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Accounting Research Manager(TM)
Weekly Summary of Developments
September 14-18, 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:

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

FASB Codification -- FASB Publishes Amendments to Codification
Oil and Gas -- FASB Publishes Proposed Accounting Standards Update
SEC Rules -- SEC Staff Publishes New and Updated Interpretations
SEC Enforcement -- Revisions and Additions to Our Topical List of SEC Accounting and Auditing Enforcement Releases Published
Leases -- FASB Discusses Leases Project
Construction Guide -- 2009 Edition of Accounting and Knowledge-Based Audits Published

Auditing and Internal Controls Headlines

Engagement Letters -- New Edition of CPA's Guide to Effective Engagement Letters Published
Related Parties -- AICPA Proposes Guidance
Group Financial Statements -- AICPA Proposes Audit Guidance
Construction Guide -- 2009 Edition of Accounting and Knowledge-Based Audits Published

Government Headlines

State and Local Government Audits -- 2009 Edition of Knowledge-Based Audits Published

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ACCOUNTING AND SEC HEADLINES:
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FASB Codification -- FASB Publishes Amendments to Codification

The FASB has published the following amendments to the FASB Accounting Standards Codification^TM (Codification):

-FASB Accounting Standards Update 2009-07, Accounting for Various Topics-Technical Corrections to SEC Paragraphs;
For detail, please contact info@zy-cpa.com

-FASB Accounting Standards Update 2009-08, Earnings Per Share-Amendments to Section 260-10-S99;and
For detail, please contact info@zy-cpa.com

-FASB Accounting Standards Update 2009-09, Accounting for Investments-Equity Method and Joint Ventures and Accounting for Equity-Based Payments to Non-Employees-Amendments to Sections 323-10-S99 and 505-50-S99.
For detail, please contact info@zy-cpa.com

FASB Accounting Standards Update 2009-07 includes technical corrections to various Topics containing SEC guidance based on external comments received. FASB Accounting Standards Update 2009-08 includes technical corrections to Topic 260-10-S99, Earnings Per Share, based on EITF Topic D-53, "Computation of Earnings Per Share for a Period that Includes a Redemption or an Induced Conversion of a Portion of a Class of Preferred Stock" and EITF Topic D-42, "The Effect of the Calculation of Earnings Per Share for the Redemption or Induced Conversion of Preferred Stock." FASB Accounting Standards Update 2009-09 represents a correction to Section 323-10-S99-4, Accounting by an Investor for Stock-Based Compensation Granted to Employees of an Equity Method Investee. In addition, FASB Accounting Standards Update 2009-09 adds SEC observer comment, Accounting Recognition for Certain Transactions Involving Equity Instruments Granted to Other Than Employees, to the Codification.

Oil and Gas -- FASB Publishes Proposed Accounting Standards Update
For detail, please contact info@zy-cpa.com

The FASB has issued for public comment a Proposed Accounting Standards Update, Extractive Industries-Oil and Gas (Topic 932)-Oil and Gas Reserve Estimation and Disclosures. This proposal is intended to align the oil and gas estimation and disclosure requirements in Codification Topic 932, Extractive Industries-Oil and Gas, with the requirements in the SEC’s final rule, Modernization of the Oil and Gas Reporting Requirements, which was issued December 31, 2008. The key provisions of this proposed update include:

-Expanding the definition of oil- and gas-producing activities;
-Amending the definition of proved oil and gas reserves;
-Amending other definitions used in estimating oil and gas reserve quantities;
-Requiring separate disclosures about reserve quantities and financial statement amounts for geographic areas that represent 15% or more of proved reserves;
-Clarifying that equity method investments must be considered in determining whether the entity has significant oil- and gas-producing activities; and
-Expanding the disclosure examples in Topic 932.

As proposed, this guidance would be effective for annual reporting periods ending on or after December 31, 2009.

Comments on this proposal are due October 15, 2009.

SEC Rules -- SEC Staff Publishes New and Updated Interpretations
For detail, please contact info@zy-cpa.com

The staff of the Division of Corporation Finance (Corp Fin) of the SEC has issued a new Compliance and Disclosure Interpretation (C&DI), Exchange Act Sections 13(d) and 13(g) and Regulation 13D-G Beneficial Ownership Reporting. This C&DI provides interpretations by Corp Fin, in a question and answer format, of Securities Exchange Act of 1934 Sections 13(d) and 13(g), which generally require public reporting of the acquisition of securities by certain “beneficial owners.” Topics covered in this C&DI include filing Schedules 13D and 13G, and determination of beneficial ownership.

Corp Fin has also issued updates to the following C&DIs:

-Securities Act Rules (revised question 257.08);
-Regulation S-K (new question 146.13);
-Exchange Act Form 8-K (new questions 101.04 and 101.05);
-Interactive Data (new questions 101.04, 101.05, 130.09 and 146.13); and
-Regulation S-T (new question 130.09).

These documents also provide interpretations by Corp Fin in a question and answer format. Topics updated in these C&DIs include “covered securities” status under Section 18 of the Securities Act of 1933, and the requirements for submitting interactive data files.

See our Literature Update for complete details.

SEC Enforcement -- Revisions and Additions to Our Topical List of SEC Accounting and Auditing Enforcement Releases Published
For detail, please contact info@zy-cpa.com

We have updated our Topical Index of the SEC’s Accounting and Auditing Enforcement Releases (AAERs) to reflect releases by the SEC through August 31, 2009 (release number 3041). The SEC’s Division of Enforcement periodically issues AAERs to reflect civil lawsuits brought by the SEC in federal court and notices and orders concerning the institution and (or) settlement of administrative proceedings. We reviewed each AAER and identified specific accounting and reporting issues addressed by the SEC and listed them in the Topical Index. Users of Accounting Research Manager may find this Index useful when learning the views of the SEC and its staff on specific accounting or reporting topics.

See our Literature Update for complete details.

Leases -- FASB Discusses Leases Project
For detail, please contact info@zy-cpa.com

As reported in its "Summary of Board Decisions" publication, the FASB met on September 16, 2009, and discussed: (a) a summary of the responses to the Discussion Paper, Leases: Preliminary Views; and (b) plans for the leases project over the next few months. The FASB is expected to continue its discussion of both lessor and lessee accounting issues at future meetings.

Construction Guide -- 2009 Edition of Accounting and Knowledge-Based Audits Published
For detail, please contact info@zy-cpa.com

We have published the 2009 edition of Construction Guide: Accounting and Knowledge-Based Audits. This publication will help readers comply with the AICPA's risk assessment standards and has incorporated the Knowledge-Based Audit methodology. The primary objective of this Guide is to provide auditors, contractors, home builders, real estate developers, and their advisors with up-to-date insights and analysis for handling these complicated needs. This edition reflects comprehensive coverage of current authoritative literature, including EITF Issue No. 07-6, "Accounting for the Sale of Real Estate Subject to the Requirements of FASB Statement No. 66 When the Agreement Includes a Buy-Sell Clause."

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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Engagement Letters -- New Edition of CPA's Guide to Effective Engagement Letters Published
For detail, please contact info@zy-cpa.com

We have published the Eighth Edition of the CPA's Guide to Effective Engagement Letters. The primary objective of this publication is to provide practitioners with the tools they need to compose effective engagement letters. This edition has been updated to incorporate new wording and letters on a variety of topics, including on the following topics:

-Governmental, Yellow Book audit;
-Partnership income tax preparation;
-Preparation of trust tax returns;
-Sales tax return preparation;
-Trustee accounting and tax services; and
-Conservator engagements.

See our Literature Update for complete details.

Related Parties -- AICPA Proposes Guidance
For detail, please contact info@zy-cpa.com

The AICPA has issued for public comment a proposed Statement on Auditing Standards (SAS), Related Parties (Redrafted). This proposed SAS would supersede the “Related Parties” section of SAS No. 45, Omnibus Statement on Auditing Standards-1983 (AICPA, Professional Standards, vol. 1, AU sec. 334), and represents the redrafting of the “Related Parties” section of SAS 45 to apply the Auditing Standards Board’s (ASB’s) clarity drafting conventions and to converge with International Standards on Auditing (ISAs). As drafted, this proposed SAS would include financial reporting frameworks, such as accounting principles generally accepted in the United States and International Financial Reporting Standards as promulgated by the IASB, as well as special purpose frameworks described in the proposed SAS, Special Considerations-Audits of Financial Statements Prepared in Accordance with Special Purpose Frameworks. The applicability of the objectives, requirements, and definitions in the proposed SAS are irrespective of whether the framework establishes such requirements.

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

Comments on this proposed SAS are due by December 15, 2009.

Group Financial Statements -- AICPA Proposes Audit Guidance
For detail, please contact info@zy-cpa.com

The AICPA has issued for public comment a proposed SAS, Audits of Group Financial Statements (Including the Work of Component Auditors). This proposed SAS would supersede SAS No. 1 section 543, Part of Audit Performed by Other Independent Auditors (AICPA, Professional Standards, vol. 1, AU Sec. 543), and was drafted to apply the ASB’s clarity drafting conventions to SAS No. 1 section 543 and to converge with ISA 600, Special Considerations-Audits of Group Financial Statements (Including the Work of Component Auditors). This proposed SAS would strengthen existing standards by making it easier for auditors to understand and apply the requirements of Generally Accepted Auditing Standards, such as those contained in the risk assessment standards, in the context of an audit of group financial statements. This proposed SAS would make a number of changes from existing standards, including in the areas of:

-Significantly expanding the scope from AU Sec. 543;
-Definitions;
-Responsibilities of the group engagement partner;
-Acceptance and continuance;
-Involvement with, and understanding of, component auditors; and
-Materiality.

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

Comments on this proposed SAS are due by December 15, 2009.

Construction Guide -- 2009 Edition of Accounting and Knowledge-Based Audits Published
For detail, please contact info@zy-cpa.com

As discussed above in our Accounting and SEC Summaries, we have published the 2009 edition of Construction Guide: Accounting and Knowledge-Based Audits. This publication will help readers comply with the AICPA's risk assessment standards and has incorporated the Knowledge-Based Audit methodology. The primary objective of this Guide is to provide auditors, contractors, home builders, real estate developers, and their advisors with up-to-date insights and analysis for handling these complicated needs. This edition reflects comprehensive coverage of current authoritative literature, including EITF Issue No. 07-6, "Accounting for the Sale of Real Estate Subject to the Requirements of FASB Statement No. 66 When the Agreement Includes a Buy-Sell Clause."

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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GOVERNMENT HEADLINES:
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State and Local Government Audits -- 2009 Edition of Knowledge-Based Audits Published
For detail, please contact info@zy-cpa.com

We have published the 2009 edition of Knowledge-Based Audits of State and Local Governments with Single Audits. This publication specifically addresses the requirements of the relevant AICPA Statements on Auditing Standards (SASs) and Audit and Accounting Guides, as well as the GAO's Government Auditing Standards, and other professional literature that relates to audits of local governments. This edition has been updated to reflect or include the following:

-Updated presentation and disclosure checklist through GASB Statement No. 53, Accounting and Financial Reporting for Derivative Instruments;
-Report examples from the most recent AICPA Audit and Accounting Guides;
-SAS No. 115, Communicating Internal Control Related Matters Identified in an Audit;
-SAS No. 116, Interim Financial Information; and
-Coverage of changes in OMB Circular A-133, including the recent annual OMB Compliance Supplement, and the changes in the data collection form.

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