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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
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
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
=======================================
AUDITING AND INTERNAL
CONTROLS HEADLINES:
=======================================
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
======================
GOVERNMENT HEADLINES:
======================
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