The CPA exam change getting the greatest attention is the addition of questions on International Financial Reporting Standards (
IFRS). But, another one of interest is that starting July 1, 2011, there will be questions on Public Law 86-272 - the income tax nexus law enacted in 1959! Also added - Uniform Division of Income for Tax Purposes Act (
UDITPA) which has been around since 1957!
While these are very old laws to finally be added to the CPA exam (which already has plenty of varied content), I think it must be due to the growing importance of these rules to businesses of all sizes that today can easily engage in interstate commerce. I wonder though why the content is described so narrowly. For example, why not add:
- Nexus concepts for state income tax purposes.
- Basic rules and concepts for determining state income tax of a multistate business.
But another question - isn't the exam already complicated enough? The
multistate rules added (even though just income tax and apparently just for sales of tangible goods to which PL 86-272 applies), are quite complicated. I suspect that the questions have to be fairly general. Do they adequately measure understanding of these important tax concepts?
References:
- List of 7/1/11 changes from the AICPA - here.
- Complete list of exam content - here.
What do you think? How would you word a question on PL 86-272 and
UDITPA for the CPA exam?
1 comment:
When you are studying for your competitive exam then I would suggest you to cover all the lessons earlier. Don't leave anything to cram on the test day. I have to take LSAT so using one of the online Best LSAT Courses I have already covered everything. Now just revising and practicing everything.
Post a Comment