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Accounting Research
Manager(TM)
Weekly Summary of
Developments
October 19-23, 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 -- Hot Topic Published on Referencing the
Codification
Fair Value Measurements -- Minutes of Valuation Resource Group
Meeting
Financial Instruments -- FASB Discusses Accounting for
Financial Instruments
PCAOB Standing Advisory
Group Meeting -- Minutes
of the October 14-15, 2009 Meeting
Proxy Rules -- SEC Proposes Amendments to Rules
Requiring Internet Availability of Proxy Materials
Asset-Backed Securities -- SEC Proposes Filing Accommodation for
Static Pool Information
Financial Instruments -- IASB Discusses Financial Instruments
Auditing and Internal
Controls Headlines
Information Technology
Audits -- Interpretation
Published
External Confirmations -- AICPA Proposal Discussed
PCAOB Standing Advisory
Group Meeting -- Minutes
of the October 14-15, 2009 Meeting
Government Headlines
Ethics -- Ethical Dilemmas in Governmental
Accounting Discussed
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ACCOUNTING AND SEC HEADLINES:
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FASB Codification -- Hot
Topic Published on Referencing the Codification
For detail, please contact info@zy-cpa.com
We have published a Hot
Topic, Referencing or Referring to the FASB Codification When Preparing
Financial Statements. This Hot Topic discusses the changes to the way that
See our Hot Topic for
complete details.
Fair Value Measurements --
Minutes of Valuation Resource Group Meeting
For detail, please contact info@zy-cpa.com
We have added minutes of the
September 22, 2009 meeting of the Valuation Resource Group (VRG). The FASB
established the VRG to provide the FASB with input on potential clarifying
guidance on issues relating to the application of the principles of
Codification Topic 820, Fair Value Measurements and Disclosures,
guidance derived primarily from FASB Statement No. 157, Fair Value
Measurements. This input may also include alternative views and practical
solutions to such issues.
At this meeting, the VRG
discussed the following topics:
-IASB's
Exposure Draft, Fair Value Measurement;
-Measurement of core
deposits;
-Fair value of debt vs. par
value of debt when estimating the fair value of an entity’s equity; and
-Proposed FASB Accounting
Standards Update, Fair Value Measurements and Disclosures (Topic 820) -
Improving Disclosures about Fair Value Measurements.
Refer to the minutes for
complete details.
Financial Instruments -- FASB
Discusses Accounting for Financial Instruments
For detail, please contact info@zy-cpa.com
As reported in its
"Summary of Board Decisions" publication, the FASB met on October 21,
2009, and discussed how an entity would account for credit losses (i.e., credit
impairments) related to financial assets in the fair value through other
comprehensive income category. The FASB is expected to continue to draft the
exact wording of the credit impairment model and is expected to include the
following requirements:
-At the end of each period,
an impairment loss would be measured as the present value of management's
current estimate of cash flows that are not expected to be collected;
-In estimating the amount of
future cash flows, an entity would consider all available information relating
to past events and existing conditions that are relevant to the collectibility of the financial asset(s); and
-The entity would not
consider possible future scenarios.
The FASB is expected to
consider how interest income will be recognized at a future meeting.
PCAOB Standing Advisory
Group Meeting -- Minutes of the October 14-15, 2009 Meeting
For detail, please contact info@zy-cpa.com
As described in our minutes
of the PCAOB Standing Advisory Group meeting held on October 14-15, 2009, the more
significant topics of discussion at this meeting related to the following: (a)
auditing fair value measurements and using the work of a specialist; (b)
communications with audit committees; (c) related parties; and (d)
the PCAOB’s standards-setting activities.
Proxy Rules -- SEC
Proposes Amendments to Rules Requiring Internet Availability of Proxy Materials
For detail, please contact info@zy-cpa.com
The SEC has issued for public
comment a proposed rule, Amendments to Rules Requiring Internet Availability
of Proxy Materials. This proposal would amend existing SEC rules to provide
additional flexibility regarding the format of the “Notice of Internet
Availability of Proxy Materials” that is sent to shareholders. This proposal
also includes guidance about the current requirement for the Notice that
identifies the matters intended to be acted on at the shareholders’ meeting. In
addition, this proposal includes a new rule that will permit issuers and
soliciting shareholders to include explanatory materials regarding the process
or receiving and reviewing proxy materials and voting.
Comments on this proposal are
due November 20, 2009.
Asset-Backed Securities --
SEC Proposes Filing Accommodation for Static Pool Information
For detail, please contact info@zy-cpa.com
The SEC has issued for public
comment a proposed rule, Extension of Filing Accommodation for Static Pool
Information in Filings with Respect to Asset-Backed Securities. This
proposal would amend Rule 312 of Regulation S-T which provides a temporary
filing accommodation for filings with respect to asset-backed securities that
allows static pool information required to be disclosed in a prospectus to be
provided on an Internet website under certain conditions. Under Rule 312, such
information is deemed to be included in the prospectus included in the
registration statement for the asset-backed securities. Currently, Rule 312
applies to filings with respect to asset-backed securities filed on or before
December 31, 2009. This proposal would amend Rule 312 to extend its application
for one year, making it applicable to filings with respect to asset-backed
securities made on or before December 31, 2010.
Comments on this proposal are
due November 23, 2009.
Financial Instruments --
IASB Discusses Financial Instruments
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As reported in its "IASB
Update" publication, the IASB met on October 15-16, 2009, and discussed
the following topics associated with financial instruments: (a)
classification and measurement; (b) impairment; and (c) hedge
accounting. The IASB made a number of tentative decisions regarding these
topics (detailed in the IASB Update), including the following:
-To eliminate the "cost
exception" as previously proposed and measure all equity instruments
currently covered by the exception at fair value;
-To require reclassification
between fair value and the other measurement categories when there is a change
in the entity's business model;
-All reclassifications would
be accounted for prospectively;
-To require recognition of
dividends received from investments in equity instruments (except for those
held for trading) in profit or loss, so long as they represent a return on
investment (as opposed to a return of investment);
-To proceed with the drafting
of a stand alone exposure draft to replace sections of IAS 39, Financial
Instruments: Recognition and Measurement, relating to impairment in October
2009; and
-Confirmed that financial
instruments managed on a contractual cash flow basis are eligible hedged items
of a fair value hedge.
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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Information Technology
Audits -- Interpretation Published
For detail, please contact info@zy-cpa.com
We have published the 2009
edition of Information Technology Audits. The primary objective of this
publication is to provide audit practitioners with a cost-effective approach
for conducting high-quality integrated information technology (IT) audits.
Reflecting real-life situations, it offers practical discussions and
consideration of the day-to-day management of a variety of audit engagements
and reviews. This edition includes new guidance on the following topics:
-Accounting fundamentals for
IT professionals;
-Continuing impact of the
Sarbanes-Oxley Act of 2002;
-PCAOB auditing standards and
related pronouncements;
-Various AICPA risk
assessment and response standards;
-Audit documentation;
-Evaluating deficiencies in
internal controls;
-Consideration of fraud in a
financial statement audit;
-Developing IT audit skills
for non-IT auditors;
-Technology overviews (e.g.,
database management, networks, the Internet, and general computer and
application controls);
-Certifications and
maintaining skills for information system auditors;
-IT infrastructure overview
and security documentation; and
-Audit program development.
See our Literature Update for
complete details.
External Confirmations --
AICPA Proposal Discussed
For detail, please contact info@zy-cpa.com
We have added a GAAS Update
Service that discusses the AICPA's exposure draft of
a proposed Statement on Auditing Standards (SAS), External Confirmations.
This proposed SAS would supersede SAS No. 67, The Confirmation Process.
Among the most significant differences between this proposal and SAS 67 are:
-The definition of
“confirmation” has been changed;
-The proposed SAS addresses
the auditor’s responsibilities when management refuses to allow the auditor to
send a confirmation request, which include communicating with those charged
with governance if the auditor concludes that management’s refusal is
unreasonable, or the auditor is unable to obtain relevant and reliable audit
evidence from alternative audit procedures; and
-Guidance regarding the use
of oral responses to confirmation requests as audit evidence is included in the
proposed SAS.
As proposed, this guidance
would be effective for audits of financial statements for periods beginning on
or after December 15, 2010.
PCAOB Standing Advisory
Group Meeting – Minutes of the October 14-15, 2009 Meeting
For detail, please contact info@zy-cpa.com
As discussed above in our
Accounting and SEC Summaries, as described in our minutes of the PCAOB Standing
Advisory Group meeting held on October 14-15, 2009, the more significant topics
of discussion at this meeting related to the following: (a) auditing
fair value measurements and using the work of a specialist; (b)
communications with audit committees; (c) related parties; and (d)
the PCAOB’s standards-setting activities.
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:
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Ethics -- Ethical Dilemmas
in Governmental Accounting Discussed
For detail, please contact info@zy-cpa.com
We have added a Governmental
GAAP Update Service that explores a recommended approach for resolving ethical
dilemmas in governmental accounting by providing a case study that involves a
governmental accountant who is faced with conflicting pressures in meeting his
or her responsibilities to the employer and to the public. This Update
recommends the following steps be taken to resolve an ethical dilemma:
-Gather all of the relevant
facts regarding the situation or circumstance.
-Consider what alternative
actions are available.
-Consider the applicable
external laws, regulations, principles, rules, and internal policies and
procedures (i.e., “justice” considerations - what is the right thing to do from
a legal, principles, rules, or policies perspective).
-Consider the results and
weigh the consequences of the alternative actions (i.e., “care” considerations
- what is the right thing to do in terms of helping others or benefiting the
most people).
-Select the course of action
that: (a) upholds the core values of honesty, respect, responsibility,
fairness, and compassion; and (b) takes into account both justice and
care 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