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Accounting Research
Manager(TM)
Weekly Summary of
Developments
September 6-10, 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
EITF Materials -- FASB Issues Additional Materials for
September 16, 2010 EITF Meeting
Deferred Taxes -- IASB Issues Proposal to Amend IAS 12
Annual Improvements
Project -- IASB to
Discuss Annual Improvements Project and Other Matters
Compensation -- IFRS Interpretations Committee
Discusses Vesting/Non-Vesting Conditions and Other Matters
Auditing and Internal
Controls Headlines
Health Care Entities -- New Edition of Knowledge-Based Audits
of Health Care Entities Published
Fraud -- AICPA Publishes Handbook of Fraud and
Commercial Crime Prevention
Financial Reporting Fraud -- AICPA Publishes Guide to Detection and
Internal Control
Audit Considerations
Relating to an Entity Using a Service Organization -- Discussion and Analysis of Statement on Auditing
Standards
Government Headlines
Pension Standards -- GASB Preliminary Views Discussed
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ACCOUNTING AND SEC HEADLINES:
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EITF Materials -- FASB
Issues Additional Materials for September 16, 2010 EITF Meeting
For detail, please contact info@zy-cpa.com
The FASB has issued the
following additional materials for the September 16, 2010 EITF meeting:
-Revised agenda;
-EITF Issue No. 09-G,
"Accounting for Costs Associated with Acquiring or Renewing Insurance
Contracts" (comment letters and issue supplement);
-EITF Issue No. 09-H,
"Health Care Entities: Revenue Recognition" (issue supplement and
comment letters);
-EITF Issue No. 10-A,
"How the Carrying Amount of a Reporting Unit Should Be Calculated When
Performing Step 1 of the Goodwill Impairment Test" (issue supplement and
working group report);
-EITF Issue No. 10-B,
"Accounting for Multiple Foreign Currency Exchange Rates" (issue
supplement);
-EITF Issue No. 10-C,
"Reporting Loans to Participants by Defined Contribution Pension
Plans" (proposed update, issue supplement, and comment letters);
-EITF Issue No. 10-E,
"Accounting for Deconsolidation of a Subsidiary That Is In-Substance Real
Estate" (issue summary); and
-EITF Issue No. 10-G,
"Disclosure of Supplementary Pro Forma Information for Business Combinations"(issue
summary).
Deferred Taxes -- IASB
Issues Proposal to Amend IAS 12
For detail, please contact info@zy-cpa.com
The IASB has issued for
public comment an Exposure Draft (ED), Deferred Tax: Recovery of Underlying
Assets. This ED would amend one aspect of IAS 12, Income Taxes.
Under IAS 12, the measurement of deferred tax liabilities and deferred tax
assets depends on whether an entity expects to recover an asset by using the
asset or by selling the asset. In some cases, it is difficult and subjective to
assess whether recovery will be through use or through sale. To provide a
practical approach in these cases, this ED introduces a presumption that an
asset is recovered entirely through sale unless the entity has clear evidence
that recovery will occur in another manner. The presumption would apply when
investment properties, property, plant and equipment or intangible assets are remeasured at fair value or revalued at fair value.
Comments on this proposal are
due November 9, 2010.
Annual Improvements
Project -- IASB to Discuss Annual Improvements Project and Other Matters
For detail, please contact info@zy-cpa.com
The IASB has published the
agenda for its September 14-16, 2010 meeting. Topics to be discussed at this
meeting are:
-Annual improvements project;
-Foreign currency and
hyperinflation;
-Management commentary;
-Puts on non-controlling
interests: IFRS Interpretations Committee update;
-Financial instruments with
characteristics of equity;
-Fair value option for
financial liabilities;
-Financial instruments:
impairment;
-Liabilities: amendments to
IAS 37, Provisions, Contingent Liabilities and Contingent Assets;
-Post-employment benefits;
-Rate-regulated entities;
-IFRS Interpretations
Committee: update from last meeting; and
-Financial instruments: hedge
accounting.
In addition, the IASB and
FASB are scheduled to meet on September 15, 2010 and discuss the following
topics:
-Asset and liability
offsetting;
-Fair value measurement;
-Emissions trading schemes;
and
-Financial instruments: joint
education session.
Compensation -- IFRS
Interpretations Committee Discusses Vesting/Non-Vesting Conditions and Other
Matters
For detail, please contact info@zy-cpa.com
As reported in its
"IFRIC Update" publication, the IFRS Interpretations Committee met on
September 2-3, 2010, and discussed the following topics:
-Vesting and non-vesting
conditions;
-Agenda decisions;
-Tentative agenda decisions;
-Issues considered for
"Annual Improvements" project; and
-Work in progress.
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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Health Care Entities --
New Edition of Knowledge-Based Audits of Health Care Entities Published
For detail, please contact info@zy-cpa.com
We have published the 2010
first edition of Knowledge-Based Audits of Health Care Entities. This
publication will help readers comply with the AICPA's
risk assessment standards and has incorporated the Knowledge-Based Audit
methodology. The primary objective of this publication is to provide
practitioners with an effective approach for conducting audits of for-profit
(investor-owned) and not-for-profit health care entities. This edition reflects
comprehensive coverage of current accounting authoritative literature and,
among other things, auditing pronouncements through AICPA Statement on Auditing
Standards (SAS) No. 120, Required Supplementary
Information.
See our Literature Update for
complete details.
Fraud -- AICPA Publishes
Handbook of Fraud and Commercial Crime Prevention
For detail, please contact info@zy-cpa.com
We have added The CPA’s
Handbook of Fraud and Commercial Crime Prevention - 2010, published by the
AICPA with a focus on fraud prevention. This publication provides CPAs with
practical information, checklists, and examples to help identify and respond to
fraud in the workplace. The publication discusses a number of topics on fraud
and commercial crime prevention, including:
-Managing the risk of fraud;
-Promoting an ethical
environment;
-Insurance against fraud;
-Computer security and system
recovery; and
-Asset misappropriation.
Financial Reporting Fraud
-- AICPA Publishes Guide to Detection and Internal Control
For detail, please contact info@zy-cpa.com
We have added the AICPA's publication, Financial Reporting Fraud: A
Practical Guide to Detection and Internal Control - 2010. This publication
addresses the issue of fraud from a practical perspective, using illustrations
and examples to explore fraud concepts, in addition to references to research
findings and authoritative literature. Topics discussed in this publication
include:
-The nature of financial
reporting fraud;
-Earnings manipulation and
management;
-Balance sheet manipulation;
-Special issues for closely
held companies; and
-Not-for-profit and
government entities.
Audit Considerations Relating to an Entity Using a Service Organization -- Discussion
and Analysis of Statement on Auditing Standards
For detail, please contact info@zy-cpa.com
We have added a GAAS Update
Service that provides discussion and analysis of clarified SAS, Audit
Considerations Relating to an Entity Using a Service
Organization. The clarified SAS will supersede the requirements and
guidance for user auditors in SAS 70 (AU Section 324), Service Organizations,
and addresses the user auditor’s responsibility for obtaining sufficient
appropriate audit evidence in an audit of the financial statements of a user
entity that uses one or more service organizations. The SAS has been redrafted
to apply the AICPA's clarity drafting conventions as
part of its Clarity Project. This update is the second in a two-part coverage
of this SAS, and specifically discusses the following topics:
-Responding to the assessed
risks of material misstatement;
-Considerations when the type
1 and type 2 reports exclude the services of a subservice
organization;
-Fraud, noncompliance with
laws and regulations, and uncorrected misstatements in relation to activities
at the service organization; and
-Reporting considerations by
the user auditor.
The clarified SAS is
effective for audits of financial statements for periods ending on or after
December 15, 2012.
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."
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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Pension Standards -- GASB
Preliminary Views Discussed
For detail, please contact info@zy-cpa.com
We have added a Governmental
GAAP Update Service that discusses the GASB's
Preliminary Views, Pension Accounting and Financial Reporting by Employers.
This document presents the GASB’s current views on
what it believes are the most fundamental issues related to recognition and
measurement of pension obligations by state and local government employers. The
purpose of the document is to obtain comments from constituents on those views
before developing more detailed proposals for changes to existing accounting
and financial reporting standards.
Topics discussed in this
update include:
-Pension costs - employer vs.
employee relationship;
-The pension liability;
-Defining the pension
expense;
-Effect of cost sharing
plans;
-Frequency and timing of
valuations; and
-GASB plans on pension
standards.
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