken L. Bishop to be NASBA’s next President and Chief Executive Officer.

The goal of having all states adopt mobility is one shared by NASBA and the AICPA, stated Gregory Anton, AICPA Chair 2011 2012. While both the American Institute of CPAs and NASBA have voiced their agreement on the need for change in what financial reporting standards private companies must use, they do not agree on how those standards should be determined. “The debate is over how we go about the change,” Mr. Anton stated. NASBA has voiced support for the Financial Accounting Foundation’s proposed establishment of the Private Company Standards Improvement Council, while the AICPA says that is not sufficient because, “The FASB has a veto. The FASB will over influence the GAAP modification process,” Mr. Anton said. He predicted the new council will be similar to the Private Company Financial Reporting Committee (PCFRC), an advisory group that was created in 2006. Mr. Anton referred to the results of the AICPA’s six-month survey entitled “CPA Horizons 2025,” which found the profession’s core purpose still remains relevant: “Making sense of a changing and complex world.” However, the survey of approximately 5,600 CPAs determined the definitions of the profession’s core values and competencies need to be refined and updated to reflect the 21st Century.

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