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Accounting Research Manager(TM)
Weekly Summary of Developments
March 9-13, 2009
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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 to the Accounting Research Manager database, below is the text of this week's Weekly Summary.

Accounting and SEC Headlines

EITF Materials -- FASB Issues Materials for March 19, 2009 EITF Meeting
SEC Filings -- SEC Issues Final Rule on Attachments to Form ID
International Financial Reporting -- IASB Issues Agenda for March 16-20, 2009 Meeting

Auditing and Internal Controls Headlines

Internal Controls -- COSO Issues Guidance on Monitoring Internal Control Systems
Use of Service Organization -- Proposed AICPA Auditing Standard Discussed

Government Headlines

Fund Balance Reporting -- GASB Issues Guidance on Fund Balance Reporting and Governmental Fund Type Definitions
Financial Statements -- Common Deficiencies Found in Financial Statements of State and Local Governments Discussed
GASB Report Issued -- Resources for Implementing GASB Standards on Postemployment Benefits and Other Matters Discussed

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ACCOUNTING AND SEC HEADLINES:
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EITF Materials -- FASB Issues Materials for March 19, 2009 EITF Meeting
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The FASB has issued the following materials for the March 19, 2009 EITF meeting:

-Revised meeting agenda;
-EITF Issue No. 08-1, "Revenue Arrangements with Multiple Deliverables" (Issue Summary No. 2 and Supplement No. 1);
-EITF Issue No. 08-9, "Milestone Method of Revenue Recognition" (Issue Summary No. 1, Supplement No. 1, and Appendix A with examples);
-EITF Issue No. 09-1 (formerly No. 08-I), "Accounting for Own-Share Lending Arrangements in Contemplation of Convertible Debt Issuance" (Issue Summary No. 1);
-EITF Issue No. 09-2 (formerly No. 09-C), "Research and Development Assets Acquired In an Asset Acquisition" (Issue Summary No. 1); and
-EITF Issue No. 09-3 (formerly Issue 09-A), "Applicability of SOP 97-2 to Certain Arrangements That Include Software Elements" (Issue Summary No. 1).

SEC Filings -- SEC Issues Final Rule on Attachments to Form ID
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The SEC has issued a final rule, Attaching Authenticating Documents to Online Form ID. Form ID is required to be filed by registrants seeking access codes to enable filing on the SEC’s Electronic Data Gathering, Analysis and Retrieval (EDGAR) system. This final rule and related form amendments allow applicants using Form ID to submit their authenticating documents for EDGAR access codes by attaching them to their online Form ID applications in Portable Document Format. This provides an alternative method to submitting the authenticating documents to the SEC by fax.

This rule is effective March 16, 2009.

International Financial Reporting -- IASB Issues Agenda for March 16-20, 2009 Meeting
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The IASB is scheduled to discuss the following agenda items at its March 16-20, 2009 meeting:

-Annual Improvements project;
-IASB's Analyst Representative Group update;
-Conceptual Framework project;
-Emissions trading schemes;
-Financial Instruments: replacement of IAS 39, Financial Instruments: Recognition and Measurement;
-Financial instruments with characteristics of equity;
-Insurance contracts;
-IFRS for non-publicly accountable entities;
-Post-employment benefits;
-Revenue recognition; and
-IASB's Standards Advisory Committee update

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:
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AUDITING AND INTERNAL CONTROLS HEADLINES:
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Internal Controls -- COSO Issues Guidance on Monitoring Internal Control Systems
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COSO has published, Guidance on Monitoring Internal Control Systems (January 2009). The purpose of this guidance is to: (a) assist organizations in monitoring the effectiveness of their internal control systems and taking timely corrective actions as needed; and (b) provide practical guidance that illustrates how monitoring can be incorporated into an organization’s internal control processes. This guidance includes the following three volumes:

-Volume I - the guidance volume, is designed to demonstrate succinctly the core concepts embodied in COSO’s monitoring component;
-Volume II - the application volume, is integral to Volume I and contains a more detailed description of the principles contained in Volume I; and
-Volume III - the examples volume, contains examples from organizations whose monitoring efforts are consistent with the guidance in this publication.

Use of Service Organization -- Proposed AICPA Auditing Standard Discussed
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We have added a GAAS Update Service that discusses the AICPA's Proposed Statement on Auditing Standards (SAS), Audit Considerations Relating to an Entity Using a Service Organization (Redrafted). This proposed SAS would supersede SAS 70 (AU Section 324), Service Organizations. SAS 70 currently 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. Guidance for service auditors will be contained in a new AICPA Statement on Standards for Attestation Engagements (SSAE), Reporting on Controls at a Service Organization, which was exposed for comment concurrently with the proposed SAS. Among other things, some of the changes in the proposed SAS include the following:

-A user auditor would be required to inquire of the user entity’s management about whether the service organization has reported to the user entity any fraud, noncompliance with laws and regulations, or uncorrected misstatements;

-In a type 2 report (i.e., report on a description of a service organization’s system and the suitability of the design and operating effectiveness of controls), the service auditor’s report would contain an opinion on the fairness of the description of the service organization’s system and on the suitability of the design of the controls for a period (not as of a specific date);

-When a user auditor expresses a modified opinion because of a modified opinion in a service auditor’s examination report, the user auditor would be permitted to make reference in his or her report to the work of a service auditor (such a reference is currently prohibited under SAS 70); and

-The provisions of the proposed SAS would also be applicable to situations in which an entity uses a shared service organization that provides services to a group of related entities.

This proposed SAS would be effective for audits of financial statements for periods beginning on or after December 15, 2010.

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GOVERNMENT HEADLINES:
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Fund Balance Reporting -- GASB Issues Guidance on Fund Balance Reporting and Governmental Fund Type Definitions
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The GASB has issued GASB Statement No. 54, Fund Balance Reporting and Governmental Fund Type Definitions. GASB 54 is intended to improve the usefulness of information provided to financial report users about fund balance by providing clearer, more structured fund balance classifications, and by clarifying the definitions of existing governmental fund types. GASB 54 establishes a hierarchy of fund balance classifications based primarily on the extent to which a government is bound to observe spending constraints imposed upon how resources reported in governmental funds may be used. Specifically, GASB 54 distinguishes fund balance between amounts that are considered nonspendable and other amounts that are classified based on the relative strength of the constraints that control the purposes for which specific amounts can be spent. Under GASB 54, fund balance amounts will be reported in the following classifications:

-Restricted - amounts constrained by external parties, constitutional provision, or enabling legislation;
-Committed - amounts constrained by a government using its highest level of decision-making authority;
-Assigned - amounts a government intends to use for a particular purpose; and
-Unassigned - amounts that are not constrained at all will be reported in the general fund.

GASB 54 is effective for financial statements for periods beginning after June 15, 2010. Early adoption is encouraged.

Financial Statements -- Common Deficiencies Found in Financial Statements of State and Local Governments Discussed
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We have added a Governmental GAAP Update Service that is the second in a series that explores and addresses the most common financial reporting deficiencies found in the annual reports of state and local governments as identified by the Government Finance Officers Association Certificate of Excellence in Financial Reporting program. Specifically, this Update discusses common reporting deficiencies associated with the government-wide statement of net assets, the statement of activities, and the component units presented in accordance with generally accepted accounting principles for governmental entities.

GASB Report Issued -- Resources for Implementing GASB Standards on Postemployment Benefits and Other Matters Discussed
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The February 2009 edition of the "GASB Report" has been issued and includes the following discussion items:

-Resources for implementing GASB Statement No. 43, Financial Reporting for Postemployment Benefit Plans Other Than Pension Plans, and GASB Statement No. 45, Accounting and Financial Reporting by Employers for Postemployment Benefits Other Than Pensions;
-GASB calendar;
-GASB remembers former board member Ed Klasny; and
-Summary of January 27-29, 2009 GASB meeting.

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