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Accounting Research Manager(TM)
Weekly Summary of Developments
November 12-16, 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

Fair Value Measurements -- FASB Agrees to Partially Defer Effective Date of Statement 157 and to Issue Implementation Guidance
Hedge Accounting -- FASB Discusses Fair Value Hedge Accounting and Other Matters at November 7, 2007 Meeting
International Accounting -- SEC Eliminates IFRS-to-US GAAP Reconciliation for Foreign Private Issuers
Smaller Reporting Companies -- SEC Adopts Rule Amendments for Smaller Reporting Companies
EITF Materials Issued -- Application of the Two-Class Method of Calculating EPS and Other Matters for the November 29, 2007 EITF Meeting
IFRIC Update -- IFRIC Discusses Revenue from Customer Contributions and Other Matters at November 1, 2007 Meeting
International Financial Reporting -- IASB Issues Agenda for November Meeting

Auditing and Internal Controls Headlines

Quality Control Standards -- Discussion and Analysis of SQCS 7

Government Headlines

Comprehensive Implementation Guide -- Questions and Answers on Chapter Z Implementation Issues
GASB Report Issued -- Governmental Accounting Standards Advisory Council Meeting Highlights

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ACCOUNTING AND SEC HEADLINES:
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Fair Value Measurements -- FASB Agrees to Partially Defer Effective Date of Statement 157 and to Issue Implementation Guidance
For detail, please contact info@zy-cpa.com

As reported in our Hot Topic on November 14, 2007, the FASB agreed to defer the effective date of FASB Statement No. 157, Fair Value Measurements, for certain nonfinancial assets and liabilities. In addition, the FASB agreed to issue guidance in the form of proposed FASB Staff Positions (FSPs) on implementation issues associated with: (a) the measurement of liabilities and (b) how fair value disclosures apply to pension and other postretirement plan assets in the plan sponsor's financial statements.

See our Hot Topic for complete details.

Hedge Accounting -- FASB Discusses Fair Value Hedge Accounting and Other Matters at November 7, 2007 Meeting
For detail, please contact info@zy-cpa.com

As reported in its "Action Alert" publication, the FASB met on November 7, 2007, and addressed the following projects or topics: (a) agenda decision: deferral of the effective date of Interpretation 48 for nonpublic entities and (b) Statement 133 hedging.

The FASB continued its discussions of a fair value hedge accounting approach that would fundamentally change the current hedge accounting model provided by FASB Statement No. 133, Accounting for Derivative Instruments and Hedging Activities. The FASB agreed to retain cash flow hedge accounting for items currently within the scope of Statement 133. In addition, as reported in our previously published Hot Topic, the FASB agreed to a one-year deferral of the effective date of FASB Interpretation (FIN) No. 48, Accounting for Uncertainty in Income Taxes, for nonpublic entities. See our Hot Topic for complete details: For detail, please contact info@zy-cpa.com.

In addition to its action at the November 7, 2007 meeting, the FASB will discuss the following matters at its November 21, 2007 meeting: (a) conceptual framework: measurements, and (b) financial guarantee insurance.

International Accounting -- SEC Eliminates IFRS-to-US GAAP Reconciliation for Foreign Private Issuers
For detail, please contact info@zy-cpa.com

As reported in our Hot Topic on November 15, 2007, the SEC adopted rule amendments to Form 20-F and Regulation S-X that permit foreign private issuers to submit financial statements using International Financial Reporting Standards (IFRS) without reconciliation to U.S. GAAP. Currently, foreign private issuers preparing financial statements using a basis of accounting other than U.S. GAAP must include a reconciliation to U.S. GAAP in filings with the SEC. The SEC believes adoption of these amendments is consistent with its commitment to establishing a single set of high quality, internationally accepted accounting standards to enhance investment comparisons by investors and reduce regulatory burdens on issuers.

The elimination of the reconciliation to U.S. GAAP is limited to foreign private issuers preparing financial statements using the English language version of IFRS as issued by the International Accounting Standards Board (IASB). Financial statements prepared on a modified version of IFRS or another basis of accounting would continue to require reconciliation to U.S. GAAP. The amendments will be effective for financial statements for fiscal years ending after November 15, 2007.

See our Hot Topic for complete details.

Smaller Reporting Companies -- SEC Adopts Rule Amendments for Smaller Reporting Companies
For detail, please contact info@zy-cpa.com

As reported in our Hot Topic on November 15, 2007, the SEC adopted several amendments aimed at providing regulatory relief to smaller reporting companies. The SEC adopted amendments to its disclosure and reporting requirements to expand the number of companies that qualify for scaled disclosure requirements for smaller reporting companies. Companies with less than $75 million in public equity float (currently limited to registrants with public float of less than $25 million) would qualify for the scaled requirements, and companies without a calculable public equity float would qualify if their annual revenues were below $50 million. The SEC decided against including a public float basis indexed to inflation to determine which registrants qualify for the scaled disclosure requirements.

The amendments would also maintain the provisions of Regulation S-B , but move and integrate them into Regulation S-K . All "SB" forms would be eliminated. For most purposes, the result of the amendments is to combine the existing categories of "Small Business Issuers" and "Nonaccelerated Filers" into a single category referred to as "Smaller Reporting Companies."

The SEC also adopted other rule amendments focused on smaller reporting companies. First, the SEC adopted amendments to Rule 144 (and related amendments to Rule 145) to shorten the holding period for the resale of restricted securities if the issuer of the securities is subject to the Securities Exchange Act of 1934 ("Exchange Act"). The holding period was reduced to six months, from one year. Second, the SEC adopted amendments to Rule 12h-1 under the Exchange Act to provide two exemptions from registration requirements for compensatory employee stock options. The exemptions would apply to: (a) issuers that are not required to file periodic reports under the Exchange Act, and (b) issuers that are required to file periodic reports under the Exchange Act because they have registered a class of security under Section 12 of the Exchange Act or are required to make such filings pursuant to Section 15(d) of the Exchange Act.

See our Hot Topic for complete details.

EITF Materials Issued -- Application of the Two-Class Method of Calculating EPS and Other Matters for the November 29, 2007 EITF Meeting
For detail, please contact info@zy-cpa.com

The FASB has issued the following additional materials for the EITF meeting scheduled for November 29, 2007:

-Issue No. 07-4, "Application of the Two-Class Method under FASB Statement No. 128 to Master Limited Partnerships" (Issue Summary Supplement); and
-Issue No. 07-6, "Accounting for the Sale of Real Estate When the Agreement Includes a Buy-Sell Clause" (Issue Summary Supplement).

The FASB has published issue summary supplements for both Issue 07-4 and Issue 07-6. Issue 07-4 addresses whether current period earnings of a Master Limited Partnership (MLP) should be allocated to holders of incentive distribution rights (IDRs) when applying the two-class method under FASB Statement No. 128, Earnings Per Share. A typical MLP consists of publicly traded common units held by limited partners (the Common Units), a general partner interest (the GP Interest), and the IDRs. The IDRs represent a separate class of nonvoting limited partner interest that the general partner (GP) initially holds but may transfer or sell separately from its GP Interest. IDR holders do not have an ownership interest in the partnership. Issue 07-6 addresses whether a buy-sell clause in a real estate sale agreement represents a prohibited form of continuing involvement that would preclude partial sale and profit recognition from the sale of real estate pursuant to FASB Statement No. 66, Accounting for Sales of Real Estate.

IFRIC Update -- IFRIC Discusses Revenue from Customer Contributions and Other Matters at November 1, 2007 Meeting
For detail, please contact info@zy-cpa.com

As reported in the IASB's "IFRIC Update" publication, the IFRIC met on November 1, 2007, and discussed the following matters:

-IAS 18 Revenue - Customer contributions
-IAS 19 Employee Benefits - Death in service benefits
-IAS 27 Consolidated and Separate Financial Statements - Accounting for distributions of non-cash assets to owners
-IAS 39 Financial Instruments: Recognition and Measurement - Scope of paragraph 11A and application of paragraph AG33(d)(iii)
-IFRIC agenda decisions
-Tentative agenda decisions
-IFRIC work in progress

International Financial Reporting -- IASB Issues Agenda for November Meeting
For detail, please contact info@zy-cpa.com

The IASB will discuss the following agenda items at its November 13-16, 2007 meeting:

-Conceptual Framework - measurement
-Consolidation [education session]
-Fair Value Measurement
-Financial Statement Presentation
-IFRIC Update
-Insurance Contracts
-Related Party Disclosures
-Revenue Recognition
-Share-Based Payment - vesting conditions and cancellations (IFRS 2)

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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Quality Control Standards -- Discussion and Analysis of SQCS 7
For detail, please contact info@zy-cpa.com

We have added a GAAS Update Service that provides discussion and analysis of AICPA Statement on Quality Control Standards (SQCS) No. 7, A Firm's System of Quality Control, which supersedes and replaces all previously issued SQCSs. Among other matters, SQCS 7: (a) requires a firm's system of quality control to include policies and procedures that address each of the following six elements of quality control: (1) leadership responsibilities for quality within the firm ("tone at the top"); (2) relevant ethical requirements; (3) acceptance and continuance of client relationships and specific engagements; (4) human resources; (5) engagement performance; and (6) monitoring; (b) provides detailed guidance on client acceptance and continuance and requires that policies and procedures provide for obtaining an understanding with the client, either orally or in writing, regarding the services to be performed; (c) requires firms to establish policies and procedures for dealing with and resolving differences of opinion, including a requirement that reports not to be released until differences of opinion are resolved; (d) requires firms to establish criteria to determine which engagements are subject to an engagement quality control review; and (e) provides detailed guidance on policies and procedures relevant to human resources, including those relating to the capabilities and competencies expected of an engagement partner and on the assignment of engagement teams.

SQCS 7 is effective for a CPA firm's system of quality control for its accounting and auditing practice as of January 1, 2009.

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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Comprehensive Implementation Guide -- Questions and Answers on Chapter Z Implementation Issues
For detail, please contact info@zy-cpa.com

We have added a Governmental GAAP Update Service that addresses questions and answers regarding implementation issues dealing with compensated absences, nonexchange transactions, and termination benefits. Specifically, this update addresses the following questions:

-Should an expenditure and a liability for compensated absences be recorded in a governmental fund financial statement at the point an employee vests with regard to that benefit by completing a specified number of years of service?

-How should on-behalf payments for individual school districts' health and life insurance premiums and retirement contributions that are paid by the state department of education be handled?

-Should a government Internal Revenue Code (IRC) Section 457 Deferred Compensation plan report a purchase of an annuity contract in an individual's name through an insurance company in the government's financial statements?

-Does GASB Statement No. 33, Accounting and Financial Reporting for Nonexchange Transactions (GASB-33), apply to donated services?

GASB Report Issued -- Governmental Accounting Standards Advisory Council Meeting Highlights
For detail, please contact info@zy-cpa.com

The October edition of the "GASB Report" has been issued and includes the following discussion items:

-GASAC Meets in Pittsburgh
-Board Meeting Summary
-GASB Calendar
-Pension Accounting Research Advisory Committee Meets

This edition of the GASB Report highlights items covered at the recent Governmental Accounting Standards Advisory Council (GASAC) meeting, including: (a) recent events related to the standards setting process; (b) application of GASB pronouncements; (c) fund balance reporting and governmental fund type definitions project; (d) service efforts and accomplishments reporting (SEA) project; and (e) the new draft GASB strategic plan.

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