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Accounting Research
Manager(TM)
Weekly Summary of
Developments
March 10-14, 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:
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
EITF Meeting Results -- Consensuses-for-Exposure and Consensus
Reached
Share-Based Compensation -- FASB Discusses Share-Based
Compensation as Participating Securities and Other Matters
Smaller Reporting
Companies -- SEC Issues
Compliance and Disclosure Interpretations
IFRIC Update -- IFRIC Discusses Real Estate Sales and
Other Matters at March 6, 2008 Meeting
Auditing and Internal
Controls Headlines
Professional
Responsibilities --
Requirements for Accounting and Review Services Discussed
Government Headlines
Conduit Debt -- Accounting and Financial Reporting
Issues Associated Conduit Debt Transactions Discussed
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ACCOUNTING AND SEC HEADLINES:
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EITF Meeting Results --
Consensuses-for-Exposure and Consensus Reached
For detail, please contact info@zy-cpa.com
As described in detail in our
"EITF Flash Report," the EITF discussed the following issues at its
March 12, 2008 meeting:
-Issue No. 00-27,
"Application of EITF Issue No. 98-5, 'Accounting for Convertible
Securities with Beneficial Conversion Features or Contingently Adjustable
Conversion Ratios,' to Certain Convertible Instruments;"
-Issue No. 07-4,
"Application of the Two-Class Method under FASB Statement No. 128, Earnings
per Share, to Master Limited Partnerships;"
-Issue No. 07-5, "Determining
Whether an Instrument (or an Embedded Feature) is Indexed to an Entity's Own
Stock;"
-Issue No. 08-1,
"Revenue Recognition for a Single Unit of Accounting;"
-Issue No. 08-2, "Lessor Revenue Recognition for Maintenance Services;"
-Issue No. 08-3, "Accounting
by Lessees for Maintenance Deposits under Lease Agreements;"
-Amendments to Issue 98-5;
and
-Revisions to EITF Topic
D-98, "Classification and Measurement of Redeemable Securities."
The EITF reached a consensus
on Issue 07-4 and consensuses-for-exposure on Issues 07-5 and 08-3. In
addition, the EITF agreed to amend the existing authoritative guidance in Issue
98-5. These decisions must be approved by the FASB which is scheduled for its
meeting on March 26, 2008. Separately, the SEC staff presented certain
revisions to EITF Topic D-98 which the SEC staff intends to finalize in
connection with the issuance of the final minutes to this EITF meeting.
See our EITF Flash Report for
complete details.
Share-Based Compensation
-- FASB Discusses Share-Based Compensation as Participating Securities and
Other Matters
For detail, please contact info@zy-cpa.com
As reported in its
"Action Alert" publication, the FASB met on March 5, 2008 and
discussed issues raised by respondents to proposed FASB Staff Position (FSP)
EITF 03-6-a, Determining Whether Instruments Granted in Share-Based Payment
Transactions Are Participating Securities. The FASB affirmed its decision
that unvested share-based payment awards that are entitled to receive nonforfeitable dividends or dividend equivalents are participating securities and that both distributed and
undistributed earnings should be allocated to participating securities. The
FASB also decided that: (a) only those unvested share-based payment
awards that are expected to vest are participating securities; (b) a
change in an entity's estimated forfeiture rate should not be captured as an
adjustment to the computation of basic earnings per share pursuant to the
two-class method; and (c) the final FSP should require full
retrospective application and become effective on the same date as a revised
Statement on FASB Statement No. 128, Earnings Per Share. The FASB directed
the staff to proceed to a draft of a final FSP for vote.
As also reported in its
Action Alert publication, the FASB is scheduled to meet on March 19, 2008 to
discuss determining the useful life of intangible assets.
Smaller Reporting Companies
-- SEC Issues Compliance and Disclosure Interpretations
For detail, please contact info@zy-cpa.com
The SEC has published, Smaller
Reporting Company Compliance and Disclosure Interpretations. The
interpretations provide guidance on six specific questions regarding the SEC's
recently issued smaller reporting company rules. Among other things, the new
rules expanded the scope of companies permitted to use scaled disclosure
requirements (i.e., $50 million in revenue or $75 million in public float) for
smaller public companies. The interpretations cover the following topics:
-Determining qualification
for the scaled disclosure requirements for current reporting companies;
-Whether a company can be
both a smaller reporting company and an accelerated filer;
-Future eligibility to be a
smaller reporting company for registrants not qualifying for such status in the
current year;
-Audit committee report
requirements for smaller reporting companies;
-Applicability of new
disclosure requirements within the new rules to Section 14A (proxies)
disclosure; and
-Whether smaller reporting
requirements are required to describe policies and procedures for review,
approval or ratification or related party transactions per Item 404(b) of
Regulation S-K.
IFRIC Update -- IFRIC
Discusses Real Estate Sales and Other Matters at March 6, 2008 Meeting
For detail, please contact info@zy-cpa.com
As reported in the IASB's "IFRIC Update" publication, the IFRIC met
on March 6, 2008, and discussed the following matters:
-IFRIC D21, Real Estate Sales;
-IFRIC D22, Hedges of a
Net Investment in a Foreign Operation;
-IFRIC agenda decisions;
-Tentative agenda decisions;
and
-IFRIC work in progress
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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Professional
Responsibilities -- Requirements for Accounting and Review Services Discussed
For detail, please contact info@zy-cpa.com
We have added a GAAS Update
Service that discusses AICPA Statement on Standards for Accounting and Review
Services (SSARS) No. 16, Defining Professional Requirements in Statements on
Standards for Accounting and Review Services. SSARS 16 defines the
terminology used in SSARSs to describe the degree of
responsibility that those standards impose on accountants performing a
compilation or review engagement. SSARS 16 defines two types of responsibility
that SSARSs impose on accountants: (1) unconditional
responsibility to comply with a requirement in all cases, which responsibility
is communicated by the terms "must" or "is required" and
(2) presumptive responsibility to comply with a requirement in all cases, which
responsibility is communicated by the term "should" and which places
the burden of proof on the accountant if he or she departs from the presumptive
requirement.
SSARS 16 became effective
December 18, 2007.
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
======================
GOVERNMENT HEADLINES:
======================
Conduit Debt -- Accounting
and Financial Reporting Issues Associated Conduit Debt Transactions Discussed
For detail, please contact info@zy-cpa.com
We have added a Governmental
GAAP Update Service that discusses accounting and financial reporting issues
related to conduit debt transactions. Conduit debt includes limited-obligation
bonds and other similar debt instruments that provide capital financing for
third parties that are not a part of the issuing government's financial
reporting entity. Topics covered in the Update Service are:
-Accounting for conduit debt;
-Required disclosures; and
-Conduit debt in financing
authorities.
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