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Accounting Research Manager(TM)
Weekly Summary of Developments
August 25-29, 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
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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
International Accounting -- SEC Votes to Publish Proposed Roadmap for U.S.
Adoption of IFRS
Accounting for Leases -- Interpretations Updated and Added
PCAOB Rulemaking -- SEC Approves PCAOB Rule Changes on Communication
with Audit Committees and Tax Services
Postretirement Benefits -- FASB to Discuss Disclosure About Plan Assets
EITF Materials -- FASB Issues Additional Meeting Materials for
September 10, 2008 EITF Meeting
International Financial Reporting -- IASB Issues Agenda for September 4-5, 2008 IFRIC
Meeting
Auditing and Internal Controls Headlines
PCAOB Rulemaking -- SEC Approves PCAOB Rule Changes on Communication
with Audit Committees and Tax Services
Compilations and Reviews -- Considerations Related to IFRS Financial
Statements and Engagements in Accordance with International Standards
Government Headlines
Governmental GAAP Hierarchy -- GASB Issues Proposed Statement on GAAP Hierarchy
for State and Local Governments
Auditing Standards -- GASB Issues Proposed Statement on Codification of
Accounting and Financial Reporting Guidance
Derivative Instruments -- GASB Statement on Accounting and Financial
Reporting for Derivative Instruments Discussed
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ACCOUNTING AND SEC HEADLINES:
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International Accounting -- SEC Votes to
Publish Proposed Roadmap for U.S. Adoption of IFRS
For detail, please contact info@zy-cpa.com
We have added a Hot Topic, SEC Votes to
Publish for Public Comment a Proposed Roadmap for U.S. Adoption of
International Financial Reporting Standards. The SEC unanimously approved
releasing for public comment a proposed "Roadmap" for the
The proposed Roadmap will be available on Accounting
Research Manager when issued by the SEC. Comments on the Roadmap are due 60
days after publication in the Federal Register.
See our Hot Topic for complete details.
Accounting for Leases -- Interpretations Updated and Added
For detail, please contact info@zy-cpa.com
We have updated and added guidance to our
interpretation, Accounting for Leases. Specifically, we have updated or
added interpretations to:
-Update our discussion through August 4, 2008,
of the joint project to reconsider lease accounting announced by the FASB and
the IASB;
-Discuss how lessees should account for
maintenance deposits as a result of the guidance in EITF Issue No. 08-3,
"Accounting by Lessees for Maintenance Deposits"; and
-Discuss lessor
revenue recognition for maintenance deposits and accounting policy disclosures.
See our Literature Update for complete details.
PCAOB Rulemaking -- SEC Approves PCAOB Rule
Changes on Communication with Audit Committees and Tax Services
For detail, please contact info@zy-cpa.com
The SEC has published, Public Company
Accounting Oversight Board; Order Approving Proposed Ethics and Independence
Rule 3526, "Communication with Audit Committees Concerning
Independence," Amendment to Interim Independence Standards, and Amendment
to Rule 3523, "Tax Services for Persons in Financial Reporting Oversight
Roles." This order approves PCAOB rule changes to: (a) PCAOB
Rule 3526, Communication with Audit Committees Concerning
The PCAOB adopted Rule 3526 to enhance
communication between audit committees and registered firms regarding the
firm's independence. Rule 3526 will require a registered public accounting
firm, before accepting an initial engagement pursuant to the standards of the
PCAOB, to describe in writing to the audit committee, all relationships between
the firm or any of its affiliates and the issuer or persons in a financial
reporting oversight role at the issuer that may reasonably be thought to bear
on the firm's independence.
The PCAOB also adopted an amendment to Rule
3523. The amendment excludes from the scope of the rule tax services provided
during the portion of the audit period that precedes the beginning of the
professional engagement period.
Rule 3526 is effective September 30, 2008. The
amendments to Rule 3523 are effective August 22, 2008.
Postretirement Benefits -- FASB to Discuss
Disclosure About Plan Assets
For detail, please contact info@zy-cpa.com
As reported in its "Action Alert"
publication, the FASB is scheduled to meet on September 3, 2008, to discuss
disclosures about postretirement benefit plan assets. Specifically, the
FASB is expected to continue redeliberations of
proposed FASB Staff Position (FSP) FAS 132(R)-a, Employers' Disclosures
about Postretirement Benefit Plan Assets. The discussion will focus on
disclosures about categories of plan assets and concentrations of risk.
As also reported in its Action Alert
publication, the FASB is scheduled to hold an educational, non-decision-making
session on September 3, 2008, to review topics that are anticipated to be
discussed at a future FASB meeting.
No FASB meetings were held during the week of
August 18, 2008.
EITF Materials -- FASB Issues Additional
Meeting Materials for September 10, 2008 EITF Meeting
For detail, please contact info@zy-cpa.com
The FASB has issued the following additional
materials for the September 10, 2008 EITF meeting:
-EITF Issue No. 08-1, "Revenue Recognition
for a Single Unit of Accounting" (Working Group Report No. 2);
-EITF Issue No. 08-6 (formerly No. 08-G),
"Equity Method Investment Accounting Considerations" (Issue Summary
No. 1);
-EITF Issue No. 08-7 (formerly No. 08-E),
"Accounting for Defensive Intangible Assets" (Issue Summary No. 1);
and
-EITF Topic D-98, "Classification
and Measurement of Redeemable Securities" (proposed revised SEC staff
announcement).
International Financial Reporting -- IASB
Issues Agenda for September 4-5, 2008 IFRIC Meeting
For detail, please contact info@zy-cpa.com
IFRIC is scheduled to discuss the following
agenda items at its September 4-5, 2008 meeting:
-D24, Customer Contributions;
-D23, Distributions of Non-cash Assets to
Owners;
-Review of tentative agenda decisions published
in July IFRIC update (time pattern of user's benefit, trailing commissions, and
transactions costs);
-Staff recommendations for tentative agenda
decisions;
-Regulatory assets and liabilities; and
-Administrative session on IFRIC work in
progress.
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your subscription to include additional content, click here:
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AUDITING AND INTERNAL CONTROLS HEADLINES:
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PCAOB Rulemaking -- SEC Approves PCAOB Rule
Changes on Communication with Audit Committees and Tax Services
For detail, please contact info@zy-cpa.com
As discussed above in our Accounting and SEC
Summaries, the SEC has published, Public Company Accounting Oversight Board;
Order Approving Proposed Ethics and Independence Rule 3526, "Communication
with Audit Committees Concerning Independence," Amendment to Interim
Independence Standards, and Amendment to Rule 3523, "Tax Services for
Persons in Financial Reporting Oversight Roles." This order approves
PCAOB rule changes to: (a) PCAOB Rule 3526, Communication with Audit
Committees Concerning
The PCAOB adopted Rule 3526 to enhance
communication between audit committees and registered firms regarding the
firm's independence. Rule 3526 will require a registered public accounting
firm, before accepting an initial engagement pursuant to the standards of the
PCAOB, to describe in writing to the audit committee, all relationships between
the firm or any of its affiliates and the issuer or persons in a financial
reporting oversight role at the issuer that may reasonably be thought to bear
on the firm's independence.
The PCAOB also adopted an amendment to Rule
3523. The amendment excludes from the scope of the rule tax services provided
during the portion of the audit period that precedes the beginning of the
professional engagement period.
Rule 3526 is effective September 30, 2008. The
amendments to Rule 3523 are effective August 22, 2008.
Compilations and Reviews -- Considerations
Related to IFRS Financial Statements and Engagements in Accordance with
International Standards
For detail, please contact info@zy-cpa.com
We have added a GAAS Update Service that
provides discussion and analysis of an Accounting and Review Services
Interpretation of AR Section 100, Considerations Related to Financial
Statements Prepared in Accordance with International Financial Reporting
Standards and Compilations and Reviews Performed in Accordance with
International Standards. This interpretation provides guidance on: (a)
the application of the reporting guidance in AR Section 100, Compilation and
Review of Financial Statements, when an accountant is engaged to report on
financial statements presented in accordance with IFRS; and (b) whether
a U.S. accountant may perform a compilation or review of historical financial
statements of a U.S. entity in accordance with International Standard on
Related Service 4410, Engagements to Compile Financial Statements, or
International Standard on Review Engagements 2400, Engagements to Review
Financial Statements, respectively.
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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Governmental GAAP Hierarchy -- GASB Issues
Proposed Statement on GAAP Hierarchy for State and Local Governments
For detail, please contact info@zy-cpa.com
The GASB has issued for public comment a
proposed statement, The Hierarchy of Generally Accepted Accounting
Principles for State and Local Governments. This proposal incorporates the
hierarchy of generally accepted accounting principles (GAAP) into the GASB
authoritative literature that currently resides in the auditing literature. The
"GAAP hierarchy" consists of the sources of accounting principles
used in the preparation of financial statements of state and local governmental
entities that are presented in conformity with GAAP, and the framework for
selecting those principles. The hierarchy lists the order of priority of
pronouncements that a governmental entity should look to for accounting and
financial reporting guidance.
As proposed, this guidance would apply to the
financial statements of all state and local governments that are presented in
conformity with GAAP and would be effective immediately upon issuance.
Comments on this proposal are due October 30,
2008.
Auditing Standards -- GASB Issues Proposed
Statement on Codification of Accounting and Financial Reporting Guidance
For detail, please contact info@zy-cpa.com
The GASB has issued for public comment a
proposed statement, Codification of Accounting and Financial Reporting
Guidance Contained in the AICPA Statements on Auditing Standards. This
proposal incorporates into the authoritative literature of the GASB certain
accounting and financial reporting guidance that is included in AICPA
Statements on Auditing Standards. Specifically, this proposal establishes
accounting and financial reporting standards for: (a) related party
transactions; (b) subsequent events; and (c) going concern
considerations. This proposal is not intended to establish new accounting
standards but rather incorporates the existing guidance (to the extent
appropriate in a governmental environment) into the GASB standards.
As proposed, this guidance would apply to all
state and local governments and be effective immediately upon issuance.
Comments on this proposal are due October 30,
2008.
Derivative Instruments -- GASB Statement on
Accounting and Financial Reporting for Derivative Instruments Discussed
For detail, please contact info@zy-cpa.com
We have added a Governmental GAAP Update
Service that is the third of a three part series on GASB Statement No. 53, Accounting
and Financial Reporting for Derivative Instruments. This Update discusses
the disclosure requirements applicable to derivatives. Specifically, this
Update discusses the following issues:
-General disclosures for derivative
instruments;
-Specific disclosures for hedging derivative
instruments;
-Required disclosures for investment derivative
instruments; and
-Other derivative related disclosures.
The Update also includes several illustrative
examples of disclosures applicable to derivatives.
GASB 53 is intended to improve how state and
local governments report information about derivative instruments in their
financial statements. Specifically, GASB 53 requires governments to measure
most derivative instruments at fair value in their financial statements that
are prepared using the economic resources measurement focus and the accrual
basis of accounting. GASB 53 also addresses hedge accounting requirements,
providing specific criteria that governments will use to determine whether a
derivative instrument results in an effective hedge.
GASB 53 is effective for financial statements
for reporting periods beginning after June 15, 2009. Earlier application is
encouraged.
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