Journal of Accountancy Podcast

Ken Witt, CPA, CGMA, AICPA & CIMA associate director – Management Accounting Research and Development, discusses in this JofA podcast episode the reasons that finance executives in a quarterly AICPA & CIMA survey continue to lower their optimism about the U.S. economy.

He also reveals what CPA decision-makers now view as their organization’s top challenge. For the first time in a long time, it’s not inflation.

On the episode that detailed the previous quarter’s survey, Witt noted that inflation “seems to be settling out a little bit.” This quarter’s survey data shows that was an accurate assessment, as inflation concerns are diminishing somewhat.

What you’ll learn from this episode:

·         Details about Witt’s assessment of this quarter’s results as “interesting.”

·         The surprising parts of the third-quarter data.

·         Updated projections for revenue and profits in the coming 12 months.

·         How election-year uncertainty is affecting CPA decision-makers’ business forecasting efforts.

·         The percentage of finance executives who say that a potential lowering of the federal funds rate would have a favorable impact on their business.

In about two months, Corey Ciocchetti will deliver a keynote session at the AICPA & CIMA Governmental and Not-for-Profit Training Program. He previewed that session in this episode of the Journal of Accountancy podcast.

In the conversation, Ciocchetti discusses how he chose what law school to attend, why his more recent presentations mention the importance of civil discourse, and what he remembers about a speech by the founder of a prominent mutual fund company.

What you’ll learn from this episode:

·         Why he thinks people have a hard time prioritizing friendships and pursuing a sense of contentment.

·         His decision on where to attend law school and that decision’s link to a different keynote speaker at an AICPA & CIMA event.

·         What the phrase “real rabbits” means to Ciocchetti.

·         Ciocchetti’s recall of one early student interaction that changed how he viewed audience engagement.

On this episode of the JofA podcast, Melanie Lauridsen, vice president–Tax Policy & Advocacy for the AICPA, explains some of the tax-related repercussions of recent Supreme Court decisions. One case could have a dramatic effect on future rulemaking, and the other could have a decades-long retroactive effect.

On June 28, the Supreme Court overturned its decision in Chevron U.S.A., Inc. v. Natural Resources Defense Council, Inc., 467 U.S. 837 (1984), holding that the Administrative Procedure Act (APA) requires courts to exercise their independent judgment in determining the meaning of statutory provisions, and courts may not defer to an agency's interpretation of the law just because a statute is ambiguous (Loper Bright Enterprises v. Raimondo, No. 22-451 (6/28/24)).

On July 1, the Supreme Court decision expanded the time frame to sue federal agencies, holding that the six-year statute of limitation for lawsuits challenging regulations does not start to run until a plaintiff is injured by final agency action (Corner Post, Inc. v. Board of Governors of the Federal Reserve System, No. 22-1008 (7/1/24)).

What you’ll learn from this episode:

·         Background on the Loper Bright and Corner Post decisions.

·         Why Lauridsen said that one of the rulings was unexpected.

·         Why Sec. 6045 broker regulations could now be “vulnerable.”

·         The reasons that, according to Lauridsen, the Loper Bright decision will not likely affect beneficial ownership information reporting requirements.

·         How legislators on Capitol Hill have reacted to the decisions.

Barry Melancon, CPA, CGMA, was named the leader of the AICPA when he was in his mid-30s. Now, in his final months as CEO of AICPA & CIMA, he discusses the events that challenged the profession, risks that could be obstacles in the future, and why he’s optimistic about the role accountants play.

In this conversation, the second of two parts, Melancon challenges the notion that the profession is slow to change, explains why trust will continue to be important, and emphasizes the importance of speed and competencies in continuing to evolve.

Listen or read part 1 here.

What you’ll learn from this episode:

·         A quick summary of the topics in part 1 of the conversation.

·         Why Melancon believes the word “passion” would be used to describe him.

·         What Melancon called “the most tumultuous period” of his career and how he viewed the profession’s emergence from that era.

·         Why speed will be important in the continued transformation of the accounting profession.

·         His thoughts on the “competency evolution” of accountants just entering the profession.

·         Melancon’s contention that it’s “naïve” to think artificial intelligence will not affect jobs.

Barry Melancon, CPA, CGMA, was named leader of the AICPA when he was in his mid-30s. Now, in his final months as CEO of AICPA & CIMA, he discusses his background and upbringing, his unlikely path from rural Louisiana to speaking to leaders around the world, and why he puts extra emphasis on trust.

Part 2 of the conversation, recorded in July, will be published next week. Below are links to the previous two-part discussion with Melancon, episodes that were published in December and January:

n  News and trends affecting CPAs

n  Business model transformation, private equity, and more

What you’ll learn from this episode:

·         More from Melancon about what he calls “a great journey.”

·         His assessment of how the profession has changed since the mid-1990s.

·         Some of the skills learned during his tenure as CEO.

·         Why he says the world is “devoid of trust.”

·         A preview of topics discussed in Part 2 of the conversation, scheduled to publish next week.

The National Pipeline Advisory Group published its final report on talent solutions for the accounting profession, and the group’s chair, Lexy Kessler, CPA, CGMA, joins the Journal of Accountancy podcast to hit on the high points.

Kessler is AICPA vice chair and also mid-Atlantic leader for the firm Aprio.

In this episode, she shares next steps for the profession.

What you'll learn from this episode:

• An overview of the six major themes of the report.
• How a “plethora of perspectives” came together to address solutions for the pipeline issue.
• Details about addressing the time and cost of education.
• An explanation of the three E’s that represent the components of CPA licensure.
• What’s next as the recommendations move from paper to practice.
• How CPAs and educators can take the Pipeline Pledge.

Tom Vartanian, executive director of the Financial Technology & Cybersecurity Center, joined the JofA podcast recently to discuss concerns about the rapid pace of technology adoption. Although he sees the benefits technology has had, he also sees drawbacks.

“It's not that we shouldn't have technology, it’s not that we shouldn’t applaud tecnology,” Vartanian says in the episode. “It's just that our balance is off.”

Vartanian, a former federal banking regulator and the author of nine books, is a keynote speaker Sept. 9 at the AICPA & CIMA Conference on Banks & Savings Institutions, which is co-located with the AICPA & CIMA Conference on Credit Unions.

What you’ll learn from this episode:

• Why Vartanian senses “irrational” euphoria about rapid technology advances.
• The speaker’s reminder about the original, limited purpose of the internet.
• Details on the assertion of “going back to fundamentals” when it comes to cybersecurity.
• The difference in approach between a regulated bank and a third-party service provider.
• The value of strong leadership in mitigating cybersecurity concerns.

The AICPA & CIMA Cannabis Industry Conference starts Aug. 12 in Aurora, Colo. Rachel Gillette will be one of the event’s front-and-center speakers and moderators.

Gillette joined the Journal of Accountancy podcast recently to discuss some of the trends and issues affecting the industry from a legal and regulatory perspective. Gillette, a Denver-based attorney, also explained how she ended up in this niche practice area.

What you’ll learn from this episode:

·         Background on the proposed rescheduling of cannabis and why it matters for the industry and for accountants who advise cannabis businesses.

·         Gillette’s opinion of what might happen with cannabis-related legislation.

·         Why potential cannabis rescheduling could mean that certain businesses are no longer subject to Sec. 280E.

·         How the potential changes could affect CPAs.

·         What Gillette looks forward to about the AICPA & CIMA Cannabis Industry Conference.

·         How a decision more than 15 years ago led Gillette to her current area of legal practice.

Melanie Lauridsen, vice president–Tax Policy & Advocacy for the AICPA, joined the Journal of Accountancy podcast earlier this month to discuss the latest developments related to several items of note for tax practitioners.

Lauridsen shared data from a survey of members about IRS performance during tax filing season. She also analyzed recent IRS proposed regulations related to interest recapture on excess COVID-19 credits.

In her previous podcast update, Lauridsen focused on IRS data related to its performance during filing season. Lauridsen said that detailed information will be coming soon on the Tax Section Odyssey podcast related to the employee retention credit.

What you’ll learn from this episode:

·         Updates related to employee retention credit (ERC) claims.

·         Why ERC claims labeled “medium-risk” by the IRS are on hold.

·         Lauridsen’s analysis of proposed regulations released by the IRS earlier this month.

·         The focus of a Maryland opinion on beneficial ownership information (BOI) reporting requirements.

·         The “awareness issue” related to BOI reporting.

·         Why Lauridsen said that the sentiment of tax practitioners is not in alignment with that of the IRS when it comes to IRS performance during filing season.

·         The “safe harbor” that could be offered by a congressional bill.

·         Updates on AICPA advocacy work with several entities.

Tony Nitti, CPA, discusses a recent U.S. Supreme Court decision that some observers viewed as having the potential for wide-ranging changes in tax law. In the end, the decision was a narrow one, but the details of what was addressed and what wasn’t make for an interesting conversation on this collaborative podcast episode.

Nitti, partner–National Tax at EY, joins April Walker, CPA, CGMA, lead manager–Tax Practice & Ethics at AICPA & CIMA, for this episode, jointly produced by the JofA and the Tax Section Odyssey podcast.

On June 20, the Supreme Court upheld the constitutionality of the Sec. 965 transition tax in a narrow opinion that applies only to passthrough entities (Moore, No. 22-800 (U.S. 6/20/24)). The Court found it was not required to address whether it is a constitutional requirement that income must be realized before it can be taxed.

Nitti and Walker discussed the ruling in a late June recording.

Resources:

n  The unabridged version of the Walker and Nitti conversation on the Tax Section Odyssey page.

n  Journal of Accountancy news coverage of the June 20 Supreme Court ruling.

n  A November 2023 conversation about the Moore case.

What you’ll learn from this episode:

·         Details of the Supreme Court vote and the facts of the Moore case.

·         Why Nitti said that an expected “showdown” didn’t happen.

·         What Nitti observed about the case from its oral arguments in late 2023.

·         How the case could open up further discussion on the taxation of unrealized gains and the constitutionality of a wealth tax.

·         The value, in Nitti’s eyes, of reading the dissenting opinions.