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Accounting Research Manager(TM)
Weekly Summary of Developments
August 9-13, 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

Income Taxes -- Interpretation Updated
SEC Reporting -- SEC Staff Publishes Updated Interpretations
IFRS -- SEC Seeks Comments on Incorporating IFRS Into the Financial Reporting System for U.S. Issuers
Construction Guide -- New Edition of Knowledge-Based Audits Publishe

Auditing and Internal Controls Headlines

Reporting on Controls at a Service Organization -- Discussion and Analysis of SSAE 16
Construction Guide -- New Edition of Knowledge-Based Audits Published

Government Headlines

Derivative Instruments -- GASB 53 Discussed

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ACCOUNTING AND SEC HEADLINES:
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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). We have added new interpretations covering the following topics:

-Intercompany transfers of intellectual property;
-Effect of noncontrolling interests in subsidiary tax pass-through entities;
-Effect of noncontrolling interests in subsidiary tax pass-through entities on the effective tax rate reconciliation; and
-Effect of noncontrolling interests in subsidiary tax pass-through entities on the estimated annual effective tax rate used to determine income tax expense or benefit in interim periods.

See our Literature Update for complete details.

SEC Reporting -- SEC Staff Publishes Updated Interpretations
For detail, please contact info@zy-cpa.com

The staff in the Division of Corporation Finance (Corp Fin) of the SEC has issued updates to several of its Compliance and Disclosure Interpretations (C&DIs). These C&DIs provide interpretations by Corp Fin, in a question and answer format, of various SEC rules and regulations. The C&DIs updated by Corp Fin are as follows:

-Securities Act Sections;
-Securities Act Rules;
-Securities Act Forms;
-Exchange Act Rules;
-Exchange Act Forms; and
-Exchange Act Section 16 and Related Rules and Forms.

Topics updated in these C&DIs include reincorporation and foreign private issuer status, including certain Section 16 reporting implications, and incorporating by reference Part III information from a definitive proxy statement.

See our Literature Update for complete details.

IFRS -- SEC Seeks Comments on Incorporating IFRS Into the Financial Reporting System for U.S. Issuers

The SEC has issued the following two releases:

-Release No. 33-9133, Notice of Solicitation of Public Comment on Consideration of Incorporating IFRS Into the Financial Reporting System for U.S. Issuers; and
For detail, please contact info@zy-cpa.com

-Release No. 33-9134, Notice of Solicitation of Public Comment on Consideration of Incorporating IFRS Into the Financial Reporting System for U.S. Issuers.
For detail, please contact info@zy-cpa.com

These releases seek public comments on topics derived from the SEC staff's "Work Plan" described in the Commission Statement in Support of Convergence and Global Accounting Standards (issued in February 2010). Specifically, these releases seek comments on the effect that incorporating IFRS into the financial reporting system for U.S. issuers would have on the following:

-U.S. investors’ current knowledge of IFRS and their preparedness for the incorporation of IFRS into the financial reporting system;
-How investors should educate themselves on the changes in accounting standards (and the timeliness of such education);
-The extent of the logistics and the estimated time required to undertake changes to improve investor understanding of IFRS;
-The education process required to ensure that investors have a sufficient understanding of IFRS prior to the potential incorporation;
-Issuers’ compliance with contractual arrangements that require the use of U.S. GAAP;
-Issuers’ compliance with corporate governance requirements; and
-Application of certain legal standards tied to the amounts determined for financial reporting purposes.

Comments on both releases are due 60 days after publication in the Federal Register.

Construction Guide -- New Edition of Knowledge-Based Audits Published
For detail, please contact info@zy-cpa.com

We have published the 2010 edition of Construction Guide: Accounting and Knowledge-Based Audits. This publication will help readers comply with the AICPA's risk assessment standards and has incorporated the Knowledge-Based Audit methodology. This edition of the publication reflects comprehensive coverage of current authoritative literature, and, among other things:

-Auditing pronouncements through AICPA Statement on Auditing Standards No. 115, Communicating Internal Control Related Matters Identified in an Audit; and
-Accounting pronouncements through FASB Accounting Standards Update (ASU) No. 2010-06, Fair Value Measurement and Disclosures (Topic 820) - Improving Disclosures about Fair Value Measurements.

See our Literature Update for complete details.

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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Reporting on Controls at a Service Organization -- Discussion and Analysis of SSAE 16
For detail, please contact info@zy-cpa.com

We have added a GAAS Update Service that provides discussion and analysis of Statement on Standards for Attestation Engagements (SSAE) No. 16, Reporting on Controls at a Service Organization, which contains the requirements and guidance for a service auditor reporting on a service organization’s controls. This Update discusses the following topics:

-Obtaining written representations from management;
-Service auditor’s responsibility for other information included in a document containing management’s description of the service organization’s system and the service auditor’s report;
-Subsequent events;
-Documentation requirements;
-The service auditor’s report; and
-Other communication requirements.

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

Construction Guide -- New Edition of Knowledge-Based Audits Published
For detail, please contact info@zy-cpa.com

As discussed above in our Accounting and SEC Summaries, we have published the 2010 edition of Construction Guide: Accounting and Knowledge-Based Audits. This publication will help readers comply with the AICPA's risk assessment standards and has incorporated the Knowledge-Based Audit methodology. This edition of the publication reflects comprehensive coverage of current authoritative literature, and, among other things:

-Auditing pronouncements through AICPA Statement on Auditing Standards No. 115, Communicating Internal Control Related Matters Identified in an Audit; and
-Accounting pronouncements through ASU No. 2010-06, Fair Value Measurement and Disclosures (Topic 820) - Improving Disclosures about Fair Value Measurements.

See our Literature Update for complete details.

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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Derivative Instruments -- GASB 53 Discussed
For detail, please contact info@zy-cpa.com

We have added a Governmental GAAP Update Service that discusses the requirements of GASB Statement No. 53, Accounting and Financial Reporting for Derivative Instruments. GASB 53 provides the definition of a derivative and addresses measurement, reporting, and disclosure requirements for derivative instruments and transactions entered into by state and local governments. The objective is to enhance the usefulness and comparability of derivative instrument information in the financial statements of state and local governments. This update includes discussion of the following topics:

-Basic tests for hedge accounting implementation;
-Evaluating effectiveness;
-Reporting; and
-Termination of hedge accounting.

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