RISCPA’s Task Force Transforms Traditional Financial Statements
RISBJ Staff | Feb 17, 2015
RHODE ISLAND – The Rhode Island Society of CPA’s (RISCPA) announced today the findings of the first phase of its Intangible Asset Valuation Task Force. Co-Chaired by President Joy Pettirossi-Poland of Building Bridges 2012 and Creator of the MVP™ (More Value & Profit) and Professor Michael Kraten of the Providence College School of Business, the task force produced an innovative accounting model that re-conceptualizes traditional financial statements. The new model recognizes the value of assets and liabilities that are not fully valued under GAAP.
“We knew we had to focus on capturing and measuring the value that is created through sustainability strategies,” said Pettirossi-Poland. “If there is one profession that relies most heavily on ‘human capital’ than any other, it is the CPA profession. And, because we’re in a new economy, we need new metrics to quantify and assess these intangible value drivers.”
As the task force continues its work, the goals and objectives for 2015, include:
- Continue to flesh out the financial valuation concept of intangibles as assets and liabilities
- Identify evidence that shows the link between financials and traditional entries on financial statements
- Create analysis that leads to recommendations and action plans
- Select additional members to participate on the Task Force
“Although many organizations are developing sustainability metrics, to the best of our knowledge, no one has yet created a hybrid set of financial statements that integrate quantitative and qualitative assets and liabilities,” said Kraten. “A central goal of the Task Force was to determine how one places a ‘qualitative’ asset or liability on a balance sheet and I’m delighted to say that we rose to the challenge.”
The Task Force will hold a kick-off event on April 16th to celebrate its recent findings.
Michael T. Tousignant, CPA, Shareholder and Director of Assurance Services at KLR shared his feedback on the Task Force’s newest objectives. “These tools have enabled us to learn what our team views as critical to the continued success of our firm, their personal success and the success of our clients,” he said. “That understanding is key to implementing programs and fostering a firm culture that will help us develop and maintain our very talented team.”
“As a spet in the business valuation field, I regularly consider the value of intangible assets that do not appear on GAAP financial statements,” added Kevin A. Papa, CPA, CVA, ABV, CFF Partner at Piccerelli, Gilstein and Company. “RISCPA’s task force has made tremendous progress in recognizing the value of these assets to a business.”
Individuals who are interested in the results of the Task Force’s activities are encouraged to contact Robert Mancini, Executive Director of RISCPA at rmancini@riscpa.org or Joy Pettirossi-Poland at joyppoland@aol.com.
ABOUT RISCPA: The Rhode Island Society of Certified Public Accountants (RISCPA) is the statewide professional membership association exclusively for CPAs. RISCPA has a current membership of over 2,000 individuals in public practice, in business and industry, in government, and in education. To learn more visitwww.RISCPA.org.
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