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Accounting Research Manager(TM)
Weekly Summary of Developments
October 1-5, 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 Matters -- September 11, 2007 Meeting Minutes and Draft Abstracts of Consensuses-for-Exposure Issued
Disclosure Checklists -- GAAP and SEC Disclosure Checklists Updated through September 30, 2007
Fair Value Measurements -- FASB Proposes Removing Lease Accounting from Scope of Statement 157 and Discusses Other Matters at September 26, 2007 Meeting
FASB Report Issued -- Input on Accounting for Insurance Contracts Project Proposal and Other Matters Discussed
State and Local Governments -- AICPA Issues Audit Risk Alert
Auditing and Internal Controls Headlines
System of Quality Control -- AICPA Issues SQCS 7
State and Local Governments -- AICPA Issues Audit Risk Alert
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ACCOUNTING AND SEC HEADLINES:
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EITF Matters -- September 11, 2007 Meeting Minutes and Draft Abstracts of Consensuses-for-Exposure Issued
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The final minutes of the September 11, 2007 EITF meeting have been issued. The minutes document the meeting results as previously described in our hot topic dated September 26, 2007:
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Consistent with the EITF's due process procedure, the FASB also issued for public comment the following abstracts of consensuses-for-exposure reached at the September 11, 2007 meeting:
-Issue No. 07-1, "Accounting for Collaborative Arrangements"
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-Issue No. 07-4, "Application of the Two-Class Method under FASB Statement No. 128 to Master Limited Partnerships"
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-Issue No. 07-6, "Accounting for the Sale of Real Estate Subject to the Requirements of FASB Statement No. 66 When the Agreement Includes a Buy-Sell Clause"
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Comments on each of these consensuses-for-exposure are due October 22, 2007.
Disclosure Checklists -- GAAP and SEC Disclosure Checklists Updated through September 30, 2007
As described in our Literature Update, we have updated our General U.S. GAAP Financial Statement Disclosures Checklist through September 30, 2007:
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In addition, we updated our General U.S. GAAP Interim Financial Statement Disclosures Checklist. Most of the changes to these checklists were editorial in nature as the standard-setters did not issue any authoritative literature affecting these checklists since our June 30, 2007 update.
We have also updated the following four SEC related checklists through September 30, 2007:
-Financial Statement Disclosures - This checklist outlines the required SEC disclosures for financial statements included in 1934 and 1933 Act domestic filings that are incremental to U.S. GAAP. The checklist is organized by topic.
-Management's Discussion and Analysis - This checklist outlines the required SEC disclosures for MD&A included in 1934 and 1933 Act domestic filings, including Forms 10-K and S-1.
-Incremental Certifications, Disclosures, and Reporting Mandated by Sarbanes-Oxley - This checklist outlines the certification, disclosure and reporting requirements resulting from the SEC rules mandated by the Sarbanes-Oxley Act of 2002. The checklist provides a by-topic "tickler" and effective dates. It also provides a column for users to note implementation date.
-SEC Form 10-Q - This checklist is for financial and nonfinancial information included in Form 10-Q and is organized by form item number.
The primary changes in these SEC related checklists include documenting that the SEC has issued interpretive guidance and related rule amendments associated with management's report on internal control required by Section 404 of the Sarbanes-Oxley Act of 2002. The final rules are generally effective August 27, 2007. In addition, we also incorporated the views of the SEC staff on the application of Rules 1-02(w), 3-09, and 4-08(g) when an investee meets the significance test in one year but not in the prior year (or vice-a-versa), and how to evaluate significance when an equity method investee in the real estate industry has a gain on a partial sale of real estate. These views were expressed by the SEC staff at the July 10, 2007, SEC Regulations Committee meeting. See our Literature Update for complete details:
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Fair Value Measurements -- FASB Proposes Removing Lease Accounting from Scope of Statement 157 and Discusses Other Matters at September 26, 2007 Meeting
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As reported in its "Action Alert" publication, the FASB met on September 26, 2007, and addressed the following projects or topics:
-Agenda Decision: Interaction between Statement 13 and Statement 157;
-Derivative Disclosures; and
-FASB Ratification of EITF Consensuses-for-Exposure (see discussion above).
The FASB decided to add a project to its agenda to address issues related to the interaction between FASB Statement No. 157, Fair Value Measurements, and FASB Statement No. 13, Accounting for Leases. The FASB directed its staff to draft a proposed FASB Staff Position (FSP) that would amend the scope of Statement 157 to exclude Statement 13 and its related interpretive accounting pronouncements.
In addition, the FASB continued its redeliberations of its Exposure Draft, Disclosure about Derivative Instruments and Hedging Activities. The FASB agreed to revise the proposed tabular format presentation of fair values of derivatives and associated gains/losses. Information about gains/losses on hedged items in designated and qualifying fair value hedging relationships will also have to be disclosed.
The Action Alert also indicates that the FASB will hold a meeting on October 10, 2007 to discuss the comment period for the Preliminary Views document expected to be issued regarding its ongoing "Liabilities and Equity" project.
FASB Report Issued -- Input on Accounting for Insurance Contracts Project Proposal and Other Matters Discussed
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The August 2007 edition of the "FASB Report" has been issued and includes discussion of the following topics or items of interest:
-The FASB Seeks Input on "Accounting for Insurance Contracts" Project Proposal;
-The Small Business Advisory Committee and the Private Company Financial Reporting Committee: Giving Small Enterprises a Big Voice;
-The FASB Names Russell Golden Director of Technical Application and Implementation Activities;
-Who's News; and
-FASB at the Podium.
On August 2, 2007, the FASB issued an Invitation to Comment, An FASB Agenda Proposal: Accounting for Insurance Contracts by Insurers and Policyholders, Including the IASB Discussion Paper, "Preliminary Views on Insurance Contracts." The purpose of the Invitation to Comment is to gather information from constituents to help in deciding whether to add to the FASB's agenda a joint project with the IASB to develop a common, high-quality standard that addresses recognition, measurement, presentation, and disclosure requirements for insurance (including reinsurance) contracts. Comments on this release are due November 16, 2007.
State and Local Governments -- AICPA Issues Audit Risk Alert
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The AICPA has issued an Audit Risk Alert, State and Local Governmental Developments - 2007. This Alert provides auditors of state and local governments with an overview of recent economic, industry, regulatory, and professional developments that may affect those audits. The Alert includes a discussion of the following topics or items of interest:
-The state of the U.S. economy;
-Industry trends and conditions;
-Retiree health care costs;
-Sales tax on Internet sales;
-Other industry and environmental developments;
-State and local government audits performed under Government Accounting Standards and OMB Circular A-133;
-Internal Revenue Service activities;
-Department of Labor topics;
-The SEC's views on integrity in the municipal market;
-Auditor responsibilities when associated with official statements made by local and state governments;
-Derivatives; and
-Employee benefits.
The Alert also includes a list of recently issued auditing and attestation pronouncements and related guidance.
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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AUDITING AND INTERNAL CONTROLS HEADLINES:
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System of Quality Control -- AICPA Issues SQCS 7
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The AICPA's Auditing Standards Board has issued Statement on Quality Control Standards (SQCS) No. 7, "A Firm’s System of Quality Control." SQCS No. 7 establishes standards and guidance for a CPA firm's responsibilities for its system of quality control for its accounting and auditing practice. SQCS No. 7 describes elements of quality control and other matters essential to the effective design, implementation, and maintenance of the system. SQCS No. 7 includes guidance on the following topics:
-Documentation and communication of quality control policies and procedures;
-Elements of a system of quality control;
-Leadership responsibilities for quality within a firm ("tone at the top");
-Ethical requirements;
-Acceptance and continuance of client relationships and specific engagements;
-Human resource policies and procedures;
-Engagement performance;
-Policies and procedures for monitoring quality control; and
-Documentation of the operation of quality control policies and procedures.
SQCS No. 7 is applicable to a CPA firm's system of quality control for its accounting and auditing practice as of January 1, 2009. SQCS No. 7 will supersede SQCS Nos. 2-6.
State and Local Governments -- AICPA Issues Audit Risk Alert
For detail, please contact info@zy-cpa.com
As noted above in our Accounting and SEC Summaries, the AICPA has issued an Audit Risk Alert, State and Local Governmental Developments - 2007. This Alert provides auditors of state and local governments with an overview of recent economic, industry, regulatory, and professional developments that may affect those audits. The Alert includes a discussion of the following topics or items of interest:
-The state of the U.S. economy;
-Industry trends and conditions;
-Retiree health care costs;
-Sales tax on Internet sales;
-Other industry and environmental developments;
-State and local government audits performed under Government Accounting Standards and OMB Circular A-133;
-Internal Revenue Service activities;
-Department of Labor topics;
-The SEC's views on integrity in the municipal market;
-Auditor responsibilities when associated with official statements of local and state governments;
-Derivatives; and
-Employee benefits.
The Alert also includes a list of recently issued auditing and attestation pronouncements and related guidance.
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