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Accounting Research
Manager(TM)
Weekly Summary of
Developments
October 27-31, 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:
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If you do not have immediate Internet access
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Weekly Summary.
Accounting and SEC
Headlines
Statement 157 -- New Interpretations Added Including
Those Relating to the Emergency Economic Stabilization Act of 2008
Conceptual Framework -- FASB to Discuss Conceptual Framework
and Other Matters
EITF Materials -- FASB Issues Additional Materials for
November 13, 2008 Meeting
IASB Update -- IASB Discusses Credit Market Crisis
and Other Matters
International Financial
Reporting -- IASB Issues
Agenda for November 6, 2008 IFRIC Meeting
Auditing and Internal
Controls Headlines
Audit Engagements -- Proposed AICPA Auditing Standard on
Interim Financial Information
Government Headlines
Financial Statements -- GASB Proposals to Incorporate AICPA
Accounting Guidance Discussed
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ACCOUNTING AND SEC HEADLINES:
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Statement 157 -- New
Interpretations Added Including Those Relating to the Emergency Economic
Stabilization Act of 2008
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We have updated our
interpretations of FASB Statement No. 157, Fair Value Measurements. We
have added several new questions and answers to Section C, “Disclosure
Requirements under Statement 157.” We also added Section F, “Statement 157 and
the Emergency Economic Stabilization Act of 2008,” to discuss the legislation
that was enacted in the
See our Literature Update for
complete details.
Conceptual Framework --
FASB to Discuss Conceptual Framework and Other Matters
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As reported in its Action
Alert publication, the FASB is scheduled to meet on November 5, 2008, to discuss
its conceptual framework project. The FASB is expected to discuss factors that
should be considered in making standards-level decisions about the appropriate
measurement bases for different types of assets and liabilities.
As also reported in its Action
Alert publication, the FASB and IASB (the Boards) held a joint meeting on
October 20-21, 2008, and discussed the following items:
-Conceptual framework:
elements and recognition;
-Consolidations;
-Derecognition;
-Fair value measurement;
-Financial instruments with
characteristics of equity;
-Financial instruments:
complexity;
-Emissions trading schemes;
and
-Liabilities.
The Boards tentatively agreed
to working definitions of an asset and of a liability for use in the
"elements and recognition" phase of their joint project on the
conceptual framework. In regards to the Boards work on a derecognition
model, a majority of each Board expressed a preliminary preference for derecognition when a transferor of a financial asset: (a)
has the practical ability to transfer that asset (or component) in its entirety
to a third party for its own benefit; and (b) is able to exercise that
practical ability unilaterally and without needing to impose additional
restrictions on the transfer.
EITF Materials -- FASB Issues
Additional Materials for November 13, 2008 Meeting
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The FASB has issued the
following additional materials for the November 13, 2008 EITF meeting:
-EITF Issue No. 08-6,
"Equity Method Investment Accounting Considerations" (comment
letter);
-EITF Issue No. 08-7,
"Accounting for Defensive Intangible Assets" (comment letters); and
-EITF Issue No. 08-8,
"Accounting for an Instrument (or Embedded Feature) with a Settlement
Amount That Is Based on the Stock of an Entity's Consolidated Subsidiary"
(comment letter).
IASB Update -- IASB
Discusses Credit Market Crisis and Other Matters
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As reported in its "IASB
Update" publication, the IASB met on October 13-17, 2008, and discussed
the following projects or topics:
-Credit market crisis;
-Annual improvements project;
-Fair value measurement;
-Financial instruments with
characteristics of equity;
-IFRS for private entities;
-Insurance contracts;
-Joint meeting held with the
FASB on October 20-21, 2008;
-Share-based payment; and
-IASB technical plan.
International Financial
Reporting -- IASB Issues Agenda for November 6, 2008 IFRIC Meeting
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IFRIC is scheduled to discuss
the following agenda items at its November 6, 2008 meeting:
-D24, Customer
Contributions;
-Compliance costs;
-Customer related intangible
assets;
-Review of tentative agenda
decisions published in September IFRIC update (restricted securities and
application to prepaid employer's contribution reserve);
-Staff recommendations for
tentative agenda decisions; and
-Administrative session on
IFRIC work in progress.
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AUDITING AND INTERNAL
CONTROLS HEADLINES:
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Audit Engagements --
Proposed AICPA Auditing Standard on Interim Financial Information
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We have added a GAAS Update
Service that discusses the AICPA's Proposed Statement
on Auditing Standards (SAS), Interim Financial Information. This
proposal would amend existing AU Section 722 of the same name. The proposed SAS
was issued to accommodate reviews of interim financial information of nonissuers, including companies offering securities
pursuant to SEC Rule 144A or participating in private equity exchanges. The
proposed SAS would also remove from AU Section 722 the guidance for reviews of
the interim financial information of issuers, which are governed by the
auditing standards of the PCAOB.
Under the proposed SAS, AU
Section 722 would apply when the interim financial information of a nonissuer is intended to provide a periodic update to
year-end reporting and the accountant has either: (a) audited the
entity’s latest annual financial statements; or (b) is auditing the
current year financial statements and the entity’s latest annual financial
statements were audited by another auditor. The proposed SAS also clarifies
that if these conditions are not met, reviews of interim financial information
of nonissuers should be performed in accordance with
Statements on Standards for Accounting and Review Services (SSARS).
As proposed, the guidance
would be effective for interim periods within fiscal years beginning after
December 15, 2008.
Comments on the proposal are
due November 3, 2008.
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listed above may not be accessible under your current subscription. For information
about upgrading your subscription to include additional content, click here:
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======================
GOVERNMENT HEADLINES:
======================
Financial Statements --
GASB Proposals to Incorporate AICPA Accounting Guidance Discussed
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We have added a Governmental
GAAP Update Service that discusses the GASB issuance of the following two
exposure drafts (EDs) for public comment:
-Codification of
Accounting and Financial Reporting Guidance Contained in the AICPA Statements
on Auditing Standards; and
-The Hierarchy of
Generally Accepted Accounting Principles for State and Local Governments.
These EDs
would incorporate into the authoritative literature of the GASB certain
accounting and financial reporting guidance that is included in AICPA
Statements on Auditing Standards (SAS). Among other things, these proposals
establish accounting and financial reporting standards for: (a) related
party transactions; (b) subsequent events; and (c) going concern
considerations. The proposals are 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, the guidance in
the EDs would apply to all state and local
governments and be effective immediately upon issuance.
Comments on these proposals
are due October 30, 2008.
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