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July 2015,

Vol. III | Generations in the Workforce

Back to the Future How Millennials and Boomers think they are worlds apart, yet have much in common

Matthew W. Klein, CPA, CGMA

Diversity and the Profession


Mission,Vision,Values

ExecutiveBoard

Mission

president................................................ Jonyce Bullock president-elect...........................Gavin E. Hutchinson vice president..................................... Hollie S. Andrus secretary...................................Sherie E. Charlesworth treasurer................................................. Kyle J. Pexton member-at-large....................................Larry A. Deppe member-at-large.....................................Brett C. Hugie immediate past president..................... Paul O. Skeen AICPA Council..........................................Dan Griffiths pronet Council..................................Joshua Turnbow CEO........................................................ Susan A. Speirs managing editor.................................... Amy Spencer

The UACPA Leadership supports and challenges members through advocacy, professional education, leadership development, networking, and community service, to help them succeed in a competitive and changing world.

Vision At the UACPA, our vision is to be a world-class professional association essential to our members. We unite a vibrant community of CPAs to enhance the success of our members and champion the values of the profession; Integrity, Competency, and Objectivity.

Values Advocacy The UACPA represents the profession at the legislature and other regulatory bodies and promotes the value of the CPA to employers, the business community, and the public at large.

Leadership & Service The UACPA provides leadership and service within the profession, within the UACPA and within the community.

Professional Development The UACPA supports and encourages continuing education and leadership development.

The Journal Entry is published quarterly, by the UACPA 1240 E. 2100 South, Suite 500 Salt Lake City, UT 84106 tel: 801-466-8022 toll-free in Utah: 1-800-676-2776 e-mail: mail@uacpa.org or log on to www.uacpa.org Send address changes to UACPA 1240 E. 2100 South, Suite 500 Salt Lake City, UT 84106 email: membership@uacpa.org or log on to www.uacpa.org to update your address and member profile online Cover photo - Kristan Jacobsen, kristanjacobsen.com

Professional Community The UACPA reinforces peer accountability to encourage members to maintain integrity and high ethical standards. We ​​ provide member to member networking opportunities and networking opportunities with other professions. We value belonging to a distinguished organization and believe that we serve as the primary resource and point of contact for Utah CPAs.

UACPA Statement of Policy CPAs have common problems and interests. This magazine has been created to share information relating to the practice of accounting. The opinions, views and articles expressed in this magazine are not necessarily those of the Utah Association of Certified Public Accountants. This magazine should not be deemed an endorsement by the UACPA or its committees or editorial staff of any views, opinions or

Diverse Population Outreach

positions contained herein. Because of the complexity of tax laws and

The UACPA believes in reaching out to under-represented populations, those returning to the profession or choosing it as a second career, and other professions.

accounting transactions and the changing status of the law, as well as variations in practices and procedures among accountants, information in the magazine should not be used, acted or relied upon, as a substitute for independent accounting or legal research and advice.

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in this issue | July 2015

feature story

The Similarties Between Millennials and Baby Boomers

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New Members............................................................................................4 Movers & Shakers......................................................................................5 President's Message ..................................................................................6 Message from the CEO............................................................................. 7 Cover Story: Managing Millennials........................................................8 By the Numbers: Millennials at Work.................................................. 15 Disruptive Demographics...................................................................... 16 Hot Assets and Deemed Debt Distributions ......................................20 Hang Out with People Smarter Than You............................................24 Utah Universities Aim to Increase Inclusiveness................................27 Women in Accounting: Brigette Hammond, CPA..............................30 CPAs Approach to Employee Benefit Plan Audit Quality.................33 Meet the UACPA Board..........................................................................36

By the Numbers: Millennials at Work

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Increasing Inclusiveness in the Profession 27

Board Bullets............................................................................................37 Meet the UACPA Staff ............................................................................38 Five Minutes with Daniel Greer, CPA..................................................39 UACPA Photos Pages..............................................................................40 Accounting Students Honored by UACPA.......................................... 41 CPE Schedule...........................................................................................42

Meet a Member: Daniel Greer, CPA 38

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New Members

NewMembers Congratulations to the following individuals/CPAs who were approved for membership or affiliate status in the UACPA as of June 8, 2015.

Fellows

Lisa C. Hoffman

Kevin Federico Jones Simkins LLC

Paul Burnett Tanner LLC

Brent J. Bement Bement & Company P.C.

Lisa Heise Make-A-Wish Foundation of Utah

Beth Briggs Squire

Josh Gertsch KPMG LLP Lance W. Mercer B2a, PC Steven R. Smith KPMG LLP Jacob R. Decker Seth Pilkington Billy J. Harrison Deloitte & Touche LLP

Garth P. Simpson Squire Toni Stevens Squire Douglas W. Wilkins Squire Michael Doxey Ulrich & Associates, PC Marcie L. Handy State of Utah - Division of Finance

Matthew Jones Ernst & Young LLP

Brooke Gardner Pinnock, Robbins, Posey & Richins

Carlin E. Simmons PricewaterhouseCoopers LLP

Megan Richins PricewaterhouseCoopers LLP

Bryan W. Stewart Brigham Young University

Spencer Crabtree PricewaterhouseCoopers LLP

Jo Leary Jones Simkins LLC

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Jordan Harman PricewaterhouseCoopers LLP

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Yan Sun PricewaterhouseCoopers LLP Adam Keene PricewaterhouseCoopers LLP Cameron Hodson Larson & Company, PC Michael A. Gilbert Gilbert & Stewart Annette Andersen CBIZ MHM, LLC Clint W. Rasmussen Salt Lake City Corporation Jordan Toone Larson & Company, PC Scott A. Klema CBIZ MHM, LLC Nathan P. Williams CBIZ MHM, LLC Ryan Sampson CBIZ MHM, LLC Justin Stevenson CBIZ MHM, LLC Cory Hunter Pinnacle Accountancy Group, PLLC

Heather B. Jensen Allred Jackson, P.C. Lynn Henline Allred Jackson, P.C. Kelly Bell Allred Jackson, P.C. Matthew Reid Florence Allred Jackson, P.C. Bronson Stewart Eide Bailly, LLP Daniel Spear Eide Bailly, LLP Stetson Morris Eide Bailly, LLP Spencer Jeppsen Eide Bailly, LLP Steven Holt Eide Bailly, LLP Samuel Christensen Eide Bailly, LLP Jeff Lund Davis Applied Technology College Brigette Hammond KPMG LLP Bryan Spangler


Movers & Shakers

NewMembers Movers&Shakers Continued

Bart Blaisdell CR Bard Gloria Johnson Eide Bailly, LLP Rachel Louise Brakebill PricewaterhouseCoopers LLP Non-CPA Professional Affiliates Lacie Campbel

PricewaterhouseCoopers in Salt Lake City has appointed Stan VanderToolen, CPA as the new managing partner for the firm. He will be leading the firm's growth efforts and continue to strengthen client, alumni and community relationships in the market. VanderToolen brings more than 24 years of experience in public accounting, specializing in providing both domestic and international tax consulting Stan and compliance services. He received his Bachelor's VanderToolen Degree in Accounting from the University of Utah and graduated with a Master's of Accountancy with an emphasis on taxation from Brigham Young University.

Kasey C. Torgerson Mantyla McReynolds LLC Matthew Sewell PricewaterhouseCoopers LLC Jeannine Jensen CBIZ MHM, LLC Charlotte McKinney Stayner, Bates & Jensen, PC Patricia Alderman Holthouse Carlin & Van Trigt Students Westminster – 3 Utah Valley University – 4 LDS Business College – 1 University of Utah – 7 Southern Utah University – 21 Weber State University – 2 Grand Canyon University – 1 Brigham Young University – 1 Dixie State University – 1

Tad Tuttle

Tad Tuttle, CPA has relocated to the Cedar City office of HintonBurdick CPAs & Advisors. His specialties include taxation for gaming clients, provision work for attest clients and governmental accounting. Tuttle received his Masters of Accountancy from Southern Utah University and has previously worked at Deloitte & Touche in Las Vegas, NV and at Dixie State University.

Michael Criddle has been accepted as a partner into Eide Bailly LLP. The Salt Lake City office CPA joins 14 other new partners in the firm. Criddle has more than 14 years of experience working in tax with partnerships, S corporations, corporations, individuals, trusts and nonprofits. He is part of Eide Bailly's International Tax Services Group and specializies in international taxation, specifically as it relates to individuals. John Larson, CPA has been promoted to Chief Financial Officer at Larry H. Miller Sports & Entertainment. A University of Utah graduate, Larson has been with the LHM Group of Companies for 24 years. The Supreme Court has appointed Mary Kay Griffin, CPA, a managing director at CBIZ MHM, LLC, to serve another term as a Public Member of the Utah State Bar Board of Bar Commissioners. Stephen R. Morgan, CPA has been appointed as Westminster College's 18th president and will participate in a formal inauguration in September. Morgan has spent 30 years at Westminster in various administrative roles. Dean R. Burdick, CPA has retired from HintonBurdick CPAs & Advisors where he has led the firm's tax practice since 1985. Burdick graduated Cum Laude the journal entry | July 2015

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President's Message

Jonyce Bullock, CPA

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e have a lot going on at the UAPCA lately! Here is a look at the latest happenings.

Meetings

If there is one thing we will never be short on in the CPA profession, it is the opportunity to attend meetings! The UAPCA has recently been involved in several great meetings. In May, we had the opportunity to attend the AICPA Annual Meeting of the Spring Council, held in Washington, DC. As part of this meeting, we had the opportunity to go on The Hill and meet with the offices of each of our Utah members of Congress and Senate. Along with myself, our Utah delegation for these meetings consisted of Hollie Andrus, Dan Griffiths, Troy Lewis, Clark Wilkinson and Mike McCauley. We were able to meet personally with Rob Bishop, Mike Lee and Mia Love, as well as with key staff members in the offices Boomers are nearing and reaching retirement, and each day of Jason Chaffetz, Chris Stewart and Orrin Hatch. we are adding Millennials to our numbers. This is both a challenge and an opportunity for our profession. Millennials The purpose of these meetings was to offer the knowledge are quick to adopt new technology — they want to find ways and expertise of the CPAs in Utah to our representatives to work more efficiently. However, they are also demanding as well as discuss four key items we would like Congress to more flexibility and choices in their careers. consider this year. These key items include addressing IRS service issues, passing permanent tax relief for disaster victims, preservation of cash method of accounting and mobile workforce tax simplification.

Moving

As we announced in the last issue of The Journal Entry, the UACPA will be moving soon! Our new offices will be located downtown, in the Kearns Building, which is just off of the Trax line. We are excited about the opportunities we will have with this move to better serve our members. Our location will provide easier access, have sufficient parking, and the cherry on top will be our new training room. We have worked with some of your favorite instructors to envision a training room that will work for you!

Millennials

The face of the CPA Profession in Utah is changing. Baby 6

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The AICPA has reported that while the number of accounting graduates in the U.S. continues to steadily increase each year, the percentage of those graduates that sit for the CPA Exam and become licensed CPAs is on a downward trend. While there are many factors contributing to this trend, what is most intriguing to me, is what the AICPA has found out about what factors into those who do become CPAs. First, at the college level, they had recruiting experiences that directly encouraged them to sit for the CPA exam. Second, once a graduate is in the workforce, the largest factors are workplace requirements, workplace assistance with costs and workplace encouragement. Each of these items is something that we can each personally do something about. I encourage each of you to take an opportunity this year, during recruiting, and in your workplace, to encourage a future CPA! These Millennials are the future of our profession. â–


CEO’s message

CEO's Message

Susan Speirs, CPA

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elcome to the Millennial issue of The Journal Entry! As you peruse the articles you might find yourself thinking about where you are in the generational timeline. I’d like to add one more generation to the mix that we don’t often address: The Sandwich Generation. I heard this term used several years ago when I mentioned to a colleague that my husband and I were trying to figure out how to take care of my mother after my father had passed away as well as two young children. She said, “Welcome to the Sandwich Generation!" Fast forward 20 years: We are still trying to figure out how to take care of my aging mother, my husband’s aging parents as they need additional help, be available to our now college graduated children and create and maintain a good relationship with our first grandchild. The Sandwich Generation can be defined as the generation of middle aged individuals caring for aging parents and young children and/or young adult children. No specific age range has been identified, however, Pew Research Center indicates that 71% of these individuals are between the ages of 40-59. To add to the challenge, members of the sandwich generation tend to be more financially strapped as they still have financial responsibilities with their own children and find that they need to financially help aging parents. To boot, you can be a member of the Sandwich Generation at the same time you are a member of the Baby Boomers, Generation X or Millennial Generation! If you’re a member of this group, you know that there is another layer of stress that we don’t often discuss openly, such as elder care and knowing how to manage the stress that comes with taking on the parental role of a parent. Below, I’ve listed a couple of stress busters that have helped us: • Say "Yes" When someone offers to help. People are willing to help or help you find the resources

that are needed to help with aging parents or young children. Our communities also have outreach programs that can direct us to resources. • Include your children in the family plan. No matter the age, ability or maturity, all children can help their parents care for their elderly relatives. Young children enjoy doing small tasks such as bringing a drink to grandma or grandpa. Older children can take them for a walk and even young adults drive them to appointments. These are great times to bond and learn a bit about their heritage. • Respite, Respite and Respite! Take time for yourself. Schedule “respite” into your calendar. By building some respite into your own schedule you will be healthier physically and emotionally — and you will be prepared to keep going. No matter which generation you belong to, rest assured there will always be challenges and growth will be had. We live in an amazing era and chances are that the Alphas will wonder how we ever survived! ■ the journal entry | July 2015

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Common Ground and the Generations

boomers and millennials May not see eye-to-eye, but they have more in common than they realize By Matthew W. Klein, CPA, CGMA

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orkplace politics and differences are always present, but currently we are seeing a growing divide between generations, specifically Baby Boomers and Generation Y (better known as Millennials). I suspect this is due to misunderstandings between each group as to their history and place in the world today and in the future. Imagine 30 years ago when Boomers were young and new on the scene, entering the workforce and how the Traditionalist generation felt about these changes. They were in charge and set in their ways. There had just been a war and things were improving in the world. Boomers wanted everything and probably got it. Millennials are no different; they are larger than Generation X and even the Boomers. The world is changing at an unprecedented pace; similar to the end of World War II. Are these generations really so different as to be at odds with each other or are they so similar that they clash not understanding their connections? Boomers and Millennials struggle to work together, but these generations are much more alike than they realize. Everything that frustrates the Boomers about Millennials probably frustrated the Traditionalists about Boomers and will frustrate the Millennials about Alphas. Neither of these generations realizes that this is just a recurring cycle — what comes around goes around. Boomers are getting it because they gave it. Millennials are giving it and will get it later. Both generations have changed or are changing not only the workforce, but the world. I recently heard an engaging presentation about Millennials from a non-Millennial that has made a goal, almost a life's work, of understanding that generation and helping them come of age. Before this, I had never thought of myself as a Millennial. I was born in 1982 — a borderline Millennial so you can consider me an early adopter. Its not that I didn’t want to be a Millennial, I was just so close to the cut-off I thought I wasn’t really one. The only knowledge I had about Millennials came from a presentation over 5 years ago and they were only called “Generation Y.” The term ‘Millennial’ hadn’t even been coined yet as the core of the group was still in high school. My career ambitions and outlook on life made me feel as if I didn’t really fit what I knew of the Millennial mold. Donna Salter, from the AICPA, convinced me that I am truly a Millennial. If only Donna could help the whole world unthe journal entry | July 2015

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Feature Story derstand Millennials, we wouldn’t have any more problems. She said the opposite of evolution is extinction. But who (which generation) needs to evolve? The answer lies in the pattern of past generations. By 2025, 75% of the workforce will be Millennials; it is currently 50%. Millennials and Boomers both represented about one-third of the population at their peak. Every once in a while, a large generation comes along that dominates by sheer numbers and affects real change on the world. I propose that Millennials were not the first generation to do this; it was the Boomers. Generation X won’t really be discussed here because they weren’t big enough or young enough — this pattern skips a generation. The Boomers and Millennials came of age when many executives and senior management were nearing retirement and there were more opportunities. Boomers and Millennials think that they are from different worlds and have no hope of understanding each other. These generations don’t realize how much they have in common. Boomers saw the Korean and Vietnam Wars while Millennials are still living the War on Terrorism and Iraq War. Boomers began the space race and Millennials are on the cusp of space tourism. Boomers had Elvis and Millennials have Taylor Swift. Boomers got Alaska and Hawaii as new states; Millennials got renewed relations with Cuba.

Generations Defined Millennials (Generation Y) Born: 1981 to 1997 Generation X Born: 1965 to 1980 Baby Boomers Born: 1946 to 1964 The Silent Generation Born: 1928 to 1945 The Greatest Generation Born: Before 1928 Source: Pew Research Center

How People THINK it is. Boomers

Alphas Gen X

Boomers came of age in the era of color TV, mass availability of cars, commercial air travel, microwave, and touch tone phones. Millennials came of age in the era of cell phones and Internet, commercial space travel, 3D printers and are the first generation to abandon the traditional camera. Both saw giant advancements which revolutionized standards of living and the ability to connect with one another. Things are changing rapidly now, but as illustrated above, things changed just as fast for Boomers. Both generations embrace change and actually thrive on it. Perhaps this is why they appear in competition with each other. Millennials do everything any other generation does; albeit differently. Can you teach a Millennial or a Boomer not to be? This is the wrong perspective. In marriage you never try to change your spouse, you change yourself. Boomers AND Millennials need to broaden their own horizons, not each other’s.

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Gen Y

Millennials

How it ACTUALLY is. Boomers

Millennials

Gen X Gen X/Z are not “gap” generations


Feature Story -

Both generations believe that networking and building relationships is the key to success in business. Both spend money instead of save; buy now, pay later. Both are labeled “me” generations. Both are (were) young, self-centered, and interested in being connected to everyone. They are interested in communicating — Boomers over the intercom and Millennials over instant message. Seventy-eight percent of Millennials can’t go five minutes without checking their devices. A Pew Research Center Study showed that 61% of Millennials get their news from Facebook and only 37% from TV. Boomers consume their daily news in exactly the opposite ways. By learning just these two statistics, each generation better know how to work together instead of against each other. Both generations know how to work hard; they just do it for different reasons. Boomers are focused on working long hours whereas Millennials are focused on contribution. Basically, Millennials want to make a difference no matter

how long it takes whereas Boomers worked long hours for the sake of working. Boomers started the movement toward work/life balance while Millennials created work/life integration — work where you want, when you want. Every generation is motivated. Millennials are just the first generation to put their foot down and cry loud enough and say “We want different motivators ... We want to change the workforce ... We’re sick of the same old stuff.” Boomers likely tried similar tactics and succeeded to a certain level. Millennials, as the largest generation in history, believe in themselves and their cause and are willing to sacrifice for it. Both generations crave validation, just in different ways. Boomers were validated by receiving a raise, a promotion, or more responsibility. Millennials are validated by praise, accomplishment, and feeling like they’ve made an impact. As soon as we all learn how to motivate and validate one the journal entry | July 2015

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Feature Story

What Comes After Y? They have unofficially been dubbed Generation Alpha and will be born from 2010-2030. Alphas will spend their entire life immersed in technology. The first generation to be considered digital natives, they will never experience life without social media. Technology will not be a tool for life, it will BE life. Referred to as “screenagers” their medium of communication and information dissemination will be glass instead of paper. This explains why my 9 month old son, who can’t manage to pick up anything, can grab our cell phones in a matter of seconds and put it in his mouth. The majority of this generation will see the 22nd century. It is predicted that this group will be more entrepreneurial, have less human interaction, and be more self-sufficient than any to date. Source: The McCrindle Blog, http://www.mccrindle.com. au/the-mccrindle-blog/whatcomes-after-generation-z-introducing-generation-alpha 12

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another, we will be able to focus on cooperation and shared goals. Boomers usually look back professionally. They want performance evaluations and to just do their work, get a paycheck, and go home. Millennials are always looking forward. They want performance projections and visions of the future and don’t worry so much about compensation as they do contributions and benefits. I recently had a young employee in China who submitted her resignation. We were dismayed as we had great plans for this employee to progress in the company and take on greater responsibilities. Once we shared these plans with her she immediately agreed to stay. If only we would have shared this earlier, she wouldn’t have ever considered leaving. Boomers grew up in a world where you respected your elders, didn’t talk back, didn’t bully, didn’t skip dinner or misbehave at company parties — generally took responsibility for their own actions. Millennials grew up in a world where you don’t criticize, don’t discipline, were never at fault for anything, and you celebrate everything. The new generation has never experienced failure and has been told the majority of what they did was wonderful; they have never experienced disappointment, except when American Idol was canceled after 15 seasons! Boomers were promised the American Dream. Millennials want the next “American Dream.” They’re diligently trying to find out what it is. This explains why they switch jobs and are always looking forward, trying to uncover it. The average Millennial will have seven jobs by the time they are 26 years old. If both generations could realize these similarities and stop fighting with ourselves, we could accomplish a lot together. Boomers are called that for a reason; the economy was growing, the U.S. ruled the world, and opportunity was everywhere. Life seemed easy but did they think it or know it? No, they lived through a war, or were the product of a war, and fought for America’s, and the world’s, independence. They earned all that they had and grew because of it! Millennials, on the other hand, felt the world was out to get them. They were born into a global economy with competition at every turn. The U.S. is fighting to retain our relevance as the leader of the free world, financial center, innovation center, and don’t forget the never-ending war on terrorism and extremism which is basically exaggerated by the same social media created and embraced by this generation. They literally have every convenience in life (similar to the Jetsons though most haven’t heard of it — but they can watch it immediately). Each generation feels like the victim and that they got the short end of the stick. Whatever way you look at it, both generations came of age during turbulent and glorious times; characterized by rapid change, progression, and an overall era of breakthroughs. Each generation prides themselves on the things they accomplished. Each generation is unique and can help everyone else succeed and change the world. There’s no training and no teaching about how to succeed in the workforce.


Feature Story

Schools provide little preparation for the workforce. Boomers just expect the new generation to know how to work, more specifically, how to work with and for them according to their rules. But what if we gave each other a chance and helped instead of criticized, understood instead of judged? I taught upper-division managerial accounting at the University of Utah during the summer of 2014. I tried to incorporate into my curriculum skills and information that I thought would help my students, mostly Millennials, to succeed in the workplace and start with a leg up on their co-workers. There wasn’t a huge age gap between me and the average student although I had been a working professional for seven years. At times, I felt like the age gap was as wide as the Grand Canyon. I learned to not make snap judgments and instead understand why things are the way they are. For example, it seemed to me that the students tried to argue every point possible on their grade on a quiz and sometimes they would even disagree with each other asking me to accept two different answers. I just saw them as entitled, but it wasn’t until one student explained to me how much pressure there is to get good grades, get into graduate school, and get a job — each more competitive than the last. The students, rightfully so, were looking for every edge and advantage they could get in order to be successful, a sort of self-preser-

vation. It reminded me of myself in school and even at work, always looking ahead trying to see where I’ll end up next. If we merely understand the Millennial generation and their motivators, they will work harder than anyone towards the end goal. Take companies like Domo, Adobe, and Qualtrics whose CEOs are Millennials, or at least act like them, and where most employees are Millennials; these companies have high retention rates and extremely happy employees because they have figured out what motivates Millennials (unlimited time off, collaborative teams, and quirky work environments) and how to keep them engaged on a daily basis. And they produce staggering results with the help of Boomers to make sustainable results. Likewise, by viewing the world from the perspective of a Boomer, we would see so much knowledge and wisdom to learn from. It’s no wonder companies like GE, Coca-Cola, and Microsoft have been so successful still being led by Boomer CEOs today. They were taught just the same way to work hard and build a brand. These brands are worth more than most new companies combined but need the Millennial touch to stay relevant. The Boomers need to engage Millennials and pass on their business acumen while still respecting Millennials own the journal entry | July 2015

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Feature Story knowledge and experience. Millennials need to respect Boomers and prove themselves while helping Boomers understand the new generation and changing environment. Two years ago, I hired an intern from the local car wash (definitely a Millennial). She said she wanted to major in accounting and wanted to get some experience and see what it was like to work in an office. I had no idea how green she was and made it my personal goal to get her “business ready” for the professional world after the three months ended. She didn’t really understand what meetings were or how to use a copier. At the end of three months I was ready to pay her myself just to be able to keep her. She put in the hard work and the time to prove that she was qualified for the job and demonstrated that if the right motivators (flexibility, responsibility, autonomy, and fun work environment) are present then Millennials can succeed. In fact, I was so impressed with her that I helped her re-do her resume and secure her next job when she moved away to continue school. Generation Alpha, the generation after Generation Z (the generation after Millennials), will be the next big generation that will have a collective voice and create real change in the world. The world is changing faster than ever, all in the workforce need to collaborate to keep pace with this change. Millennials are uniquely positioned, just as the Boomers were, with the requisite skill set to succeed in the workplace and keep pace with change and advancement; potentially even increasing the pace. Millennials don’t realize it but the same misunderstandings they are having with Boomers will be had between them and Generation Alpha. Boomers complain so much now about Millennials and all their shenanigans and nonconformity. Boomers likely acted the same way when they were the large new generation shaking up the corporate world; they just forgot. Generational conflicts and misunderstandings aren’t just public accounting problems — the model at the firms hasn’t changed. People will still leave after a few years — that’s the idea and that’s what the partners want. This is an industry problem — they will work in public accounting for four years or less and in industry for the next 30 years. We, Millennials, Boomers, and all generations, must learn from the past to help us prepare for the future. Generation Alpha will be entering the workforce in just 30 short years. ■ 14

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Matthew W. Klein, CPA, CGMA is the International Controller and Finance Manager at Lifetime Products. He graduated from the University of Utah with a Bachelors and Masters in Accounting and began his career at Deloitte & Touche. Klein has been active in the UACPA and has served as the ProNet Council Chair and is currently on the BAM Council.


by the

Numbers

We explore Millennials in the workforce through numbers compiled by Donna Salter, AICPA's Senior Manager of Young Member Initiatives as well as Culture Amp and Time Magazine.

Millennials at work

of the workforce that will be 75 Percentage occupied by Millennials in 2025 Percentage of minorities among Millennials, 31 making the most diverse adult population

15 Percentage of Millennials who want a highpaying career

60

Percentage of Millennials who say their current position is a stepping-stone

74

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Disruptive Demographics and the Accounting Profession By James H. Johnson Jr. Reprinted with permission from the Tennessee Society of CPAs

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wo colorful demographic trends are dramatically transforming the accounting profession — and the American business landscape and consumer markets. Immigration, mainly from Asia, Latin America and the Middle East, is contributing to the “browning” of America, while the aging of the U.S. native born population is contributing to the “graying” of America.

age 83. Because fertility rates dropped sharply following the post-World War II baby boom (especially among non-Hispanic whites), this increased longevity — absent a continuous flow of prime-working-age immigrants to support the system — will severely challenge the nation’s ability to sustain Social Security and other governmental social “safety net” programs.

Emblematic of the “browning” trend, according to U.S. Census data, people of color — Hispanics (15.2 million), Blacks (3.7 million), Asians (4.3 million) and other nonwhite groups composed mostly of people self-identifying as biracial or multiracial (1.4 million) — accounted for 92% of U.S. net population growth during the first decade of the new millennium (27 million). In contrast to earlier census periods, non-Hispanic whites accounted for less than 10% (2.2. million) of the nation’s net population growth between 2000 and 2010.

Moreover, the “browning” and “graying” of America are ushering in dramatic shifts in the geographic distribution of the U.S. population, as well as major changes in marriage patterns, living arrangements, and family and household composition, all of which create both opportunities and challenges for the accounting profession and other U.S. businesses. Perhaps the greatest opportunity for the accounting profession emanates from the rates of small business formation, growth and development that undergird the “browning” of America. Some of the most rapidly growing small businesses — the so-called “new gazelles” - are minority-, immigrant- or woman-owned firms that serve diverse consumer markets, both domestically and internationally, and newly emerging, demographically demand driven market niches such as the elderly and their caregivers.1

The “graying” of the American population is driven principally by the aging of Baby Boomers — the 80 million people born between 1946 and 1964. On Jan. 1, 2011, America’s first Baby Boomer reached the age of 65 and became eligible for a host of governmental benefits. Over the next 20 years, Boomers will continue to turn 65 at a rate of 8,000 per day and are projected to live on average another 18.7 years — to 16

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In the past, the accounting profession has successfully


Disruptive Demographics strategically positioned itself to take advantage of such market opportunities by diversifying its employment base — in terms of both race/ethnicity and gender. These efforts have paid off, as the industry is far more diverse today than it was a decade ago.2 However, the industry has yet to resolve the retention problem among diverse hires, and there is a continuing significant lack of diversity in the upper ranks of the profession. Recognizing this need for increased retention and advancement of underrepresented minorities to better reflect the clients and communities that CPAs serve, the American Institute of CPAs (AICPA) has created a National Commission on Diversity, which is charged with making recommendations regarding how to make the profession more inclusive. Based on disruptive demographic trends and the AICPA’s recognition of marketplace opportunities, here are six ways to increase inclusivity: First, successfully tapping the diverse markets emanating from the “browning” of America requires much more than hiring diverse faces with strong accounting backgrounds and skills. New hires must possess impeccable cross-cultural communication skills and in-depth knowledge of business acumen in different cultural contexts. These are teachable skills that must become part of the accounting profession’s DNA — not just for the industry’s front-line workers but also throughout top leadership and upper management. In addition, the profession must reach out to and partner with higher education institutions responsible for training accounting professionals to assure this effort.

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Second, the successful recruitment and retention of diverse employees may require educational partnerships much earlier than college or graduate school. For the accounting profession to develop a greater brand promise and initiate recruitment efforts to targeted groups, strategic alliances may need to be established perhaps as early as middle school. In contrast to professions like law and medicine, accounting has not often been considered as a flashy profession with the same levels of high media visibility and reputation. Accountants rarely have routine encounters with the public and seldom deal with families with limited financial resources. Given this state of affairs, many young people and their

ConnectWithUs the journal entry | July 2015

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Disruptive Demographics families have no idea what accountants do and no knowledge of the fact that “accounting has long provided a path for first-generation Americans into the professional classes.”3 The establishment of pre-collegiate educational partnerships, especially in school districts with a high percentage of traditionally underrepresented groups, can help the AICPA “rebrand” itself for upcoming professional aspirants. Third, to win the intense war for diverse talent in today’s hypercompetitive global environment, the accounting profession must strive to become the employer of choice, that is, the industry where everyone wants to work and no one wants to leave. This means re-engineering and reinventing the accounting workplace culture, making it far more agile, flexible and accommodating to the diverse lifestyles and living arrangement that undergird the “browning” and “graying” of America. Workplace diversity efforts should be established or improved to reflect these specific trends. Here is where the expertise of the profession’s employee resource groups (ERGs) representing various constituencies (race, sexuality, generational, gender, etc.) in the workplace can be helpful in determining what steps should be taken to recruit and retain a diverse workforce, as well as ensuring that career pathways are clearly established, transparent and accessible on an equal opportunity basis.

Sixth, the accounting profession also will have to more seriously consider work-life balance issues in the years ahead. Such issues will loom especially large for many of the profession’s aging Boomers, who will face the triple whammy of having to deal simultaneously with their own mortality, caring for aging family members and assisting younger relatives who have had difficulty securing or maintaining employment in an unstable economy. It should be apparent that America’s profound population shifts are ushering in tremendous opportunities for a new era in human resource management. Rebranding accounting as a profession that helps employees manage the disruptive demographic trends that are transforming their lives is a sound approach to achieving short- and long-term diversity goals. ■

Endnotes Boston, Thomas D. and Linje R. Boston, “Secrets of Gazelles: The Differences between High-Growth and Low-Growth Businesses Owned by African American Entrepreneurs,” The Annals of the American Academy of Political and Social Science, 2007, Vol. 613, pp. 108-130; James H. Johnson Jr. and Allen Parnell, 2013, “Aging in Place in the Carolinas: Demographic Highlights and Programmatic Challenges and Opportunities.” Chapel Hill: Frank Hawkins Kenan Institute of Private Enterprise, Kenan-Flagler Business School, University of North Carolina at Chapel Hill. 2 Fourth, given that accounting, like other professions, is facing Grumet, Louis, “Minorities in the Accounting Profession: Much Remains to be Done,” The CPA Journal, 2008, Vol. 78, an impending wave of retiring Baby Boomers, succession available at http://tinyurl.com/k4fka3o; American Institute of planning is paramount. Two issues are germane to this type CPAs, “2011 Trends in the Supply of Accounting Graduates and of planning: (1) identifying, retaining and developing all the Demand for Public Accounting Recruits,” available at http:// high-performing and high-potential employees, including tinyurl. com/3zy6r33. newly recruited workers from a labor pool that is far more 3 Byrnes, Nanette, “Accounting Can Be Door to U.S. Profesdiverse than in the past; and (2) developing strategies to sional Class,” Reuters.com, Oct. 16, 2007, available at http:// ensure knowledge management and succession. Knowledge accumulated over the years by outgoing or retiring employees tinyurl. com/3d3k2x6. must be transferred to the more diverse new employment base. Fifth, effective succession planning also means extending diversity efforts to accommodate an emerging multi-generational accounting workforce. The accounting profession will have to take concrete steps to accommodate four generations of workers — PreBoomers, Boomers, Generation X and Generation Y — all of whom bring to the workplace different core values, communication and interaction styles, work ethics and values, leadership styles, and perspectives on feedback and rewards. 18

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1

James H. Johnson Jr. is William Rand Kenan Jr. Distinguished Professor of Strategy and Entrepreneurship in the Kenan-Flagler Business School at the University of North Carolina at Chapel Hill. He can be reached at jim_ johnson@unc.edu


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Hot Assets and Deemed Debt Distributions Elliot P. Smith, Esq.

I

f you’re like many tax practitioners, the consideration of Internal Revenue Code (“IRC”) §751 asset (“Hot Assets”) calculations generally only comes to mind when there is sale of a partnership interest or an actual cash or property distribution from a partnership. However, are we potentially failing to consider the application of IRC §751 on “deemed distributions” as a result of decreases in partner debt allocated under IRC §752? It has been my observation that many practitioners do not give adequate consideration to partner debt unless a partner has a negative tax equity account and decreases in debt result in gain from a distribution in excess of tax basis under IRC §731. Let’s take a minute and take a closer look.

which would likely result if partners are distributed a disproportionate share of either capital gain or ordinary income producing assets. For example, suppose Partner A and Partner B have a partnership with $50 of inventory and $50 of stock and share profits of the partnership equally. If the partnership distributed all the inventory to Partner A and all the stock to Partner B, and if A and B sold what they received the result would be that Partner A would incur ordinary income and Partner B would incur capital gain (or loss). Alternatively, if the partnership were to sell the inventory and stock the partners would equally share the ordinary income and capital gain. IRC §751 was enacted in order to prevent this shifting of income character between the partners.

IRC Section 751(b) Hot Assets

Under IRC §751, each partner in a partnership is considered to own a proportionate share of the partnership’s assets when compared to his or her ownership in the partnership itself. The assets of the partnership are either Hot Assets or other property. Hot Assets in regards to

One of the primary goals of IRC §751 is to prevent partners from using distributions to shift ordinary income and capital gain income between themselves,

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Debt Distribution partnership distributions include “unrealized receivables” and “substantially appreciated inventory items,” which likely encompasses more assets than may appear upon first glance. In fact, it is rare that an operating partnership would not hold some Hot Assets. Unrealized receivables is broadly defined to include depreciation recapture under IRC §1245 and IRC §1250, and although inventory must be substantially appreciated (120 percent of its tax basis) to be considered a Hot Asset, the definition includes all assets not considered a capital asset or an IRC §1231 asset if sold by the partnership. In the event a disproportionate distribution of Hot Asset to a partner occurs, IRC §751 requires a hypothetical sale. This section of the IRC takes the approach that a partners receiving a distribution initially receives a distribution of all assets proportionate to his or her partnership interest followed by a sale of Hot Assets back to the partnership in exchange for the assets actually received. It should be noted that the current Regulations and the IRC seem to disagree about the appropriate method used to calculate the value of the hot assets deemed to be distributed by the partnership.

partnership debt, which is part of a partner's tax basis in the partnership, is allocated under IRC §752. Under this Code section, debt is allocated differently depending on whether the debt is recourse or non-recourse to the partners of the partnership.

IRC Section 752 Debt Allocations Partnership debt, which is part of a partner’s tax basis in the partnership, is allocated under IRC §752. Under this Code section, debt is allocated differently depending on whether the debt is recourse or non-recourse to the partners of the partnership. Recourse debt is allocated to the partners based on who economically bears the loss if all assets of the partnership were to theoretically become worthless and the partner had to cover the debt. Recourse debt can be present when there is a general partner with unlimited liability or

when there is a personal guarantee of a debt by a limited partner or member of an LLC. Member non-recourse debt, which is debt loaned by a member of family member to an LLC, is also treated as recourse debt because the lending member or his or her family bears the economic burden if the partnership was unable to pay the debt. The allocation of non-recourse debt can be significantly more complex. Non-recourse debt is allocated among the partners based on a three tier approach. First, nonrecourse debt is allocated to partners who have minimum gain, which is the amount of income a partner will be charged back in future periods due to deductions taken on non-recourse debt; second, based on the amount of taxable gain that would be allocated under IRC §704(c) if the partnership disposed of property that is encumbered by non-recourse debt; and third, based on the partners’ share of partnership profits or a significant item of partnership profits. Many of these debt allocation rules can be very complicated and are not discussed here in depth but are mentioned to illustrate that there can be several deferent instances when debt allocated to a partner may be reduced.

Deemed Distributions and Hot Assets IRC Section 752(b) states that “any decrease in a partner’s share of liabilities of a partnership, or any decrease in a partner’s individual liabilities by reason of assumption by the partnership of such liabilities, shall be considered as a distribution of money by the partnership to the partner.” This statute makes it clear that a decrease in liability is a deemed distribution of cash to the partner. These deemed distributions are subject to the IRC §751(b) Hot Asset rules, which means that a partner may have to recognize IRC §751 income even if no actual distribution of cash or property has occurred. This is because a partner with a decrease in allocated debt would be deemed to have received a distribution of all cash and not a share of a partnership’s Hot Assets in proportion to his or her partnership interest. Under the rules of IRC §751 the partner would be treated as having received Hot assets (instead of all cash) by the partnership in proportion to his or her partnership interest followed by a sale back to the partnership in exchange for the deemed cash proceeds.

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Debt Distribution

Revenue Ruling 84-102 Revenue Ruling 84-102 illustrates some of the complexity that could result from a simple transaction. In this Revenue Ruling, A, B, and C were equal partners in partnership P. At the time of the transaction the value of each partner’s interest was 25x dollars. D acquired a 25% interest in the partnership by contributing 25x dollars, which equaled one-fourth the equity in the partnership. Prior to D’s contribution, the partnership had 100x in non-recourse debt which was allocated equally between A, B, and C. The partnership also had 40x dollars’ worth of IRC §751(b) Hot Assets. Upon the contribution made by D, a portion of the non-recourse debt shifted to D in accordance with the third tier of allocations prescribed for non-recourse debt under IRC §752. This shift resulted in deemed distributions of 8.3x dollars to A, B, and C.

Although many commentators have disagreed with the result of Revenue Ruling 84-102, it remains as a possibility for IRS interpretation of the statute. A major disagreement about the Ruling is due to the possibility for reverse 704(b) capital account revaluations immediately prior to a contribution or distribution, which would already prevent ordinary income shifts from occuring due to special tax allocations required under IRC §704(c)

Although many commentators have disagreed with the result of Revenue Ruling 84-102, it remains as a possibility for IRS interpretation of the statute. A major disagreement about the Ruling is due to the possibility for reverse 704(b) capital account revaluations immediately prior to a contribution or distribution, which would already prevent ordinary income shifts from occurring due to special tax allocations required under IRC §704(c). IRC §704(c) deals with the allocation of income items from built in gains and built in losses present at the time of sale, contribution, or distribution. Since Revenue Ruling 84-102 was published, there has been a significant amount of uncertainty surrounding the 22

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proper application of IRC §751. Just recently, however, the IRS published Internal Revenue Bulletin 2014-47 with potential clarification to some of the rules.

Internal Revenue Bulletin 2014-47 Internal Revenue Bulletin 2014-47 proposed changes included clarification between the IRC and the Treasury Regulations regarding how to determine the amount the value of Hot Assets distributed in the constructive transaction, embracing the IRC §704(c) principals to measure a partner’s share of Hot Assets in the partnership, and the addition of anti-abuse rules. These proposed changes may have significant impact but don’t appear to impact the overriding concept that deemed distributions from debt shift can result in the recognition of Hot Asset income. In fact, some proposed changes may further complicate the debt issue. For example, the proposed rules would make a reverse 704(b) revaluation mandatory immediately before any Hot Asset distributions. This would mean that every time there was a potential deemed distribution of debt in a partnership holding Hot Assets that revaluation would have to occur, which could become increasingly complicated as different layers of revaluations resulted.

Conclusion Although the Hot Asset rules are not the simplest rules to apply they should not be overlooked. Even with the potential implication of the proposed rule changes outlined in Internal Revenue Bulletin 2014, there will still be the possibility of deemed distributions of Hot Assets from debt shifts. In fact, with clarification and updates to the rules there will likely be additional scrutiny from the IRS. It may be time for CPAs and tax practitioners to give further consideration to the application of these rules. ■

Elliot Smith is a licensed attorney and Certified Public Accountant in Salt Lake City and is a Principal of Cannon Law Group, PLLC. His practice includes business organizations, business acquisitions, estate planning, and taxation. He can be reached at elliot@slctaxattorney.com


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Hang Out with People Smarter Than You A Fun and effective way to increase your knowledge By Sandra Wiley

E

arlier this year I had the honor to meet with two of our profession’s think tanks, chocked full of amazing leaders. My first thought was to give you a little recap or peek into what we discussed but I know that you will be seeing the fruits of our labors throughout the year on social media and in speeches and workshops from each of these incredible individuals. So I decided to take a different approach and share with you the “why” to the importance of meetings like this in hopes that it will inspire you to make a few changes to increase your personal intellectual capital.

Identify Your Gifts That is right, the first thing I would coach you to do, if you were sitting with me today, is to make a list of your characteristics and traits that you are really proud to claim.By identifying your strengths, you will know what you bring to the table to share with others. As you develop a peer group or think tank, you want to be able

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to give as much as you get.The only way to really do that is if you are confident in your own skills and abilities. Confidence is the key word here. Be self-aware and show pride in who you are.

Identify New Knowledge You Need Once you’ve identified your gifts, there is an opposite side of the equation. You need to understand where you could use some help and new knowledge. This list does not need to be long; in fact, I encourage you to keep it short. List one or two things that would really benefit you either personally or professionally. Everyone has something they could improve on, or a new skill or piece of knowledge that they would like to acquire. Think deeply about this step. It is possibly the most important. Knowing what you want to get out of the conversations and the relationships will help you stay focused and centered.


Networking

Identify Someone Who Can Help You Elevate In my case, I’ve met with a group that I helped to start, The CPA Consultants Alliance, and a group that I have been asked to join, The CPA Practice Advisors Thought Leaders. In both cases I am surrounded by amazing individuals who, like me, have families, a career we love, a passion to help others and a connection to this amazing profession. We also have one other characteristic that binds us together; we love to learn. We are hungry to find new knowledge and to continually grow in our intellectual capital.

We're On the Move. Again.

That is the kind of people and groups you need to find for yourself. In my case, it started small with one-on-one meetings many years ago. Today, I still like my one-onones but I have also expanded to these larger groups. You may find your group locally by looking for peers among competitors or from similar professions. You may also find your group at a state or national level by working with your CPA Societies or with peer communities like those offered by our firm. Either way, find individuals who are smarter than you and find the courage to make the connection!

Identify a Plan for Implementation Thinking about connecting is just not enough. You must make the time and take action! Use your calendar, to-do list or any other tool that helps you keep a commitment. You will find that individuals are really excited about sharing what they know and that they especially like to help others. All you have to do is reach out and set the meeting. The bottom line is, hanging out with people who are smarter than you is the best way to insure success in your life. Take the challenge and start your personal thought leader initiative today! â–

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Increasing Inclusiveness in the Accounting Profession in Utah By Josh Cieslewicz, CPA, Amanda Moon and Sunao Yamanouchi

W

e — and millennials in particular — recognize that diversity is a net positive. But what can an employer do about the lack of gender diversity in an organization when the pool of qualified graduates is inadequately diverse? There are attainable solutions to including more females in the profession. Think upstream. Many accounting departments in universities throughout the state face the same gender diversity dilemma that many employers face. Accounting professors see evidence of a gender disparity at Utah Valley University when they teach an accounting class with a majority of male students, and then a humanities class enters the same classroom with a majority of female students. However, whereas organizations are somewhat restricted in their hiring by the students that accounting programs have recruited, university accounting programs have the potential to pull in a more diverse set of accounting students. Increased gender diversity at the university level is a key to increased gender diversity in the workplace.

Serve as an advisory board member or volunteer to speak at a Beta Alpha Psi Event. Advisory board members help to bridge the gap between academia and the profession. Board members provide critical input. Consider serving, or supporting someone in your organization as they serve, on an advisory board to a university accounting program. Ask for the numbers. Advisory board members can bring important issues such as gender diversity to the forefront. It is well known that accounting programs nationally tend to have at least as many female (or more) students as male students. Looking at the numbers for the accounting program at UVU has been informative. Not surprisingly, women represent about half of the students in Utah’s higher education system. At UVU, about 45% of the students in 2014 were women. However, UVU’s accounting program had about 40% women. This should be put in perspective, as business programs overall at UVU had about 28% women. For UVU’s accounting program, the numbers clearly indicate there is more to do, but they the journal entry | April 2015

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Inclusiveness also suggest that measures taken have been helpful. The Woodbury School of Business at UVU is committed to working on this issue.

Advisory board members can help universities by offering ideas and connecting professors with business professionals who are already keyed into this challenge. Push past the numbers to identify the roots of the problem. Advisory board members can help universities by offering ideas and connecting professors with business professionals who are already keyed into this challenge. We interviewed women in the profession in Utah who are in hiring positions. It is clear from our interviews that the local culture influences the educational decisions of women in Utah. Many intelligent female students in our state hope to stay home and rear children without working outside of the home. We believe it is best to have an openminded attitude towards women’s choices regarding work as it is their right to choose the lifestyle they want to have for themselves and their families. Rather than dissuading women from this perspective or demeaning their choices, it is recommended that we seek to trust them, understand their perspectives better, and try to help them improve the odds of achieving their dreams by considering a degree with more promise of economic security. Uninformed about the odds. In her Utah Department of Workforce 2014 report on Women in the Utah Labor Force, Lecia Parks Langston presents sobering statistics and trends. In comparison to the national average: • There are fewer Utah women age 25 and older who have bachelors degrees. • A higher percentage of women in Utah participate in the workforce. • More Utah women work part time. • Utah’s families are larger. • Utah’s divorce rate is higher. • Education and occupational choice are the largest 28

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factors behind the Utah male-female wage gap. The question is, do young female students in Utah understand these statistics? Beyond that, do they believe that these numbers may eventually relate to themselves on a very personal level? It is impossible to tell when divorce, death, or disability will require a stay-at-home mother to enter the workforce, but the statistics indicate these situations are common. Again from the same report, a snapshot of women in Utah in 2012 revealed that 17% were currently widowed, divorced, or separated, and many more had never married. The statistics also suggest that young families in Utah experience financial pressure due to having more children, that there are more divorces, and that women are less educated overall, earn lower wages, experience more poverty, and participate in the workforce more. While knowledge is power, the lack of knowledge takes on many faces — stress, frustration, uncertainty. Josh Cieslewicz, an assistant professor of accounting at UVU, says that one of the best and worst parts of his work relates to students who discover these facts later in life, often after working towards a degree that did not lead to employment when life challenges arose. He finds it both heart-wrenching and heart-warming to see women who by necessity must return to the workforce and opt to return to school for an accounting degree: Heart-wrenching because of the difficulty these students experience as they juggle work, children, and school; heart-warming because of the success many eventually find. Uninformed about how a degree in accounting can improve the odds. The statistics communicate that plans to marry and stay at home to rear children should be insured with a degree that can support such dreams, especially when life goes wrong. A degree that carries a clear promise of employment, even after long absences from the work force, can help improve the odds of succeeding. Some students have been informed of this reality. Cieslewicz has found that when he asks why students are considering accounting as a major, some female students explain that they want to have a family and insure it against economic challenges. As Jennifer Blair from Hawkins Cloward & Simister explained, accounting is a profession where women can have a flexible work environment that lends itself well to blending family and work responsibilities.


Inclusiveness Women can find reasonable employers that allow them to drop what they are doing, take care of a family emergency, and pick up later in the day where they left off. But if women are not informed of such aspects of a career in accounting, how will they ever know? Implement Solutions. Once the numbers are considered and the root problems identified, workable solutions need to be put in place. Again, there are critical roles for advisory board members and other volunteers to play. Inform through Role Modeling. The academic literature reveals that having role models a student can relate to is influential in decisions related to choosing a major and career. One important outcome of role modeling is that students feel more self-efficacy, or belief that they, too, can succeed. One solution that takes advantage of this is when Beta Alpha Psi seeks to include in their activities volunteers who are women, and encourages them to address gender issues. Jayme McWidener, a Partner at HJ and Associates, is well-versed in role modeling. She explains, “Our firm sends a female partner and employees to networking events.” McWidener adds, “The unique seasonality of accounting can be utilized by women who are mothers and have families. Additionally, the accounting industry is relatively easy to return to after long periods of absence.” At UVU, we receive comments from female students about the interactions they have with such role models. Students actually change their majors and career choices based on these discussions. Inform through typical university channels. At the university level, we are in the process of making more information available to women, such as the statistics included in this article. Students, both older and younger, search for majors. Information that is most relevant to women in our community should be posted where they can find it. With reference to the importance of having female role models, this information should include testimonials from local women who have found the benefits of accounting careers. Accommodate women. Jonyce Bullock, a Partner at Squire and Company and current UACPA President, indicates that women should feel comfortable discussing the need for reasonable accommodations in the work place given their unique needs. Likewise, universities can work

to accommodate women. UVU’s accounting program, for instance, has reached more students (both male and female) by offering more online and evening classes, thereby making a graduation path available without requiring attendance in regular day classes. Conclusion. As employers and universities work together, we are more likely to solve the problem of gender diversity and improve the lives of women and families in our communities at the same time. Your contributions as advisory board members and as volunteers at Beta Alpha Psi events are invaluable in this process. ■

Josh Cieslewicz, CPA. After working at Ernst & Young and in industry for six years, Josh Cieslewicz chose to pursue a PhD and to teach. His research has primarily focused on corporate governance and auditing topics. Josh is currently an Assistant Professor of Accounting at UVU. Amanda Moon graduated cum laude in accounting from UVU in 2014, and will earn her MBA in August 2015. A past President of UVU’s Beta Alpha Psi chapter, she now works as a graduate assistant in the Small Business Development Center, helping small businesses with accounting, finance, and business management. Sunao Yamanouchi graduated from UVU and went to work for Deloitte & Touche in audit. After working three years, Sunao decided to return to UVU and pursue an MBA with an accounting emphasis. Sunao will work for KPMG in San Jose in the area of tax.

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Closing the Gaap — Women in Accounting

Brigette Hammond, CPA By Nicole Gardner, CPA

Brigette Hammond is a Tax Senior Associate at KPMG. She graduated from the MAcc program at the University of Utah. Hammond talks about how she became a CPA and why she loves Disneyland.

What led you to a career as a CPA? My grandfather was a CPA, and he would talk about how he could write with his left hand while simultaneously using a 10-key with his right. I thought that was a pretty neat and exciting skill when I was younger, but it wasn’t until high school when I took my first accounting class that I really enjoyed accounting. I decided I wanted to pursue it further in college. I have been really happy with my choice, although I am still trying to work on my ambidextrous 10key skills.

What would you be doing if you were not a CPA? If I was not a CPA, I would either be a professional gift wrapper or I would work at Disneyland. Being a tax accountant is a very satisfying career, but it doesn’t bring 30

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people as much joy as giving them nicely wrapped presents with perfectly crisp corners or serving them churros or Dole whips at Disneyland. You just don’t get the same smile from people when you’re delivering a tax return.

What do you like most about your career and what do you like least? I love the opportunity to be challenged every day. I feel like I’ve grown so much from when I first started and still have so much more to learn. There is always an opportunity to stretch and learn new skills if you want it. I don’t think I could ever get bored in this profession because things are always changing. Every day is different from the last. I am not a huge fan of working overtime (especially on beautiful spring and fall weekends) and I don’t like that I can’t look out a window from my desk. Also, I love the busy season meals, and I hate busy season meals. They are good for the taste buds and bad for the waistline when you’re sitting for such long periods of time.


Closing the GAAP What do you enjoy outside of work?

What advice do you live by?

My husband and I enjoy traveling, eating world-class doughnuts, and browsing through art museums. We also love watching TV shows one series at a time. One day we will get around to updating our 1950’s home, but for now the avocado green bathroom and pink fireplace are here to stay.

Surround yourself with positive people and delicious food. If you can combine the two together, you will be unstoppable. â–

What advice would you have for other women professionals? I heard a great TED talk by Sheryl Sandberg about not taking your foot off the gas even if you are planning on pursuing other opportunities. As women, we have a lot to offer the workplace, and I think we often sell ourselves short. No matter our future plans, we should make conscious decisions to stay present in our careers. I feel like I get out of my career what I put into it. Try your best, reach for your goals, and you will be rewarded for it.

Nicole Gardner, CPA, is an audit manager at Eide Bailly LLP. She graduated from the MAcc program at Brigham Young University in 2003. She currently serves as the president for the Utah Affiliate of the AWSCPA. Nicole can be reached at ngardner@eidebailly.com

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Board Question The Future of Peer Review

Wor ki n g f or yo u i n 2015 The UACPA is proud to introduce its partners in the UACPA Association Member Insurance benefits program UACPA Offering: • Group Medical Insurance • Dental • Life and Disability • Vision • Individual Insurance Policies

For more information, contact Andrew Stott, astott@worldbenefitsoultions.com or 801.759.0421

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the journal entry | July 2015

The information in this presentation may be privileged, confidential and protected from disclosure. Any dissemination, distribution or copying is strictly prohibited.


The CPA Profession's Approach to Employee Benefit Plan Audit Quality Provided by the AICPA

S

ince our founding, the Utah Association of CPAs has been committed to helping our members achieve the highest level of quality in their performance of independent audits. We help our members by providing educational guidance and implementation materials, and monitoring and enforcing compliance with technical and ethical standards set by the American Institute of CPAs (AICPA).

Employee Benefit Plan Audit Quality Center

In the category of employee benefit plan audits, our profession must strive to do better.

The UACPA is urging more firms in Utah to join the EBPAQC, and take full advantage of the many educational webinars, resources and tools it offers, including:

In 2004, the AICPA established the Employee Benefit Plan Audit Quality Center (EBPAQC) as a resource for firms that perform, or are interested in performing, employee benefit plan audits. Over the past decade, the Center has evolved into a community of more than 2,300 CPA firms Committing to audit excellence and protecting the public is in 50 states and several territories committed to improving an important part of our mission. But as diligent and com- their performance. According to the DOL, audits by EBmitted as the profession is in the area of audit quality, there PAQC member firms produce audits with fewer deficiencies than non-member firms. are challenges – particularly in specialized industries.

A recently-issued study by the U.S. Department of Labor (DOL) on employee benefit plan audit quality revealed that Timely communication of regulatory and technical updates; a number of audits contained quality issues that must be addressed. While these findings pose a significant challenge • Webinars on hot topics and best practices to the profession, they also serve as a call to action. The UACPA, along with others in our profession, has a long history of tackling issues of audit quality — and we remain resolutely committed to further expanding on those initiatives.

• A dedicated website with resources and online member-to-member discussion forums for sharing best practices as well as discussions on audit, accounting and regulatory issues • Resources to educate clients the journal entry | July 2015

33


Enhancing Audit Quality The AICPA has undertaken several new initiatives to help practitioners strengthen their skills and expertise in the area of employee benefit audits, and the UACPA supports the work of the profession in supporting the Center’s mission and furthering the reach of these initiatives.

potential audit quality issues, and provide firms with near real-time feedback on their accounting and auditing practices. This process change, as currently envisioned, would enable firms to quickly leverage and implement prescriptive measures to fix engagement issues.

Enhancing Audit Quality Initiative PMoF would be built on a dynamic technology platform The AICPA last year launched the Enhancing Audit Quality and include the following five activities: (EAQ) initiative as a holistic approach to improving audit 1. Continuous analytical evaluation of engagement performance. EAQ efforts include boosting accounting performance education and testing higher-order skills on the next version of the CPA Exam, focusing on audit, quality control, 2. Human review, when system-identified concerns and peer review standards; strengthening ethics enforceare raised ment; and providing supplemental guidance and education as necessary. 3. Involvement of external monitors, when necessary An EAQ discussion paper published last August generated hundreds of comments from practitioners and other stakeholders on ways to improve audit quality. A Six-Point Plan to Improve Audits, issued in May 2015, incorporates stakeholder input on the AICPA’s strategic thinking to improve audit quality. It provides a roadmap for moving forward in the ongoing journey to maintain audit excellence in a constantly changing, complex business environment.

4. Periodic inspection of system integrity 5. Oversight of the system’s operating effectiveness

Employee Benefit Plan Auditing Competency Framework

The AICPA Competency Framework: Employee Benefit Plan Auditing is designed to help CPAs understand the knowledge and skills necessary to perform high-quality A major component of this plan is the evolution of the employee benefit plan audit engagements. The framework current Peer Review Program, which has long been the is underpinned by the need for objectivity, integrity and foundation of monitoring performance quality. This conethical behavior and includes a commitment to continucept, called Practice Monitoring of the Future (PMoF), is ously acquire new skills and knowledge. The AICPA also designed to evolve practice monitoring into an ongoing, offers targeted learning resources and knowledge checks near real-time process. to assess and enhance your EBP auditing skills on the Peer Review Evolution AICPA|CIMA Competency and Learning Website. The As the nature of business continues to evolve, we are taking knowledge checks help you identify growth areas, and steps to ensure that CPAs who are members of the UACPA recommend learning resources such as reports, self-study have access to quality services. courses, publications, webcasts and more to bolster your competency. Currently, our profession’s peer review rating system proConclusion vides a means by which external stakeholders — from financial statement recipients to regulators — can determine As stewards of our profession, the UACPA is firmly comthe quality of a firm’s accounting, auditing, and attestation mitted to enhancing employee benefit plan audit quality among all our member practitioners — from those who services. perform only one or two a year to those who perform PMoF, still in an early concept stage, marks a necessary hundreds. We are confident that the steps the profession is leap forward in the evolution of peer review. The idea taking to address audit quality issues will make a significant behind the new process is to enable quality issues to be difference in future audits of employee benefit plans, and corrected as the engagement progresses rather than after we call on all stakeholders to join us in this effort. ■ the audit has been completed, facilitate the prevention of

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the journal entry | July 2015


Recognize Success

Nominate a UACPA Member to be honored at www.uacpa.org/nominate

The UACPA Awards Task Force is gearing up to select members who deserve recognition at our awards banquet. While many CPAs are overly modest and prefer to remain unrecognized, it's important for us to recognize our best professionals and pay tribute to them as role models for those who are early in their careers. It also serves to promote the vital role CPAs play in the community. The UACPA wants your help in identifying candidates worthy of recognition. Please nominate the UACPA members who consistently go above and beyond what is necessary to serve their clients, employers, employees and communities. Any UACPA member that has contributed to the profession and/or community can be nominated. Nominations should be submitted by letter and provide relevant information in support of the nominee. Please fill out the brief nomination form online at www.uacpa.org/nominate. All nominations should be received by July 20, 2015.

Please take time today to nominate your employee, boss or colleague for their accomplishments.

Award Categories

made at considerable personal sacrifice beyond that normally expected

Distinguished Service

• Achieved a broad-based recognition and respect for the contribution

• Demonstrated superior professional competence • Served in a key leadership role providing a significant and meaningful

Outstanding Educator

service • The service provided is beyond that normally expected in any association or career position • The nominee must have achieved a broad based recognition for the service or contribution • May also be used to give recognition for outstanding public service • The nominee must be from the general UACPA membership

Outstanding CPA in Public Practice • A member of the UACPA in public practice who has made a significant contribution to the growth and success of his/her employer’s firm • Demonstrated superior professional competence • Provided exemplary leadership through prominent UACPA positions • Made significant contributions to the growth and enhancement of the profession. Their achievement has created important positive changes in the public accounting environment. The contribution must have been made at considerable personal sacrifice beyond that normally expected • Achieved a broad-based recognition and respect for the contribution

Outstanding CPA in Business & Management • A member of the UACPA in industry or business and management who has made a significant contribution to the growth and success of his/her employer’s company • Demonstrated superior professional competence • Provided exemplary leadership through prominent UACPA positions • Made significant contributions to the growth and enhancement of the profession. Their achievement shall have created important positive changes in the business environment. The contribution must have been

• Teaching: course development, teaching load, research, supervision, student motivation and perception • Research and Publication: number, type and quality • Academic Assignments: administrative, committee and special appointments • Professional Development: professional association offices held, services rendered, seminar or conference participation • Professional experience and public or civic service

Women to Watch: Emerging Leader* • A professional who has made significant contributions to the profession and her community, but who has not yet reached the highest levels of advancement • Demonstrated leadership, public/community service, contribution to the profession, creation and implementation of unique initiatives, involvement with alma mater or other local colleges and universities

Women to Watch: Experienced Leader* • One who has advanced to a higher level or leadership position – including partners, owners, executives and elected officials • Authorship of articles, major or unique contribution to the profession, public and/or community service, mentoring other professionals, improvement to the workplace, involvement with alma mater or other local colleges and universities *Presented by the AICPA. Nominees must be AICPA members to be considered.


Meet the Executive Board

Q: What advice would you give new CPAs? Jonyce Bullock, CPA President Get your CPA license! Set up a plan and start studying now. Your license will be a valuable asset the rest of your life.

Gavin Hutchinson, CPA Vice President Be patient and take the time to learn all that you can. Take the opportunity to learn from those that have been performing similar accounting tasks. Don’t discard those that have many years of experience just because they do not understand Twitter and have never Tweeted.

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Hollie Andrus, CPA President-Elect Stick with it! You may find yourself in a spot where you are not enjoying what you are doing. This profession can open doors for us that we never thought possible. As Dr. Seuss wisely said in Oh, The Places You'll Go, “You have brains in your head. You have feet in your shoes. You can steer yourself any direction you choose...” and with the CPA profession, anything is possible.

Sherie Charlesworth, CPA Secretary Try to enter the profession with no preconceived ideas about the work or the people. Be open to all the new people and experiences and try to learn from everyone and everything.

Dan Griffiths, CPA AICPA Council Representative

Paul Skeen, CPA Immediate Past President

Take the time to identify your strengths and how you can productively apply them to have the greatest impact. It’s an iterative process, but over time pays huge dividends. LeBron James plays basketball, not ice hockey for a reason. Seek out the opportunities where you can be truly world class. You won’t regret it.

Work and learn as if you will work for your first employer for your entire career. It is very apparent when employees are simply “doing their time.” These people to have fewer and less desirable options down the road. Approach your first job as if you will one day own the place.

Larry Deppe, CPA Member at Large

Kyle Pexton, CPA Treasurer

Prepare well by learning everything you can in school, develop a strong work ethic, learn how to work well with others, and be loyal to your employer.

Never compromise your integrity, and to recognize that your professional contribution is important not only to the profession, but also to our society as a whole

the journal entry | July 2015


Josh Turnbow, CPA ProNet A young professional entering the CPA profession would be wise to find a good mentor in which that mentor can help the young CPA decide how to steer their career.

Susan Speirs, CPA CEO Know that you can negotiate your employment contract with your prospective employer and as part of that discussion, make passage of the CPA exam a high priority for yourself and your potential employer. While it may not seem important now, those three initials will open many doors in the future.

Brett Hugie, CPA Member at Large Remain open to change and a changing environment. With technology and the constant changing landscape of laws, rules and regulations, a successful CPA must be able to adapt and be willing to embrace change. The pace of change will continue to increase. Successful CPAs will use technology to deliver the right solutions in the most efficient, timely manner to either the company they work for or the clients they serve.

Board Bullets

News from the UACPA Board In the June Executive Board meeting, the following items were discussed: • Lease agreement for the Kearns Building was approved for signature. The space should be ready to move in by July 31. The termination agreement for the Redman Building was also approved. There is a stipulation that if the space for the Kearns Building is not ready by the slated finish date, the UACPA will be able to continue to rent on a month-to-month basis. • Review of the new website. The site is now PCI compliant and members have the ability to more freely interact with other members. The new site will be managed in-house so that we can remain current with members' needs. • The Ethics Committee proposed a new rule for an ethics requirement in the state of Utah. The Board approved and the rule was posted on the website for members to comment on for a 60 day period. A survey was also sent to members of the association. Review of the language was presented before Leadership Council in June and passed with a unanimous vote. • Lobbyists Craig Peterson and Ryan Peterson presented the 2015 legislative update and items to be aware of for the 2016 legislative season. Of concern to our profession is HB 318 which could potentially eliminate the need of licensure in the state of Utah. There is also model legislation out with ALEC relating to this as well. We will remain vigilant on this issue. • Review of May 2015 AICPA Council and Hill visits were discussed as well as issues facing our profession — especially in the arena of CPAs leaving the profession.

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ConnectWithUs

Meet the UACPA Staff

Q: If You Could Travel Back in Time, When and Where Would You Go? April Deneault CPE Manager

www.facebook.com/Utahassociationofcpas

With the knowledge that I have now, I would go back to my high school days. I would go to every single dance, especially prom! I would be more involved with school activities and go to football games and most importantly, go straight to college after graduating.

Amy Spencer Marketing & Communications Manager

In Memoriam Steven Koga Aug. 2, 1955 Jan 27, 2015 UACPA Member since 1982

Sandra Lee Roskelley Swearingen July 31, 1949 April 30, 2015 UACPA Member since 1995

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the journal entry | July 2015

A post-war, but pre-technology time anywhere in free America sounds appealing. If the '60s could be as cute as "Bewitched" and "The Brady Bunch" or as stylish as "Mad Men" then I'd be content being a hippie-activist in any of those time periods.

Braden Thompson Membership Development Coordinator I was on a baseball team when I was 13. Leading off third base during the semifinals — down just one to a higherseeded team — a bad pitch rolled behind the catcher. I hesitated. The batter struck out on the next pitch. Our championship run was over. If I could go back in time, I would go back and steal home.


MEet a uacpa member

Five Minutes with Daniel Greer, CPA Daniel Greer, CPA is the Director of Finance and Controller for LDS Philanthropies. He was born in Los Angeles, but moved to Utah at a young age. Greer still lives in the same neighborhood in which he grew up. Along with spending time with his wife of 27 years and four children, Greer enjoys tennis and cycling. What led you to become a CPA? When I decided to attend business school, I was having a hard time deciding what path to take. Two close friends of our family, and great examples to me, were CPAs and had wonderful careers in the accounting profession. I sought out their counsel and believed that if I really wanted a good foundation for making a career in business, accounting would give me that foundation. Tell us about LDS Philanthropies. LDS Philanthropies is a department of the Church of Jesus Christ of Latter-day Saints, under the direction of the Presiding Bishopric. LDS Philanthro-

pies has the responsibility to coordinate, correlate, encourage, facilitate, invite, and acknowledge donors and prospective donors for support of approved fundraising priorities, which include Church Education (BYU, BYU-Hawaii, BYU-Idaho, LDSBC, Seminaries & Institutes) and Church programs or activities (Missionary, PEF-Self Reliance, Humanitarian, Family Search, and other approved programs). Outside of work, what have been your proudest moments? Watching my children grow to be such good people, despite their father, and because of their mother. They are bright, hardworking, and dedicated in their chosen roles, professions, and education. It’s always good to see your children become so much better than you ever could have been. What would suprise people to know about you? That I began my college career as a theatre major at the University of Utah. I was on scholarship in the

U’s actor training program. What are some of your personal and professional goals? Personally, my primary goal is to become a better husband, father, and grandfather. To be more patient and understanding. Professionally, my goal has always been to make a difference. Whether for my clients when I was in public accounting, or in my current role at LDS Philanthropies, I hope that I encourage positive change. What advice do you live by? On my wall hangs this quote from Viktor Frankl: “We who lived in the concentration camps can remember the men who walked through the huts comforting others, giving away their last piece of bread. They may have been few in number, but they offer sufficient proof that everything can be taken from a man but one thing: the last of the human freedoms — to choose one’s attitude in any given set of circumstances, to choose one’s own way.” ■ the journal entry | July 2015

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UACPA Photo Pages 1

2

1. Clark Wilkinson, Hollie Andrus, Mike McCauley and Susan Speirs meet with Utah Congressman Rob Bishop while in Washington D.C. 2. State Society Executives Converge in Washington D.C. in May. 3. Leadership Council attendees participate in an ethics discussion led by David Read on June 19 at Little America.

3

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the journal entry | July 2015


UACPA Honors Students

(left) Jacob Fryer receives the UACPA's Outstanding Accounting Student Award from CEO Susan Speirs for Utah State University. (Right) Bryan Cameron accepts the UACPA's award from Susan Speirs for the Oustanding Accounting Student at Southern Utah University

This Spring, the Utah Association of CPAs recognized eight outstanding accounting students throughout Utah. Each year, the UACPA honors a fifth year accounting student from Utah’s universities for their accomplishments in the field of accounting. To be considered for this award, candidates must excel in extracurricular and professional activities, professional image, perceived commitment and dedication and have, at least, a 3.8 Grade Point Average (GPA). Candidates must also be student affiliate members of the UACPA who are eligible to sit for the CPA exam. Students are nominated by their professors.

The recipients of the 2015 Outstanding Student Awards

“The students receiving these awards are well-rounded individuals who will hit the road running as they commence their post university careers,” says UACPA CEO, Susan Speirs, CPA. “The award recipients have taken the opportunity to organize service and academic projects from start to finish and have been able to experience real life scenarios as they’ve strategized to optimize time and monetary constraints that our business world experiences every day.”

Mykola Suvorov, Weber State University

Wendy Coplen, Utah Valley University

Bryan Cameron, Southern Utah University

Kaylee Kirkland, Dixie State University

Jeffrey Williams, Brigham Young University

Devan Carter, Westminster College

Jacob Fryer, Utah State University

Steven Sellers, University of Utah

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41


CPECourseSchedule

Register online at uacpa.org, then Education & Events or call the UACPA office at (801) 466-8022. Field of Study

Credit Hours Course Title

Instructor

Vendor

Member Fee*

NonMember Fee

Sept 9/1-2/15

16

Excel Boot Camp

TBD

K2 Enterprises

$460

$550

9/22/15

8

Auditing Defined Contribution Plans

Melissa Critcher

AICPA

$285

$340

9/23/15

8

Annual Update for Preparation, Compilation and Review Engagements

Melissa Critcher

AICPA

$285

$340

9/25/15

8

FASB Review for Business & Industry

Marty Van Wagoner

AICPA

$285

$340

9/29/15

4

Frequent Frauds Found in Not-for-Profits

Bruce Shepard

AICPA

$165

$195

9/29/15

4

Annual Update for Governments and Not-for-Profits

Bruce Shepard

AICPA

$165

$195

9/30/15

8

Audits of State & Local Governments: What you Need to Know

Bruce Shepard

AICPA

$285

$340

10/1/15

8

Quickbooks for Accountants

TBD

K2 Enterprises

$285

$340

10/2/15

8

Excel Best Practices

TBD

K2 Enterprises

$285

$340

10/8-9/15

16

FASB Standards: A Comprehensive Review for All CPAs

Marty Van Wagoner

AICPA

$460

$550

10/15/15

8

Revenue Recognition: Mastering the New FASB Requirements

Marty Van Wagoner

AICPA

$285

$340

Oct

10/19/15

4

Fraud: Recent Findings, Red Flags and Corruption Schemes

Renee Rampulla

AICPA

$165

$195

10/19/15

4

Engagement Essentials: Preparation of Financial Statements

Renee Rampulla

AICPA

$165

$195

10/20/15

8

Internal Controls and Risk Assessment: Key Factors in a Successful Audit

Renee Rampulla

AICPA

$285

$340

10/21/15

8

Basis/Distributions for Pass-Through Entities: Simplifying the Complexities

Michael Blackburn

AICPA

$285

$340

10/22/15

4

Analyzing a Company's Financial Statements

Arthur Pulis

AICPA

$165

$195

10/22/15

4

Analyzing Costs, Productivity, and Efficiency: Three Ways to Boost Your Bottom Line

Arthur Pulis

AICPA

$165

$195

10/23/15

8

The New Controllership: Keys to Boosting Corporate Performance

Arthur Pulis

AICPA

$285

$340

10/26/15

4

Tax Planning Strategies for Small Businesses: Corporations, Partnership, and LLCs

Michael Blackburn

AICPA

$165

$195

10/26/15

4

Estates and Trusts: Mastering Complex Income Tax Issues

Michael Blackburn

AICPA

$165

$195

10/27/15

8

Construction Contractors: Accounting, Auditing and Tax

Thomas Sheets

AICPA

$285

$340

10/28/15

8

Form 990: A Comprehensive Approach to Accurate Preparation

Thomas Sheets

AICPA

$285

$340

10/29/15

8

Hottest Tax Topics for 2015

Peter Towle

AICPA

$285

$340

10/30/15

8

Taxation Essentials of LLCs and Partnerships

Peter Towle

AICPA

$285

$340

11/2/15

8

Fraud Update: Detecting and Preventing the Top Ten Fraud Schemes

Glenn Helms

AICPA

$248

$340

11/3/15

8

Internal Controls and COSO Essentials for Financial Managers, Accountants and Auditors

Glenn Helms

AICPA

$285

$340

11/5/15

8

Payroll Taxes and 1099 Issues: Everything You Need to Know

Pamela Davis-Vaughn

AICPA

$285

$340

NOV

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the journal entry | July 2015


CPE Schedule Field of Study

Credit Hours Course Title

Instructor

Vendor

Member Fee*

NonMember Fee

NOV 11/6/15

8

Nexus Update: Latest Developments in State Income, Franchise, and Sales Tax

Pamela Davis-Vaughn

AICPA

$285

$340

11/9/15

8

Surgent's Advanced Critical Tax Issues for Limited Liability Companies and Partnerships

Bob Gilwee

Surgent McCoy

$285

$340

11/10/15

8

Buying and Selling a Business: Critical Tax and Structuring Issues

Bob Gilwee

Surgent McCoy

$285

$340

11/11/15

4

Excel Macros Part 1

TBD

K2 Enterprises

$165

$195

11/11/15

4

Tech Tools and Gadgets for a More Efficient You!

TBD

K2 Enterprises

$165

$195

11/12/15

8

Excel Pivot Tables for Accountants

TBD

K2 Enterprises

$285

$340

11/17/15

4

Capitalized Costs and Depreciations: Key Issues and Answers

Kevin Krantz

AICPA

$165

$195

11/17/15

4

Reviewing Individual Tax REturns: What Are You Missing?

Kevin Krantz

AICPA

$165

$195

11/18/15

8

Federal Income Tax Accounting Maximizing Tax Benefits and Minimizing Tax Costs

Kevin Krantz

AICPA

$285

$340

11/19/15

8

Annual Tax Update: Individuals and Sole Proprietors

Michael Blackburn

AICPA

$285

$340

11/20/15

8

Annual Tax Update: Corporations and Pass Through Entities

Michael Blackburn

AICPA

$285

$340

11/23/15

8

Analytics and Big Data for Accountants

James Lindell

AICPA

$285

$340

11/24/15

8

Transforming Your Role as Controller to Business Partner

James Lindell

AICPA

$285

$340

11/30/15

8

Not-for-Profit Accounting & Reporting: From Start to Finish

Brian Sheets

AICPA

$285

$340

DEC 12/1/15

8

Advanced Excel

TBD

K2 Enterprises

$285

$340

12/2/15

8

Preparing Individual Tax Returns for New Staff and ParaProfessionals

Jon Karp

Surgent McCoy

$285

$340

12/3/15

8

Tax Forms Boot Camp: LLCs, Partnerships and S Corporations

Jon Karp

Surgent McCoy

$285

$340

12/4/15

8

GAAS: A Comprehensive Review for Auditors

Marty Van Wagoner

AICPA

$285

$340

12/7/15

8

Forensic Accounting Investigative Practices

Robert Minniti

AICPA

$285

$340

12/8/15

8

Identity Theft: Preventing, Detecting, and Investigating Identity Theft

Robert Minniti

AICPA

$285

$340

12/14/15

8

Governmental and Not-for-Profit Annual Update

William Wagner

AICPA

$285

$340

12/15/15

8

Recognizing and Responding to Fraud Risk in Governmental and Not-for-Profit Organizations

William Wagner

AICPA

$285

$340

12/16/15

8

Annual Update for Accountants and Auditors

Marty Van Wagoner

AICPA

$190

$340

12/21/15

8

Annual Update for Controllers

Curtis Quickel

AICPA

$285

$340

12/22/15

8

Financial Forecasting and Decision Making

Curtis Quickel

AICPA

$285

$340

12/28/15

8

AICPA's Annual Federal Tax Update

Michael Blackburn

AICPA

$190

$340

12/29/15

4

Health Care Reform Act: Critical Tax and Insurance Ramifications

Michael Blackburn

AICPA

$165

$195

12/29/15

4

Social Security and Medicare: Maximizing Retirement Benefits

Michael Blackburn

AICPA

$195

$195

* Early-bird pricing available for all classes. Find dates at www.uacpa.org AICPA Members receive an additional $30 off the price of each 8 hour course $60 for 16 hour courses. (excludes 4 hour courses & core training courses) where the AICPA is listed as the vendor. Use promo code AICPA8 for 8 hour courses and AICPA16 for 16 hour courses.

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Education

CPAs in Business and Management Conference This year's conference has plenty of sessions to help you stay up to date and keep your business growing. Speakers and topics indlude: • Kim Giles - Human Behavior 101 - Learn to Successfully Deal with the Human Race • Jeff Pickett - Business Fraud • UACPA Update • Hubert Williams - Disaster Plans, Data Protection, Networking Protection Date: Sept. 18, 2015 Time: 8 a.m. - 4:25 p.m. Location: South Towne Expo Center, 9575 S. State St. Fees: $248 for UACPA members before Sept. 4; $275 after; $335 for nonmembers CPE Credit: 8 hours

This free CPE course will map your route to making your firm’s audit practice more profitable by focusing on quality and identifying and addressing risks in your practice. Further, hear tips on how to demonstrate audit quality and how to articulate it as a competitive edge to clients. In addition to CPE credit, you will receive a toolkit of practical resources to ignite your firm’s pathway to effectively and efficiently providing quality services and showcasing the firm’s value. Date: Tuesday, Aug. 18 Time: 7:30 - 11 a.m. Location: 136 S. Main Street, Suite 500 Salt Lake City Fees: UACPA members FREE! Nonmembers $195 CPE Credit: 4 hours Registration limited to the first 35 registrants!

Save The Date!

Oct. 28 - 30

Aug. 19

Nov. 5

Sept.

Nov. 6

Sept. 18

Nov. 13

South Towne Expo Center

December 10 - 11

UACPA Golf Tournament | Bountiful Ridge Golf Course

Accounting & Auditing Conference | University of Utah

CPAs in Business & Management Conference

Sept. 25

UACPA Awards & Inauguration | Little America

Oct. 22

Succession Planning Conference

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Drive Your Competitive Edge with Audit Quality

the journal entry | July 2015

Leadership Academy | Deer Valley

Home Builders Association Conference | St. George

Tax Practitioner's Conference | St. George

Tax Symposium | Salt Palace Convention Center

Winter Conference | Salt Palace Convention Center

December 17 - 18

Technology Conference | South Towne Expo Center


Member Benefits

The UACPA Honors 100% Membership

AGILITY

Congratulations to the firms and businesses curerently participating in the UACPA's 100% membership program. This demonstrates their commitment to the profession, to the Association's high ethical standards and a commitment to life-long learning.

The UACPA's Affinity Partners help you get the most out of your membership Agility offers UACPA members and their clients a 10% discount on any of their ReadySuite solutions. Contact Trevor Mickelson, your Industry Specialist, at 720-4904531, or Trevor.Mickelson@agilityrecovery.com for further information.

Hertz

UACPA members and affiliates are entitled to receive a variety of benefits from Hertz auto rentals. Take advantage of your member discount by calling 800-654-3131 and mention CDP #2079602.

JoS. A Bank Men's Clothing

The retailer offers UACPA members and affiliates 20% off all regularly priced merchandise.

ADP

ADP offers free payroll and free 401k services to referring UACPA Members and its affiliates. Please contact Kenny McKenna at 801-956-7850 or kenny.mckenna@adp.com for more information.

Camico

The Mutual Insurance Company offers UACPA members a variety of benefits. To learn more, call 800-652-1772 or email inquiry@camico.com.

Office Depot

UACPA members can save up to 40% on office products, printing, technology and furniture. Visit uacpa.org to learn more. Learn more about member benefits by talking to Amy Spencer, as@uacpa.org or calling 801.466.8022

PUBLIC PRACTICE • Allred Jackson • CBIZ • Cook Martin Poulson • Davis & Bott • Eide Bailly • Hansen Bradshaw Malmrose & Erickson • Hawkins Cloward & Simister • HJ & Associates • Jones Simkins • KPMG • Mantyla McReynolds • Pinnacle Accountancy Group • Pinnock, Robbins, Posey & Richins • PricewaterhouseCoopers • Savage Esplin & Radmall • Squire • Stayner Bates & Jensen INDUSTRY • LDS Church Auditing Department • Workers Compensation Fund Is your firm eligible to be a part of the 100% membership program? Learn more by talking to Braden Thompson, bthompson@uacpa.org or call 801.466.8022

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ContactList

CPE Where You Want It, When You Want It!

Accounting Issues

When UACPA members have questions about accounting issues, help is available from the UACPA Accounting Issues Committee. Each month, a member of the committee is assigned to answer accounting questions and help you interpret the rules as they apply to your particular situation. The following members may be contacted during the months listed. July

August

Ted Rokich 801-263-3090 trokich@fdic.gov

Larry Deppe 801-626-7838 ldeppe1@weber.edu

September

With just a click you can earn 2 to 8 hours of CPE credit from the most experienced CPAs across the country from wherever you have a computer and Internet connection. To view a list of upcoming webcasts log on to uacpa.org, Education & Events and click on “Webcasts,” keyword search “webinar.”

Mark Anderson 801-532-2200 manderson@eidebailly.com

Classified Ads CPE Approval — Does This Qualify?

When UACPA members have questions regarding CPE Approval and whether or not something may or may not qualify, they can turn to the UACPA CPE Approval Committee for answers. Each month, committee members are assigned to answer member questions related to CPE approval. Below are the members’ who may be contacted with your questions. July - September Steve Avis 801-532-2200 savis@eidebailly.com

Scott L. Robinson 801-990-5918 srobinson@tannerco.com

Tax Issues

The Tax Issues Committee focuses on legislative and regulatory issues and does not answer technical questions. For assistance with a technical matter, please refer to the UACPA referral tool at uacpa.org. Direct questions related to legislative or regulatory issues to taxissues@uacpa.org

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To place your classified advertisement and reach Utah CPAs, contact the UACPA at mail@uapca.org, Utah Practice For Sale: St. George Tax & Accounting Practice - gross $64K, tax (84%) accounting (12%) and various consulting/training services (3%). good cash flow to owner of nearly 70%. For more information, please call 1-800397-0249 or visit www.AccountingPracticeSales.com to see listing details and register for free email updates. THINKING OF SELLING YOUR PRACTICE? Accounting Practice Sales is the leading marketer of accounting and tax practices in North America. We have a large pool of buyers, both individuals and firms, looking for practices now. We also have the experience to help you find the right fit for your firm, negotiate the best price and terms and get the deal done. To learn more about our risk-free and confidential services, call Ryan Pannell with The Holmes Group at 1-800-397-0249 or email ryan@accountingpracticesales.com. Interested in Buying a Practice? See local and nationwide listings at www.AccountingPracticeSales.com and register for free email updates. Or call us at 800-397-0249.


G olf T ournament W ,A 19 ednesday

ugust

Sponsored by Touchpoints | Utah Educational Savings Plan | ADP | Wells Fargo Bring your swing to the UACPA's annual golf tournament where 36 teams of four will be playing to benefit the Utah CPA Foundation, supporting financial literacy in Utah. Prizes and raffle will take place during lunch.

Time: 8 a.m. Shotgun Start Location: Bountiful Ridge Golf Course, 2430 S. Bountilful, Blvd. Fees: $450 per team; $115 per individual Lunch & light breakfast included

For info about the tournament and sponsorships, contact Braden Thompson, bthompson@uacpa.org

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Utah Association of CPAs 1240 E. 2100 South, Suite 500 Salt Lake City, UT 84106

Nonprofit Org. U.S. Postage

PAID Salt Lake City, UT

Address Service Requested

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the journal entry | July 2015

Permit No. 1996

Profile for UACPA

The Journal Entry - July 2015  

In this issue, we explore two largest groups within the profession - Boomers and Millennials. These two don't see eye-to-eye, but they have...

The Journal Entry - July 2015  

In this issue, we explore two largest groups within the profession - Boomers and Millennials. These two don't see eye-to-eye, but they have...

Profile for uacpa