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Accounting Research
Manager(TM)
Weekly Summary of
Developments
April 28 - May 2, 2008
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Accounting Research
Manager subscriber,
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database now contains this week's weekly summary of developments. Click the
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Weekly Summary.
Accounting and SEC
Headlines
Fair Value Option -- Guidance within Accounting Standards
Updated for FASB Statement 159
Accounting for Leases -- Guidance Updated for Recently Issued
Standards on Business Combinations, Fair Value Measurements, and Other Matters
Inventory -- FASB Issues Proposed Staff Position
Requiring Fair Value Accounting for Inventory Used for Trading Activities
Intangible Assets -- FASB Issues Final Staff Position on
Determining the Useful Life of Intangible Assets
Conceptual Framework -- FASB to Discuss Conceptual Framework
and Other Matters
International Financial
Reporting -- IASB Issues
Agenda for May 8, 2008 IFRIC Meeting
IASB Update -- IASB Discusses IFRS for Small and
Medium-Sized Entities
International Financial
Reporting -- IASB Issues
Newsletter Discussing Credit Crunch and Other Matters
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ACCOUNTING AND SEC HEADLINES:
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Fair Value Option --
Guidance within Accounting Standards Updated for FASB Statement 159
For detail, please contact info@zy-cpa.com
We have incorporated the
guidance in FASB Statement No. 159, The Fair Value Option for Financial
Assets and Financial Liabilities, and FASB Staff Position (FSP) FIN 48-1, Definition
of 'Settlement' in FASB Interpretation No. 48, into our Accounting Standards.
Specifically, chapters covering the following areas have been updated for this
guidance:
-Financial instruments;
-Accounts receivable and
loans;
-Investments in debt
securities and other equity securities;
-Debt;
-Income taxes;
-Equity method investments
and joint ventures; and
-Cash-flow statement.
See our Literature Update for
complete details.
Accounting for Leases --
Guidance Updated for Recently Issued Standards on Business Combinations, Fair
Value Measurements, and Other Matters
For detail, please contact info@zy-cpa.com
We have updated our interpretation, Accounting
for Leases. Specifically, we have updated this interpretation to add or
update the following:
-Our "Recent
Developments" chapter to include a discussion of the joint project to
reconsider lease accounting announced by the FASB and the IASB and to highlight
certain key provisions of FASB Statement No. 141 (Revised 2007), Business
Combinations, that affect leases;
-An interpretation to discuss
the exclusion of lease classification and measurement from FASB Statement No.
157, Fair Value Measurements;
-Interpretive guidance
addressing whether a sale of an undivided interest in a leased asset results in
the seller retaining substantial risks of ownership;
-An interpretation discussing
the effect of an insurance policy purchased by a seller on its determination of
whether it has retained substantial risks of ownership; and
-Interpretive guidance
addressing the applicability of Statement 157 to the measurement of finance
leases acquired in a business combination accounted for in accordance with FASB
Statement No. 141, Business Combinations, and Statement 141R.
See our Literature Update for
complete details.
Inventory -- FASB Issues
Proposed Staff Position Requiring Fair Value Accounting for Inventory Used for
Trading Activities
For detail, please contact info@zy-cpa.com
The FASB has published
proposed FASB Staff Position (FSP) ARB 43-a, Amendment of the Inventory
Provisions of Chapter 4 of ARB No. 43. This proposed FSP would amend
Accounting Research Bulletin (ARB) No. 43, Restatement and Revision of
Accounting Research Bulletins, to require that inventories included in an
entity's trading activities be initially and subsequently measured at fair
value with changes in fair value recognized in earnings. Specifically, this FSP
specifies the accounting for inventories included in an entity's trading
activities, which is determined based the entity's
specific facts and circumstances. This FSP is not intended to change the accounting
for nontrading inventories such as those that are
held for production, retail, wholesale, distribution, or other nontrading activities.
As proposed, this FSP would
be effective for financial statements issued for fiscal years beginning after
November 15, 2008, and interim periods within those fiscal years. Early
adoption would not be permitted.
Comments on this FASB
proposal are due June 16, 2008.
Intangible Assets -- FASB
Issues Final Staff Position on Determining the Useful Life of Intangible Assets
For detail, please contact info@zy-cpa.com
The FASB has issued FASB
Staff Position (FSP) FAS 142-3, Determination of the Useful Life of
Intangible Assets. This FSP amends the factors that should be considered in
developing renewal or extension assumptions used to determine the useful life
of a recognized intangible asset under FASB Statement No. 142, Goodwill and
Other Intangible Assets. The intent of this FSP is to improve the
consistency between the useful life of a recognized intangible asset under
Statement 142 and the period of expected cash flows used to measure the fair
value of the asset under FASB Statement No. 141R, and other U.S. generally
accepted accounting principles.
This FSP is effective for
financial statements issued for fiscal years beginning after December 15, 2008,
and interim periods within those fiscal years. Early adoption is prohibited.
Conceptual Framework --
FASB to Discuss Conceptual Framework and Other Matters
For detail, please contact info@zy-cpa.com
As reported in its "Action Alert" publication,
the FASB is scheduled to discuss the following items at its May 6-7, 2008,
meeting: (a) conceptual framework: elements and recognition; and (b)
determining whether instruments granted in share-based payment transactions are
participating securities. Regarding its conceptual framework project, the FASB
is expected to discuss how to distinguish between a liability and a business
risk. In addition, the FASB is expected to discuss the principle of a
stand-ready obligation and whether it can be applied to noncontractual
situations. The FASB will also redeliberate some of
the decisions reached at its March 5, 2008 meeting on proposed FASB Staff
Position (FSP) EITF 03-6-a, Determining Whether Instruments Granted in
Share-Based Payment Transactions Are Participating Securities. The FASB
will discuss consideration of share-based payment awards not expected to vest,
the effective date, and transition.
As also indicated in its
Action Alert publication, the FASB held a joint meeting with the IASB on April
21-22, 2008, and discussed the following topics or items:
-FASB/IASB Memorandum of
Understanding;
-Revenue recognition;
-Conceptual framework:
objectives and qualitative characteristics and reporting entity;
-The Corporate Reporting
Users' Forum; and
-Standard setters' response
to the credit crisis.
International Financial
Reporting -- IASB Issues Agenda for May 8, 2008 IFRIC Meeting
For detail, please contact info@zy-cpa.com
IFRIC is scheduled to discuss
the following agenda items at its May 8, 2008 meeting:
-D21, Real Estate Sales;
-D22, Hedges of a Net
Investment in a Foreign Operation;
-Preliminary consideration of
comment letters received on draft IFRS 2, Share-Based Payment, and IFRIC
11 IFRS, Group Treasury Share Transactions;
-Review of tentative agenda
decisions published in March IFRIC Update (deposits on returnable containers
and settlements);
-Staff recommendations for tentative
agenda decisions (application of the effective interest rate method);
-IFRIC work in progress; and
-Project plan for agenda
request on rate regulated liabilities.
IASB Update -- IASB
Discusses IFRS for Small and Medium-Sized Entities
For detail, please contact info@zy-cpa.com
As reported in its "IASB
Update" publication, the IASB met on April 14-18, 2008, and discussed the
following projects or topics:
-Annual improvements;
-IFRS for small and
medium-sized entities;
-IAS 39, Financial
Instruments: Recognition and Measurement;
-Revenue recognition;
-Amendments to IAS 37, Provisions,
Contingent Liabilities and Contingent Assets;
-Cost of an investment in a
subsidiary, jointly controlled entity or associate;
-Amendments to IFRS 5, Non-Current
Assets Held for Sale and Discontinued Operations;
-Consolidation;
-Fair value measurement; and
-Joint ventures.
International Financial Reporting
-- IASB Issues Newsletter Discussing Credit Crunch and Other Matters
For detail, please contact info@zy-cpa.com
The IASB has issued its
"Insight" newsletter for the first and second quarters of 2008. This
edition includes the following topics:
-Discussing the credit
crunch;
-Interview with IASB
trustees, Pedro Malan and Jeff Lucy;
-Four principles to ensuring sustainable
funding;
-IASC Foundation update;
-Five questions on adoption
and translation;
-Challenging but rewarding -
Korea and IFRSs;
-Working towards 2011 -
Canada and IFRSs;
-IFRSs
for small and medium-sized entities;
-Facing up to pensions
accounting;
-IASB/IFRIC project updates;
and
-Staff changes.
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