===================================================
Accounting Research Manager(TM)
Weekly Summary of Developments
May 4-8, 2009
===================================================

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

Fair Value Measurements -- FASB Issues Proposal on Measuring Liabilities under Statement 157
Investments -- FASB Discusses Guidance on Applying Statement 157 to Alternative Investments and Other Matters
IASB Update -- IASB Discusses Global Financial Crisis and Other Matters

Auditing and Internal Controls Headlines

Accounting and Review Services -- AICPA Issues Proposal
Supplementary Information -- AICPA Proposals Discussed

Government Headlines

Fund Balance Reporting -- GASB Standard Discussed

=============================
ACCOUNTING AND SEC HEADLINES:
=============================

Fair Value Measurements -- FASB Issues Proposal on Measuring Liabilities under Statement 157
For detail, please contact info@zy-cpa.com

The FASB issued for public comment proposed FASB Staff Position (FSP) No. FAS 157-f, Measuring Liabilities under FASB Statement No. 157. This proposal provides guidance on the fair value measurement of liabilities under FASB Statement No. 157, Fair Value Measurements. If a quoted price in an active market for the identical liability is available, it represents a Level 1 measurement. In circumstances in which a quoted price in an active market for the identical liability is not available, a reporting entity shall measure fair value, maximizing the use of relevant observable inputs and minimizing the use of unobservable inputs, using one of the following approaches:

-The quoted price of the identical liability when traded as an asset in an active market;
-The quoted price of the identical liability or the identical liability when traded as an asset in markets that are not active;
-The quoted price for similar liabilities or similar liabilities when traded as assets in markets that are active; or
-Another valuation technique that is consistent with the principles of Statement 157.

Two examples of the last approach would include: (a) an income approach, such as a present value technique; or (b) a market approach, such as a technique that is based on the amount the reporting entity would receive if the reporting entity was to transfer or enter into the identical liability at the measurement date.

As proposed, the guidance in this FSP would be effective for the first reporting period (including interim periods) beginning after issuance with early application permitted.

Comments on this proposal are due June 1, 2009.

Investments -- FASB Discusses Guidance on Applying Statement 157 to Alternative Investments and Other Matters
For detail, please contact info@zy-cpa.com

As reported in its "Summary of Board Decisions" publication, the FASB met on May 6, 2009, and discussed: (a) applying fair value to interests to alternative investments; and (b) financial instruments with characteristics of equity. The FASB decided to provide additional guidance related to determining the fair value of certain alternative investments, such as interests in private equity, venture capital, and hedge funds, in accordance with FASB Statement No. 157, Fair Value Measurements. Specifically, the FASB decided:

-The scope of the proposed guidance would be limited to investments in entities that apply the AICPA Audit and Accounting Guide, Investment Companies (the Guide), with a scope exception for exchange traded funds (e.g., a registered closed-end fund that is actively or inactively traded);
-An investor entity would estimate the fair value of its interests in alternative investments using the net asset value as of the investor entity's financial statement date, as long as the net asset value has been calculated in accordance with the Guide;
-The guidance would require an investor entity to disclose the fair value (net asset value) of investments in alternative investments and several other specific disclosures; and
-The proposed guidance would be effective upon issuance and would be applied prospectively to any periods for which financial statements have not been issued.
The FASB also discussed and expressed support for the following set of draft principles that could be used to distinguish between equity and liabilities and a related set of decision rules to operationalize those principles:

-Equity instruments are always subordinated to all liability instruments but may be senior to other classes of equity;
-An instrument is equity if the issuer cannot be required to settle it unless the issuer winds up its operations and distributes all of its remaining assets;
-A settlement requirement that becomes effective when the holder has died, retired, resigned, or otherwise ceased to take an interest in the activities of the entity does not cause an instrument to be classified as a liability if the holder was required to hold the instrument in order to transact with the entity or otherwise engage in the activities of the entity;
-Settlement requirements other than those described in the proceeding principle indicate that an instrument is a liability or a liability-equity hybrid instrument (part equity and part liability);
-An instrument should be separated into liability and equity components if the instrument has two separate or alternative outcomes, one of which would require equity classification if it were the only outcome and one of which would require liability classification if it were the only outcome; and
-Claims to percentages of remaining assets are neither necessary nor sufficient to identify an equity instrument. However, they may help to classify otherwise borderline instruments.

IASB Update -- IASB Discusses Global Financial Crisis and Other Matters
For detail, please contact info@zy-cpa.com

As reported in its "IASB Update" publication, the IASB met on April 22-24, 2009, and discussed the following items:

-Global financial crisis;
-Discontinued operations;
-Earnings per share;
-First-time adoption of IFRSs;
-IFRS for small and medium-sized entities;
-Insurance contracts;
-Amendments to IAS 37, Provisions, Contingent Liabilities and Contingent Assets;
-Management commentary;
-Post-employment benefits;
-Rate-regulated activities;
-Share-based payment; and
-The IASB's technical plan.

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:
=======================================

Accounting and Review Services -- AICPA Issues Proposal
For detail, please contact info@zy-cpa.com

The AICPA has issued for public comment in one document, three proposed Statements on Standards for Accounting and Review Services: (1) Framework and Objectives for Performing and Reporting on Compilation and Review Engagements; (2) Compilation of Financial Statements; and (3) Review of Financial Statements. Among the changes being proposed, the guidance would recodify AR section 100, Compilation and Review of Financial Statements, into separate chapters for compilation and review engagements.

The proposed SSARSs would be effective for compilations and reviews of financial statements for periods beginning on or after December 15, 2010, with early implementation permitted.

Comments on this proposal are due Friday, July 31, 2009.

Supplementary Information -- AICPA Proposals Discussed
For detail, please contact info@zy-cpa.com

We have added a GAAS Update Service that provides discussion and analysis of following three AICPA proposals:

-Proposed Statement on Auditing Standards (SAS), Required Supplementary Information;
-Proposed SAS, Other Information in Documents Containing Audited Financial Statements; and
-Proposed SAS, Other Information in Relation to the Financial Statements as a Whole.

This Update provides a summary of the key provisions of each proposed SAS. As proposed, the standards would be effective for audit engagements for periods beginning on or after December 15, 2009, with earlier application permitted.

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:
======================

Fund Balance Reporting -- GASB Standard Discussed
For detail, please contact info@zy-cpa.com

We have published a Governmental GAAP Update Service which is the second of a two-part series on 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.

This Update covers the following topics:

-Definitions of governmental fund types;
-General fund;
-Special revenue funds;
-Capital projects and debt service funds;
-Permanent funds; and
-Effective date and transition provisions of GASB 54.

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