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Accounting Research
Manager(TM)
Weekly Summary of
Developments
May 10-14, 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:
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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
Financial Instruments - FASB Discusses Scope of Proposed
Codification Amendments
EITF Materials - FASB Issues Materials for June EITF
Meeting
IFRS Revisions - IASB Amends Standards
IFRIC Update - Annual Improvements and Other Matters
Discussed
Foreign Currency - FASB Issues ASU
New Accounting Standards - Checklist Updated
Accounting for Liabilities - IASB Proposes Change
Auditing and Internal
Controls Headlines
Other Information - Guidance on Documents Containing Audited
Financial Statements
Government Headlines
Intangible Assets - Guidance on Accounting and Reporting
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ACCOUNTING AND SEC HEADLINES:
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Financial Instruments -
FASB Discusses Scope of Proposed Codification Amendments
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As reported in its
"Summary of Board Decisions" publication, the FASB met on May 11,
2010, and decided to exclude from the scope of the proposed financial
instruments standard forward contracts that require physical settlement by
repurchase of a fixed number of the issuer’s equity shares in exchange for
cash. Those contracts are currently accounted for in accordance with FASB
Accounting Standards CodificationTM (Codification) Topic 480, Distinguishing
Liabilities from Equity.
The FASB also discussed some
of the more significant comments received from external reviewers on the draft
of the Proposed Accounting Standards Update (ASU) on financial instruments with
characteristics of equity. The FASB decided that additional meetings are needed
to address the issues raised in those comments.
EITF Materials - FASB
Issues Materials for June EITF Meeting
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The FASB has issued the
following materials for the EITF meeting scheduled for June 17, 2010:
-Agenda committee report;
-Comment letters on Proposed
ASU, Health Care Entities (Topic 954): Presentation of Insurance Claims and
Related Insurance Recoveries (Issue 09-K); and
-Comment letters on Proposed
ASU, Health Care Entities (Topic 954): Measuring Charity for Disclosure (Issue
09-L).
In addition to consideration
of the above comment letters on the issues noted, items currently on the June
agenda include:
-EITF Issue No. 09-G,
"Accounting for Costs Associated with Acquiring or Renewing Insurance
Contracts" (Proposed ASU, Financial Services-Insurance (Topic 944):
Accounting for Costs Associated with Acquiring or Renewing Insurance);
-EITF Issue No. 09-H,
"Accounting by Health Care Entities: Revenue Recognition”;
-EITF Issue No. 10-A,
"How the Carrying Amount of a Reporting Unit Should Be Determined When
Performing Step 1 of the Goodwill Impairment Test";
-EITF Issue No. 10-B,
"Accounting for Multiple Foreign Currency Exchange Rates”;
-EITF Issue No. 10-C,
"Reporting of Participant Loans in Employee Benefit Plan Financial
Statements”; and
-EITF Issue No. 10-D,
"Accounting for Certain Fees Associated with Recently Enacted Health Care
Legislation.”
IFRS Revisions - IASB
Amends Standards
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The IASB issued Improvements
to IFRSs, a collection of amendments to seven
International Financial Reporting Standards (IFRS), as its set of annual improvements. The IASB used the annual improvements
process to make necessary, but non-urgent, amendments to IFRS that will not be
included as part of a major project. The amendments included reflect issues
that were included in the draft of proposed amendments to IFRS published in
August 2009. It also includes an amendment to IFRS 1, First-time Adoption of
International Financial Reporting Standards, applicable to entities with
operations subject to rate regulation. By presenting the amendments in a single
document rather than a series of piecemeal changes, the IASB aims to ease the
burden of change for all concerned.
Unless otherwise specified,
the amendments are effective for annual periods beginning on or after January
1, 2011, with earlier application permitted.
IFRIC Update - Annual
Improvements and Other Matters Discussed
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As reported in the IASB's "IFRIC Update" publication, the
International Financial Reporting Interpretations Committee (IFRIC) met on May
6-7, 2010, and discussed the following topics:
-Proposed annual improvements
to IFRS;
-Accounting for production stripping
costs;
-Vesting and non-vesting
conditions;
-IFRIC agenda and tentative
agenda decisions; and
-IFRIC work in progress.
Foreign Currency - FASB
Issues ASU
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The FASB issued ASU No.
2010-19, Foreign Currency (Topic 830): Foreign Currency Issues: Multiple
Foreign Currency Exchange Rates—An announcement made
by the staff of the
Staff announcements made at
EITF meetings are generally effective as of the
announcement date, in this case, March 18, 2010.
New Accounting Standards -
Checklist Updated
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We have updated our
publication "Summary Checklist of Recent Authoritative U.S. Accounting
Standards," to reflect the issuance of ASU 2010-19 as noted in the item
above. This checklist is intended to serve as a reference tool to help users
ensure that they have considered authoritative standards recently issued or
approved by the FASB. The standards are listed by source and a summary of the
transition guidance is provided with a reference to the relevant Codification
paragraphs. Effective dates and adoption requirements are also presented.
See our Literature Update for
complete details.
Accounting for Liabilities
- IASB Proposes Change
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The IASB published for public
comment an exposure draft, Fair Value Option for Financial Liabilities,
which includes proposed changes to the accounting for financial liabilities.
The proposal would affect only those entities that choose to apply the fair
value option to their financial liabilities. The proposed changes respond to
the view expressed by many investors and other parties that volatility in
profit or loss resulting from changes in the credit risk of liabilities that an
entity chooses to measure at fair value is counterintuitive and does not provide
useful information to investors.
When the IASB introduced IFRS
9, Financial Instruments, many financial statement preparers and users
advised the IASB that the existing requirements for financial liabilities work
well, except for the effects of changes in the credit risk of a financial
liability (“own credit”) when an entity chooses to measure a financial
liability at fair value. The IASB is proposing that all gains and losses
resulting from changes in “own credit” for financial liabilities that an entity
chooses to measure at fair value should be transferred to “other comprehensive
income.” Therefore, changes in “own credit” will not affect reported profit or
loss. No other changes are proposed for financial liabilities. Those who choose
to bifurcate financial liabilities when relevant may
continue to do so.
Comments on this proposal are
due July 16, 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:
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AUDITING AND INTERNAL
CONTROLS HEADLINES:
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Other Information -
Guidance on Documents Containing Audited Financial Statements
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We have added a GAAS Update
Service that provides discussion and analysis of AICPA Statement on Auditing
Standards (SAS) No. 118, Other Information in Documents Containing Audited
Financial Statements. SAS 118 supersedes SAS No. 8 (AU Section 550) of the
same name and, together with SAS No. 119, Supplementary Information in
Relation to the Financial Statements as a Whole, it
also supersedes SAS No. 29, Reporting on Information Accompanying the Basic
Financial Statements in Auditor-Submitted Documents (AU Section 551). Among
other matters, SAS 118 eliminates the distinction between (a) other
information that is included in an auditor-submitted document containing the
client’s basic financial statements and the auditor’s report thereon, and (b)
other information that is in a client-prepared document.
SAS 118 is effective for
audits of financial statements for periods beginning on or after December 15,
2010, with earlier application permitted.
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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Intangible Assets -
Guidance on Accounting and Reporting
For detail, please contact info@zy-cpa.com
We have added a Governmental
GAAP Update Service providing discussion and analysis of Governmental
Accounting Standards Board (GASB) No. 51, Accounting and Financial Reporting
for Intangible Assets. GASB 51 is designed to improve the reporting of the
financial position of governments by more faithfully representing the service
capacity of their intangibles. The statement clarifies that intangible assets
should be classified as capital assets and that the periodic cost associated
with the usage of their service capacity should be recognized in the government
financial statements. GASB 51 also provides guidance related to the
recognition, amortization, and impairment of qualifying intangible assets.
The guidance in GASB 51 is
effective for government financial statements for periods beginning on or after
June 15, 2009 - that is, annual financial statements for periods ending on or
after June 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