Accounting Today - May 2012

cost of goods sold. Of course, real cash inflows won’t change one iota. The kicker is that real cash outflows will skyrocket to pay taxes on the bogus windfall. If stimulus is the goal, it doesn’t make sense to repeal LIFO now. If only politicians could think at least part of the way through their ideas.

13. Dumb LIFO Trick No. 2. One of the plan’s asserted motives for dropping LIFO is that doing so would help clear the way for adopting IFRS. Oh, really? Even if that specious advantage were real, it could not possibly justify the $70+ billion estimated tax hit for LIFO users. Here’s a better idea: Retain LIFO but get rid of the 73-year-old conformity rule that causes tax policy to mess up financial reporting policy.

fair polling method must be unbi-
ased and accessible, thus excluding
your solicitation of negative letters
to the Financial Accounting Foun-
dation. To be clear, always disclaim
that your personal opinion isn’t the
institute’s view.

AUDITING

17. The PCAOB unleashed. We
perceive that the Public Company
Accounting Oversight Board, like
FASB, is a stirring giant. And, as we
hope FASB will do, the PCAOB has
challenged some sacred ideas that
have survived long beyond their
useful lives.

THE AICPA

14. Stifling dissent? Our December and March columns heavily criticized the AICPA Elite’s decision to roll out the new Chartered Global Management Accountant designation. Not surprisingly, we’ve received many letters from folks pleased the issue is now on the table. Some have revealed that the Chartered Institute of Management Accountants (which would merge with the AICPA to produce AICPA 2.0) also has an Elite that is just as off-base as their American counterparts. Others reported that the AICPA Elite has banned some members’ comments about CGMA topics in online discussions, apparently because they dared to quote us or otherwise question this move. If the Elite is suppressing free speech to stifle dissent to their scheme, they’re sending another clear signal that new leadership is needed.

15. How much? After seeing the Elite’s massive promotional blitz to hype the CGMA label, we hereby demand an accounting from AICPA chief executive Barry Melancon for the cost of this pointless campaign. Based on past experience, we figure he’ll never provide one, but we intend to keep asking. If you’re an AICPA member who wants to know, please write him yourself. More important, don’t fall for the bogus claims and promises.

16. Cease and desist! The Elite continues claiming to speak for all institute members, most recently on auditor rotation. Mr. Melancon: Stop doing that until you legitimately assess all members’ opinions. Any