Blog

It is WSCPA membership renewal time! Maintain your connection to a supportive community of accounting professionals across the state and keep saving on top-tier CPE and business services. Take just a few minutes to renew today.

Many CPAs are considering (or have used) contingent fee billing arrangements to assist their clients with obtaining Employee Retention Credits (ERC). Unfortunately, many believe they’re permitted to accept contingent fees for amending their clients’ payroll tax and income tax returns. But CPAs are not permitted to charge contingent fees for amending these returns to obtain these payroll tax credits. Professional standards prohibit CPAs from charging contingent fees to prepare original or amended returns. Some CPAs erroneously believe these services fit within one of Treasury Circular 230’s or the AICPA Code of Conduct’s exceptions.

On April 24th, the National Association of State Boards of Accountancy (NASBA) announced that they adopted Uniform Accountancy Act (UAA) Model Rule that allows exam candidates 30 months, from the time they receive their first section score, to pass all four sections of the CPA exam.

The Washington CPA Foundation awarded $30,000 in grants to local organizations this year. These organizations all had programs or events designed to improve the diversity of the CPA and accounting pipeline in our state.

The FASB issued ASU 2023-01 in response to feedback from private companies around the consideration of legal enforceability when leases were between entities under common control. It allows private companies and nonprofits without conduit debt to use the written terms and conditions for accounting for leases under common control.

On Monday, April 17, the Department of Revenue began a new pilot program to allow individuals to make comments on proposed Washington Tax Decisions (WTD). This program will allow individuals to comment on proposed WTDs before they are published.

Q1 2023 started off slow but ended with a burst of activity. We'll review the standards issued by the AICPA and FASB in the first quarter of 2023 including the new leases under common control standard as well as SAS 149 for group audits

The AICPA's Professional Ethics Executive Committee (PEEC) has issued an exposure draft to make falsifying attendance records or sharing answers (when not permitted) in CPE an act discreditable to the profession. This expands the rules around sharing answers or requesting answers to the CPA Exam. Comments are due by May 15.

On February 15, NASBA released an exposure draft of the Uniform Accountancy Act Rule 5-7. The draft proposes multiple changes, but notably would increase the amount of time that a CPA candidate has to pass all required CPA exam sections from a rolling 18-month period to a rolling 24-month period. Comments are due April 17

The exposure draft would increase the amount of time that a CPA candidate has to pass all required CPA exam sections from a rolling 18-month window to 24 months. The WSCPA Board wants 36+ months.

The Financial Accounting Standards Board (FASB) has issued an exposure draft to address feedback from users, preparers and auditors that crypto currency disclosures needed attention. The proposal would require entities to measure crypto assets at fair value (with adjustments flowing through net income). It would also add disclosures around significant holdings, restrictions, and changes in those holdings. Comments are due June 6th!

On Friday, March 24, 2023, the Washington State Supreme Court upheld the capital gains tax. In a 7-2 ruling in the Quinn v Washington State case, the majority ruled that the capital gains tax is an excise tax and is, therefore, legal in Washington State. Since it was ruled an excise tax, they did not weigh in on the constitutional questions.

The WSCPA has been closely watching two bills, one that would replace the B&O tax with a margin tax, and a potential wealth tax bill. Mike Nelson shares an update on whether these bills are expected to move forward in the legislative process.

The AICPA has issued SAS 149, Special Considerations — Audits of Group Financial Statements (Including the Work of Component Auditors and Audits of Referred-to Auditors), which supersedes extant AU-C 600. The SAS is effective for audits of group financial statements for periods ending on or after December 15, 2026.

Taking a big first step towards a global nonprofit accounting framework, IFR4NPO has issued the first of 3 expected exposure drafts for public comment. The exposure draft addresses scope and basic framing for the development of a new global framework for nonprofit organizations. Comments are due March 31.

In celebration of International Women's Day and Women's History Month, Kimberly Scott, WSCPA President & CEO, recently caught up with three amazing women CPAs to learn more about their professional journeys.

GLS is very excited about the recent roll out by the Financial Accounting Foundation (FAF) of its free (and enhanced) access to the FASB Codification and the GASB's Governmental Accounting Research System. This makes accessing and researching accounting more accessible especially for smaller entities to comply with the standards.

The Board of Directors is pleased to announce the nominees for the Society's 2023-2024 Board of Directors. All nominees will be declared elected by the secretary at the annual meeting unless other nominations, supported by at least one percent of membership, are received by April 1, 2023.

The Office of Management and Budget (OMB) provided notice of Request for Information (RFI) and notification of proposed guidance to 2 Codes of Federal Regulation (CFR). The OMB, through the RFI and the proposed rule revisions, is seeking to harmonize the regulations of federal grants and agreements to improve efficiencies, allow for greater transparency, and create a more effective process for both grant recipients and federal agencies. Feedback on the guidance and revisions to 2 CFR are due on or before March 13, 2023.

On February 15, 2023, FASB affirmed the proposed changes to Topic 842, Leases for related parties under common control. The Board unanimously affirmed a practical expedient for private entities & nonprofits without conduit debt under common control arrangements to allow these entities to use the written terms and conditions of their leases to apply Topic 842.