Help the AICPA! New Passing Scores Evaluated Under CBT-e

In yet another huge announcement from the AICPA this morning, Roger CPA Review was told that panels are being formed in order to determine a new passing score for each section of the exam. This is in conjunction with the new CBT-e changes that are set to occur 01/01/2011.

Before you start freaking out and signing up for all your exams at once, worrying that the passing rate will be pushed up to 100 points and you will have to get each and every question right - consider that the reasoning behind this review process is to protect the public interest and make the CPA designation stay as prestigious as it is. The AICPA will ensure that the exam is still fair and completely passable. In fact, there is the chance that the passing score will even remain the same.

So if you know of any particularly awesome CPAs, or want to become more involved yourself, volunteer to help the AICPA. The work of the panels will be extremely important to the continued success of the CPA Examination and its role in the CPA licensure process.

From the AICPA:

"When the new Uniform CPA Examination is launched on January 1, 2011, changes in content, format, and structure will be introduced. These changes will require the current passing score to be re-examined. The process to do so will include convening four panels of CPAs – one for each examination section – to prepare the groundwork for the passing score decision by the AICPA Board of Examiners. A new passing score determination is necessary in conjunction with the new examination to ensure that legally defensible CPA Examination pass/fail decisions continue to be made in protection of the public interest.

Panel Nominees
The AICPA is seeking nominations for passing score panel membership. Nominees should be CPAs who:
• have been licensed for between 3 and 5 years
• have supervised entry-level CPAs during the past year
• have NO affiliation with CPA Examination review courses, and
• are willing to participate in an August 2010 two-day meeting in Chicago, IL at the expense of the AICPA.

The selection of panelists from among qualified nominees will be made to ensure broad representation from all segments of the profession and demographic categories. Panelists will be given training at the August meetings on their responsibilities as panel participants.

Submitting Nominations
Nominations may be submitted online at http://vovici.com/wsb.dll/s/4e5ag3f124 or the forms completed and returned by FAX to 609-671-2922. Or, the names and contact information of nominees may be sent by e-mail to passingscorepanel@aicpa.org The information collected about nominees will be used only for the purpose of selecting panel participants..


The deadline for submitting nominations is MARCH 31, 2010.

Final review by the BOE and the determination of the new passing score will take place in the spring of 2011, after scores from the first 2011 testing window become available.

Thank you in advance for helping to identify CPAs who have both the required qualifications and the willingness to contribute their time and expertise to standard-setting"

Regulation CPA Exam Review: Explanation of Cash Basis Accounting

Roger Philipp, CPA describes Cash Basis accounting, which is the standard reporting method for individual taxpayers. Follow along closely, as Roger explains which entities and organizations are prohibited from using this method. As an added bonus, Roger clarifies the successful construction of a written communication... a very important element of the CPA Exam. This video is an excerpt from the REGULATION portion of the Roger CPA Review Online/USB course.

For more information, please visit http://www.rogercpareview.com/cpa-exam-review-course-overview.cfm

------Companion text from the Roger CPA Review REGULATION Text Book------

Cash Basis

Most individuals use the Cash basis of accounting, however the accrual method is required for purchases and sales of inventory.

• Service type businesses whose gross receipts do not exceed $10M may use the cash basis. This includes:
  
  
  • Most individuals, S-corps and individually owned Partnerships
  
  

Some entities that are prohibited from using the cash basis include:

• C corporations with gross receipts exceeding $5M
• Partnerships that have a C corporation as a partner exceeding $5M
• Tax shelters
• Certain trusts

Cash Basis:

• Recognize Income
  
  
  • Cash or property received
  • Actually or Constructively received(made available – earlier of two)
  
  
• Report Deductions
  
  
  • Cash or check is disbursed
  • Expense charged on a credit card
  
  

Resolve to Stick With Your Resolutions

Now that it is well into January, we thought we might give you a little reminder of those little things called New Year's Resolutions. You know... all those promises you made to yourself the week in between inhaling candy canes and popping those loud cardboard popper things. Still don't remember? How about "This year, I resolve to study at least 50 hours a week and pass all four parts of my CPA exam on the first try."? Remember that promise to yourself?

Only 8% of people ever reach their New Year's resolutions. And less than half of people are still trying past the end of January. But not you - no, you know that the reasons for becoming a CPA far outweigh the costs and you are going to stick to your goals like gum in your 5 year-old kid's hair. That's why we are offering this small little reminder of ways that you can keep your resolutions - we want you to hit those books, stick to your schedule, and reach your dream career.

• Write it down. Even if you didn't write it down and track your progress from the 1st of the year, writing down your goals will give you small milestones to aim for, a reminder in your bathroom mirror, and solidify your renewed vigor at conquering the exam.
  

• Tell your plan to the people closest to you. Then, make sure that they keep you accoutable and on track.

• Don't forget to reward yourself. Get in 3 hours of studying every day and 2 practice exams this week? Treat yourself to a little something-something. This will help keep you motivated and rev-up your engines for the next small goal.

• Expect setbacks. Just because you didn't meet a small goal does not mean to need to beat yourself up and give-in. Life happens, and sometimes there is nothing you can do to change circumstances. Just wake up the next day and go at it full-force again. There's no reason to let one bad day or week keep you from fulfilling your accomplishment

• Start a New Year's Resolution today. Who says you have to make an irrevocable decision on the 31st of the year? Make the decision today to start studying more, getting help when you need it, practicing your simulations, and buckling down.