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Accounting Research
Manager(TM)
Weekly Summary of
Developments
May 17-21, 2010
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Accounting Research
Manager subscriber,
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Manager database now contains this week's weekly summary of developments. Click
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of this week's Weekly Summary.
Accounting and SEC
Headlines
International Accounting -- SEC Chairman Reaffirms Commitment to
Global Accounting Standards
Financial Assets and
Liabilities --
Publication Updated
Derivatives and Hedging -- Publication Updated
Revenue Recognition -- FASB and IASB Discuss Revenue
Recognition and Other Matters
Government Headlines
GASB Activities -- Recent GASB Meetings and Other Matters
Discussed
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ACCOUNTING AND SEC HEADLINES:
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International Accounting
-- SEC Chairman Reaffirms Commitment to Global Accounting Standards
For detail, please contact info@zy-cpa.com
SEC Chairman Mary L. Schapiro reaffirmed the SEC’s full commitment to developing
a single set of high-quality, globally accepted accounting standards that will
benefit
-SEC's commitment to global
accounting standards is not as strong as it should be;
-U.S. may be committed, but
is dragging its feet regarding adoption of IFRS;
-U.S. is fixated on the
process of moving to global accounting standards; and
-U.S. is simply protecting
its parochial interests.
Financial Assets and
Liabilities -- Publication Updated
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We have updated our
publication Financial Assets and Liabilities - Sales, Transfers, and
Extinguishments: Interpretations of
-Made various changes to reflect
the issuance of FASB Accounting Standards Update (ASU) No. 2009-16, Transfers
and Servicing (Topic 860): Accounting for Transfers of Financial Assets,
which codified the content of FASB Statement No. 166, Accounting for
Transfers of Financial Assets—an amendment of FASB Statement No. 140;
-Revised various
interpretations that addressed the application of the concept of a
"qualifying special-purpose entity," to reflect that this concept has
been eliminated; and
-Added SEC staff comments on
distinguishing a transfer of an interest in financial assets from a transfer of
an equity interest in an entity that holds financial assets.
See our Literature Update for
complete details.
Derivatives and Hedging --
Publication Updated
For detail, please contact info@zy-cpa.com
We have revised our
publication Derivatives and Hedging - Interpretations of
-Added SEC staff views on
defining the terms of an embedded derivative and the scope of the shortcut
method; and
-Revised to reflect
amendments of the Codification through ASU No. 2010-11, Derivatives and
Hedging (Topic 815): Scope Exception Related to Embedded Credit Derivatives,
and FASB Editorial and Maintenance Update No. 2010-08.
See our Literature Update for
complete details.
Revenue Recognition --
FASB and IASB Discuss Revenue Recognition and Other Matters
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As reported in its
"Summary of Board Decisions" publication, the FASB and IASB (the
Boards) held a joint meeting on May 17-19, 2010, and discussed the following
topics:
-Revenue recognition;
-Conceptual framework: objective
and qualitative characteristics;
-Leases;
-Insurance contracts; and
-Consolidation.
Regarding their project on
revenue recognition, the Boards discussed: (a) repurchase agreements;
and (b) sales of assets that are not an output of an entity’s ordinary
activities. The Boards reached a number of decisions on these issues, including
the following:
-The forthcoming proposal
will explain how an entity would determine whether a buyer obtains control of
an asset subject to a repurchase agreement;
-To remove Subtopic 470-40, Debt-
Product Financing Arrangements, from the Codification; and
-An entity should apply the
recognition and measurement principles of the proposed revenue model to
contracts for the sale of the following assets that are not an output of the
entity’s ordinary activities: (a) intangible assets within the scope of
Codification Topic 350, Intangibles - Goodwill and Other, or IAS 38, Intangible
Assets; and (b) property, plant, and equipment within the scope of
Codification Topic 360, Property, Plant, and Equipment, or IAS 16, Property,
Plant and Equipment, or IAS 40, Investment Property.
The Boards also discussed
their conceptual framework project. Specifically, the Boards discussed two
issues that arose on the objective of financial reporting and the qualitative
characteristics chapters. First, the Boards agreed that "materiality"
is an entity-specific aspect of relevance rather than a constraint to be
considered in setting financial reporting standards. Second, the Boards discussed
how best to describe the objective of financial reporting.
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