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Accounting Research
Manager(TM)
Weekly Summary of
Developments
January 11-15, 2010
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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
Disclosure Checklists -- Checklists Updated through December
31, 2009
Inflation Rates -- Interpretation Updated on Inflation
Rates for Judging Whether an Economy Is Highly Inflationary
Pensions -- Current Trends in Defined Benefit
Pension and Other Postretirement Benefit Obligations Discussed
Executive Compensation -- SEC Issues Executive Compensation Rule
for TARP Recipients
Non-GAAP Financial
Measures -- SEC Staff
Publishes Interpretations
PCAOB Registration -- PCAOB Issues Guidance to Aid in
Succeeding to a Predecessor Firm's Registration Status
PCAOB Registration -- PCAOB Updates Guidance on Registration
of Broker-Dealer Auditors
PCAOB Rules -- PCAOB Issues Guidance on Rules
Requiring the Reporting of Certain Events on Form 3
Financial Instruments -- FASB Discusses Accounting for
Financial Instruments and Other Matters
Fair Value Measurements -- AcSEC
Publishes Draft Issues Paper
International Accounting -- 2010 Edition of International
Accounting/Financial Reporting Standards Guide Published
International Accounting -- IASB Issues Agenda for January 18-21,
2010 Meeting
Auditing and Internal
Controls Headlines
Audit Committees -- New Edition of Guide for Directors,
Management, and Consultants Published
SOX 404 -- Updated Interpretation for Small,
Publicly Held Companies Published
PCAOB Registration -- PCAOB Issues Guidance to Aid in
Succeeding to a Predecessor Firm's Registration Status
PCAOB Registration -- PCAOB Updates Guidance on Registration
of Broker-Dealer Auditors
PCAOB Rules -- PCAOB Issues Guidance on Rules
Requiring the Reporting of Certain Events on Form 3
Audits of Group Financial
Statements -- Proposed
AICPA Auditing Standard Discussed
Government Headlines
Financial Institutions -- Specific Questions and Answers on
Deposits Discussed
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ACCOUNTING AND SEC HEADLINES:
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Disclosure Checklists --
Checklists Updated through December 31, 2009
For detail, please contact info@zy-cpa.com
We have updated the General
U.S. GAAP Financial Statement Disclosures Checklist through December 31,
2009. This checklist includes changes made by the FASB to the FASB
Accounting Standards CodificationTM (Codification) since the
issuance of our checklist dated September 30, 2009. Specifically, this
checklist has been updated for the following changes:
-Accounting Standards Update
(ASU) No. 2009-15, Accounting for Own-Share Lending Arrangements in
Contemplation of Convertible Debt Issuance or Other Financing;
-ASU No. 2009-16, Transfers
and Servicing (Topic 860) - Accounting for Transfers of Financial Assets;
-ASU No. 2009-17, Consolidations
(Topic 810) - Improvements to Financial Reporting by Enterprises Involved with
Variable Interest Entities; and
-ASU No. 2010-02, Consolidation
(Topic 810) - Accounting and Reporting for Decreases in Ownership of a
Subsidiary - a Scope Clarification.
We have also updated the General
U.S. GAAP Interim Financial Statement Disclosures Checklist through
December 31, 2009, to reflect the interim disclosure requirements as of that
date.
See our Literature Update for
complete details.
Inflation Rates --
Interpretation Updated on Inflation Rates for Judging Whether an Economy Is
Highly Inflationary
For detail, please contact info@zy-cpa.com
Our Interpretation, Inflation
Rates for Judging Whether an Economy Is Highly Inflationary - December 2009,
has been issued and reflects the latest available inflation rate information.
We have made the following changes since our September 2009 update:
-Venezuela has been
reclassified from the “watch list” of countries that may have highly
inflationary economies to the list of countries that have highly inflationary
economies; and
-Angola has been reclassified
from the “watch list” of countries that may have highly inflationary economies
to the list of countries that do not have highly inflationary economies.
See our Literature Update for
complete details.
Pensions -- Current Trends
in Defined Benefit Pension and Other Postretirement Benefit Obligations
Discussed
For detail, please contact info@zy-cpa.com
We have published a Hot
Topic, Defined Benefit Pension and Other Postretirement Benefit Obligations
- Current Trends. This publication discusses the continued effect changing
financial market conditions are having on entities when measuring defined
benefit pension and other postretirement benefit obligations, including
choosing the appropriate discount rates and other valuation considerations.
Topics covered in this publication are:
-Current considerations;
-Discount rate used to
measure projected plan benefits;
-Other discount rate
considerations;
-Expected long-term rate of
return on plan assets and market-related value of plan assets;
-Discussion of recent
authoritative guidance issued;
-Additional guidance from the
SEC; and
-Pension Protection Act of
2006.
See our Hot Topic for
complete details.
Executive Compensation --
SEC Issues Executive Compensation Rule for TARP Recipients
For detail, please contact info@zy-cpa.com
The SEC has issued a final
rule, Shareholder Approval of Executive Compensation of TARP Recipients.
This final rule includes amendments to certain proxy rule requirements for
This final rule is effective
30 days after publication in the Federal Register.
Non-GAAP Financial
Measures -- SEC Staff Publishes 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), Non-GAAP Financial
Measures. This C&DI provides interpretations by Corp Fin, in a
question and answer format, of the SEC’s rules and regulations on the use of
non-GAAP financial measures, including Regulation G and Item 10(e) of
Regulation S-K. Topics covered in this C&DI include:
-Business combination
transactions;
-Item 10(e) of Regulation
S-K;
-Presenting “earnings before
interest and taxes” (EBIT), and “earnings before interest, taxes, depreciation
and amortization” (EBITDA);
-Segment information;
-Item 2.02 of Form 8-K
(results of operations and financial condition);
-Foreign private issuers; and
-Voluntary filers.
PCAOB Registration --
PCAOB Issues Guidance to Aid in Succeeding to a Predecessor Firm's Registration
Status
For detail, please contact info@zy-cpa.com
The PCAOB has published staff
questions and answers (Q&As),
Succession to Registration Status - Form 4. These Q&As discuss the process through which, in certain
circumstances, a firm can succeed to a predecessor firm’s registration status.
Topics addressed in these Q&As include:
-A description of the
process;
-The relevant filing
deadlines;
-The process for seeking
leave to file an untimely succession form;
-The relevance of the process
to succession events that occurred before December 31, 2009;
-The circumstances in which
firms involved in a transaction leading to succession should and should not
withdraw from registration; and
-The mechanics of filing the
relevant form through the PCAOB web-based system.
PCAOB Registration --
PCAOB Updates Guidance on Registration of Broker-Dealer Auditors
For detail, please contact info@zy-cpa.com
The PCAOB has published staff
Q&As, Registration of Broker-Dealer Auditors.
These Q&As provide
guidance to assist auditors of non-public broker-dealers considering
registration with the PCAOB. Topics covered in these Q&As include:
-Overview of registration;
-Mechanics of registration;
-Content of registration
application; and
-What to do if auditors have
further questions about registration.
PCAOB Rules -- PCAOB
Issues Guidance on Rules Requiring the Reporting of Certain Events on Form 3
For detail, please contact info@zy-cpa.com
The PCAOB has published staff
Q&As, Special Reporting on Form 3. These Q&As discuss the requirements
to report certain events to the PCAOB in special reports on Form 3.
Specifically, these Q&As address the following
topics:
-An overview of the special
reporting requirements;
-A discussion and summary of
the events required to be reported;
-Guidance on completing and
amending the reporting form;
-Information on requesting
confidential treatment and withholding information on the basis of non-U.S.
legal restrictions; and
-A discussion of the
mechanics of reporting though the PCAOB web-based system.
Financial Instruments --
FASB Discusses Accounting for Financial Instruments and Other Matters
For detail, please contact info@zy-cpa.com
As reported in its
"Summary of Board Decisions" publication, the FASB met on January 13,
2010, and discussed the following topics: (a) accounting for financial
instruments; and (b) going concern. The FASB discussed comments it
received from constituents on a draft of the core principle for determining
credit impairment the FASB developed at a previous meeting and affirmed that
the core principle will propose that credit impairments be based on all
available information relating to past events and existing conditions. The FASB
decided to clarify that although near-term expectations should not be
considered in assessing a financial asset for impairment, the implications of
past events and existing conditions on the current and future collectability of the financial asset should be considered.
The FASB also decided that the proposed approach will include the following
elements:
-For financial assets that
are classified in the fair value through other comprehensive income category,
an entity would determine the amount of interest income to recognize by
multiplying the amortized cost less cumulative credit impairments by the
effective interest rate.
-An entity would present
purchased financial assets on a “gross basis” in the statement of financial
position, meaning it would separately present an allowance for its expectations
of credit losses inherent in the instrument at acquisition.
-The effective interest rate
for a purchased financial asset would be the rate that equates the purchase
price of the financial asset to its par value reduced by the credit loss
expected by the purchaser at acquisition.
-To increase comparability
among entities, the FASB decided to define a write-off as “a reduction in the
carrying amount of a financial asset due to uncollectibility.
-An entity should cease
recognizing income on a financial asset (place it on an nonaccrual
status) only if the entity’s expectations about cash flows not expected to be
collected would indicate that the overall yield on the financial asset will be
negative (e.g., if the gross cash flows expected to be collected are less than
the original principal amount).
The FASB discussed several
scope alternatives relating to its going concern project but decided not to
make changes at this time. However, the FASB directed its staff to draft
language that would clarify the disclosure requirements related to management’s
going-concern assessment.
Fair Value Measurements --
AcSEC Publishes Draft Issues Paper
For detail, please contact info@zy-cpa.com
The Accounting Standards
Executive Committee (AcSEC) of the AICPA has issued
for public comment a Draft Issues Paper, FASB Accounting Standards
Codification Section 820, "Fair Value Measurements and Disclosures,"
for Certain Issues Pertaining to Not-for-Profit Entities. This document
discusses fair value measurement for certain issues pertaining to
not-for-profit entities. Specifically, this draft issues paper discusses fair
value measurement pertaining to the following:
-Unconditional promises to
give cash;
-Beneficial interests in
perpetual trusts; and
-Split interest agreements.
Comments on this document are
due March 17, 2010.
International Accounting
-- 2010 Edition of International Accounting/Financial Reporting Standards Guide
Published
For detail, please contact info@zy-cpa.com
We have published the 2010
edition of the International Accounting/Financial Reporting Standards Guide.
The primary objective of this publication is to provide a resource for those
who need to understand or interpret financial statements prepared following
accounting principles issued by the IASB. The 2010 edition has been updated to
incorporate new and revised international accounting and reporting requirements
through early September 2009 relating to financial statements for years
beginning on or after January 1, 2010.
See our Literature Update for
complete details.
International Accounting
-- IASB Issues Agenda for January 18-21, 2010 Meeting
For detail, please contact info@zy-cpa.com
The IASB has issued an agenda
for its January 18-21, 2010 meeting. Topics expected to be discussed at this
meeting include the following:
-Fair value measurement;
-Revenue recognition;
-Financial instruments with
characteristics of equity;
-Insurance contracts;
-Financial statement
presentation;
-Consolidation;
-Financial instruments: hedge
accounting;
-Leases;
-Financial instruments:
classification and measurement;
-Derecognition;
-IFRIC update;
-Amendments to IFRS 1, First-time
Adoption of International Financial Reporting Standards;
-Discontinued operations; and
-Postemployment
benefits.
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:
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Audit Committees -- New
Edition of Guide for Directors, Management, and Consultants Published
For detail, please contact info@zy-cpa.com
We have published the Sixth
Edition of Audit Committees: A Guide for Directors, Management, and
Consultants. This publication combines real-world audit committee
experience with expert knowledge of materiality, internal control, fraud and
illegal acts, and the latest requirements from the New York Stock Exchange, Nasdaq, the NYSE Amex, and the
SEC, including the Sarbanes-Oxley Act of 2002. This edition reflects the
changing environment related to the responsibilities associated with corporate
governance and includes new and updated subject matter such as:
-The Key Agreed Principles
to Strengthen Corporate Governance for U.S. Publicly Traded Companies from
the National Association of Corporate Directors;
-An overview of the Final
Report of the Advisory Committee on the Auditing Profession to the U.S.
Department of the Treasury and highlights of its recommendations impacting
audit committees;
-An introduction to the
Codification, which became effective July 1, 2009, and explanation of the SEC
“Roadmap” for convergence of U.S. generally accepted accounting principles and
International Financial Reporting Standards;
-A discussion about the audit
committee's responsibility with respect to risk management in light of the
recent economic crisis; and
-References to Guidance on
Monitoring Internal Control, published in January 2009 by the Committee of
Sponsoring Organizations of the Treadway Commission.
See our Literature Update for
complete details.
SOX 404 -- Updated
Interpretation for Small, Publicly Held Companies Published
For detail, please contact info@zy-cpa.com
We have published the 2010
edition of SOX 404 for Small, Publicly Held Companies, which provides
information that management needs to assess the effectiveness of a company’s
internal control over financial reporting and its disclosure controls. This
edition of the publication has been updated to include:
-A discussion of the PCAOB’s Auditing Standard No. 5, An Audit of Internal
Control Over Financial Reporting That Is Integrated with An Audit of Financial
Statements;
-A discussion of the
Government Accountability Office report, Sarbanes-Oxley Act: Consideration
of Key Principles Needed in Addressing Implementation for Smaller Public
Companies; and
-Coverage of the Committee of
Sponsoring Organizations publication, Guidance on Monitoring Internal
Control Systems (January 2009).
See our Literature Update for
complete details.
PCAOB Registration --
PCAOB Issues Guidance to Aid in Succeeding to a Predecessor Firm's Registration
Status
For detail, please contact info@zy-cpa.com
As discussed above in our
Accounting and SEC Summaries, the PCAOB has published staff questions and
answers (Q&As), Succession
to Registration Status - Form 4. These Q&As discuss the process through which, in certain
circumstances, a firm can succeed to a predecessor firm’s registration status.
Topics addressed in these Q&As include:
-A description of the
process;
-The relevant filing
deadlines;
-The process for seeking
leave to file an untimely succession form;
-The relevance of the process
to succession events that occurred before December 31, 2009;
-The circumstances in which
firms involved in a transaction leading to succession should and should not
withdraw from registration; and
-The mechanics of filing the
relevant form through the PCAOB web-based system.
PCAOB Registration --
PCAOB Updates Guidance on Registration of Broker-Dealer Auditors
For detail, please contact info@zy-cpa.com
As discussed above in our
Accounting and SEC Summaries, the PCAOB has published staff Q&As,
Registration of Broker-Dealer Auditors. These Q&As provide guidance to assist auditors of non-public
broker-dealers considering registration with the PCAOB. Topics covered in these
Q&As include:
-Overview of registration;
-Mechanics of registration;
-Content of registration
application; and
-What to do if auditors have
further questions about registration.
PCAOB Rules -- PCAOB
Issues Guidance on Rules Requiring the Reporting of Certain Events on Form 3
For detail, please contact info@zy-cpa.com
As discussed above in our
Accounting and SEC Summaries, the PCAOB has published staff Q&As,
Special Reporting on Form 3. These Q&As discuss the requirements to report certain events
to the PCAOB in special reports on Form 3. Specifically, these Q&As address the following topics:
-An overview of the special
reporting requirements;
-A discussion and summary of
the events required to be reported;
-Guidance on completing and
amending the reporting form;
-Information on requesting
confidential treatment and withholding information on the basis of non-U.S.
legal restrictions; and
-A discussion of the
mechanics of reporting though the PCAOB web-based system.
Audits of Group Financial
Statements -- Proposed AICPA Auditing 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), Audits of Group Financial Statements (Including
the Work of Component Auditors), which would supersede section 543 of SAS 1
(AU Section 543), Part of Audit Performed by Other Independent Auditors.
To facilitate convergence with the international standards, the proposed
standard has been drafted using International Standard on Auditing No. 600, Special
Considerations - Audits of Group Financial Statements (Including the Work of
Component Auditors) (ISA 600), as a base. The differences between the AICPA’s proposed SAS and ISA 600 that have no compelling
reason have been eliminated.
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:
======================
Financial Institutions --
Specific Questions and Answers on Deposits Discussed
For detail, please contact info@zy-cpa.com
We have added a Governmental
GAAP Update Service that reviews commonly asked questions regarding a
government entity’s credit risks associated with deposits with financial
institutions. The consideration and full disclosure of these risks has been
made even more important by the volatile economic environment associated with
the recent recession and the resulting failure and closure of a number of
financial institutions. This Update provides an overview of the note disclosure
requirements related to custodial credit risk and example guidance related to
specific questions of custodial credit risk on deposits with financial
institutions, including the following topics:
-Deposit insurance;
-Letters of credit;
-Federal reserve
pledge accounts;
-Valuation and presentation
issues; and
-Certificates of deposit and
money market accounts.
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