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Accounting
Research Manager®
Weekly
Summary of Developments
December
26-30, 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
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ACCOUNTING
AND SEC HEADLINES:
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Comprehensive
Income -- FASB Issues Guidance
For detail, please contact info@hkcmcpa.us
The FASB has
issued Accounting Standards Update (ASU) No. 2011-12, Comprehensive Income
(Topic 220): Deferral of the Effective Date for Amendments to the Presentation
of Reclassifications of Items Out of Accumulated Other Comprehensive Income in
Accounting Standards Update No. 2011-05. The amendments to the Codification
in ASU No. 2011-12 are effective at the same time as the amendments in ASU No.
2011-05, Comprehensive Income (Topic 220): Presentation of Comprehensive
Income, so that entities will not be required to comply with the
presentation requirements in ASU No. 2011-05 that ASU No. 2011-12 is deferring.
In order to
defer only those changes in ASU No. 2011-05 that relate to the presentation of
reclassification adjustments, the paragraphs in ASU No. 2011-12 supersede
certain pending paragraphs in ASU No. 2011-05. The amendments are being made to
allow the FASB time to redeliberate whether to
present on the face of the financial statements the effects of
reclassifications out of accumulated other comprehensive income on the
components of net income and other comprehensive income for all periods
presented. While the FASB is considering the operational concerns about the
presentation requirements for reclassification adjustments and the needs of
financial statement users for additional information about reclassification
adjustments, entities should continue to report reclassifications out of
accumulated other comprehensive income consistent with the presentation
requirements in effect before ASU No. 2011-05.
All other
requirements in ASU No. 2011-05 are not affected by ASU No. 2011-12, including
the requirement to report comprehensive income either in a single continuous
financial statement or in two separate but consecutive financial statements.
Public entities should apply these requirements for fiscal years, and interim
periods within those years, beginning after December 15, 2011. Nonpublic
entities should begin applying these requirements for fiscal years ending after
December 15, 2012, and interim and annual periods thereafter.
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," to reflect the issuance of ASU No. 2011-12,
discussed above. 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.
See our
Literature Update for complete details.
Financial
Statements -- 2011-2012 GAAP Financial Statement Disclosures Manual Published
For detail, please contact info@hkcmcpa.us
We have published
the 2011-2012 GAAP Financial Statement Disclosures Manual, which
provides comprehensive guidance on the subject of financial statement
disclosures. This edition of the manual incorporates the financial statement
disclosure requirements through ASU No. 2011-01, Receivables (Topic 310):
Deferral of the Effective Date of Disclosures about Troubled Debt
Restructurings in Update No. 2010-20.
See our
Literature Update for complete details.
Current
Developments -- AICPA Issues Alerts
The AICPA
has issued the following alerts:
-Compilation
and Review Alert, Compilation and Review Developments - 2011/12; and
For detail, please contact info@hkcmcpa.us
-Audit Risk
Alert, Investment Companies Industry Developments - 2011/12.
For detail, please contact info@hkcmcpa.us
The
Compilation and Review Alert is intended to provide accountants with an update
on recent practice issues and professional standards that affect compilation
and review engagements. The Audit Risk Alert is intended to provide auditors of
financial statements of investment companies with an overview of recent
economic, industry, technical, regulatory, and professional developments that
may affect the audits and other engagements they perform. Both alerts can also
be used by an entity’s internal management to address areas of concern.
IFRS for SMEs -- Q&As
and Other Matters Discussed
For detail, please contact info@hkcmcpa.us
The IASB staff
has issued its periodic "IFRS for SMEs
Update" publication which is a 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 and
other topics:
-Two final Q&As published by SME Implementation Group;
-Status
report on Q&As about the IFRS for SMEs;
-Status
report on IFRS for SMEs translations;
-New
training module, “Section 33 Related Party Disclosures”;
-Other
upcoming “train the trainers” workshops; and
-Guidance on
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
=======================================
AUDITING AND
INTERNAL CONTROLS HEADLINES:
=======================================
Auditor’s
Written Communication -- ASB Issues SAS
For detail, please contact info@hkcmcpa.us
The Auditing
Standards Boards (ASB) of the AICPA has issued Statement on Auditing Standards
(SAS) No. 125, Alert That Restricts the Use of the Auditor's Written
Communication. SAS 125 addresses the auditor's responsibility to include in
the auditor's report or other written communication issued by the auditor,
language that restricts the use of the auditor's written communication, when
appropriate. SAS 125, which also amends other SASs,
was issued by the ASB as a result of the AICPA’s
Clarity Project to supersede SAS No. 87, Restricting the Use of an Auditor's
Report (AU Section 532 and AU-C Section 905).
SAS 125 is
effective for the auditor's written communications related to audits of
financial statements for periods ending on or after December 15, 2012. For all
other engagements conducted in accordance with
The AICPA’s Clarity Project is intended to make existing U.S.
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."
Auditor’s
Report -- Modified Opinion
For detail, please contact info@hkcmcpa.us
We have
added a GAAS Update Service that provides discussion and analysis of a
clarified SAS, Modifications to the Opinion in the Independent Auditor’s
Report, which was finalized as part of the AICPA's
Clarity Project and subsequently designated as AU-C Section 705 by SAS No. 122,
Statements on Auditing Standards: Clarification and Recodification.
AU-C Section 705 will supersede:
-SAS No. 32,
Adequacy of Disclosure in Financial Statements (AU Section 431); and
-Various
paragraphs of SAS No. 58, Reports on Audited Financial Statements (AU
Section 508).
AU-C Section
705 will be effective for audits of financial statements for periods ending on
or after December 15, 2012.
Employee
Benefit Plans -- New Edition of Knowledge-Based Audits Published
For detail, please contact info@hkcmcpa.us
We have
published a new edition of Knowledge-Based Audits of Employee Benefit Plans.
This publication is designed to help the auditor efficiently and effectively
perform financial statement audits of employee benefit plans in accordance with
U.S. GAAS.
See our
Literature Update for complete details.
Management
Letters -- Guidance Updated
For detail, please contact info@hkcmcpa.us
We have
published the 2012 edition of CPA’s Guide to Management Letter Comments.
This publication is a comprehensive resource that provides users with vital
information on the preparation of management letter comments. This publication
can be used during the actual preparation of the management letter as well as
serving as a tool when reviewing or developing other effective and useful
comments that might apply to a client’s situation. The 2012 edition has been
updated through SAS No. 121, Revised Applicability of Statement on Auditing Standards
No. 100, Interim Financial Information. This
publication has also been updated throughout with the latest management
comments.
See our
Literature Update for complete details.
Current
Developments -- AICPA Issues Alerts
As discussed
above in our Accounting and SEC Summaries, the AICPA has issued the following
alerts:
-Compilation
and Review Alert, Compilation and Review Developments - 2011/12; and
For detail, please contact info@hkcmcpa.us
-Audit Risk
Alert, Investment Companies Industry Developments - 2011/12.
For detail, please contact info@hkcmcpa.us
The
Compilation and Review Alert is intended to provide accountants with an update
on recent practice issues and professional standards that affect compilation
and review engagements. The Audit Risk Alert is intended to provide auditors of
financial statements of investment companies with an overview of recent
economic, industry, technical, regulatory, and professional developments that
may affect the audits and other engagements they perform. Both alerts can also
be used by an entity’s internal management to address areas of concern.
GAO
Announcement -- Yellow Book Revision
For detail, please contact info@hkcmcpa.us
With the
issuance of the December 2011 Revision of Government Auditing Standards,
the U.S. Government Accountability Office (GAO) published a short advisory
letter providing background on the current revision of Government Auditing
Standards (the Yellow Book). In addition, the letter summarizes the major
changes from the 2007 revision as well as other matters of interest. See the
following item for a discussion of the Government Auditing Standards, December
2011 Revision and changes from the previously issued 2011 Internet
Version.
Government
Auditing Standards -- GAO Issues December 2011 Revision
For detail, please contact info@hkcmcpa.us
The GAO has
issued Government Auditing Standards, December 2011 Revision. The December
2011 Revision is the final version of The Yellow Book and supersedes the 2011
Internet Version. The December 2011 Revision contains limited
changes made since the 2011 Internet Version was posted in August 2011.
These changes include:
-Clarification
of references to the AICPA Codification of Statements on Auditing Standards;
-A revision
of the list of safeguard examples in paragraph 3.17; and
-A
clarification of and limited change in documentation requirements for
procedures related to communication of certain internal control deficiencies,
fraud, abuse, and noncompliance in paragraphs 4.26, 5.23, 5.25, 5.49, 5.59,
7.19, and 7.22.
Government
Auditing Standards, December 2011 Revision is effective for financial audits
and attestation engagements for periods ending on or after December 15, 2012.
The effective date for performance audits is for audits beginning on or after
December 15, 2011. Early implementation is not permitted.
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:
=======================================
GAO
Announcement -- Yellow Book Revision
For detail, please contact info@hkcmcpa.us
As discussed
above in our Audit and Internal Control Summaries, with the issuance of the
December 2011 Revision of Government Auditing Standards, the U.S.
Government Accountability Office (GAO) published a short advisory letter
providing background on the current revision of Government Auditing
Standards (the Yellow Book). In addition, the letter summarizes the major
changes from the 2007 revision as well as other matters of interest. See the
following item for a discussion of the Government Auditing Standards, December
2011 Revision and changes from the previously issued 2011 Internet
Version.
Government
Auditing Standards -- GAO Issues December 2011 Revision
For detail, please contact info@hkcmcpa.us
As discussed
above in our Audit and Internal Control Summaries, the GAO has issued Government
Auditing Standards, December 2011 Revision. The December 2011 Revision
is the final version of The Yellow Book and supersedes the 2011 Internet
Version. The December 2011 Revision contains limited changes made
since the 2011 Internet Version was posted in August 2011. These changes
include:
-Clarification
of references to the AICPA Codification of Statements on Auditing Standards;
-A revision
of the list of safeguard examples in paragraph 3.17; and
-A
clarification of and limited change in documentation requirements for
procedures related to communication of certain internal control deficiencies,
fraud, abuse, and noncompliance in paragraphs 4.26, 5.23, 5.25, 5.49, 5.59,
7.19, and 7.22.
Government
Auditing Standards, December 2011 Revision is effective for financial audits
and attestation engagements for periods ending on or after December 15, 2012.
The effective date for performance audits is for audits beginning on or after
December 15, 2011. Early implementation is not permitted.
GASB Year
in Review -- Happy New Year from the GASB
For detail, please contact info@hkcmcpa.us
We have
published a Governmental GAAP Update Service that discusses the GASB activities
for 2011. Topics discussed in this update include:
-The
following three standards released in late 2010: (1) GASB Statement No. 60, Accounting
and Financial Reporting for Service Concession Arrangements; (2) GASB
Statement No. 61, The Financial Reporting Entity: Omnibus; and
(3) GASB Statement No. 62, Codification of Accounting and Financial
Reporting Guidance Contained in Pre-November 30, 1989 FASB and AICPA
Pronouncements;
-The
following two standards released in June 2011: (1) GASB Statement No. 63, Financial
Reporting of Deferred Outflows of Resources, Deferred Inflows of Resources, and
Net Position; and (2) GASB Statement No. 64, Derivative Instruments:
Application of Hedge Accounting Termination Provisions; and
-Important
due process documents released.
The GASB
Report Issued -- New Members Appointed and Other Matters Discussed
For detail, please contact info@hkcmcpa.us
The November
2011 edition of the "The GASB Report" has been issued and includes
the following discussion items:
-The GASB
calendar;
-Reappointment
of Jan Sylvis to the GASB by the FAF trustees;
-Summary of
recent GASB meetings;
-Appointment
of new members to FAF Board of Trustees;
-Appointment
of Governmental Accounting Standards Advisory Council (GASAC) members; and
-Summary of
recent GASAC meeting.
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