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Accounting Research Manager(TM)
Weekly Summary of Developments
July 9-13, 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:
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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
Codification Project -- FASB to Discuss Codification Issues and Other Matters at July 18, 2007 Meeting
AcSEC Meeting Minutes -- AcSEC Discusses Airline Guide and Considers Other Matters at July 10, 2007 Meeting
SEC Issues Proposal -- Regulatory Relief and Simplification for Smaller Reporting Companies
SEC Issues Final Rule Amendments -- Extends Voluntary XBRL Program to Mutual Funds
International Financial Reporting -- IASB Issues Agendas for Meetings of the IASB and IFRIC
Auditing and Internal Controls Headlines
Audit Risk and Materiality in Conducting an Audit -- Additional Interpretive Guidance
Government Headlines
Intangible Assets -- GASB Issues Clarifying Guidance
GASB Report Issued -- Endowment Fund Reporting Discussed
Pension Disclosures -- Discussion of GASB Statement No. 50
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ACCOUNTING AND SEC HEADLINES:
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Codification Project -- FASB to Discuss Codification Issues and Other Matters at July 18, 2007 Meeting
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As reported in its "Action Alert" publication, the FASB will meet on July 18, 2007, and discuss issues identified in its codification project that involve existing authoritative guidance that may be considered outdated or in conflict with other authoritative literature. In particular, the FASB is scheduled to discuss the following:
a. Appropriation of retained earnings for general purpose contingencies;
b. Original general revenue recognition guidance from 1934;
c. Claims of subcontractors for terminated government contracts;
d. Accounting for losses and combining contracts related to long-term construction-type contracts;
e. Definition of proven and probable reserves for extractive industries;
f. Transfers of real estate in exchange for nonmonetary assets other than real estate;
g. Use of the term retrospective for changes in estimates for real estate time-sharing transactions;
h. Temporary control exception to consolidation of not-for-profit organizations;
i. Leasing transactions by not-for-profit organizations involving special-purpose entity lessors; and
j. Other investments held by not-for-profit organizations.
As previously announced, the FASB codification is planned to be a compilation of existing U.S. GAAP, organized by accounting topic, regardless of its source (i.e., FASB Statement, EITF consensus, AcSEC SOP, etc.). A standard structure to the codification is planned such that users can quickly know what subsections address the specific aspects of a topic (e.g., recognition, measurement, disclosure, implementation guidance, etc.). Certain SEC material is planned to be included in the codification for the use by public companies.
AcSEC Meeting Minutes -- AcSEC Discusses Airline Guide and Considers Other Matters at July 10, 2007 Meeting
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We have prepared minutes of the AcSEC meeting held on July 10, 2007. At this meeting, AcSEC considered the following matters or topics:
-Revisions to the Audit and Accounting Guide (AAG), Audits of Airlines;
-Revisions to the AAG, Property and Liability Insurance Companies;
-Revisions to the AAG, Not-for-Profit Organizations;and
-Other information, "Chair's Report."
The Airline Guide Task Force discussed with AcSEC the planned final revisions to the AAG, Audits of Airlines. AcSEC was generally supportive of the changes made and voted to expose the proposed AAG for a 90-day comment period. However, AcSEC requested that the AICPA staff discuss certain views expressed in the proposed AAG with members of the FASB staff before it is finalized. AcSEC plans to issue the exposure draft around September 15, 2007.
See our minutes for a discussion of all the matters covered at the July 10, 2007 meeting.
SEC Issues Proposal -- Regulatory Relief and Simplification for Smaller Reporting Companies
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On July 5, 2007, the SEC issued proposed rule amendments for public comment that would provide additional relief from its disclosure and reporting requirements for smaller public companies. Among other things, the proposed amendments would: (a) expand the optional disclosure and reporting requirements under Regulation S-B to registrants having public float of less than $75 million (currently limited to registrants with public float of less than $25 million) and (b) maintain the provisions of Regulation S-B, but move and integrate them into Regulation S-K. For most purposes, the result of the amendments would be to combine the existing categories of "small business issuers" and "nonaccelerated filers" into a single category referred to as "smaller reporting companies." The SEC is also soliciting additional recommendations on how to make its disclosure and reporting requirements more suitable for smaller reporting companies.
Comments on the proposal are due 60 days after publication in the Federal Register.
SEC Issues Final Rule Amendments -- Extends Voluntary XBRL Program to Mutual Funds
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On July 11, 2007, the SEC extended its voluntary interactive data reporting program to mutual funds. Under the final rule amendments, mutual funds may now voluntarily submit supplemental information in XBRL format that is contained in the risk/return summary section of their prospectuses. The SEC's voluntary interactive data program was first adopted in 2005 to permit certain filers to submit tagged financial information as an exhibit to filings on the EDGAR system.
The rule amendments are effective August 20, 2007.
International Financial Reporting -- IASB Issues Agendas for Meetings of the IASB and IFRIC
The IASB has issued the following materials concerning various financial reporting matters:
July 17-20, 2007 International Accounting Standards Board (IASB) Meeting:
For detail, please contact info@zy-cpa.com
The IASB has issued the agenda for its July 17-20, 2007, meeting when it is scheduled to discuss the following projects:
-Annual Improvements Process
-Conceptual Framework
-Financial Instruments Puttable at Fair Value and Obligations Arising on Liquidation
-IAS 27 Consolidated and Separate Financial Statements - Formation of a new parent entity
-IFRIC Update
-Income Taxes
-Liabilities - Amendments to IAS 37
-Post-Employment Benefits
-Share-Based Payments - Vesting conditions and cancellations (IFRS 2)
July 12-13 2007 International Financial Reporting Interpretations Committee (IFRIC) Meeting:
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The IASB has issued the agenda for the IFRIC's July 12-13, 2007, meeting which includes:
-IAS 18 Revenue - Customer contributions
-IAS 27 Consolidated and Separate Financial Statements - De-mergers and other distributions
-IFRS 2 Share-Based Payment - Group cash-settled share-based payment transactions
-Staff Recommendations for Tentative Agenda Decisions
-Review of Tentative Agenda Decisions published in May IFRIC Update
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AUDITING AND INTERNAL CONTROLS HEADLINES:
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Audit Risk and Materiality in Conducting an Audit -- Additional Interpretive Guidance
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We have added a GAAS Update Service that focuses on practical issues relating to Statement on Auditing Standards No. 107, Audit Risk and Materiality in Conducting an Audit, by using a "Question & Answer" format designed to provide practical discussion, advice, and specific implementation guidance. The Q & As address various issues including: (a) guidelines for establishing materiality; (b) guidance on what constitutes a "misstatement" for purposes of determining whether the financial statements are materially misstated; (c) qualitative considerations of misstatements when evaluating audit findings; and (d) approaches for evaluating the effect on the current year's financial statements of uncorrected prior year misstatements.
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:
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GOVERNMENT HEADLINES:
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Intangible Assets -- GASB Issues Clarifying Guidance
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The GASB has issued GASB Statement No. 51, Accounting and Financial Reporting for Intangible Assets. GASB 51 provides guidance regarding how to identify, account for, and report intangible assets. The new standard characterizes an intangible asset as an asset that lacks physical substance, is nonfinancial in nature, and has an initial useful life extending beyond a single reporting period. Examples of intangible assets include easements, computer software, water rights, timber rights, patents, and trademarks. GASB 51 provides that intangible assets be classified as capital assets (except for those explicitly excluded from the scope of the new standard, such as capital leases). Relevant authoritative guidance for capital assets should be applied to these intangible assets.
The requirements of GASB 51 are effective for financial statements for periods beginning after June 15, 2009, and for the most part require retroactive application.
GASB Report Issued -- Endowment Fund Reporting Discussed
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The June edition of the "GASB Report" has been issued and includes the following discussion items:
-GASB Calendar
-Cynthia B. Green and Edward J. Mazur Retire from GASB
-Board Meeting Summary
-Final Call for Comments on Proposal Related to Endowment Fund Reporting
-Who's Who at the GASB
-Concepts Statement on Elements of Financial Statements Issued
-Derivatives Exposure Draft Issued for Comment
-GASB Issues Statement Addressing Intangible Assets
Governments that engage in derivative transactions may find the discussion in this issue of the GASB Report useful as it provides a overview of the recent Exposure Draft, Accounting and Financial Reporting for Derivative Instruments. As proposed, this standard would be effective for periods beginning after June 15, 2009.
Pension Disclosures -- Discussion of GASB Statement No. 50
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We have added a Governmental GAAP Update Service that discusses GASB Statement No. 50, Pension Disclosures, which more closely aligns current pension disclosure requirements for governments with those that governments are beginning to implement for retiree health insurance and other post-employment benefits (OPEB). The GASB believes that the pension disclosure changes were needed to: (a) enhance accountability related to pension plans and obligations; (b) provide consistency with similar OPEB disclosures; and (c) improve the decision usefulness of financial information provided to citizens, elected representatives, investors, and other financial statement users about pensions and pension obligations.
GASB 50 amends certain disclosure requirements in GASB Statements No. 25, Financial Reporting for Defined Benefit Pension Plans and Note Disclosures for Defined Contribution Plans, and No. 27, Accounting for Pensions by State and Local Governmental Employers.
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