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Accounting Research
Manager(TM)
Weekly Summary of
Developments
November 23-25, 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
Noncontrolling Interests -- Interpretation Added
Insurance Contracts -- FASB Discusses Accounting for
Insurance Contracts and Other Matters
Risk Alerts -- AICPA Issues Audit Risk Alerts and
Financial Reporting Alert
Emissions Trading Schemes -- IASB Discusses Emissions Trading Schemes
and Other Matters
Auditing and Internal
Controls Headlines
Management Letter Comments -- 2010 Edition of CPA's Guide to
Management Letter Comments Published
Risk Alerts -- AICPA Issues Audit Risk Alerts and
Financial Reporting Alert
Audits of Financial
Statements -- Proposed
SAS on Quality Control Discussed
Government Headlines
Postemployment Benefits -- GASB 45 Discussed
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ACCOUNTING AND SEC HEADLINES:
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Noncontrolling Interests -- Interpretation Added
For detail, please contact info@zy-cpa.com
We have published Noncontrolling Interests in Consolidated
Financial Statements. This interpretation discusses potential accounting
and financial reporting changes facing an entity applying FASB Statement No.
160, Noncontrolling Interests in
Consolidated Financial Statements (guidance now included in FASB
Accounting Standards Codification™ in the general subsections of Topic 810,
Consolidation). Potential accounting and financial reporting changes
discussed in this interpretation include:
-Presentation of noncontrolling interests in the consolidated balance sheet,
income statement, and statement of comprehensive income;
-Deconsolidation of a
subsidiary;
-Reporting the operating
results of an initially consolidated subsidiary; and
-Accounting for shares of a
parent held by a subsidiary.
See our Literature Update for
complete details.
Insurance Contracts --
FASB Discusses Accounting for Insurance Contracts and Other Matters
For detail, please contact info@zy-cpa.com
As reported in its
"Summary of Board Decisions" publication, the FASB met on November
24, 2009, and discussed the following topics: (a) insurance contracts;
and (b) accounting for financial instruments. The FASB continued
deliberating its joint project on accounting for insurance contracts by
discussing the recognition of an insurance contract and the derecognition of insurance liabilities. The FASB
reached the following tentative decisions regarding this project:
-An entity should recognize
an insurance obligation at the earlier of: (a) the entity being on risk
to provide coverage to the policyholder for insured events; and (b) the
signing of the insurance contract.
-An insurance liability
should be derecognized by an entity when that obligation no longer qualifies as
a liability. The liability is eliminated when the entity is no longer at risk
and no longer required to transfer any economic resources for that obligation.
The FASB also discussed its
project on accounting for financial instruments and reached the following
decisions:
-The definition of "core
deposits" will include deposits that do not have a contractual maturity
that management believes are a stable source of funds.
-To measure core deposits
using the financial instrument with a core deposit intangible asset approach agreed
to at a previous FASB meeting.
-Core deposits would qualify
for remeasurement changes to be recognized in other
comprehensive income.
-The value of the core
deposit liability would be determined using a present value of the average core
deposit amount discounted by the difference between the alternative funds rate
and the all-in-cost-to-service rate over the implied maturity.
-The core deposit liability
amount that would be subject to the remeasurement
would be determined as an average amount over the implied maturity time period,
which would result in the consideration of future deposits. Considering and
valuing future deposits would result in an intangible asset being reflected in
the valuation.
Risk Alerts -- AICPA
Issues Audit Risk Alerts and Financial Reporting Alert
The AICPA has issued the following five
alerts for 2009:
-Audit Risk Alert, Insurance
Industry Developments - 2009;
For detail, please contact info@zy-cpa.com
-Audit Risk Alert, Financial
Institutions Industry Developments - 2009: Including Depository and Lending
Institutions and Brokers and Dealers in Securities;
For detail, please contact info@zy-cpa.com
-Audit Risk Alert, Investment
Companies Industry Developments - 2009;
For detail, please contact info@zy-cpa.com
-Audit Risk Alert, Real
Estate and Construction Industry Developments - 2009; and
For detail, please contact info@zy-cpa.com
-Financial Reporting Alert, Current
Economic Crisis: Accounting Issues and Risks for Financial Management and
Reporting - 2009.
For detail, please contact info@zy-cpa.com
AICPA Alerts provide users
with a detailed overview of recent industry, technical, regulatory, or
professional developments. Topics covered in each Alert include: (a)
legislative and regulatory activities (SEC, PCAOB, and other government
agencies); (b) economic and industry developments or trends; (c)
recent auditing and attestation pronouncements and related guidance; (d)
recent AICPA independence and ethics pronouncements; and (e) future or
emerging issues to monitor. In addition, each Alert includes a "Resource
Central" section listing resources practitioners may find useful.
Emissions Trading Schemes
-- IASB Discusses Emissions Trading Schemes and Other Matters
For detail, please contact info@zy-cpa.com
As reported in its "IASB
Update" publication, the IASB met on November 16-20, 2009, and discussed
the following topics:
-Emissions trading schemes;
-IFRIC 19, Extinguishing
Financial Liabilities with Equity Instruments;
-IFRIC update;
-Income taxes;
-Insurance contracts;
-Leases;
-Liabilities;
-Postemployment
benefits;
-Proposed amendments to IFRS
1, First-Time Adoption of International Financial Reporting Standards;
-Revenue recognition; and
-IASB 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:
For detail, please contact info@zy-cpa.com
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AUDITING AND INTERNAL
CONTROLS HEADLINES:
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Management Letter Comments
-- 2010 Edition of CPA's Guide to Management Letter Comments Published
For detail, please contact info@zy-cpa.com
We have published the 2010
edition of CPA’s Guide to Management Letter Comments. This publication
is a comprehensive resource that provides users with vital information on the
preparation of management letter comments. The 2010 edition has been updated
throughout with the latest management comments, including those covering the
following subjects:
-AICPA Statement on Auditing
Standards (SAS) No. 115, Communicating Internal Control Related Matters
Identified in an Audit;
-AICPA SAS No. 114, The
Auditor's Communication with Those Charged with Governance;
-Matters affected by AICPA
SAS No. 99, Consideration of Fraud in a Financial Statement Audit;
-Outbound automated clearing
house approval procedures; and
-Developing formal credit
card policies.
See our Literature Update for
complete details.
Risk Alerts -- AICPA
Issues Audit Risk Alerts and Financial Reporting Alert
As discussed above in our
Accounting and SEC Summaries, the AICPA has issued the following five alerts
for 2009:
-Audit Risk Alert, Insurance
Industry Developments - 2009;
For detail, please contact info@zy-cpa.com
-Audit Risk Alert, Financial
Institutions Industry Developments - 2009: Including Depository and Lending
Institutions and Brokers and Dealers in Securities;
For detail, please contact info@zy-cpa.com
-Audit Risk Alert, Investment
Companies Industry Developments - 2009;
For detail, please contact info@zy-cpa.com
-Audit Risk Alert, Real
Estate and Construction Industry Developments - 2009; and
For detail, please contact info@zy-cpa.com
-Financial Reporting Alert, Current
Economic Crisis: Accounting Issues and Risks for Financial Management and
Reporting - 2009.
For detail, please contact info@zy-cpa.com
AICPA Alerts provide users
with a detailed overview of recent industry, technical, regulatory, or
professional developments. Topics covered in each Alert include: (a)
legislative and regulatory activities (SEC, PCAOB, and other government
agencies); (b) economic and industry developments or trends; (c)
recent auditing and attestation pronouncements and related guidance; (d)
recent AICPA independence and ethics pronouncements; and (e) future or
emerging issues to monitor. In addition, each Alert includes a "Resource
Central" section listing resources practitioners may find useful.
Audits of Financial
Statements -- Proposed SAS on Quality Control Discussed
For detail, please contact info@zy-cpa.com
We have added a GAAS Update
Service that discusses the AICPA's Proposed SAS, Quality
Control for an Audit of Financial Statements. This proposed SAS would
supersede SAS No. 25, The Relationship of Generally Accepted Auditing
Standards to Quality Control Standards. Among other matters, the proposed
SAS:
-Specifies quality control
procedures at the engagement level that assist the auditor in achieving the
objectives of the quality control standards;
-Addresses the engagement
quality control review process for those audit engagements, if any, for which
the firm has determined that an engagement quality control review is required;
and
-Provides that certain
matters be included in the audit documentation.
As proposed, this SAS would
be effective for audits of financial statements for periods beginning on or
after December 15, 2010.
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:
======================
Postemployment Benefits -- GASB 45 Discussed
For detail, please contact info@zy-cpa.com
We have added a Governmental
GAAP Update Service that is the second in a two-part series that discusses the
basic requirements of GASB Statement No. 45, Accounting and Reporting by
Employers for Postemployment Benefits Other than
Pensions, from the perspective of small government employers. This Update
provides an overview of the requirements for the accounting and reporting of postemployment benefits other than pensions (OPEB) costs
and related obligations, including example journal entries, note disclosures,
and required supplemental information (RSI) for defined benefit OPEB plans.
Topics covered in this Update are:
-Overview of accounting and
reporting requirements for OPEB costs and obligations;
-Sole and agent
multiple-employer defined benefit plans;
-Defined contribution plans
and cost-sharing plans;
-Reporting funded status and
funding progress;
-Example accounting entries
for a single employer defined benefit OPEB plan; and
-Example note disclosure and
RSI for a single employer defined benefit OPEB 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