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Accounting Research
Manager(TM)
Weekly Summary of
Developments
July 7-10, 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
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of this week's Weekly Summary.
Accounting and SEC
Headlines
TARP -- SEC Proposes Rules to Allow
Shareholder Approval of Executive Compensation for TARP Recipients
Liabilities -- FASB Discusses Measuring Liabilities
Under Statement 157 and Other Matters
EITF Matters -- June 18, 2009 Meeting Minutes Issued
Audit Risk Alert -- AICPA Issues Audit Risk Alert on State
and Local Governmental Developments
Auditing and Internal
Controls Headlines
Audit Consideration of
Fraud -- Proposed AICPA
Standard Discussed
Audit Risk Alert -- AICPA Issues Audit Risk Alert on State
and Local Governmental Developments
Government Headlines
GASB Standards -- GASB 56 Discussed
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ACCOUNTING AND SEC HEADLINES:
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TARP -- SEC Proposes Rules
to Allow Shareholder Approval of Executive Compensation for TARP Recipients
For detail, please contact info@zy-cpa.com
The SEC has issued for public
comment a proposed rule, Shareholder Approval of Executive Compensation of
TARP Recipients. This proposal would require public companies receiving
money from the Troubled Asset Relief Program (TARP) to provide a shareholder
vote on executive pay in their proxy solicitations. Specifically, this proposal
includes amendments to the proxy rules under the Securities Exchange Act of
1934 to set forth certain requirements for
Comments on this proposal are
due September 8, 2009.
Liabilities -- FASB
Discusses Measuring Liabilities Under Statement 157
and Other Matters
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As reported in its
"Summary of Board Decisions" publication, the FASB met on July 8,
2009, and discussed: (a) measuring liabilities under FASB Statement No.
157, Fair Value Measurements; and (b) applicability of FASB
Interpretation (FIN) No. 48, Accounting for Uncertainty in Income Taxes,
for private entities. The FASB discussed feedback received on proposed FASB
Staff Position (FSP) FAS 157-f, Measuring Liabilities under FASB Statement
No. 157, and made the following decisions [the discussion herein refers to
the FASB literature prior to the release of the FASB Accounting Standards CodificationTM]:
-To clarify that at initial
recognition of the liability at fair value, the reporting entity should not
adjust the price of the liability when traded as an asset for circumstances in
which the asset includes a restriction preventing its transfer;
-To clarify that after
initial recognition of the liability at fair value, changes in fair value of an
asset due to changes in a restriction preventing the transfer of the asset
should be considered when measuring the fair value of the liability;
-To affirm its decisions
about liability restrictions, changes in the liability restrictions, principal
market, and bid/ask spread;
-To clarify the need to
consider the principles of Statement 157 when using an entry price technique;
and
-Guidance on determining an
appropriate market risk premium for an asset retirement obligation under FASB
Statement No.143, Accounting for Asset Retirement Obligations, is
outside the scope of this proposal.
The FASB also discussed
feedback received on proposed FSP FIN 48-d, Application Guidance for
Pass-through Entities and Tax-Exempt Not-for-Profit Entities and Disclosure
Modifications for Nonpublic Entities, and made the following decisions:
-Affirmed that nonpublic
entities and public tax-exempt not-for-profit entities are required to apply
the standards of accounting for uncertain tax positions;
-Affirmed its decision not to
provide a definition of an income tax;
-Not to address the
interaction of the proposed guidance with EITF Issue No. 95-9, “Accounting for
Tax Effects of Dividends in France in Accordance with FASB Statement No. 109”;
-Nonpublic entities would not
be required to disclose the following: (a) the total unrecognized tax
benefits at the balance sheet dates when the disclosure requirements of
paragraph 21(a) of FIN 48 are not presented; and (b) the fact that the
change in accounting for uncertain tax positions had no material effect on the
entity’s financial statements;
-Nonpublic entities would be
required to disclose the following: (a) the total amount of interest and
penalties recognized in the statement of operations; (b) the nature of
uncertainties and events that are reasonably possible of occurring in the next
12 months that would cause a significant change in the amounts of unrecognized
tax benefits; and (c) a description of tax years that remain subject to
examination by major jurisdiction;
-To modify paragraph 26(a) of
the proposed FSP to replace the term credit with similar wording to avoid
misinterpretation of the guidance;
-To clarify that references
in the standards to pass-through entities include other entities taxed in a
manner similar to pass-through entities, such as real estate investment trusts
and registered investment companies; and
-The final Accounting
Standards Update will be effective for periods ending after September 15, 2009.
The FASB chairman announced
the addition of a new agenda project aimed at establishing an overarching
framework intended to make financial statement disclosures more effective,
coordinated, and less redundant. The project was added in response to requests
and recommendations received from several constituents and is not intended to
be additive, but rather will focus on developing a framework for improved GAAP
disclosures. The FASB expects to issue a Discussion Paper on preliminary views
in the first half of 2010.
EITF Matters -- June 18,
2009 Meeting Minutes Issued
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The final meeting minutes of
the June 18, 2009 EITF meeting have been issued. The minutes document the
results previously described in our meeting summary published in June 2009. As
discussed in the minutes, the EITF reached a consensus-for-exposure on: (a)
EITF Issue No. 08-1, "Revenue Arrangements with Multiple
Deliverables"; and (b) EITF Issue No. 09-3, "Applicability of
SOP 97-2 to Certain Arrangements That Include Software Elements." It also
reached a final consensus on EITF Issue No. 09-1, "Accounting for
Own-Share Lending Arrangements in Contemplation of Convertible Debt
Issuance."
Audit Risk Alert -- AICPA
Issues Audit Risk Alert on State and Local Governmental Developments
For detail, please contact info@zy-cpa.com
The AICPA has issued an Audit
Risk Alert, State and Local Governmental Developments - 2009. This Audit
Risk Alert is intended to provide auditors of financial statements of state and
local governments with an overview of recent economic, industry, technical,
regulatory, and professional developments that may affect the audits and other
engagements they perform. This Audit Risk Alert also includes a section
discussing current and future rulemaking or other activities that may affect
state and local governments in the near future.
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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Audit Consideration of
Fraud -- Proposed AICPA Standard Discussed
For detail, please contact info@zy-cpa.com
We have added a GAAS Update
Service that discusses the AICPA's Proposed Statement
on Auditing Standards (SAS), Consideration of Fraud in a Financial Statement
Audit (Redrafted), which would supersede SAS 99 (AU Section 316) of the
same name. To facilitate convergence with the international standards, the
proposed standard has been redrafted using International Standard on Auditing
No. 240 (Redrafted), The Auditor’s Responsibilities Relating to Fraud in an
Audit of Financial Statements (ISA 240), as a base. Differences
between the AICPA’s proposed SAS and ISA 240 that
have no compelling reason have been eliminated.
Audit Risk Alert -- AICPA
Issues Audit Risk Alert on State and Local Governmental Developments
For detail, please contact info@zy-cpa.com
As discussed above in our
Accounting and SEC Summaries, the AICPA has issued an Audit Risk Alert, State
and Local Governmental Developments - 2009. This Audit Risk Alert is
intended to provide auditors of financial statements of state and local
governments with an overview of recent economic, industry, technical,
regulatory, and professional developments that may affect the audits and other
engagements they perform. This Audit Risk Alert also includes a section
discussing current and future rulemaking or other activities that may affect
state and local governments in the near future.
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:
======================
GASB Standards -- GASB 56
Discussed
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We have published a
Governmental GAAP Update Service that provides an expanded discussion of the
accounting and financial reporting guidance included in GASB Statement No. 56, Codification
of Accounting and Financial Reporting Guidance Contained in the AICPA
Statements on Auditing Standards. GASB 56 incorporates certain accounting guidance
previously found only in AICPA Statements on Auditing Standards into the GASB's literature. Specifically, the three accounting
topics incorporated by GASB 56 are: (1) related party transactions; (2)
subsequent events; and (3) going concern considerations.
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