Pennsylvania CPA Journal

Not only are current expected credit losses (CECL) under Accounting Standards Update 2016-13 expected to consider future economic conditions, but companies are also required to record the lifetime expected credit losses on day one. This unique forward-looking methodology has now become a part of U.S. generally accepted accounting principles.

The Department of Labor released its 2023 Audit Quality Study based on plan year 2020 Form 5500 filings. This column reviews the study and highlights what has improved and where more work needs to be done.

When the Corporate Transparency Act (CTA) became effective Jan. 1, 2024, it required small and midsize businesses to report their beneficial ownership information (BOI) to the U.S. Department of Treasury. Some in the profession saw this as an added service CPAs could provide, but is this an area CPAs should be venturing into?

When the terms of an existing debt instrument are modified, both the debtor and creditor must analyze the terms of the altered arrangement to determine if there was a “significant modification” that leads to a taxable exchange. This column looks at Treasury Regulation Section 1.1001-3 and the two-part test to help determine if a modification is taxable.

Can someone working in a finance department in industry obtain their CPA credential without having to leave and work in a public accounting firm? This is a question often raised in corporate accounting. This column looks at the different steps aspiring CPAs in industry must take to fulfill their credentialling requirements.

This column discusses the importance of valuation experts to a business’s team of professional advisers. It details how valuation is important not just when an owner starts thinking about a sale, but also years before this path is even considered.

When ownership or part ownership in an S corporation is held in trust, it could be in either a qualifying subchapter S trust (QSST) or an electing small business trust (ESBT). No matter which one the trustee initially chose, changing circumstances may call for a conversion from a QSST to an ESBT, and this column looks at the difficulties and possibilities in making this conversion.

One area of partisan friction is enough to cause lightning to strike in Harrisburg. This year we have two. In this issue's Legislative News, PICPA's government relations team discusses the thunderous issues swirling in the capital this summer: the 2024-2025 budget negotiations and the upcoming elections for multiple levels of state and federal government.

The use of artificial intelligence (AI) is growing, in the accounting world and among scammers. With all of AI’s benefits, there is a dark side that CPAs must be aware of so they can take steps for self-protection and not become victims of ever more sophisticated schemes.

With the growing use of artificial intelligence (AI), there is an increasing call for “responsible AI.” The term highlights the need for responsible development and use of AI. A CPA’s responsible AI usage can be demonstrated through an expanded understanding of AI’s limitations and biases, which will assist with critically analyzing outputs from generative AI.

Taxpayers who discover that they are not fully compliant with their Pennsylvania tax filing requirements have several methods to address their delinquency, one of which is via the voluntary disclosure program (VDP). This column explains how the state’s VDP offers a degree of flexibility that may make these agreements a more advantageous route to becoming tax compliant.

At PICPA’s Annual Meeting and Convention in May 2024, Matthew D. Melinson became president of the PICPA for the 2024-2025 year. Melinson addressed those in attendance regarding his vision and priorities, which are highlighted here in his President’s Message to the membership.