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Fountainhead Forum
Volume II Issue #9 - September 2010
  
In This Issue
2011 CPA Exam
Remain Employable
Build Your Foundation
State Furloughs


LinkedIn



Good Advice
from
Coach Holtz
The answers to these questions will determine your success or failure:
1. Can people trust me to do what's right?
2. Am I committed to doing my best?
3. Do I care about other people and show it?

If the answers to these questions are "yes", there is no way you can fail.

- Lou Holtz, former head coach of Notre Dame football


Football



Quick Links


QuestionsTrivia Questions
1. Which group was named after a British unemployment benefit form and also titled their first album "Signing Off", as if the band were signing off or closing their welfare claim?
a. PERS-40
b. AC/DC
c. Run-DMC
d. UB40

2. What are aglets?
a. The scientific name of baby ducklings that are born not knowing how to swim
b. The keys found on a calculator that will make the working tabulation read "0" or clear
c. The name of the two yellow lines that travel down the middle of the roadway
d. The small plastic or metal casings typically found on the end of shoelaces

3. What famous document begins: "When in the course of human events..."?
a. The Declaration of Independence
b. The Constitution of the United States
c. The Proclamation on the Whiskey Rebellion by George Washington
d. The True Story of Paul Revere by Charles Gettemy

4. What color were the "black boxes" on TWA  Flight 800?
a. Orange
b. Black
c. Purple
d. There were no "black boxes"

5. In terms of hardware, what does the word "modem" abbreviate?
a. Modulator-demodulator
b. More democrats
c. Monotonic-dialer
d. Modern ordinary digital elaboration moves



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The Business of Football


AnswersTrivia Answers
1. d
2. d
3. a
4. a
5. a

  
Dear Nina,
Recent economic factors may have diverted focus away from staff retention in your company and more toward client retention, cost savings, and driving your bottom line.  Although staff may not be actively leaving companies at the present and most companies may not be hiring, an economic turnaround could lead to another talent war.

From a dollars-and-cents perspective, turnover is a serious business factor that all firms should monitor.  Repeatedly replacing staff is expensive. Successful retention begins before you hire someone.  By working with Fountainhead Staffing, we will help you take the appropriate steps in order to attract the right people to add to your team and subsequently keep on staff.  In our profession, we never take our eye off of those Accounting and Finance professionals that excel above their peers.  We also understand that effectively managing and retaining today's human capital is a continual process that is affected by every policy, procure and decision related to your people.

Remember, success ultimately depends greatly on your firm's talent. Client retention and your firm's other goals can only be achieved by having staff members who possess the knowledge and skills to get the job done.  Treating people as your greatest asset is essential to any company's success.  Therefore, it is in a company's best interest to view their human capital not as a separate initiative but as inherent to their firm's culture and one that carries through to all of the firm's activities.  Do not leave your team with a hole in your pipeline; we are here to help you hire smart and retain productive and happy employees.
Major Changes to the CPA Certification Exam
CPA Exam Logo
According to the AICPA, "the CPA Exam will be transformed" when planned changes to both the exam's structure and content are implemented on January 1, 2010.  Referred to as CBT-e (CBT stands for Computer-Based Testing and the "e" for evolution), this represents the first major change since CBT was introduced in 2004.  The changes include updates to content, exam structure, time allocations, scoring weights, and functionality.  The "new exam" according to the AICPA will include:
  • New Content and Skill Specifications (CSOs/SSOs), including International Financial Reporting Standards (IFRS).
  • New question formats, including short task-based simulations.
  • New research functionality that includes the FASB Codification.
  • New exam structure and section time allocations.
  • Changes in the percentage value of examination components.
You still have time to minimize the impact and take some of tests in 2010!  It's a good idea to think strategically about the parts you want to get out of the way in 2010, such as:
  • Business - if writing skills aren't your strong suit, then you might want to sit for BEC in 2010.  Right now BEC has no writing skills, but writing skills will be moving from FIN, AUD, and REG to BEC in 2011.
  • Financial - if you are not familiar with International Financial Reporting Standards (IFRS), then you might want to sit for FAR in 2010. Starting in 2011, FAR will include questions on IFRS. You will be expected to identify and understand the difference between financial statements prepared on the basis of U.S. GAAP and those prepared on the basis of IFRS.
Check out the 2011 CPA Changes Interactive Guide - Provided by Becker Professional Education.

Quick Check Quiz - Are You Ready for the CPA?
1. Under IFRS, an entity that acquires an intangible asset may use the revaluation model for subsequent measurement only if:
a. The useful life of the intangible asset can be reliably determined.
b. An active market exists for the intangible asset.
c. The cost of the intangible asset can be measured reliably.
d. The intangible asset is a monetary asset.

2. Under IFRS, when an entity chooses the revaluation model as its accounting policy for measuring property, plant and equipment, which of the following statements is correct?
a. When an asset is revalued, the entire class of property, plant and equipment to which the asset belongs must be revalued.
b. When an asset is revalued, individual assets within a class of property, plant and equipment to which that asset belongs can be revalued.
c. Revaluations of property, plant and equipment must be made at least every three years.
d. Increases in an asset's carrying value as a result of the first revaluation must be recognized as a component of profit or loss.

3. A company determined the following values for its inventory as of the end of its fiscal year:
Historical cost $100,000
Current replacement cost $70,000
Net realizable value $90,000
Net realizable value less a normal profit margin $85,000
Fair value $95,000
Under IFRS, what amount should the company report as inventory on its balance sheet?
a. $70,000
b. $85,000
c. $90,000
d. $95,000

Answers: 1.b  2.a  3.c

Journal of Accountancy, Test Your Knowledge of International Standards, May 2010

Weak Link


Remain Employable
Unfortunately, the supply and demand of the employment market is still out of equilibrium - it is still very much an "employer's market".  So now more than ever, it is critical for candidates to keep their skills sharp and be a step ahead of the crowd in terms of marketability.  Conversely, for those who don't keep a focused eye on their ability to adapt and grow with the changing workplace, a day could come when it becomes tough to find a "good job", let alone a job at all.
Some people always manage to be employed and on track for continued success.  Below are some of the "secrets to staying employable" that they may follow.

Keep your definition of a "good job" reasonable.
As any employee continues on their professional growth, they acquire skills and experiences that often come with an increase in additional opportunities (i.e. salary and promotions).  The problem lies in making the assumption that the current compensation package is now your starting point for any job you take in the future.  Smart job searchers know that each job opportunity provides various criteria that must be weighed differently.  Perhaps you are taking a cut in pay, but you won't be sitting on the I-10 for 45 minutes either.  Or maybe your job title will no longer be "Director" because a Manager level is the equivalent at another company.  Do not be held hostage by viewing your current job as the standard or starting point for your wants and needs in your next career, or you may miss out on staying employable.

Implement your own professional development strategy.
Don't wait for your annual review to tell you, as smart employees assess their professional strengths and weaknesses before their boss even has a chance to.  Leverage your strengths and bring to the table a full commitment to implement them.  Learn to collaborate with co-workers to minimize, or at best, overcome your weaknesses.  Set a plan for professional development that will help you to enhance the skills you already have and articulate how you can demonstrate your enhanced skills to your employer in order to remain focused and in control of your employability.

Be the expert for a demonstrated need that employers may have.
To stay employable, focus on being the "go-to" person for a particular problem, task, or technique. By building a subject-matter expertise in a specific area that's in demand within the workplace, you will create a personal employability "insurance policy"; allowing you to be an employee that will always be needed on staff.  Be the accountant that can build and manage a database in Access like no other.

Turn to other pros.
Smart professionals don't and won't handle everything!  They defer to other professionals who have the training and expertise to obtain the best results.  When an employee is responsible for keeping the services they deliver in demand, it only makes sense to seek the counsel of those who can help you to make better career decisions; whether it's from those who approach career success in a manner you admire, such as a friend or a former manager, or professionals in the field itself, such as a career coach or a recruiter.  Reaching out will give you the insight and the perspective needed to be proactive and successful at staying employable.

Remain true to your values.
Warren Buffet had it right when he said:
"In looking for someone to hire, you look for three qualities: integrity, intelligence, and energy. But the most important is integrity, because if they don't have that, the other two qualities, intelligence and energy, are going to kill you."

To remain employable, you must be honest; not only with potential employers, but with yourself.
  
Building Your Foundation on Linkedin.com
Management Plus
"Remember, adding to your connections is important for the short and long term goals."  Art Garcia

There were two major problems in the sinking of the Titanic back in 1912. One was that they tried to save money by using smaller rivets in its construction and the other was that there were not enough life boats to accommodate the situation at hand. This is a lesson to be learned in our own lives, as nothing is ever 100% secure or safe as we watch for the icebergs on our own journey. We need to have a strong foundation, planning for the worst, but hoping for the best.

With more elaboration, one wants rivets that are strong and to make sure that you have sufficient amount of life boats (such as: strong supportive colleagues and groups / flexibility in your talents). In saying this, one can then understand why personal connections are important for the short and long term goals, both in credibility and numbers. Through the storm, we need to continue to focus on character and cost reduction, never knowing when the next big wave will come in.

 
Featured Author:
Arthur R. Garcia, President & Founder of Management Plus
Art is also the group Owner of Management Plus (Volunteer Experience & Training) on LinkedIn.com
Start building your foundation by "connecting" with Art and other members today.


Furloughs - State Agencies Closed
Laws 2010, Seventh Special Session, Chapter 3 implements furloughs for most state agencies on the state designated furlough days. With some exceptions for law enforcement and other critical operations, state workers will take unpaid leave on the identified furlough days, and most state agencies (except universities) will be closed to the public.  Visit the state's administrative website to view the full list of closed government agencies.

Furloughs
 
News Highlights
News Highlights with sateliteNational
U.S. Retail Sales Rose in August
U.S. retail sales rose for a second consecutive month, increasing 0.4% in August from the previous month as shoppers flocked to back-to-school sales and took advantage of tax-free shopping promotions in more than a dozen states.  The jump was driven largely by purchases of clothing, gasoline and groceries. Sales of autos and parts slipped 0.7%. Excluding autos, all other retail sales rose 0.6%.
The Wall Street Journal, Meena Thiruvengadam and Jeff Bater, September 14, 2010

Report Says Obamacare Won't Reduce Health Care Spending
The health care overhaul enacted last spring won't significantly change national health spending over the next decade compared with projections before the law was passed, according to government figures released Thursday.  The report by federal number-crunchers casts fresh doubt on Democrats' argument that the health-care law would curb the sharp increase in costs over the long term, the second setback this week for one of the party's biggest legislative achievements.  Insurance companies have proposed rate increases ranging from 1% to 9% nationwide that they attribute specifically to new health-law coverage mandates.
The Wall Street Journal, Janet Adamy, September 8, 2010

U.S. Employers Cut 54,000 Jobs in August; Unemployment Rate Rose to 9.6%
U.S. employers cut 54,000 jobs in August, the U.S. Labor Department said. July payrolls were revised to a loss of 54,000 from an original estimate of a 131,000 drop. The unemployment rate, calculated using a separate household survey, edged up to 9.6% from 9.5% as more job seekers entered the labor force.  Private-sector companies added 67,000 jobs, following an upwardly revised 107,000 gain in July. Manufacturers shed 27,000 jobs, after adding 34,000 the previous month.
The Wall Street Journal, Tom Barkley and Victoria McGrane, September 3, 2010

U.S. GDP Revised Lower to 1.6% Growth in Second Quarter
The U.S. economy grew more sluggish than initially estimated in the second quarter. Gross domestic product rose at a seasonally adjusted annual rate of 1.6%, less than the 2.4% growth initially estimated. Economists had expected growth to be revised lower to 1.3%. In the first quarter, the economy expanded 3.7%.
The Wall Street Journal, Tom Barkley and Darrell A. Hughes, August 22, 2010

Existing Home Sales Plunged 27% in July
Existing home sales plunged to their lowest level in 15 years in July as inventories soared, painting a grim picture for the housing market absent government support in a stubbornly sluggish economy.  Home resales dropped a record 27.2% -- nearly twice as much as analysts had expected -- to an annual rate of 3.83 million, the National Association of Realtors said. Meanwhile, inventories rose to 12.5 months from 8.9 months in June, pressuring already depressed home prices. Inventories are at their highest level in more than a decade.
The Wall Street Journal, Sudeep Reddy and Nick Timiraos, August 25, 2010

General Motors Reports $1.3 Billion Profit
General Motors reported a $1.3 billion second-quarter profit in stark contrast to a year ago when the auto maker lost nearly $13 billion as it slid into bankruptcy.  Revenue soared 43% from a year ago to $33 billion for the April-through-June period. The profit is GM's largest since 2004 and the first time it had two money-making quarters in a row since that time.  The results will play a central role in bolstering GM's case that the auto maker is a good bet for Wall Street as it prepares to start selling its stock to the public.
The Wall Street Journal, Sharon Terlep, August 12, 2010

Local
GoDaddy is Up for Sale
GoDaddy.com, the closely-held company that registers Internet domain names, has put itself up for sale in an auction that could fetch more than $1 billion, people familiar with the matter said.  Qatalyst Partners has been hired to shop The Go Daddy Group. Private-equity firms are expected to bid for the company, which currently has more than 43 million domains under management.
The Wall Street Journal, Anupreeta Das, September 11, 2010



With hope for a strong quarter!
 
Sincerely,
Your friends at Fountainhead Staffing
 Editor: Nina Cormier