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Accounting Research
Manager(TM)
Weekly Summary of
Developments
March 17-21, 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
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If you do not have immediate Internet access
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Weekly Summary.
Accounting and SEC
Headlines
Derivatives and Hedging
Activities -- FASB Issues
Statement 161 Providing Guidance on Disclosures about Derivatives and Hedging
Activities
Postretirement Benefits -- FASB Issues Proposed Staff Position on
Disclosures about Postretirement Benefit Plan Assets
Accounting for Contingencies -- FASB Discussed Disclosures of
Contingencies and Other Matters
Proxy Materials -- SEC Issues Final Rule Making Technical
Amendments to Proxy Material Requirements
International Financial
Reporting -- IASB Issues
Discussion Paper on Reducing Complexity in Reporting Financial Instruments
IASB Update -- IASB Discusses Annual Improvements and
Other Matters at March 10-14, 2008 Meeting
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ACCOUNTING AND SEC HEADLINES:
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Derivatives and Hedging
Activities -- FASB Issues Statement 161 Providing Guidance on Disclosures about
Derivatives and Hedging Activities
For detail, please contact info@zy-cpa.com
On March 19, 2008, the FASB
issued FASB Statement No. 161, Disclosures about Derivative Instruments and
Hedging Activities - an Amendment of FASB Statement 133. Statement 161
enhances required disclosures regarding derivatives and hedging activities,
including enhanced disclosures regarding how: (a) an entity uses
derivative instruments; (b) derivative instruments and related hedged
items are accounted for under FASB Statement No. 133, Accounting for
Derivative Instruments and Hedging Activities; and (c) derivative
instruments and related hedged items affect an entity's financial position,
financial performance, and cash flows. Specifically, Statement 161 requires:
-Disclosure of the objectives
for using derivative instruments be disclosed in terms of underlying risk and
accounting designation;
-Disclosure of the fair
values of derivative instruments and their gains and losses in a tabular
format;
-Disclosure of information
about credit-risk-related contingent features; and
-Cross-reference from the
derivative footnote to other footnotes in which derivative-related information
is disclosed.
Statement 161 is effective
for fiscal years and interim periods beginning after November 15, 2008. Early
application is encouraged.
Postretirement Benefits --
FASB Issues Proposed Staff Position on Disclosures about Postretirement Benefit
Plan Assets
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The FASB has issued for
public comment FASB Staff Position (FSP) FAS 132(R)-a, Employers'
Disclosures about Postretirement Benefit Plan Assets. This proposal would
amend FASB Statement No. 132 (Revised 2003), Employers' Disclosures about
Pensions and Other Postretirement Benefits, which the FASB believes will
improve an employer's disclosures about postretirement benefit plan assets.
Specifically, the FSP includes the following amendments or requirements:
-A principle for disclosing
the fair value of categories of plan assets based on the types of assets held
in the plan.
-Categories of plan assets
that, if significant, should be disclosed.
-Disclosures about the nature
and amount of concentrations of risk arising within or across categories of
plan assets.
-Disclosures about fair value
measurements, similar to those required by FASB Statement No. 157, Fair
Value Measurements.
-A technical amendment to
Statement 132R that would require a nonpublic entity to disclose net periodic
benefit cost.
If adopted as proposed, the
disclosures about plan assets required by this FSP would be applied on a
prospective basis for fiscal years ending after December 15, 2008. Earlier
application would not be permitted.
Comments on the proposal are
due May 2, 2008.
Accounting for
Contingencies -- FASB Discussed Disclosures of Contingencies and Other Matters
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As reported in its
"Action Alert" publication, the FASB met on March 11, 2008 and
discussed: (a) accounting for certain nonfinancial
liabilities: contingency disclosures; and (b) financial statement
presentation. The FASB decided to expose for comment (not yet available) a
proposed amendment to FASB Statement No. 5, Accounting for Contingencies.
The amendment should document the following decisions made at this meeting:
-The FASB affirmed the
recommended principle requiring an entity to provide disclosures that are
sufficient to enable users of financial statements to assess the likelihood,
timing, and amount of future cash flows associated with loss contingencies.
-The FASB agreed with the
proposed principle that all loss contingencies should be disclosed unless certain
narrow criteria are met.
-The FASB decided to require
that an entity disclose the claim amount or, in the absence of a claim amount,
an estimate of the maximum potential exposure to loss.
As also indicated in its
Action Alert, the FASB is scheduled to meet on March 26, 2008 to discuss the
following issues:
-FASB ratification of EITF
consensuses and tentative conclusions;
-GAAP hierarchy;
-Convertible debt instruments
that may be settled in cash upon conversion (including partial cash
settlement); and
-Omnibus changes to
consolidation and equity method guidance for not-for-profit organizations.
The FASB will consider the
ratification of the decisions reached at the March 12, 2008 EITF meeting. See
our EITF Flash report for complete details of this meeting.
Proxy Materials -- SEC
Issues Final Rule Making Technical Amendments to Proxy Material Requirements
For detail, please contact info@zy-cpa.com
The SEC issued a final rule, Internet
Availability of Proxy Materials; Regulation of Takeovers and Security Holder
Communications; Cross-Border Tender and Exchange Offers, Business Combinations
and Rights Offerings; Certain Other Related Rule Corrections. The final
rule makes certain technical amendments to the SEC's proxy material
requirements and related rules, including clarifying that the "notice and
access model" regarding internet availability of proxy materials with
respect to business combination transactions is not permitted. In addition, the
final rule makes a number of corrections or updates to references within proxy
material rules, including cross-references, typographical errors and SEC staff
contact information.
International Financial
Reporting -- IASB Issues Discussion Paper on Reducing Complexity in Reporting
Financial Instruments
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The IASB has published a
Discussion Paper (DP), "Reducing Complexity in Reporting Financial
Instruments." This document is the first stage in a project to replace IAS
39, Financial Instruments: Recognition and Measurement. This DP discusses
the main causes of complexity in reporting financial instruments and possible
intermediate and long-term approaches to improving financial reporting and
reducing complexity. The DP indicates that a single measurement method for all
types of financial instruments is needed as a long-term solution to the current
complexity in reporting financial instruments. The DP provides the following
intermediate approaches that may be taken to reduce the current complexity:
-Amending measurement
requirements (e.g., by reducing the number of categories of financial
instruments).
-Replace the existing
requirements with a fair value measurement principle and some optional
exceptions to fair value measurement.
-Simplify hedge accounting.
Comments on the DP are due September
19, 2008.
IASB Update -- IASB
Discusses Annual Improvements and Other Matters at March 10-14, 2008 Meeting
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As reported in its "IASB
Update" publication, the IASB met on March 10-14, 2008, and discussed the
following projects or topics:
-Annual improvements;
-Financial statement presentation;
-Fair value measurement;
-IFRS for small and
medium-sized entities;
-IAS 19, Employee
Benefits;
-IAS 39, Financial
Instruments: Recognition and Measurement;
-Update to IFRIC activities;
-First-time adoption of IFRSs; and
-Extractive activities research
project.
Some of the documents
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information about upgrading your subscription to include additional content,
click here:
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