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Accounting Research
Manager(TM)
Weekly Summary of
Developments
June 2-6, 2008
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Accounting Research
Manager subscriber,
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Weekly Summary.
Accounting and SEC
Headlines
Interactive Data -- SEC Publishes Proposed Rule Mandating
XBRL Reporting
SEC Filings -- SEC Issues Updated EDGAR Filer Manual
International Accounting -- SEC Chairman Discusses International
Accounting
Loss Contingencies -- FASB Issues Exposure Draft That Would
Expand Disclosure Requirements for Certain Loss Contingencies
Variable Interest Entities -- FASB to Discuss FIN 46R and Other
Matters
EITF Materials Issued -- Revenue Recognition and Other Matters
Discussed for June 12, 2008 EITF Meeting
Derivatives and Guarantees -- FASB Issues Proposed Staff Position
That Would Amend Disclosure Requirements For Credit Derivatives and Certain
Guarantees
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ACCOUNTING AND SEC HEADLINES:
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Interactive Data -- SEC
Publishes Proposed Rule Mandating XBRL Reporting
For detail, please contact info@zy-cpa.com
The SEC published for public
comment a proposed rule, Interactive Data to Improve Financial Reporting.
The proposal would require all companies to provide financial information and
disclosures in SEC filings and on corporate Websites using eXtensible
Business Reporting Language (XBRL). XBRL is a computer software language that
labels companies' financial and other data so that financial statement readers
can more easily find information, and use the information for comparisons and
analysis.
Among other things, the proposal
contains the following requirements:
-Domestic and foreign
"large accelerated filers" (as defined) using U.S. generally accepted
accounting principles (GAAP) with a worldwide public common float above $5
billion as of the end of their most recent second quarter, would be required to
provide interactive data for registration statements containing financial
statements for a period ending on or after December 15, 2008. In addition, Form
10-Q for quarterly periods or Form 10-K or 20-F for annual periods ending on or
after December 15, 2008, would have to contain interactive data.
-All other large accelerated
filers using GAAP would be required to provide interactive data for
registration statements containing financial statements for a period ending on or
after December 15, 2009. In addition, Form 10-Q for quarterly periods or Form
10-K or 20-F for annual periods ending on or after December 15, 2009, would
have to contain interactive data.
-All remaining companies
(including smaller reporting companies) using GAAP would be required to provide
interactive data for registration statements containing financial statements
for a period ending on or after December 15, 2010. In addition, Form 10-Q for
quarterly periods or Form 10-K or 20-F for annual periods ending on or after
December 15, 2010, would have to include interactive data.
-Foreign private issuers
using IFRS as issued by the IASB, would be required to
provide interactive data for registration statements containing financial
statements for a period ending on or after December 15, 2010. In addition, Form
20-F for annual periods ending on or after December 15, 2010, would have to
contain interactive data.
-Required interactive data
would be provided as additional exhibits to annual and quarterly reports and
registration statements. Companies would also be required to post this
information on their Websites.
Comments on the proposal are
due August 1, 2008.
SEC Filings -- SEC Issues
Updated EDGAR Filer Manual
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The SEC has published a final
rule, Adoption of Updated EDGAR Filer Manual. This final rule includes
revisions to the SEC's Electronic Data Gathering, Analysis, and Retrieval
System (EDGAR) Filer Manual to reflect changes to the EDGAR system.
Specifically, the revisions are being made to reflect the:
-Removal of several rescinded
EDGAR submission types;
-Addition of XBRL taxonomies;
and
-Inclusion of new links for
US GAAP XBRL taxonomies.
This updated filer manual is
effective on the date of publication in the Federal Register.
International Accounting
-- SEC Chairman Discusses International Accounting
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We have added a speech by SEC
Chairman Christopher Cox, International Financial Reporting Standards: The
Promise of Transparency and Comparability for the Benefit of Investors Around
the Globe. Speaking at the Annual Conference of the International
Organization of Securities Commissions, Mr Cox noted
that "an international language of disclosure and transparency would
significantly improve investor confidence in global capital markets." Mr.
Cox provided his views on principles critical to the success of IFRS becoming
the global accounting standard. Specifically, the principles provided by Mr.
Cox are:
-IFRS must be crafted in the
interest of investors;
-The standard setting process
must be transparent;
-The standard setter must be
accountable and independent of influences (politics, favored industries, and
national or regional biases); and
-All stakeholders must
participate in the standard setting process.
Loss Contingencies -- FASB
Issues Exposure Draft That Would Expand Disclosure Requirements for Certain
Loss Contingencies
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The FASB has issued an
Exposure Draft (ED), Disclosure of Certain Loss Contingencies. This ED
would expand the disclosure requirements for certain loss contingencies by
amending both FASB Statement No. 5, Accounting for
Contingencies, and FASB Statement No. 141 (Revised 2007), Business
Combinations. Specifically, this ED would require an entity provide
disclosures to assist users of financial statements in assessing the
likelihood, timing, and amount of future cash flows associated with loss
contingencies that are (or would be) recognized as liabilities in a statement
of financial position. Such loss contingency disclosures must include
information about the risks those loss contingencies pose to the entity and
their potential and actual effects on the entity's financial position, cash
flows, and results of operations.
As proposed, the expanded
disclosure requirements would apply to all loss contingencies within the scope
of Statement 5 or Statement 141R, except for:
-Loss contingencies that are
(or would be) recognized as asset impairments in a statement of financial
position;
-Guarantees within the scope
of the disclosure requirements of FASB Interpretation (FIN) No. 45, Guarantor's
Accounting and Disclosure Requirements for Guarantees, Including Indirect
Guarantees of Indebtedness of Others;
-Specified liabilities for
unpaid claim costs related to insurance contracts or reinsurance contracts of
an insurance entity or a reinsurance entity;
-Liabilities for
insurance-related assessments within the scope of AICPA Statement of Position
(SOP) 97-3, Accounting by Insurance and Other Enterprises for
Insurance-Related Assessments; and
-Liabilities for
employment-related costs, including pensions and other postemployment
benefits.
As proposed, the provisions
of this ED would be effective for fiscal years ending after December 15, 2008,
and interim and annual periods in subsequent fiscal years.
Comments on the ED are due August
8, 2008.
Variable Interest Entities
-- FASB to Discuss FIN 46R and Other Matters
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As reported in its
"Action Alert" publication, the FASB is scheduled to meet on June 11,
2008, to discuss the following matters:
-Reconsideration of FASB
Interpretation (FIN) No. 46 (Revised 2003), Consolidation of Variable
Interest Entities;
-Mergers and acquisitions by
a not-for-profit organization;
-FASB Statement No. 140, Accounting
for Transfers and Servicing of Financial Assets and Extinguishments of
Liabilities, implementation: transfers of financial assets; and
-Reconsideration of FIN 46R
and Statement 140: transfers of financial assets.
The FASB is scheduled to
discuss options for guidance when determining the primary beneficiary in a
variable interest entity for purposes of applying FIN
46R. The FASB will also consider possibly discussing whether additional
guidance should be developed regarding the purpose and design of a variable
interest entity including the risks the entity was designed to create and pass
through to interest holders (for example, interest rate risk).
EITF Materials Issued --
Revenue Recognition and Other Matters Discussed for June 12, 2008 EITF Meeting
For detail, please contact info@zy-cpa.com
The FASB has issued the
following materials for the June 12, 2008 EITF meeting:
-Revised agenda;
-Agenda Committee report;
-Issue No. 08-2, "Lessor Revenue Recognition for Maintenance Services"
(Issue Supplement No. 1);
-Issue No. 07-5, "Determining
Whether an Instrument (or Embedded Feature) is Indexed to an Entity's Own
Stock" (Issue Supplement No. 3 and Comment Letters);
-Issue No. 08-3,
"Accounting by Lessees for Maintenance Deposits under Lease
Agreements" (Issue Supplement No. 1 and Comment Letters); and
-Issue No. 08-4,
"Transition Guidance for Conforming Changes to Issue No. 98-5" (Issue
Summary No. 1 and Comment Letter).
Derivatives and Guarantees
-- FASB Issues Proposed Staff Position That Would Amend Disclosure Requirements
for Credit Derivatives and Certain Guarantees
For detail, please contact info@zy-cpa.com
The FASB issued for public
comment proposed FASB Staff Position (FSP) FAS 133-b and FIN 45-c, Disclosures
about Credit Derivatives and Certain Guarantees: An Amendment of FASB Statement
No. 133 and FASB Interpretation No. 45. This proposal would amend FASB
Statement No. 133, Accounting for Derivative Instruments and Hedging
Activities, and FASB Interpretation No. 45, Guarantor's Accounting and
Disclosure Requirements for Guarantees, Including Indirect Guarantees of
Indebtedness of Others, to improve disclosures about credit derivatives and
guarantees.
As proposed, the additional
disclosures would be required for fiscal years and interim periods ending after
November 15, 2008.
Comments on this proposed FSP
are due June 30, 2008.
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