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Accounting Research Manager(TM)
Weekly Summary of Developments
January 28 - February 1, 2008
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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

Income Taxes and FIN 48 -- FASB Staff Position Issued
Securities Offerings -- SEC Issues Compliance Guide for Smaller Companies Using Forms S-3 or F-3
Smaller Company Reporting -- SEC Issues Compliance Guide on Transitioning to the New Smaller Reporting Company System
AICPA National Conference on Current SEC and PCAOB Developments -- Newsletter Issued
Financial Statements -- PCAOB Issues Auditing Standard on Evaluating Consistency and Conforming Amendments
Accounting for Income Taxes -- FASB Discuss Deferral of FIN 48 for Nonpublic Entities and Other Matters at January 23, 2008 Meeting
IASB Update -- IASB Discusses Earnings per Share and Other Matters at Its January 22-24, 2008 Meeting

Auditing and Internal Controls Headlines

Financial Statements -- PCAOB Issues Auditing Standard on Evaluating Consistency and Conforming Amendments

Government Headlines

GASB Report Issued -- Challenges Facing the GASB and Other Matters Discussed

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ACCOUNTING AND SEC HEADLINES:
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Income Taxes and FIN 48 -- FASB Staff Position Issued
For detail, please contact info@zy-cpa.com

The FASB has issued FASB Staff Position (FSP) FIN 48-2, "Effective Date of FASB Interpretation No. 48 for Certain Nonpublic Enterprises." The FSP defers the effective date of FASB Interpretation (FIN) No. 48, Accounting for Uncertainty in Income Taxes, for certain nonpublic enterprises. Specifically, the FSP applies to nonpublic enterprises unless such entity: (a) is a consolidated entity of a public enterprise that applies U.S. GAAP or (b) has issued a full set of U.S. GAAP annual financial statements prior to the issuance of the FSP using the recognition, measurement, and disclosure requirements in FIN 48. The FSP defers the effective date of FIN 48 to the annual financial statements for fiscal years beginning after December 15, 2007.

The FSP is effective February 1, 2008.

Securities Offerings -- SEC Issues Compliance Guide for Smaller Companies Using Forms S-3 or F-3
For detail, please contact info@zy-cpa.com

The SEC has issued a compliance guide, Eligibility of Smaller Companies to Use Form S-3 or F-3 for Primary Securities Offerings. The SEC recently amended the eligibility requirements for primary securities offerings on Forms S-3 and F-3 to allow smaller public companies, that meet certain conditions, to use these forms. The guide provides a summary of the general eligibility requirements for both Forms S-3 and F-3, including how to calculate "public float" as required by the rules. In addition, the guide provides links to applicable rules and resources, including: (a) the final release adopting amendments to Forms S-3 and F-3; (b) Forms S-3 and F-3; and (c) other applicable compliance and disclosure interpretations.

Smaller Company Reporting -- SEC Issues Compliance Guide on Transitioning to the New Smaller Reporting Company System
For detail, please contact info@zy-cpa.com

The SEC has issued a compliance guide, Changeover to the SEC's New Smaller Reporting Company System by Small Business Issuers and Non-Accelerated Filer Companies. The SEC recently issued new rules expanding the scope of companies permitted to use scaled disclosure requirements for smaller public companies. In addition, the new rules eliminated the "small business issuer" classification and related forms (e.g., Form 10-KSB). Smaller reporting companies may choose to comply with scaled or non-scaled financial and non-financial item requirements on an item-by-item basis in any one filing. However, where the smaller reporting company requirement is more rigorous, the company must meet the more rigorous standard. In general, the scaled requirements are less rigorous than the larger company standards. However, under Item 404 of Regulation S-K, the smaller reporting company rules include an additional "percentage of total assets" rule for reporting related party transactions that may result in the scaled disclosure requirements being more rigorous than those for larger companies.

The guide discusses issues for registrants adopting the new smaller reporting company system of disclosure. Specifically, the guide covers the following topics:

-Qualifying as a "smaller reporting company";
-Compliance date guidance for current small business issuers;
-Transition to non-SB forms;
-Guidance for newly eligible smaller reporting companies; and
-Chart of scaled item requirements in Regulation S-K for smaller reporting companies.

Registrants that historically filed under Regulation S-B may find the guidance herein particularly useful.

AICPA National Conference on Current SEC and PCAOB Developments -- Newsletter Issued
For detail, please contact info@zy-cpa.com

We have prepared a newsletter that documents the significant accounting and reporting matters discussed at the AICPA's SEC and PCAOB Conference held on December 10 -12, 2007. This annual conference addresses common financial reporting issues that companies should be considering when preparing their financial statements. We believe this newsletter may be of interest to nonpublic companies and their auditors as well because a number of general interest accounting topics were discussed at the conference. Our newsletter compliments our Literature Update dated December 14, 2007, that was issued immediately after this conference: For detail, please contact info@zy-cpa.com.

See our Literature Update for Complete details.

Financial Statements -- PCAOB Issues Auditing Standard on Evaluating Consistency and Conforming Amendments
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The PCAOB published Auditing Standard No. 6, Evaluating Consistency of Financial Statements (AS/6), and an accompanying set of amendments to its interim auditing standards. AS/6 and the related amendments update the auditor's responsibilities to evaluate and report on the consistency of a company's financial statements and align the auditor's responsibilities with FASB Statement No. 154, Accounting Changes and Error Corrections. In addition, the standard also clarifies that auditor reports should indicate whether an adjustment to previously issued financial statements results from a change in accounting principle or the correction of a misstatement.

The PCAOB also removed the hierarchy of GAAP from its interim auditing standards. The GAAP hierarchy identifies the sources of accounting principles and the framework for selecting principles to be used in preparing financial statements. The PCAOB believes that the GAAP hierarchy is more appropriately located in the accounting standards and given the FASB's intention to incorporate the hierarchy in the accounting standards, it no longer will be needed in the auditing standards.

Like other rules adopted by the PCAOB, AS/6 and the amendments are not effective until approved by the SEC. If approved by the SEC, AS/6 and the amendments will become effective 60 days after the date of SEC approval.

Accounting for Income Taxes -- FASB Discuss Deferral of FIN 48 for Nonpublic Entities and Other Matters at January 23, 2008 Meeting
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As reported in its "Action Alert" publication, the FASB met on January 23, 2008, and discussed the following issues:

-Earnings per share;
-Accounting for trading inventory; and
-Deferral of the effective date of FASB Interpretation (FIN) No. 48, Accounting for Uncertainty in Income Taxes.

The FASB discussed issues raised in proposed FASB Staff Position (FSP) FIN 48-b, "Effective Date of FASB Interpretation No. 48 for Nonpublic Entities." Specifically, the FASB decided:

-An entity is eligible for this deferral unless it issued a full set of annual financial statements incorporating the recognition, measurement, and disclosure requirements of FIN 48, prior to the issuance of the final FSP.
-A nonpublic subsidiary of a public company is not within the scope of the deferral.
-The deferral period will extend to annual periods beginning after December 15, 2007.
-The deferral is not permitted for leveraged lease transactions.

The final FSP reflecting these decisions is discussed above.

The Action Alert also indicates that the FASB is scheduled to have a meeting on February 6, 2008, and plans to address the following projects or topics:

-FASB Statement No. 157, Fair Value Measurements, implementation; and
-Deferral of the effective date of AICPA Statement of Position (SOP) 07-1, Clarification of the Scope of the Audit and Accounting Guide 'Investment Companies' and Accounting by Parent Companies and Equity Method Investors for Investments in Investment Companies.

The FASB will discuss issues raised by respondents to proposed FSP FAS 157-a, "Application of FASB Statement No. 157 to FASB Statement No. 13 and Its Related Interpretive Accounting Pronouncements That Address Leasing Transactions." The FASB will focus on the scope of the FSP and whether to issue the FSP as final. The FASB will also discuss the partial deferral of the effective date of Statement 157 provided for in proposed FASB Staff Position (FSP) FAS 157-b, "Effective Date of FASB Statement No.157." In addition, the FASB will discuss whether to make final proposed FSP SOP 07-1-a, "Effective Date of AICPA Statement of Position 07-1."

IASB Update -- IASB Discusses Earnings per Share and Other Matters at Its January 22-24, 2008 Meeting
For detail, please contact info@zy-cpa.com

As reported in its "IASB Update" publication, the IASB met on January 22-24, 2008, and discussed the following projects or topics:

-Earnings per share;
-Annual improvements process;
-Revenue recognition;
-IAS 24, Related Party Disclosures;
-Update on IFRIC activities;
-Financial instruments;
-Liabilities and equity;
-Puttable financial instruments and obligations arising on liquidation; and
-Insurance contracts.

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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Financial Statements -- PCAOB Issues Auditing Standard on Evaluating Consistency and Conforming Amendments
For detail, please contact info@zy-cpa.com

As discussed above under our Accounting and SEC Summaries, the PCAOB published Auditing Standard No. 6, Evaluating Consistency of Financial Statements (AS/6), and an accompanying set of amendments to its interim auditing standards. AS/6 and the related amendments update the auditor's responsibilities to evaluate and report on the consistency of a company's financial statements and align the auditor's responsibilities with FASB Statement No. 154, Accounting Changes and Error Corrections. In addition, the standard also clarifies that auditor reports should indicate whether an adjustment to previously issued financial statements results from a change in accounting principle or the correction of a misstatement.

The PCAOB also removed the hierarchy of GAAP from its interim auditing standards. The GAAP hierarchy identifies the sources of accounting principles and the framework for selecting principles to be used in preparing financial statements. The PCAOB believes that the GAAP hierarchy is more appropriately located in the accounting standards and given the FASB's intention to incorporate the hierarchy in the accounting standards, it no longer will be needed in the auditing standards.

Like other rules adopted by the PCAOB, AS/6 and the amendments are not effective until approved by the SEC. If approved by the SEC, AS/6 and the amendments will become effective 60 days after the date of SEC approval.

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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GASB Report Issued -- Challenges Facing the GASB and Other Matters Discussed
For detail, please contact info@zy-cpa.com

The January 2008 edition of the "GASB Report" has been issued and includes the following discussion items:

-GASB Calendar;
-New GASAC Members Named;
-Board Meeting Summary;
-Chairman's Notes;
-GASB Website Resources; and
-Who's Who at the GASB.

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