 |
February 2010 |
 |
The Balance Sheet —First Quarter Edition— |
 |
 |
 |
||||||||||||
8th Annual Business & Industry Conference |
||||||||||||
Take a Field Trip with ASCPA 8th Annual Business & Industry Confernce
There are lots of things changing about the annual Business and Industry Conference this year. First of all, we are taking a field trip to Hyundai Motor Manufacturing in Montgomery. Registrants will take a tour around the world-class plant to see the "behind the scenes" operations of this company. It is important for members in Industry to catch a glimpse of the inner workings of a company in the forefront of technology, human resources, and of course, accounting.
From our member suggestions, we are incorporating some specialized breakout sessions for the first time. The two-day conference includes current general topics, then allows members to delve into more specific topics according to the problems they are facing. Members also suggested a networking event, so we are giving it to you. Join us at the Montgomery Biscuits stadium for dinner and a baseball game on Thursday night.
For more information and to register for the conference
|
||||||||||||
|
||||||||||||
|
||||||||||||
Welcome to the second edition of the Business and Industry e-zine, The Balance Sheet. The articles are all original material, authored by ASCPA members and Friends of the Society. Check out the Business & Industry Resource Center Page for photos and bios of contributing authors.
|
||||||||||||
|
||||||||||||
 |
||||||||||||
Commercial Banking Update by Rick Gardner, President, Superior Bank
As you know well, 2009 proved to be a very challenging economic year for businesses in Alabama. Although the 2010 forecast appears to be better, there will still be challenges and hurdles to overcome. I am often asked what a business should expect from their bank to better their business’s chance of success. Whether it’s your own business or your client’s business, there are two expectations that every business should have regardless of the economic environment. The first deals with communications and the second deals with a challenge to think differently regarding reducing costs and improving productivity via financial products and services.
Read the full article here
|
||||||||||||
|
||||||||||||
 |
Governmental Affairs | |||||||||||
Alabama Legislative e-Zine by Bruce P. Ely, Partner, Bradley Arant Boult Cummings & James E. Long, Jr.
The Legislature passed the one-third mark when it adjourned last Thursday evening, ending the 10th legislative day of the session and concluding a week that featured little activity regarding new or previously proposed tax legislation. This may be the calm before the storm, however, because Tuesday the Senate is expected to begin its debate on SB 380, Senator Bedford’s proposed constitutional amendment to allow the taxation and regulation of electronic bingo in certain areas. While taxes may not have been the primary legislative topic last week, the Alabama Department of Revenue (the “Department”) was quite busy. The Department held a rulemaking hearing last Monday on its recently proposed regulations regarding how to calculate the individual FIT deduction and the failure-to-pay penalty enacted last year. ASCPA President Jeannine Birmingham attended the hearing (along with NFIB-Alabama Director Rosemary Elebash) to express many members’ concerns and to request an extension of time for interested parties to provide comments. Thankfully, the Department’s Hearing Officer agreed to allow an additional 30 days, until March 10, for interested persons to file written comments.
Log in and read the full article by clicking here
If you have any questions about a particular bill discussed in this or prior columns, you should review the full text. It will be posted on our firm’s website for your easy access, by clicking here. Also, a detailed listing of the bill’s sponsors, along with its fiscal note (i.e., whether and how much revenue the bill is projected to raise or to cost the State), and its progress through each house can be found on the Legislature’s official website, called ALISON.
|
||||||||||||
|
||||||||||||
 |
Accounting Rules | |||||||||||
Evaluating Uncertain Position by Dr. Steve Grice, University of Alabama Birmingham
Fundamentally, FIN 48 incorporates a “two-step process” related to evaluating uncertain tax positions. In the first step of the process, reporting entities must evaluate the “recognition threshold” to determine whether it is more-likely-than-not that a tax position will be sustained upon examination (including resolution of any related appeals, litigation processes, etc.). This evaluation should be based on the technical merits of a tax position. Within this first step, reporting entities should presume that a tax position will be examined by the appropriate taxing authority having full knowledge of all relevant information. In the second step of the process, reporting entities must evaluate the “measurement issue” through calculating the amount of any tax position to be recognized in the financial statements. This measurement should be based on the largest amount associated with the position that is greater than 50% likely to be realized upon ultimate settlement.
|
||||||||||||
|
||||||||||||
 |
||||||||||||
Ten Considerations for Disability Income Insurance by Monte Marshall, Life, Disability, and Long Term Care Insurance Agent,
If you have done any research at all, you have certainly heard that applying for Disability Income Insurance makes good sense. After all, you are potentially protecting the greatest asset that you have which is your ability to earn an income. But when considering that purchase, make sure you know the ins and outs of how policies work and what options are available to you.
|
||||||||||||
|
||||||||||||
 |
||||||||||||
Employee Pay and Expectations in 2010 by Melva Tate, President, Strategic HR Partnerships
Employees may not be calling their managers and screaming the famous line shared between McGuire and Tidwell in the blockbuster movie Jerry McGuire, but trust in this fact; they are expecting employers to “show them the money” in 2010.
Without question the past 24-months have been difficult for both employees and employers. As consumer confidence dropped, the stock market tanked and banks withdrew lines of credit and refused to grant the smallest of loans, organizations were forced to make difficult decisions concerning their workforce and benefit programs. Many cost cutting decisions were reactive after losing major accounts and month after month declines in profit. Other companies were proactive as business leaders aggressively made cuts in anticipation of reduced sales and profits.
|
||||||||||||
|
||||||||||||
 |
||||||||||||
Positively $mart - It's Positive Pay by Lisa Kianoff, President & Founder, L. Kianoff and Associates
We really don’t think about fraud until it somehow touches us. We felt for Alabama and its image when the HealthSouth fraud was uncovered, but there is no stronger wake-up call than when it gets personal. L. Kianoff & Associates, Inc. was a victim of fraud the first time about 3 years ago. It’s a big club, according to the Association for Financial Professions (AFP). In 2008 – the last year reported – more than 70% of the organizations surveyed had experienced attempted or actual payments fraud that year. Their 2009 Payments Fraud and Control Survey also found 9 out of 10 of those were victimized by check fraud (www.afponline.org).
In our case it was the easy access to check-making technology that enabled these thieves to execute the crime. Armed with just our bank account number and address – the kind of business information shared with everyone who receives a check from us – the would-be criminal made their own check, forged a signature and used it to pay off a car repair bill with money from our bank account. They actually pulled it off twice. Shame on the bank for processing a counterfeit check, so they reimbursed us, but you just know these types of bank losses mean higher fees for everyone.
We caught the fraud by reviewing returned checks that came with our bank statement, back in the days when you could have your checks returned if you paid an extra fee (I am still an old fashioned accountant). Now it’s 2010 and banks don’t return checks AT ALL. With the check in our hands, we were able to see the check was clearly not one of ours. Now we have to scrutinize scanned images of checks sent with our statement, making it harder to discover a fraudulent transaction in your account.
What should you do to protect yourself? Click here for more.
|
||||||||||||
|
||||||||||||
 |
||||||||||||
Will Alabama's Legislature Again be Asked to Adopt "Combined Reporting" for Corporate Income Tax Purposes? by Jeff Patterson, Jeff Patterson, LLC
For the past few years, bills have been introduced in the legislature that would require certain corporations to prepare their income tax returns on a “combined” basis, i.e., to include income and apportionment data from related business entities. In 2009, HB 865 was introduced by Representative McLaughlin, and, in 2008, HB 768 was introduced by Representatives McLaughlin, Schmitz, Oden, Thomas (E), Bentley, Keahey, Graham, Irons, Thomas (J), Taylor, Hinshaw, and Lindsey. It is expected that such a bill will be introduced in the 2010 session.
|
||||||||||||
|
||||||||||||
 |
||||||||||||
Economic Trends and Projections by Joe Keating, Chief Economic Officer RBC Bank
When preparing budgets and financial projections, a reliable source for important economic trends can be a critical resource. This one-page discussion of key data from the Chief Economic Officer at RBC Bank contains a great deal of valuable information. The projections of important rates and data over the next several quarters can be especially useful in establishing essential metrics for your business.
This trend analysis is intended as a guide for possible future events. See the notes and disclaimer attached to the resource.
Economic and Fixed Income Market Update, RBC Bank (PDF)
Securities and Investment Advisory services offered through NBC Securities, Inc., Member FINRA and SIPC and RBC Bank (USA). Investment products 1) are not FDIC insured, 2) not guaranteed by any bank and 3) may lose value including a possible loss of principal invested. NBC Securities and RBC Bank do not provide legal or tax advice. Recipients should consult with their own legal or tax professional prior to making any decision with a legal or tax consequence. |
||||||||||||
|
||||||||||||
 |
||||||||||||
View from the C-Suite Profile of Myles Wright, Turenne Pharmedco
I am a Montgomery native born and reared on Oxford Drive where my parents still live in the cul-de-sac we all played baseball in as kids. A lucky chance allowed me to attend Indian Springs School in Birmingham and graduated in 1978. Unclear about direction and a short unsuccessful jab at college helped me choose a Navy tour. I spent 4 great years stationed at Pearl Harbor. The Navy taught me how to run a steam plant and gave me machinist skills. In my opinion everyone young adult unsure of what to do after high school should consider a tour of duty in the military or the peace corps; what a great experience. I worked in automotive retail and attended AUM for several years.
After the Navy, I focused on my first love, gardening and landscaping and opened Fertile Gardens. The landscape business was good and lasted nearly 10 years. My sweet wife, Debra Klinner, saw more potential and thankfully pushed me back towards accounting. In 1998 Alfa gave me my first real accounting job and in 2002 after finishing the 150 hour requirement, I passed the CPA exam. My wife and I love gardening and antiques, natural foods and sustainable growing methods. Our son Jennings graduated from Alabama in 2008, married his high school sweetheart, and began work with Insuresoft in Tuscaloosa.
See how Business and Industry Committee Member, Myles Wright transitioned from a background in landscaping to the Controller he is today.
Look for a CPA profile in every edition of The Balance Sheet.
|
||||||||||||
|
||||||||||||
 |
||||||||||||
Crisis Financing – Finding Capital Resources During the Great Recession by Ron Box, Chief Financial Officer, Joe Money Machinery
|
||||||||||||
|
||||||||||||
Looking for More Resources?
Do you have an insatiable desire for more information? The Business and Industry Committee has developed the Business & Industry Article Library containing articles chosen by the editors for relevance to the accounting profession. Please choose a category to view the library of past articles that we have filed here for easy reference.
Want more? Click here |
||||||||||||
|
||||||||||||
About the ASCPA
The Alabama Society of Certified Public Accountants [ASCPA] is the statewide, professional membership organization representing over 6,500 Alabama CPAs in public practice, industry, government and education. Eleven chapters, various committees and task force groups made up of CPA volunteers develop programs and address issues to help all members be successful professionals. The ASCPA is governed by a Board of Directors, managed by a full-time staff, guided by a strategic plan and is constantly striving to serve the needs of Alabama CPAs. Visit ASCPA.org >> |
 |
© 2008 Alabama Society of CPAs | PO Box 5000 | Montgomery, AL 36103-5000 |