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Accounting Research Manager(TM)
Weekly Summary of Developments
September 24-28, 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
EITF Decisions -- FASB Ratifies EITF Consensuses-for-Exposure from September 11, 2007 EITF Meeting
Subsequent Events -- FASB Discusses Subsequent Events and Other Matters at September 19, 2007 Meeting
Not-for-Profit Organizations -- Proposed FASB Staff Position Issued
Independence -- SEC Seeks Comments on PCAOB Revised Implementation Schedule for Its Tax Services Rule
PCAOB Inspections -- SEC Seeks Comments on PCAOB Proposed Rule
IASB Update -- IASB Discusses Conceptual Framework and Other Matters at Its September 18-21, 2007 Meeting
Auditing and Internal Controls Headlines
Audit Confirmations -- AICPA Provides Interpretive Guidance
Independence -- SEC Seeks Comments on PCAOB Revised Implementation Schedule for Its Tax Services Rule
PCAOB Inspections -- SEC Seeks Comments on PCAOB Proposed Rule
Government Headlines
Technical Plan -- GASB Approves Technical Plan for the Final Third of 2007
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ACCOUNTING AND SEC HEADLINES:
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EITF Decisions -- FASB Ratifies EITF Consensuses-for-Exposure from September 11, 2007 EITF Meeting
For detail, please contact info@zy-cpa.com
We have prepared a hot topic that documents the FASB's ratification of decisions made by the EITF at its September 11, 2007 meeting. Specifically, the FASB ratified the consensuses-for-exposure reached in EITF Issue No. 07-1, "Accounting for Collaborative Arrangements," EITF Issue No. 07-4, "Application of the Two-Class Method under FASB Statement No. 128, Earnings per Share, to Master Limited Partnerships," and EITF Issue No. 07-6, "Accounting for the Sale of Real Estate When the Agreement Includes a Buy-Sell Clause." For Issues 07-1 and 07-6, comments made by FASB members will result in: (a) additional questions being posed in the invitation-to-comment that accompanies the consensus-for-exposure when it is exposed for comment and (or) (b) consideration by the EITF of other modifications to its conclusions at a future EITF meeting.
See our hot topic for complete details.
Subsequent Events -- FASB Discusses Subsequent Events and Other Matters at September 19, 2007 Meeting
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As reported in its "Action Alert" publication, the FASB met on September 19, 2007, and addressed the following projects:
-Subsequent Events
-Mergers and Acquisitions by a Not-for-Profit Organizations
-Conceptual Framework
The Board decided to remove both the subsequent events going concern and liquidation basis of accounting projects as separate projects from its agenda. The Board will include both of these two projects in its codification and retrieval project. The Board also indicated that its is ready to proceed to publication with a revised draft of Preliminary Views on its Conceptual Framework project.
Not-for-Profit Organizations -- Proposed FASB Staff Position Issued
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The FASB issued proposed FASB Staff Position (FSP) SOP 94-3-a and AAG HCO-a, "Omnibus Changes to Consolidation and Equity Method Guidance for Not-for-Profit Organizations." The FSP makes several changes to the consolidation and equity method guidance included in AICPA Statement of Position (SOP) 94-3, "Reporting of Related Entities by Not-for-Profit Organizations" and AICPA Audit and Accounting Guide (AAG), Health Care Organizations. Specifically, the FSP proposes the following changes:
-Eliminates the temporary control exception to consolidation for certain relationships between not-for-profit organizations;
-Amends the definition of "majority voting interest in the board of another entity";
-Confirms continued applicability to not-for-profit organizations of several EITF issues; and
-Requires application of the equity method of accounting to investments in for-profit partnerships, limited liability companies, and similar entities, unless such investments are reported at fair value.
If adopted, the proposed guidance would be applied to fiscal years beginning after June 15, 2008, and to interim periods therein. In general, early adoption is not permitted. Comments on the proposed FSP are due November 30, 2007.
Independence -- SEC Seeks Comments on PCAOB Revised Implementation Schedule for Its Tax Services Rule
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The SEC has formally requested comments on the PCAOB's proposed change to the implementation schedule of Rule 3523, Tax Services for Persons in Financial Reporting Oversight Roles. Specifically, the proposal would not apply Rule 3523 to tax services provided on or before April 30, 2008, when such services are provided during the audit period and are completed before the professional engagement period begins. The proposal does not include any textual changes to Rule 3523.
Comments on the proposal are due 21 days after the proposal is published in the Federal Register.
PCAOB Inspections -- SEC Seeks Comments on PCAOB Proposed Rule
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The SEC has formally requested comments on the PCAOB's proposed rule change to its inspections of registered audit firms. Specifically, the proposed rule would add a new paragraph (d) to Rule 4003, Frequency of Inspections, that would temporarily adjust aspects of its inspection cycle requirement. If adopted as proposed, an audit firm that became registered in 2003 or 2004 would not be subject to its:
-First inspection sooner than the fourth year after the firm, while registered, first issues an audit report or plays a substantial role; and
-Second inspection sooner than the fifth year after the firm, while registered, first issues an audit report or plays a substantial role.
The PCAOB would still retain the discretion to inspect any registered audit firm at any time. The proposal also includes technical amendments to nonsubstantive points in existing Rule 4006, Duty to Cooperate with Inspectors and Rule 4009, Firm Response to Quality Control Defects.
Comments on the proposal are due within 21 days after publication in the Federal Register.
IASB Update -- IASB Discusses Conceptual Framework and Other Matters at Its September 18-21, 2007 Meeting
For detail, please contact info@zy-cpa.com
As reported in its "IASB Update" publication, the IASB met on September 18-21, 2007, and discussed the following projects or topics:
-Conceptual Framework
-Short-term Convergence: Earnings per Share
-Fair Value Measurements
-Annual Improvements Process
-Update on IFRIC activities
-Financial Instruments Puttable at Fair Value and Obligations Arising on Liquidation
-Technical plan
-Post-Employment Benefits
-IAS 24 Related Party Disclosures
-Accounting Standards for Small and Medium-Sized Entities
-IFRS 1 amendments
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 AND INTERNAL CONTROLS HEADLINES:
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Audit Confirmations -- AICPA Provides Interpretive Guidance
For detail, please contact info@zy-cpa.com
We have added a GAAS Update Service that provides discussion and analysis of AICPA Practice Alert 03-1, Audit Confirmations. The Practice Alert provides guidance to auditors of nonissuers (primarily "non-public companies") regarding audit confirmations, including the following: (a) improving confirmation response rates; (b) negative vs. positive confirmation requests; (c) use of electronic confirmations; (d) management requests not to confirm; (e) alternative procedures; (f) confirmation of specific financial statement accounts and other information; and (g) evolving alternatives to confirmation.
Independence -- SEC Seeks Comments on PCAOB Revised Implementation Schedule for Its Tax Services Rule
For detail, please contact info@zy-cpa.com
As discussed above in our Accounting and SEC Summaries, the SEC has formally requested comments on the PCAOB’s proposed change to the implementation schedule of Rule 3523, Tax Services for Persons in Financial Reporting Oversight Roles. Specifically, the proposal would not apply Rule 3523 to tax services provided on or before April 30, 2008, when such services are provided during the audit period and are completed before the professional engagement period begins. The proposal does not include any textual changes to Rule 3523.
Comments on the proposal are due 21 days after the proposal is published in the Federal Register.
PCAOB Inspections -- SEC Seeks Comments on PCAOB Proposed Rule
For detail, please contact info@zy-cpa.com
As discussed above in our Accounting and SEC Summaries, the SEC has formally requested comments on the PCAOB's proposed rule change to its inspections of registered audit firms. Specifically, the proposed rule would add a new paragraph (d) to Rule 4003, Frequency of Inspections, that would temporarily adjust aspects of its inspection cycle requirement. If adopted as proposed, an audit firm that became registered in 2003 or 2004 would not be subject to its:
-First inspection sooner than the fourth year after the firm, while registered, first issues an audit report or plays a substantial role; and
-Second inspection sooner than the fifth year after the firm, while registered, first issues an audit report or plays a substantial role.
The PCAOB would still retain the discretion to inspect any registered audit firm at any time. The proposal also includes technical amendments to nonsubstantive points in existing Rule 4006, Duty to Cooperate with Inspectors and Rule 4009, Firm Response to Quality Control Defects.
Comments on the proposal are due within 21 days after publication in the Federal Register.
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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Technical Plan -- GASB Approves Technical Plan for the Final Third of 2007
For detail, please contact info@zy-cpa.com
We have added a Governmental GAAP Update Service that discusses the GASB's technical plan as of July 24, 2007. We provide a brief summary of the projects and practice issues encompassed in the GASB Technical Plan. The projects and practice issues on the GASB's technical plan are as follows:
-Conceptual Framework - Measurement and Recognition
-Derivatives
-Fund Balance Reporting and Governmental Fund Types
-Intergovernmental Financial Dependency Risk
-Service Efforts and Accomplishments - Concepts Statement 2 Amendments
-Service Efforts and Accomplishments - Suggested Reporting Guidelines
-Comprehensive Implementation Guide - Update
-Land and Other Real Property Held as Investments by Endowments
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