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Accounting Research
Manager(TM)
Weekly Summary of
Developments
September 13-17, 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
EITF Meeting Results -- Decisions Reached
Internal Control Over
Financial Reporting --
SEC Adopts Final Rule Providing Permanent Exemption from SOX 404(b) for Nonaccelerated Filers
Fair Value Measurement -- FASB Discusses Fair Value Measurement
and Other Matters
Risk Assessment -- SEC Seeks Comments on PCAOB Proposed
Auditing Standards
SEC Reporting -- SEC Publishes Updated EDGAR Filer
Manual
Auditing and Internal
Controls Headlines
Internal Control Over
Financial Reporting --
SEC Adopts Final Rule Providing Permanent Exemption from SOX 404(b) for Nonaccelerated Filers
Risk Assessment -- SEC Seeks Comments on PCAOB Proposed
Auditing Standards
Government Headlines
GASB Report Issued -- Financial Instruments and Other
Matters Discussed
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ACCOUNTING AND SEC HEADLINES:
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EITF Meeting Results --
Decisions Reached
For detail, please contact info@zy-cpa.com
As described in detail in our
"EITF Flash Report," the Emerging Issues Task Force (EITF) discussed
the following issues at its meeting of September 16, 2010:
-EITF Issue No. 09-G,
"Accounting for Costs Associated with Acquiring or Renewing Insurance
Contracts";
-EITF Issue No. 09-H,
"Health Care Entities: Revenue Recognition";
-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";
-EITF Issue No. 10-B,
"Accounting for Multiple Foreign Currency Exchange Rates";
-EITF Issue No. 10-C,
"Reporting Loans to Participants by Defined Contribution Pension Plans";
-EITF Issue No. 10-E,
"Accounting for Deconsolidation of a Subsidiary That Is In-Substance Real
Estate"; and
-EITF Issue No. 10-G,
"Disclosure of Supplementary Pro Forma Information for Business
Combinations."
The EITF reached final
consensuses on Issues 09-G and 10-C. The EITF also reached
consensuses-for-exposure on Issues 09-H, 10-A, and 10-G. The FASB must still
ratify these decisions although the FASB informally approved the consensus in
Issue 10-C. The EITF did not reach a consensus-for-exposure on Issues 10-B and
10-E.
Prior to the EITF meeting
this week, the FASB distributed additional meeting materials relating to Issues
09-G, 10-C, and 10-A:
For detail, please contact info@zy-cpa.com
See our EITF Flash Report for
complete details.
Internal Control Over
Financial Reporting -- SEC Adopts Final Rule Providing Permanent Exemption from
SOX 404(b) for Nonaccelerated Filers
For detail, please contact info@zy-cpa.com
The SEC has issued a final
rule, Internal Control Over Financial Reporting in
Exchange Act Periodic Reports of Non-Accelerated Filers. This rule provides
a permanent exemption for nonaccelerated filers from
the requirement to obtain an external audit on the effectiveness of internal
financial reporting controls provided in Section 404(b) of the Sarbanes-Oxley
Act of 2002 (SOX). Specifically, this rule adopts amendments to SEC rules and
forms to conform them to Section 404(c) of SOX, as added by Section 989G of the
"Dodd-Frank Wall Street Reform and Consumer Protection Act." Section
404(c) provides that Section 404(b) of SOX does not apply with respect to any
audit report prepared for an issuer that is neither an accelerated filer nor a
large accelerated filer as defined in Rule 12b-2 under the Securities Exchange
Act of 1934.
This final rule is effective
on the date of publication in the Federal Register.
Fair Value Measurement --
FASB Discusses Fair Value Measurement and Other Matters
For detail, please contact info@zy-cpa.com
As discussed in its
"Summary of Board Decisions" publication, the FASB and IASB (the
Boards) met on September 15, 2010, and discussed the following issues:
-Fair value measurement;
-Balance sheet - offsetting;
-Emissions trading schemes;
and
-Accounting for financial
instruments: impairment.
The Boards discussed the
comment letters received on the FASB’s proposed
Accounting Standards Update, Fair Value Measurements and Disclosures (Topic
820),and
the IASB’s reexposure of
the measurement uncertainty analysis disclosure. In October 2010, the Boards
will resume their discussions on the issues raised in the comment letters and
the Boards plan to issue a common fair value measurement standard in the first
quarter of 2011. The Boards did not make any technical decisions on fair value
measurement at this meeting.
The IASB staff presented an
overview of the feedback received on the IASB’s
Exposure Draft, Financial Instruments: Amortised
Cost and Impairment. Additionally, the FASB staff presented an overview of
feedback received to date on the proposed impairment guidance in the FASB
Exposure Draft, Accounting for Financial Instruments and Revisions to the
Accounting for Derivative Instruments and Hedging Activities. This meeting
was informational; no decisions were reached.
Risk Assessment -- SEC
Seeks Comments on PCAOB Proposed Auditing Standards
For detail, please contact info@zy-cpa.com
The SEC has published for
public comment, Notice of Filing of Proposed Rules on Auditing Standards
Related to the Auditor’s Assessment of and Response to Risk and Related
Amendments to PCAOB Standards. This document seeks public comment on the PCAOB's previous adoption of the following eight auditing
standards related to the auditor’s assessment of, and response to, risk in an
audit:
-PCAOB Auditing Standard (AS)
No. 8, Audit Risk;
-AS No. 9, Audit Planning;
-AS No. 10, Supervision of
the Audit Engagement;
-AS No. 11, Consideration
of Materiality in Planning and Performing an Audit;
-AS No. 12, Identifying
and Assessing Risks of Material Misstatement;
-AS No. 13, The Auditor’s
Responses to the Risks of Material Misstatement;
-AS No. 14, Evaluating
Audit Results; and
-AS No. 15, Audit
Evidence.
Comments on this document are
due 21 days after publication in the Federal Register.
SEC Reporting -- SEC
Publishes Updated EDGAR Filer Manual
For detail, please contact info@zy-cpa.com
The SEC has published a final
rule, Adoption of Updated EDGAR Filer Manual. This rule includes
revisions to the Electronic Data Gathering, Analysis, and Retrieval System
(EDGAR) Filer Manual, to reflect updates in the EDGAR system. The revisions are
being made primarily to support the electronic filing of Form N-MFP (Monthly
Schedule of Portfolio Holdings of Money Market Funds) and any amendments to the
form. The EDGAR system is scheduled to be upgraded to support this
functionality on August 30, 2010.
This final rule is effective
on the date of publication in the Federal Register.
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:
=======================================
Internal Control Over
Financial Reporting -- SEC Adopts Final Rule Providing Permanent Exemption from
SOX 404(b) for Nonaccelerated Filers
For detail, please contact info@zy-cpa.com
As discussed above in our
Accounting and SEC Summaries, the SEC has issued a final rule, Internal
Control Over Financial Reporting in Exchange Act
Periodic Reports of Non-Accelerated Filers. This rule provides a permanent
exemption for nonaccelerated filers from the
requirement to obtain an external audit on the effectiveness of internal financial
reporting controls provided in Section 404(b) of the Sarbanes-Oxley Act of 2002
(SOX). Specifically, this rule adopts amendments to SEC rules and forms to
conform them to Section 404(c) of SOX, as added by Section 989G of the
"Dodd-Frank Wall Street Reform and Consumer Protection Act." Section
404(c) provides that Section 404(b) of SOX does not apply with respect to any
audit report prepared for an issuer that is neither an accelerated filer nor a
large accelerated filer as defined in Rule 12b-2 under the Securities Exchange
Act of 1934.
This final rule is effective
on the date of publication in the Federal Register.
Risk Assessment -- SEC
Seeks Comments on PCAOB Proposed Auditing Standards
For detail, please contact info@zy-cpa.com
As discussed above in our
Accounting and SEC Summaries, the SEC has published for public comment, Notice
of Filing of Proposed Rules on Auditing Standards Related to the Auditor’s
Assessment of and Response to Risk and Related Amendments to PCAOB Standards.
This document seeks public comment on the PCAOB's
previous adoption of the following eight auditing standards related to the
auditor’s assessment of, and response to, risk in an audit:
-PCAOB Auditing Standard (AS)
No. 8, Audit Risk;
-AS No. 9, Audit Planning;
-AS No. 10, Supervision of
the Audit Engagement;
-AS No. 11, Consideration
of Materiality in Planning and Performing an Audit;
-AS No. 12, Identifying
and Assessing Risks of Material Misstatement;
-AS No. 13, The Auditor’s
Responses to the Risks of Material Misstatement;
-AS No. 14, Evaluating
Audit Results; and
-AS No. 15, Audit
Evidence.
Comments on this document are
due 21 days after publication in the Federal Register.
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:
======================
GASB Report Issued --
Financial Instruments and Other Matters Discussed
For detail, please contact info@zy-cpa.com
The August 2010 edition of
the "GASB Report" has been issued and includes the following
discussion items:
-GASB calendar;
-Comment deadline approaching
on the GASB Preliminary Views, Pension Accounting and Financial Reporting by
Employers;
-Summary of GASB board
meetings;
-Who's who at the GASB; and
-Upcoming events featuring
GASB members and staff.
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