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Accounting Research
Manager(TM)
Weekly Summary of
Developments
July 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
Financial Reporting Manual -- SEC Staff Updates Its Financial
Reporting Manual
EITF Materials -- FASB Issues Additional Materials for
July 29, 2010 EITF Meeting
Auditing and Internal
Controls Headlines
Financial Institutions -- New Edition of Knowledge-Based Audits
Published
Evaluating Misstatements -- Clarified Auditing Standard on
Evaluation of Misstatements Identified During the Audit Discussed
Government Headlines
Fund Balances -- GASB 54 Discussed
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ACCOUNTING AND SEC HEADLINES:
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Financial Reporting Manual
-- SEC Staff Updates Its Financial Reporting Manual
For detail, please contact info@zy-cpa.com
The staff in the SEC's
Division of Corporation Finance (Corp Fin) has updated its Financial
Reporting Manual, as of March 31, 2010. This manual represents informal
guidance prepared for use by the Corp Fin staff. Corp Fin has made this manual
public because readers may find the guidance useful in preparing filings with
the SEC. Updates in this edition of the manual were made to specific sections
within the following topics:
-Topic 1, "Registrant's
Financial Statements";
-Topic 2, "Other
Financial Statements Required";
-Topic 3, "Pro Forma
Financial Information";
-Topic 4, "Independent
Accountants' Involvement";
-Topic 13, "Effects of
Subsequent Events on Financial Statements Required in Filings"; and
-Topic 16, "Multijurisdictional Disclosure System."
Guidance updated by Corp Fin
includes additional information on:
-Predecessor entity financial
statements, including on determining what a predecessor entity is and partial
year financial statements;
-Financial statement
requirements in the case of a disposition of a business; and
-The application of certain
PCAOB requirements in various filings with the SEC.
EITF Materials -- FASB
Issues Additional Materials for July 29, 2010 EITF Meeting
For detail, please contact info@zy-cpa.com
The FASB has issued the
following additional materials for the July 29, 2010 EITF meeting:
-EITF Issue No. 09-H,
"Health Care Entities: Revenue Recognition" (working group report);
-EITF Issue No. 10-B,
"Accounting for Multiple Foreign Currency Exchange Rates" (issue
summary); and
-EITF Issue No. 10-D,
"Accounting for Certain Fees Associated with Recently Enacted Health Care
Legislation" (issue summary).
Issue 09-H addresses revenue
recognition by health care entities that perform services for which the
ultimate collection of all or a certain portion of the amount billed or
billable is not expected in its entirety, is doubtful, or cannot be determined
at the time the services are rendered. Specifically, Issue 09-H addresses
whether collectibility must be reasonably assured
prior to a health care entity recognizing revenue.
Issue 10-B addresses the
accounting implications for entities that operate in foreign countries that
have multiple exchange rates, for example
Issue 10-D addresses the
accounting for the annual fee payable by pharmaceutical manufacturers to the
Federal government pursuant to the Patient Protection and Affordable Care Act
(the Act). Among other things, the Act imposes an annual fee on the
pharmaceutical manufacturing industry for each calendar year beginning on or
after January 1, 2011. Specifically, Issue 10-D addresses:
-How the annual fee imposed
by the Act should be classified in a reporting entity's income statement; and
-When the annual fee should
be recognized as an expense.
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:
=======================================
Financial Institutions --
New Edition of Knowledge-Based Audits Published
For detail, please contact info@zy-cpa.com
We have published the 2010
edition of Knowledge-Based Audits of Financial Institutions. This
publication is designed to help the auditor efficiently and effectively perform
financial statement audits of financial institutions in accordance with
auditing standards generally accepted in the United States (GAAS). This edition
includes revisions and updates to reflect current accounting authoritative
literature and, among other things, auditing pronouncements through:
-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.
See our Literature Update for
complete details.
Evaluating Misstatements
-- Clarified Auditing Standard on Evaluation of Misstatements Identified During
the Audit Discussed
For detail, please contact info@zy-cpa.com
We have added a GAAS Update
Service that provides discussion and analysis of a clarified SAS, Evaluation
of Misstatements Identified During the Audit,
resulting from the AICPA’s Clarity Project. The
redrafted SAS supersedes SAS 107 (AU Section 312), Audit Risk and
Materiality in Conducing an Audit, and is effective for audits of financial
statements for periods ending on or after December 15, 2012. The redrafted SAS
addresses the auditor’s responsibility to evaluate the effect of identified
misstatements on the audit and the effect of uncorrected misstatements, if any,
on the financial statements. The redrafted version of SAS 107 is considerably
condensed compared to the original version and has reorganized some of the
content of the original SAS 107 into other related SASs.
Also, other content of the original pronouncement has been or is being reorganized
into other redrafted SASs as the AICPA Clarity
Project progresses.
The AICPA’s
Clarity Project is intended to make existing U.S. generally accepted auditing
standards (GAAS) easier to understand, apply, and move toward converging U.S.
GAAS with International Standards on Auditing issued by the International
Auditing and Assurance Standards Board. For further information on the AICPA's Clarity Project, see our previously published
discussion and analysis in our publication "A Closer Look": For detail, please contact info@zy-cpa.com
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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Fund Balances -- GASB 54
Discussed
For detail, please contact info@zy-cpa.com
We have added a Governmental
GAAP Update Service that discusses GASB Statement No. 54, Fund Balance
Reporting and Governmental Fund Type Definitions. Specifically, this Update
examines the fund balance classifications established by GASB 54. GASB 54 is
intended to improve the usefulness of information provided to financial report
users about fund balance by providing clearer, more structured fund balance
classifications, and by clarifying the definitions of existing governmental
fund types. Topics discussed in this Update are:
-Nonspendable
and spendable fund balance;
-Restricted fund balance;
-Committed fund balance;
-Assigned fund balance;
-Unassigned fund balance;
-Encumbrances; and
-Disclosures.
GASB 54 is effective for financial
statements for periods beginning after June 15, 2010. Early adoption is
encouraged.
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