February 2008 | San Francisco Chapter Bulletin

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CalCPA NEWS

Introducing the Financial Leadership Forum

The Forum, a new program of CalCPA and the California CPA Education Foundation, will enhance the support provided to finance executives and business leaders with tailored resources and programs.
   Membership is an exclusive benefit for business and finance professionals who are CalCPA members.
   Find your path to success in business. Check out the Financial Leadership Forum.

 

CHAPTER EVENTS

Marin Discussion Group

Topics: What Can Go Right When Clients Divorce? How CPAs Can Help
Speaker: Peggy Bennington, Esq., family law specialist
Date: Friday, Feb. 15
Time: Noon–1:30 p.m.
Location: Marin Nonprofit Resource Center; 555 Northgate Drive; San Rafael
CPE: 1 hour
Cost: $15 (includes lunch)
RSVP: Online

International Tax Committee

Topic: Expatriation: IRC Sec 877
Speaker: Mark Muntean, Esq., Jeffer Mangels Butler & Marmaro LLP
Date: Thursday, Feb. 21
Time: 8:30–9:30 a.m.
Location: 601 Montgomery St., Suite 405 (community conference room); San Francisco
RSVP: Online

Pacific Rim Committee

Topic: Inside the IRS: 2007 Year-end and 2008 Preview
Speaker: Joe Calderaro, technical coordinator, IRS
Date: Tuesday, Feb. 12
Time: 5:30–7:30 p.m.
Location: Louie’s California Chinese Cuisine; 646 Washington St.; San Francisco
Cost: $18/members and nonmembers
RSVP: Online
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PRESIDENT’S MESSAGE

Conversion or Convergence: IFRS vs. U.S. GAAP

By Kathy Yu Liu, CPA

The debate between International Financial Reporting Standards and U.S. GAAP is back in the spotlight. The SEC recently allowed foreign filers using IFRS, as published by the IASB, to file financial statements without first requiring reconciliation to U.S. GAAP. The permission will be available beginning with financial statements for years ending after Nov. 15, 2007.
   This SEC’s decision may indicate that we are heading toward allowing—or even requiring—the use of IFRS by domestic companies. The rapid globalization of capital markets, cross-border investing and international capital-raising is driving the increasing convergence of accounting standards worldwide. Convergence will be needed to facilitate the free flow of capital, goods and services globally without interruptions due to differences in the language of financial reporting.
   IFRS has been used in many parts of the world, including the European Union, Australia, Russia, South Africa, Hong Kong and Singapore. Canada, India and Korea have announced plan to adopt IFRS effective 2011. Nearly 100 countries require or permit the use of, or have a policy of convergence with, IFRS.
   In 2002, the IASB and FASB agreed to harmonize their agendas and work toward reducing differences between IFRS and U.S. GAAP. In February 2006, the FASB and the IASB issued a memorandum of understanding that included a program of topics on which the two bodies will seek to achieve convergence by 2008. Now that 2008 has come, what should we expect?
   Last month, FASB conducted a webcast detailing the implications of moving the United States toward a global reporting system. Led by FASB Chairman Robert Hertz, the webcast discussed various issues related to global financial reporting. The panelists agreed that a “Pax Americana” in financial reporting is highly unlikely. Instead, there are three possible goals:

• mutual recognition for foreign filers only;
• a two-GAAP system for U.S. registrants; or
• a single set of high-quality international accounting standards. The United States must plan for implementation, such as education, system changes and business impacts.

FASB agrees with the SEC that a widely used single set of high-quality, international accounting standards would benefit global capital markets and investors. It also believes planning for a transition of U.S. public companies to an improved version of IFRS would be an effective and logical way to achieve the goal of having a set of common global standards.
   However, the transition process is complex. A conversion to IFRS would result in a fundamental shift in the application of accounting in the United States. For example, IFRS leans heavily on the concept of “substance over form.” As we all know, U.S. GAAP is heavily rules-based, relying primarily on authoritative guidance and precedent. Many are concerned that converting to IFRS may result in decades of U.S. accounting research and literature being tossed out the window.
   FASB opposes the idea of allowing companies a choice between IFRS and U.S. GAAP for any extended period of time. Rather, FASB believes all U.S. public companies should move to an improved IFRS, over a transition period of several years. This would minimize the efforts of achieving a sudden, rapid conversion from U.S. GAAP to IFRS.
   The National Association of State Boards of Accountancy, in a Nov. 13, 2007, letter to the SEC, pointed out that if the SEC decides to require reporting entities to use IFRS, it could have serious negative consequences to nonreporting U.S. business enterprises. NASBA suggests that it is essential for FASB to continue its role of setting standards cooperatively with IASB, for both reporting and nonreporting entities.
   A U.S. version of IFRS is expected to emerge over time, which is bound to bring major changes. Let’s stay tuned and keep current with any new developments.
—Kathy Yu Liu, CPA
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CHAPTER NEWS

New Members

On behalf of the San Francisco Chapter’s officers, directors and members, we extend our warmest of welcomes to our new members: Angela Alvarado, Glendy Chan, Trisha Charbonneau... [see all new members]

CPAs Make a Difference

Have you donated to the chapter scholarship fund this year? If you’re thinking about a contribution, you might like to hear what it can do. This is an excerpt of a letter from one of this year’s award recipients:
   “My family moved to the U.S. from China 17 years ago. As an immigrant I cherish the opportunities that living in the U.S. offer me. Although there have been many personal sacrifices being a college student and a working mother with two young children, I have worked very hard and maintained above 3.9 GPA … earning a bachelor’s degree and getting the CPA license have always been my dreams. Your scholarship will help ease the financial pressures of school and allow me to place all my focus on becoming the best CPA I could be.”
   If you would like to help other students like this, make your donation online.

A CPA Dynasty

Does accounting run in the family? It does for the Tiret family. San Francisco Chapter life member Horace M. Tiret, 92, began his CPA practice in the city in the 1940s. At one time he operated five businesses. He also was an expert at hybridizing fuchsias and held the world record for introducing the most new species. His sons Jeffrey, Steven and Michael, all CalCPA members, joined him in his practice, and daughter-in-law Connie Tiret is a CPA with Calegari & Morris and chair of the chapter’s HR/Administration Committee. And to top things off, grandsons Sean, Ryan and Eric and a nephew are CPA candidates.
   Kudos to the Tirets!

2008 CFO of the Year Awards

Nominations are being accepted for the 2008 Bay Area CFO of the Year Awards, which will be presented Thursday, May 29. The awards are a partnership between the San Francisco Business Times and Larkin Street Youth Services. Last year’s event raised more than $400,000 to benefit Larkin Street. Nominations are open for the following categories:

Public Company (revenues above $500 million)
Public Company (revenues up to $500 million)
Nonpublic Company
Venture-backed Company
Community Service
Transformation Agent
   Go online for more information or to nominate someone. If you know of CalCPA members who should be considered for these awards, you may also contact Susan Klein. The nomination deadline is Friday, March 7.

In Memoriam: Mary E. Lanigar

Mary E. Lanigar died in Santa Rosa in October. Lanigar graduated Phi Beta Kappa from Stanford University, and her first accounting job was in the Stanford Athletics Department in 1938.
   In 1942 she joined the San Francisco firm Lester Herrick & Herrick and was a partner when the firm merged with Arthur Young. She also studied law at night at Golden Gate University and passed the bar exam in 1954.
   Lanigar became a director of Wells Fargo Co. and in 1976 took early retirement from Ernst & Young to accept other major firm directorships. She also was a trustee of Mills College and other prominent Bay Area nonprofits.
   Lanigar was an outstanding pioneer of the advancement of women in the accounting profession, and the San Francisco Chapter was proud to have her as a life member.

Local Volunteers Needed for Tax-Aid

Tax-Aid, a local nonprofit coalition of CPAs and attorneys created to help low-income families prepare their tax returns, is expanding into Santa Clara County. The new site, which will be sponsored by Deloitte, LLC, will be held at the downtown Salvation Army.
   CPA Kenneth Lee, Tax-Aid president, says the organization is in need of more than 500 volunteers to help in the 21 sites across seven counties. Locally, there are Tax-Aid sites in South San Francisco, Daly City, Redwood City and East Palo Alto.
   Volunteering is easy. Tax-Aid provides the equipment and training, and volunteers are expected to donate at least two Saturdays during tax season. Chapter members interested in participating can visit Tax-Aid’s Website to register or call Minnie Sage at (415) 963-5133.
   Members unable to volunteer, but wishing to help, can send a tax-deductible contribution to Tax-Aid; 55 Second St., Suite 1400; San Francisco, CA 94105 or donate online.

Grab Your Running Shoes

The Young and Emerging Professionals Groups from the San Francisco and Peninsula Silicon Valley chapters are rounding up participants to be part of the Bay to Breakers May 18. Don't you want to get up at 4 a.m. and run seven miles with about 70,000 close friends? All runners are welcome, not just YEPs.
   If you’d like to be part of the group, contact cweaver@kpmg.com.
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CalCPA NEWS

Recognizing Achievements in Improving Financial Literacy for Youth

The California Jump$tart Coalition is looking for outstanding teachers, other educators and community leaders to honor their efforts in expanding personal finance education. Honorees will be recognized at the California Summit on Financial Literacy April 23 with awards and contributions to their organizations, including $1,000 educator awards sponsored by Citi.
   If you know of individuals who have made contributions to financial literacy among California's youth, please contact California Jump$tart Coalition Awards Committee members Karen Anderson or Norm Greenbaum by March 17.
   Reserve your place today at the Summit! Register online.
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RESOURCES:

San Francisco Chapter Leadership