NJ CPAs Reaffirm Opposition to "XYZ" Credential

The New Jersey Society of Certified Public Accountants (NJSCPA) Board of Trustees has, with an overwhelming majority, voted to reaffirm its opposition to development of a global business designation, as proposed by the American Institute of CPAs. The AICPA announced last week that the global credential, formerly referred to as "XYZ," has been given the name Strategic Business Professional (IISBP).

With a unanimous vote minus one abstention, the NJSCPA trustees have approved a resolution calling on AICPA Council members to proceed with a vote on the credential so AICPA members can decide whether or not to continue the pursuit of a global business designation. At the same time, the trustees are requesting that the AICPA direct its financial and other resources to better educating the public about the value of the CPA and promoting the CPA brand.

The trustees stated that, in response to comments received from NJSCPA members, they are opposing the credential because:

  • It is unnecessary given that CPAs are already performing and providing strategic, analytical, knowledge management and integration services, and have received market permission to do so;
  • It would empower millions of non-CPAs to compete with CPAs in nontraditional service areas where CPAs are being positioned as the service providers of choice;
  • It would impede the profession’s ability to realize the goals outlined in the CPA Vision by diminishing, rather than enhancing, the public’s perception of the breadth and range of services provided by CPAs;
  • It would be more likely to hinder, rather than enhance, the recruitment of new talent to, and student interest in, the CPA profession.

In April, the NJSCPA trustees issued a resolution calling on the AICPA Council to abandon the proposal. “Since the AICPA has not decided to abandon this project, the NJSCPA trustees believe it is time now to resolve this issue by bringing it to a vote by AICPA members,” explained Michael A. Polito, CPA, NJSCPA President.

The AICPA Council is scheduled to vote at its meeting next week whether to proceed with a member ballot on the issue. If it decides to proceed, ballots will be mailed to all AICPA members, and it is anticipated that voting will take place through the end of the year. It is expected that the ballot would ask AICPA members if they support the formation of a separate, self-funded organization to develop the infrastructure for a new global business credential.

"In the event a vote does take place, the NJSCPA Board of Trustees will be encouraging all NJSCPA members who are members of the AICPA to cast their vote either in favor of or in opposition to the proposal," said Polito. "We believe this is a critically important issue that could have a significant and lasting impact on the direction of our profession," he added. "As such, all CPAs who can do so should make sure their voice is heard."

The resolution passed by the NJSCPA Board of Trustees can be found on the NJSCPA website.

To date, five state societies formally favor, and 11 state societies formally oppose the credential. Visit AccountingWEB's Global Credential Resource Center for up-to-date details.

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