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Accounting Research
Manager(TM)
Weekly Summary of
Developments
May 31 - June 4, 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
PCAOB Registration -- PCAOB Staff Guidance on Non-U.S.
Accounting Firms Registration Updated
Consolidation -- FASB and IASB Discuss Consolidation and
Other Matters
Conceptual Framework -- FASB and IASB Discuss Conceptual
Framework and Other Matters
Auditing and Internal
Controls Headlines
SEC Filings -- AICPA Publishes Proposal on Filings
with the SEC
Peer Reviews -- AICPA Publishes Peer Review Proposal
Commercial Entities -- Updated Edition of Knowledge-Based
Audits Published
PCAOB Registration -- PCAOB Staff Guidance on Non-U.S.
Accounting Firms Registration Updated
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ACCOUNTING AND SEC HEADLINES:
=============================
PCAOB Registration --
PCAOB Staff Guidance on Non-U.S. Accounting Firms Registration Updated
For detail, please contact info@zy-cpa.com
The PCAOB has published an
update to its staff guidance related to the registration process for applicants
from non-U.S. jurisdictions where the PCAOB is prevented from inspecting
PCAOB-registered firms. The jurisdictions currently affected are
The new guidance appears as
an addition to the PCAOB staff answers to Frequently Asked Questions
Regarding Issues Relating to Non-U.S. Accounting Firms. The guidance alerts
applicants from the affected jurisdictions that the staff intends to recommend
that the PCAOB request certain additional information before acting on those
applications, and it explains how an applicant can seek to avoid delay by
including the information when it first submits the application. The information
includes identifying information about public company audits in which the
applicant has recently played, or expects to play, any role, and identifying
information about other PCAOB-registered firms in whose audits the applicant
expects to play any role. The additional information is intended to facilitate
the PCAOB’s understanding of the scope and nature of
the applicant's activities related to SEC-reporting companies.
Consolidation -- FASB and
IASB Discuss Consolidation and Other Matters
For detail, please contact info@zy-cpa.com
As reported in its
"Summary of Board Decisions" publication, the FASB and IASB (the
Boards) met on June 1, 2010, and discussed the following topics: (a)
consolidation; and (b) insurance contracts. The Boards discussed the
disclosure requirements for consolidated subsidiaries and unconsolidated
structured entities. The Boards tentatively decided that the final disclosure
requirements should include a list of disclosure objectives, including that a
reporting entity should disclose information that helps users of financial
statements understand the:
-Significant judgments and
assumptions (and changes to those judgments and assumptions) made by the
reporting entity in determining whether it controls another entity and(or) the
reporting entity’s involvement with structured entities;
-Interest that the noncontrolling interests have in the group’s activities;
-Effect of restrictions on
the reporting entity’s ability to access and use assets or settle liabilities
of consolidated entities, as a result of where the assets or liabilities are
held in the group; and
-Nature of, and changes in,
the risks associated with the reporting entity’s control of consolidated
structured entities or involvement with unconsolidated structured entities.
In addition to disclosures
discussed at previous meetings, the Boards tentatively decided that:
-When a reporting entity has
an arrangement that could require the reporting entity to provide financial
support to a consolidated structured entity (e.g., liquidity arrangements and
obligations to purchase assets), the reporting entity should disclose the terms
of the arrangement; and
-When a reporting entity is
involved with unconsolidated structured entities, the reporting entity should
disclose: (a) the carrying amount of the assets and liabilities
recognized in the reporting entity’s consolidated financial statements relating
to the involvement; (b) the line items in the consolidated statement of
financial position in which those assets and liabilities are recognized; (c)
the amount that best represents the reporting entity’s maximum exposure to loss
from that involvement, including how the maximum exposure to loss is
determined; and (d) a comparison of the carrying amount of the assets
and liabilities of the reporting entity that relate to the reporting entity’s
involvement with unconsolidated structured entities and the reporting entity’s
maximum exposure to loss.
Conceptual Framework --
FASB and IASB Discuss Conceptual Framework and Other Matters
For detail, please contact info@zy-cpa.com
As reported in its "IASB
Update" publication, the IASB met on May 17-21, 2010, and discussed the
following topics:
-Annual improvements project;
-Emissions trading schemes;
-Financial instruments: hedge
accounting;
-IFRIC update;
-Joint arrangements; and
-Management commentary.
The IASB also met jointly
with the FASB for various sessions discussing the following topics:
-Conceptual framework:
qualitative characteristics;
-Consolidation;
-Insurance contracts;
-Leases; and
-Revenue recognition.
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:
=======================================
SEC Filings -- AICPA
Publishes Proposal on Filings with the SEC
For detail, please contact info@zy-cpa.com
The AICPA has issued for
public comment an Exposure Draft (ED) of a proposed Statement on Auditing
Standards (SAS), Filings with the
As proposed, the guidance in
this SAS would be effective for audits of financial statements for periods
ending on or after December 15, 2012.
Comments on this proposed SAS
are due August 2, 2010.
Peer Reviews -- AICPA
Publishes Peer Review Proposal
For detail, please contact info@zy-cpa.com
The AICPA Peer Review Board
has issued for public comment an ED, Proposed Revisions to the AICPA
Standards for Performing and Reporting on Peer Reviews: Performing and
Reporting on Peer Reviews of Quality Control Materials (QCM) and Continuing
Professional Education (CPE) Programs.This ED contains proposed revisions
to the guidance for quality control materials (QCM) and continuing professional
education (CPE) program peer reviews contained in the AICPA Standards for
Performing and Reporting on Peer Reviews (Standards) and related
Interpretations to the Standards. Specifically, the proposed revisions in this
ED focus on three main areas:
-Clarifying guidance on
independence and objectivity for those involved in the development and
maintenance of QCM or CPE programs;
-Removing the requirement for
triennial peer review of the system to develop and maintain QCM or CPE
programs; and
-Revising peer review
procedures for providers of CPE programs.
As proposed, the revisions in
this ED would be effective for peer reviews scheduled on or after November 1,
2010, with the exception of the revisions to the procedures for performing CPE
reviews, which would be effective upon issuance of the revised Standards.
Comments on this proposal are
due August 31, 2010.
Commercial Entities --
Updated Edition of Knowledge-Based Audits Published
For detail, please contact info@zy-cpa.com
We have updated the 2010
edition of Knowledge-Based Audits of Commercial Entities. This
publication is designed to help the auditor efficiently and effectively perform
financial statement audits of nonpublic commercial entities in accordance with
auditing standards generally accepted in the
-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.
See our Literature Update for
complete details.
PCAOB Registration --
PCAOB Staff Guidance on Non-U.S. Accounting Firms Registration Updated
For detail, please contact info@zy-cpa.com
As discussed above in our
Accounting and SEC Summaries, the PCAOB has published an update to its staff
guidance related to the registration process for applicants from non-U.S.
jurisdictions where the PCAOB is prevented from inspecting PCAOB-registered
firms. The jurisdictions currently affected are
The new guidance appears as
an addition to the PCAOB staff answers to Frequently Asked Questions
Regarding Issues Relating to Non-U.S. Accounting Firms. The guidance alerts
applicants from the affected jurisdictions that the staff intends to recommend
that the PCAOB request certain additional information before acting on those
applications, and it explains how an applicant can seek to avoid delay by
including the information when it first submits the application. The
information includes identifying information about public company audits in
which the applicant has recently played, or expects to play, any role, and
identifying information about other PCAOB-registered firms in whose audits the
applicant expects to play any role. The additional information is intended to
facilitate the PCAOB’s understanding of the scope and
nature of the applicant's activities related to SEC-reporting companies.
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