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Accounting Research Manager(TM)
Weekly Summary of Developments
April 23-27, 2007
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Accounting Research Manager subscriber,
The Accounting Research Manager database now contains this week's weekly summary of developments. Click the link below to access and print the fully-formatted Weekly Summary:
For detail, please contact info@zy-cpa.com
If you do not have immediate Internet access to the Accounting Research Manager database, below is the text of this week's Weekly Summary.
Accounting and SEC Headlines
AICPA Issues Audit Risk Alerts -- Interpretive Guidance Available
Business Combinations -- FASB Discusses Business Combinations Project and Other Matters at April 18, 2007 Meeting
Auditing Headlines
Compilations and Reviews -- Special-Purpose Financial Statements
AICPA Issues Audit Risk Alerts -- Interpretive Guidance Available
Government Headlines
Net Asset Reporting -- GASB 34 Discussion
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ACCOUNTING AND SEC HEADLINES:
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AICPA Issues Audit Risk Alerts -- Interpretive Guidance Available
The AICPA has issued the following Audit Risk Alert:
-Investment Companies Industry Developments - 2006/2007
For detail, please contact info@zy-cpa.com
This Audit Risk Alert may be useful to financial statement preparers and auditors in gaining an understanding of how current accounting, auditing, and regulatory developments affect investment companies.
In addition to the above industry specific alert, the AICPA has also issued the following Audit Risk Alert:
-General Alert: Strengthening Audit Integrity, Safeguarding Financial Reporting - 2006/2007
For detail, please contact info@zy-cpa.com
The General Alert includes information about emerging practice issues and current accounting, auditing and professional developments. The Alert lists the guidance that has been issued by the FASB, PCAOB and AICPA since the prior general alert was issued last year.
Business Combinations -- FASB Discusses Business Combinations Project and Other Matters at April 18, 2007 Meeting
For detail, please contact info@zy-cpa.com
As reported in its "Action Alert" publication, the FASB met on April 18, 2007, and addressed the following projects or topics:
-Business Combinations
-Agenda Decision: Discontinued Operations
-Amendment to FASB Interpretation No. 39
-Open Discussion: Financial Guarantee Insurance
The FASB continued redeliberations of its June 30, 2005 Exposure Drafts, Business Combinations,and Consolidated Financial Statements, Including Accounting and Reporting of Noncontrolling Interests in Subsidiaries. In connection therewith, the FASB decided that the final standards should be effective for annual periods beginning on or after December 15, 2008. An entity will not be permitted to early adopt the new standards before their effective dates. The FASB also affirmed that the measurement attribute in a business combination should be fair value, consistent with the guidance in FASB Statement No. 157, Fair Value Measurements.
Separately, the FASB decided that the guidance on reporting a discontinued operation and the additional disclosures for components that have been or will be disposed of should be separated from the FASB's project on financial statement presentation. Accordingly, the FASB added this project to its agenda as a separate project.
The FASB also discussed the comment letters received on proposed FASB Staff Position (FSP) FIN 39-a, "Amendment of FASB Interpretation No. 39," and whether to issue the FSP as final. The FASB decided to permit entities to offset cash collateral receivables or payables that approximate fair value with net derivative positions. The FASB also decided that the final FSP should be effective for fiscal years beginning after November 15, 2007, with early adoption permitted.
The Action Alert also notes that the following projects or topics are scheduled to be discussed by the FASB at its meeting scheduled for May 2, 2007:
-Conceptual Framework
-Derivative Disclosures
The FASB will begin to consider comment letters received on the Exposure Draft dated December 8, 2006, Disclosures about Derivative Instruments and Hedging Activities - An Amendment of FASB Statement No. 133.
Some of the documents listed above may not be accessible under your current subscription. For information about upgrading your subscription to include additional content, click here:
For detail, please contact info@zy-cpa.com
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AUDITING HEADLINES:
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Compilations and Reviews -- Special-Purpose Financial Statements
For detail, please contact info@zy-cpa.com
We have added a GAAS Update Service that provides discussion and analysis of an Accounting and Review Services Interpretation of AR Section 100 entitled, Special-Purpose Financial Statements to Comply With Contractual Agreements or Regulatory Provisions. This interpretation provides guidance on how to modify the accountant's standard compilation or review report when reporting on special-purpose financial statements prepared to comply with contractual agreements or regulatory provisions that specify the special basis of presentation. It specifically addresses the following types of special-purpose financial statement presentations that can be compiled or reviewed in accordance with Statements on Standards for Accounting and Review Services: (a) incomplete special-purpose financial statement presentation that is otherwise in conformity with GAAP or an other comprehensive basis of accounting (OCBOA); and (b) presentation prescribed in a contractual agreement that is not in conformity with GAAP or an OCBOA.
AICPA Issues Audit Risk Alerts -- Interpretive Guidance Available
As discussed above in our Accounting and SEC Summaries, the AICPA has issued the following Audit Risk Alert:
-Investment Companies Industry Developments - 2006/2007
For detail, please contact info@zy-cpa.com
This Audit Risk Alert may be useful to financial statement preparers and auditors in gaining an understanding of how current accounting, auditing, and regulatory developments affect investment companies.
In addition to the above industry specific alert, the AICPA has also issued the following Audit Risk Alert:
-General Alert: Strengthening Audit Integrity, Safeguarding Financial Reporting - 2006/2007
For detail, please contact info@zy-cpa.com
The General Alert includes information about emerging practice issues and current accounting, auditing and professional developments. The Alert lists the guidance that has been issued by the FASB, PCAOB and AICPA since the prior general alert was issued last year.
Some of the documents listed above may not be accessible under your current subscription. For information about upgrading your subscription to include additional content, click here:
For detail, please contact info@zy-cpa.com
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GOVERNMENT HEADLINES:
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Net Asset Reporting -- GASB 34 Discussion
For detail, please contact info@zy-cpa.com
We have added a Governmental GAAP Update Service that reinforces the guidance in GASB Statement No. 34, Basic Financial Statements - and Management's Discussion and Analysis - for State and Local Governments. Although GASB 34 has been the standard for financial reporting for some time, there still appears to be considerable confusion and misunderstanding of the reporting requirements related to the three components of net assets as defined by GASB 34. Specifically, for the government-wide and proprietary funds' statements of net assets, GASB 34 requires that net assets be reported in the following three components, as applicable:
1. Net assets invested in capital assets, net of related debt;
2. Restricted net assets; and
3. Unrestricted net assets.
This Governmental GAAP Update Service provides an analysis and practical guidance on calculating the net assets amount to be reported as net assets invested in capital assets, net of related debt.
Some of the documents listed above may not be accessible under your current subscription. For information about upgrading your subscription to include additional content, click here:
For detail, please contact info@zy-cpa.com