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Accounting Research Manager®
Weekly Summary of Developments
May 9-13, 2011
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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@hkcmcpa.us
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
Fair Value Measurement -- FASB Issues Revised Guidance
New Accounting Standards -- Checklist Updated
Investment Properties -- FASB Discusses Investment
Properties
Insurance Contracts -- IASB and FASB Discuss Insurance
Contracts
IFRS for SMEs -- Draft Q&As and Other Matters Discussed
Auditing and Internal
Controls Headlines
Public Entities -- New Edition of Knowledge-Based
Audits of Public Entities Published
Terms of Engagement -- Clarified SAS Discussed
Government Headlines
Financial Reports -- Use of Census 2010 Information
in Financial Reports Discussed
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ACCOUNTING AND SEC HEADLINES:
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Fair Value Measurement --
FASB Issues Revised Guidance
For detail, please contact info@hkcmcpa.us
The FASB has issued Accounting
Standards Update (ASU) No. 2011-04, Fair
Value Measurement (Topic 820): Amendments to Achieve Common Fair Value
Measurement and Disclosure Requirements in
The amendments to the FASB
Accounting Standards Codification™ (Codification) in this ASU are to be
applied prospectively. For public entities, the amendments are effective during
interim and annual periods beginning after December 15, 2011. For nonpublic
entities, the amendments are effective for annual periods beginning after
December 15, 2011. Early application by public entities is not permitted.
Nonpublic entities may apply the amendments in ASU 2011-04 early, but no
earlier than for interim periods beginning after December 15, 2011.
New Accounting Standards --
Checklist Updated
For detail, please contact info@hkcmcpa.us
We have updated our
publication "Summary Checklist of Recent Authoritative U.S. Accounting
Standards." This checklist is intended to serve as a reference tool to
help users ensure that they have considered authoritative standards recently
issued or approved by the FASB. The checklist is updated shortly after the FASB
adds or revises content in the Codification. The standards are listed by source
and a summary of the transition guidance is provided with a reference to the
relevant Codification paragraph(s). Effective dates and application (adoption)
requirements are also presented.
We have updated our checklist
to reflect the issuance of ASU No. 2011-04, discussed above.
See our Literature Update for
complete details.
Investment Properties -- FASB
Discusses Investment Properties
For detail, please contact info@hkcmcpa.us
As reported in its
"Summary of Board Decisions" publication, the FASB met on May 11,
2011, and discussed presentation and consolidation issues related to investment
property entities. The FASB decided that:
-An Investment property entity
should present the following items separately on the face of the financial
statements related to investment property investments: (a) rental
income; (b) rental expenses; (c) fair value of investment
properties; and (d) debt; and
-An Investment property entity
would be prohibited from consolidating controlling interests in noninvestment
property entities unless the controlling interest is in an operating entity
that provides services to the investment property entity.
The FASB also decided to
refine the definition of an "investment property entity."
Insurance Contracts -- IASB
and FASB Discuss Insurance Contracts
For detail, please contact info@hkcmcpa.us
As reported in its "IASB
Update" publication, the Boards met on May 4, 2011, and discussed
insurance contracts. Specifically, the Boards considered the unbundling of
goods and services and of investment components. The Boards indicated their intention
to be consistent with the approach in their revenue recognition project,
subject to considering whether the pattern of transfer criterion is needed in
this context and to future decisions on allocation. In addition, the Boards
tentatively decided that an insurer should unbundle explicit account balances
that are credited with an explicit return that is based on the account balance.
IFRS for SMEs -- Draft Q&As
and Other Matters Discussed
For detail, please contact info@hkcmcpa.us
The IASB staff has issued
"IFRS for SMEs Update" publication which is
a staff summary of news relating to the International Financial Reporting
Standard for Small and Medium-Sized Entities (IFRS for SMEs)
. This update includes discussion of the following
topics:
-SME Implementation Group
publishes three more draft Q&As on captive
insurance subsidiaries, interpretation of "traded in a public
market," and investment funds with only a few participants;
-New member appointed to the
SME Implementation Group;
-Translations of the IFRS for SMEs;
-Upcoming "train the
trainers" workshops; and
-Where to obtain IFRS for SMEs materials.
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@hkcmcpa.us
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AUDITING AND INTERNAL CONTROLS
HEADLINES:
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Public Entities -- New
Edition of Knowledge-Based Audits of Public Entities Published
For detail, please contact info@hkcmcpa.us
We have updated Knowledge-Based
Audits of Public Entities. This publication is designed to help the auditor
efficiently and effectively perform financial statement audits of commercial
domestic entities, registered with the SEC, in accordance with the standards of
the PCAOB. This edition of the publication includes revisions and updates to
reflect current authoritative literature, including the eight risk assessment
standards issued by the PCAOB, which were approved by the SEC in December 2010.
See our Literature Update for
complete details.
Terms of Engagement --
Clarified SAS Discussed
For detail, please contact info@hkcmcpa.us
We have added a GAAS Update
Service that provides discussion and analysis of a clarified Statement on
Auditing Standards (SAS), Terms of Engagement, which was finalized as
part of the AICPA's Clarity Project. The clarified
SAS addresses the auditor’s responsibilities in agreeing upon the terms of the
audit engagement with management and those charged with governance, including
establishing that certain preconditions for an audit are present. The clarified
SAS will supersede: (1) AU Section 315, Communications Between
Predecessor and Successor Auditors, paragraphs .03–.10 and .14; and (2) AU
Section 311, Planning and Supervision, paragraphs .08–.10.
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": For
detail, please contact info@hkcmcpa.us
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@hkcmcpa.us
======================
GOVERNMENT HEADLINES:
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Financial Reports -- Use of
Census 2010 Information in Financial Reports Discussed
For detail, please contact info@hkcmcpa.us
We have added a Governmental
GAAP Update Service that discusses the release of the decennial census
information during 2010 and opportunities or challenges for the preparers of
financial reports in accordance with generally accepted accounting principles
for governments. Topics discussed in this update include:
-Accessing the Census data;
-Running a dataset to use in a
comprehensive annual financial report (CAFR); and
-Using Census data in a CAFR,
an annual report, or other uses.
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@hkcmcpa.us