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Accounting Research Manager(TM)
Weekly Summary of Developments
November 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 link below to access and print the fully-formatted Weekly Summary:

For detail, please contact info@zy-cpa.com

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 Publishes Proposed Roadmap for Potential Use of IFRS by U.S. Issuers
International Accounting -- SEC Chairman Discusses International Standards and Cooperation
Compensation Arrangements -- Publication Updated

Auditing and Internal Controls Headlines

Deficiencies -- GAO Issues Interim Guidance on Reporting Deficiencies in Internal Controls
Service Organizations -- AICPA Publishes Proposals on Auditing and Controls of Service Organizations
Service Organizations -- AICPA Publishes Proposal on Auditing and Controls of Service Organizations

Government Headlines

Deficiencies -- GAO Issues Interim Guidance on Reporting Deficiencies in Internal Controls


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ACCOUNTING AND SEC HEADLINES:
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International Accounting -- SEC Publishes Proposed Roadmap for Potential Use of IFRS by U.S. Issuers
For detail, please contact info@zy-cpa.com

The SEC has published for public comment a proposed rule, Roadmap for the Potential Use of Financial Statements Prepared in Accordance with International Financial Reporting Standards by U.S. Issuers. This proposal sets forth several milestones that, if achieved, could lead to the required use of IFRS by U.S. issuers in 2014 if the SEC believes it to be in the public interest and for the protection of investors. This Roadmap also includes discussion of various areas of consideration for market participants related to the eventual use of IFRS in the U.S.

As part of the Roadmap, the SEC is proposing amendments to various regulations, rules and forms that would permit early use of IFRS by a limited number of U.S. issuers where this would enhance the comparability of financial information to investors. Only an issuer whose industry uses IFRS as the basis of financial reporting more than any other set of standards would be eligible to elect to use IFRS, beginning with filings in 2010.

Comments on this proposal are due February 19, 2008.

Prior to the public issuance of the SEC’s proposed Roadmap, Accounting Research Manager published a Hot Topic, SEC Votes to Publish for Public Comment a Proposed Roadmap for U.S. Adoption of International Financial Reporting Standards: For detail, please contact info@zy-cpa.com. The proposals voted on by the SEC and discussed in this Hot Topic are consistent with the SEC’s subsequently issued proposed Roadmap. Readers interested in the proposed Roadmap may find this previously issued Hot Topic useful. However, readers should consult the full text of the final proposed Roadmap for complete details.

International Accounting -- SEC Chairman Discusses International Standards and Cooperation
For detail, please contact info@zy-cpa.com

SEC Chairman Christopher Cox gave a speech entitled, The Future of International Standards and Cooperation In Light of the Credit Crisis. Mr. Cox discussed his belief that the ongoing financial credit crisis underscores the importance of adopting a single set of global accounting standards and the importance of international regulatory cooperation. Mr. Cox also discussed the SEC’s issuance of its proposed Roadmap potentially require the use of IFRS by U.S. issuers. See our discussion above of the SEC's proposed Roadmap.

Compensation Arrangements -- Publication Updated
For detail, please contact info@zy-cpa.com

We have updated our publication, Accounting for Compensation Arrangements. Specifically, we have made changes to incorporate the most current accounting guidance on compensation arrangements, including guidance covering the following topics or areas:

-Share-based payments;
-Compensation arrangements in connection with a business combination;
-Participating securities;
-Life insurance;
-Deferred compensation arrangements; and
-Postretirement benefits.

See our Literature Update for complete details.

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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AUDITING AND INTERNAL CONTROLS HEADLINES:
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Deficiencies -- GAO Issues Interim Guidance on Reporting Deficiencies in Internal Controls
For detail, please contact info@zy-cpa.com

The U.S. Government Accountability Office (GAO) has released Interim Guidance on Reporting Deficiencies in Internal Control for GAGAS Financial Audits and Attestation Engagements (November 2008). This document provides guidance on complying with reporting requirements of generally accepted government auditing standards (GAGAS) in conjunction with the AICPA Statement on Auditing Standards (SAS) No. 115, Communicating Internal Control Related Matters Identified in an Audit, and Statement on Standards for Attestation Engagements (SSAE) No. 15, An Examination of an Entity’s Internal Control over Financial Reporting That Is Integrated with an Audit of Its Financial Statements.

Service Organizations -- AICPA Publishes Proposals on Auditing and Controls of Service Organizations
The AICPA has published the following items for public comment:

-Proposed Statement on Auditing Standards (SAS), Audit Considerations Relating to an Entity Using a Service Organization (redrafted); and
For detail, please contact info@zy-cpa.com

-Proposed Statement on Standards for Attestation Engagements (SSAE), Reporting on Controls at a Service Organization.
For detail, please contact info@zy-cpa.com

The proposed SAS would supersede SAS 70, Service Organizations, which contains guidance for auditors auditing the financial statements of entities that use a service organization (user auditors) and for auditors reporting on controls at a service organization (service auditors). The proposed SAS will only contain guidance for user auditors.

The proposed SSAE would supersede the requirements and guidance for auditors reporting on controls at service organizations (service auditors) in AU section 324, Service Organizations. The guidance in AU section 324 for auditors of the financial statements of entities that use a service organization (user auditors) is being revised and renamed “Audit Considerations Relating to an Entity Using a Service Organization,” and retained in AU section 324.

Comments on both of these proposals are due February 17, 2009.

Service Organizations -- AICPA Publishes Proposal on Auditing and Controls of Service Organizations
For detail, please contact info@zy-cpa.com

The AICPA has issued for public comment, Proposed Statement on Standards for Accounting and Review Services (SSARS), Applicability of Statements on Standards for Accounting and Review Services. This proposal would revise the applicability of SSARSs, so that SSARSs do not apply when the provisions of AU section 722, Interim Financial Information, apply. The revisions have been drafted based on the comment letters received on the proposed Statement on Auditing Standards (SAS), Interim Financial Information, and the views of the task force working on the proposed auditing standard.

Comments on this proposal are due January 9, 2009.

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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Deficiencies -- GAO Issues Interim Guidance on Reporting Deficiencies in Internal Controls
For detail, please contact info@zy-cpa.com

As discussed above in our Auditing and Internal Controls Summaries, the U.S. Government Accountability Office (GAO) has released Interim Guidance on Reporting Deficiencies in Internal Control for GAGAS Financial Audits and Attestation Engagements (November 2008). This document provides guidance on complying with reporting requirements of generally accepted government auditing standards (GAGAS) in conjunction with the AICPA Statement on Auditing Standards (SAS) No. 115, Communicating Internal Control Related Matters Identified in an Audit, and Statement on Standards for Attestation Engagements (SSAE) No. 15, An Examination of an Entity’s Internal Control over Financial Reporting That Is Integrated with an Audit of Its Financial Statements.

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