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Accounting Research Manager(TM)
Weekly Summary of Developments
April 5-9, 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

Checklist -- AutoCheck U.S. GAAP Disclosures Checklist Updated
Health Care Legislation -- Discussion of the Accounting Effects of Recent Health Care Legislation Published
Income Taxes -- Interpretation Updated
Oil and Gas Activities -- Interpretation Updated
EITF Matters -- March 18, 2010 Meeting Minutes Published
Asset-Baked Securities -- SEC Issues Proposal to Revise Regulation AB
SEC Filings -- SEC Updates EDGAR Filer Manual
PCAOB Staff Practice Alert -- PCAOB Issues Staff Audit Practice Alert on Significant Unusual Transactions
Risk Alerts -- AICPA Issues Audit Risk Alert and Financial Reporting Alert
Extractive Activities -- IASB Publishes Discussion Paper

Auditing and Internal Controls Headlines

Service Organizations -- AICPA Issues Standard for Reporting on Controls at a Service Organization
Checklist -- Checklist of Recent AICPA Pronouncements Updated
Risk Alerts -- AICPA Issues Audit Risk Alert and Financial Reporting Alert
PCAOB Staff Practice Alert -- PCAOB Issues Staff Audit Practice Alert on Significant Unusual Transactions
Compilation and Reviews -- SSARS 19 Discussed

Government Headlines

Financial Reporting Entity -- GASB Issues Plain Language Article on Proposal
Supplementary Information -- Recent AICPA Standards Discussed

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ACCOUNTING AND SEC HEADLINES:
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Checklist -- AutoCheck U.S. GAAP Disclosures Checklist Updated
For detail, please contact info@zy-cpa.com

Our AutoCheck U.S. GAAP Disclosures Checklist has been updated through March 31, 2010. This checklist includes changes made by the FASB to the FASB Accounting Standards Codification^TM (Codification) since the issuance of our checklist dated December 31, 2009. This checklist is organized by accounting topic, consistent with the Codification's broad structure, and provides authoritative references. Once completed, it can be printed and placed in annual or quarterly work papers to provide support for review and compliance procedures.

As explained in our Literature Update, existing users of the AutoCheck checklist must update the checklist previously used by clicking on the below link and following the instructions in “Upgrading from a previous release.” See our Literature Update for specific FASB changes during the quarter.

Health Care Legislation -- Discussion of the Accounting Effects of Recent Health Care Legislation Published
For detail, please contact info@zy-cpa.com

We have published a Hot Topic, U.S. Health Care Legislation - Accounting Effects, which discusses certain accounting effects of the recently enacted health care legislation in the United States. As a result of this legislation, a company that provides prescription drug coverage to its retirees may have to immediately write off a portion of its deferred tax asset relating to the "Medicare Retiree Drug Subsidy." Companies may have to consider other effects of this legislation and make appropriate disclosures.

See our Hot Topic for complete details.

Income Taxes -- Interpretation Updated
For detail, please contact info@zy-cpa.com

We have updated our publication, Accounting for Income Taxes - Interpretations of Topic 740, (formerly known as Accounting for Income Taxes - Interpretations of FASB Statement 109). Specifically, we have updated Appendix III, “Sample Footnotes and Disclosures,” to reflect recent examples from Form 10-Ks applicable to the year ended December 31, 2009.

See our Literature Update for complete details.

Oil and Gas Activities -- Interpretation Updated
For detail, please contact info@zy-cpa.com

We have updated our publication, Oil and Gas Industry: U.S. Accounting and Financial Reporting. This interpretation discusses accounting and financial reporting issues that affect entities engaged in oil and gas exploration and (or) development. We have updated this publication to reflect the issuance of the following guidance:

-Compliance and Disclosure Interpretation issued by the SEC staff, Oil and Gas Rules;
-SEC Staff Accounting Bulletin No. 113 , relating to Oil and Gas Producing Activities;
-FASB Accounting Standards Update (ASU) No. 2009-11, Extractive Activities - Oil and Gas - Amendment to Section 932-10-S99 (SEC Update); and
-ASU No. 2010-03, Extractive Activities - Oil and Gas (Topic 932) - Oil and Gas Reserve Estimation and Disclosures.

See our Literature Update for further information.

EITF Matters -- March 18, 2010 Meeting Minutes Published
For detail, please contact info@zy-cpa.com

The final meeting minutes of the March 18, 2010 EITF meeting have been issued. The minutes document the results previously described in our EITF Flash Report. As discussed in the minutes, the EITF reached a final consensus on:

-EITF Issue No. 08-9, "Milestone Method of Revenue Recognition";
-EITF Issue No. 09-B, "Consideration of an Insurer’s Accounting for Majority-Owned Investments When the Ownership Is through a Separate Account";
-EITF Issue No. 09-F, "Casino Base Jackpot Liabilities";
-EITF Issue No. 09-I, "Effect of a Loan Modification When the Loan Is Part of a Pool That Is Accounted for as a Single Asset"; and
-EITF Issue No. 09-J, "Effect of Denominating the Exercise Price of a Share-Based Payment Award in the Currency of the Market in Which the Underlying Equity Security Trades."

The FASB has not yet updated its Codification to reflect these decisions.

The EITF also reached a consensus-for-exposure on EITF Issue No. 09-K, "Health Care Entities: Presentation of Insurance Claims and Related Insurance Recoveries," and Issue No. 09-L, "Health Care Entities: Measuring Charity Care for Disclosure." At the meeting, these issues were discussed as a part of Issue No. 09-H.

In addition, the EITF minutes include the SEC staff announcement regarding foreign currency issues. See our hot topic dated March 24, 2010: For detail, please contact info@zy-cpa.com

Asset-Baked Securities -- SEC Issues Proposal to Revise Regulation AB
For detail, please contact info@zy-cpa.com

The SEC has issued for public comment a proposed rule, Asset-Backed Securities. This proposal includes revisions to Regulation AB and other rules regarding the offering process, disclosure and reporting for asset-backed securities (ABS). The most significant changes in this proposal would:

-Revise the filing deadlines for ABS offerings;
-Repeal the current credit rating references in shelf eligibility criteria for ABS issuers;
-Establish new shelf registration eligibility criteria;
-Require that most prospectuses for public offerings of ABS and ongoing periodic reports contain specified asset-level information about each of the assets in the pool in a tagged data format using eXtensible Markup -Language (XML);
-Require, along with the prospectus filing, the filing of a computer program of the contractual cash flow provisions expressed as downloadable source code in a specified commonly used open source interpretive programming language; and
-Require new information requirements for the safe harbors for exempt offerings and resales of ABS.

Comments on this proposal are due 90 days after publication in the Federal Register.

SEC Filings -- SEC Updates EDGAR Filer Manual
For detail, please contact info@zy-cpa.com

The SEC has published a final rule, Adoption of Updated EDGAR Filer Manual. This final rule includes revisions to the Electronic Data Gathering, Analysis, and Retrieval System (EDGAR) Filer Manual, to reflect updates in the EDGAR system. The revisions are being made primarily to: (a) support the upgrade of the Mutual Fund Risk/Return Summary Taxonomy; and (b) extend the interactive data/eXtensible Business Reporting Language (XBRL) validation requirements to all Exhibit 101 attachments.

This final rule is effective April 8, 2010.

PCAOB Staff Practice Alert -- PCAOB Issues Staff Audit Practice Alert on Significant Unusual Transactions
For detail, please contact info@zy-cpa.com

The PCAOB issued Staff Audit Practice Alert No. 5, Auditor Considerations Regarding Significant Unusual Transactions, to remind auditors of public companies about their responsibilities to assess and respond to the risk of material misstatement of the financial statements due to error or fraud posed by significant unusual transactions.

This Alert compiles relevant requirements from existing PCAOB auditing standards regarding significant unusual transactions to assist the auditor in reviews of interim financial information and audits of financial statements. This Alert also complements Staff Audit Practice Alert No. 3, Audit Considerations in the Current Economic Environment, by further addressing risks of material misstatement associated with significant unusual transactions, a risk that the PCAOB staff believes continues to exist today.

PCAOB practice alerts are prepared to highlight new, emerging, or otherwise noteworthy circumstances that may affect how auditors conduct audits under the existing requirements of PCAOB standards and relevant laws.

Risk Alerts -- AICPA Issues Audit Risk Alert and Financial Reporting Alert

The AICPA has issued the following alerts:

-Audit Risk Alert, Employee Benefit Plans Industry Developments - 2010; and
For detail, please contact info@zy-cpa.com

-Financial Reporting Alert, Current Economic Instability: Accounting Issues and Risks for Financial Management and Reporting - 2010.
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.

Extractive Activities -- IASB Publishes Discussion Paper
For detail, please contact info@zy-cpa.com

The IASB has published for public comment a Discussion Paper (DP), Extractive Activities. Extractive activities are undertaken by entities when searching for, and ultimately extracting, minerals, oil or natural gas. This DP discusses how a possible standard on extractive activities could address issues raised during an international research project with IFRS 6, Exploration for and Evaluation of Mineral Resources. Specifically, this DP seeks comments from constituents which would assist in the identification of a possible approach for a consistent standard on the accounting for extractive activities.

Comments on this DP are due July 30, 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

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AUDITING AND INTERNAL CONTROLS HEADLINES:
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Service Organizations -- AICPA Issues Standard for Reporting on Controls at a Service Organization
For detail, please contact info@zy-cpa.com

The AICPA has issued Statement on Standards for Attestation Engagements (SSAE) No. 16, Reporting on Controls at a Service Organization. This standard supersedes the guidance for service auditors in AU section 324, Service Organizations. SSAE 16 addresses examination engagements undertaken by a service auditor to report on controls at organizations that provide services to user entities when those controls are likely to be relevant to user entities’ internal control over financial reporting. This standard also includes illustrative examples of service auditor’s reports.

SSAE 16 is effective for service auditors’ reports for periods ending on or after June 15, 2011. Earlier application is permitted.

Checklist -- Checklist of Recent AICPA Pronouncements Updated
For detail, please contact info@zy-cpa.com

We have updated our checklist, "Summary Checklist of Recent Authoritative AICPA Professional Standards." This checklist is intended to serve as a reference used to review those engagement and other related authoritative standards recently issued by the AICPA. This checklist currently reflects pronouncements with effective dates beginning on or after December 15, 2008, and will be updated each time the AICPA revises its authoritative literature. We have updated the checklist to include SSAE 16. See our discussion of this standard above.

See our Literature Update for complete details.

Risk Alerts -- AICPA Issues Audit Risk Alert and Financial Reporting Alert

As discussed above in our Accounting and SEC Summaries, the AICPA has issued the following alerts:

-Audit Risk Alert, Employee Benefit Plans Industry Developments - 2010; and
For detail, please contact info@zy-cpa.com

-Financial Reporting Alert, Current Economic Instability: Accounting Issues and Risks for Financial Management and Reporting - 2010.
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.

PCAOB Staff Practice Alert -- PCAOB Issues Staff Audit Practice Alert on Significant Unusual Transactions
For detail, please contact info@zy-cpa.com

As discussed above in our Accounting and SEC Summaries, the PCAOB issued Staff Audit Practice Alert No. 5, Auditor Considerations Regarding Significant Unusual Transactions, to remind auditors of public companies about their responsibilities to assess and respond to the risk of material misstatement of the financial statements due to error or fraud posed by significant unusual transactions.

This Alert compiles relevant requirements from existing PCAOB auditing standards regarding significant unusual transactions to assist the auditor in reviews of interim financial information and audits of financial statements. This Alert also complements Staff Audit Practice Alert No. 3, Audit Considerations in the Current Economic Environment, by further addressing risks of material misstatement associated with significant unusual transactions, a risk that the PCAOB staff believes continues to exist today.

PCAOB practice alerts are prepared to highlight new, emerging, or otherwise noteworthy circumstances that may affect how auditors conduct audits under the existing requirements of PCAOB standards and relevant laws.

Compilation and Reviews -- SSARS 19 Discussed
For detail, please contact info@zy-cpa.com

We have added a GAAS Update Service that provides discussion and analysis of AICPA Statement on Standards for Accounting and Review Services (SSARS) No. 19, Compilation and Review Engagements. SSARS 19 supersedes the following AR Sections:

-AR Section 20, Defining Professional Requirements in Statements on Standards for Accounting and Review Services;
-AR Section 50, Standards for Accounting and Review Services; and
-AR Section 100, Compilation and Review of Financial Statements.

SSARS 19 is effective for compilations and reviews of financial statements for periods ending on or after December 15, 2010. Early implementation is not permitted, with one exception. One provision of SSARS 19 may be implemented early, which permits, but does not require accountants to include optional language in their compilation reports describing reasons for lack of independence.

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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Financial Reporting Entity -- GASB Issues Plain Language Article on Proposal
For detail, please contact info@zy-cpa.com

The GASB has issued a plain language article, GASB Proposal Would Improve Financial Reporting For Governmental Financial Entities. This article discusses the GASB's previously issued exposure draft of a proposed statement, The Financial Reporting Entity, which is intended to improve GASB Statement No. 14, The Financial Reporting Entity, and GASB Statement No. 34, Basic Financial Statements - and Management’s Discussion and Analysis - for State and Local Governments. This article discusses the following topics:

-Overview of GASB 14;
-Objectives of the project and proposal;
-How the proposal would change which component units are included in the reporting unit;
-The proposals new criteria for "blending" component units;
-Equity interests under the proposal;
-Footnote disclosures; and
-Effective date of the proposal.

Comments on the proposed statement are due by June 30, 2010.

Supplementary Information -- Recent AICPA Standards Discussed
For detail, please contact info@zy-cpa.com

We have added a Governmental GAAP Update Service which is the second of a two-part series that will discuss the following guidance related to supplementary information:

-AICPA Statement on Auditing Standards (SAS) No. 118, Other Information in Documents Containing Audited Financial Statements;
-SAS No. 119, Supplementary Information in Relation to the Financial Statements as a Whole; and
-SAS No. 120, Required Supplementary Information.

This update focuses on required supplementary information and the changes required by SAS 120.

SAS 118, 119, and 120 are effective for audits of financial statements for periods beginning on or after December 15, 2010, with earlier application permitted.

These standards are included in our "Summary Checklist of Recent Authoritative AICPA Professional Standards."

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