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Accounting
Research Manager®
Weekly
Summary of Developments
January 30 -
February 3, 2012
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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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International
Accounting -- New IFRS Checklist Published
For detail, please contact info@hkcmcpa.us
We have
issued our initial “Summary Checklist of Recent Authoritative International
Financial Reporting Standards.” This checklist is intended to serve as a
reference tool to review authoritative standards recently issued or approved by
the IASB. The coverage of this checklist includes International Financial
Reporting Standards (IFRS), International Accounting Standards (IAS), and
interpretations developed by the IFRS Interpretations Committee (IFRIC). All of
these documents must be approved by the IASB before they are issued.
This initial
checklist includes those pronouncements issued or approved by the IASB through
January 31, 2012, and will be updated shortly after the IASB issues a new or
amended IFRS, IAS or IFRIC interpretation. Items will be removed from the
checklist after all reporting entities should have adopted the standards or
interpretations.
Preparers
and auditors can use this checklist to ensure that recently approved IASB
standards and interpretations have been considered in preparing or auditing
financial statements under IFRS.
See our
Literature Update for complete details.
Derivatives
and Hedging -- Publication Updated
For detail, please contact info@hkcmcpa.us
We have
updated our publication, Derivatives and Hedging - Interpretations of U.S.
GAAP, to reflect amendments of the FASB Accounting Standards CodificationTM
through FASB 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. Among the
new interpretations included in this edition of the publication are:
-Interpretation
815-10-30-1.B, “SEC Staff Views on Measurement Using Pricing Service
Information,” which notes that the SEC staff has provided its views on GAAP
compliance issues when third-party pricing service information is used to
measure fair value (whether for the purpose of recognition or disclosure).
-Interpretation
815-10-35-3.A, “Not-for-Profit-Entity Reporting Changes in Fair Value of
Derivative Instruments,” which explains that a not-for-profit entity needs to
consider donor-imposed and legal restrictions when reporting changes in the
fair value of derivative instruments.
-Interpretation
815-10-50-4H.B, “Other GAAP Effects of Credit-Risk-Related Contingent
Features,” which observes that a credit-risk-related contingent feature
(including one subject to disclosure under paragraph 815-10-50-4H) may be
subject to various GAAP requirements.
See our
Literature Update for complete details.
Financial
Instruments -- New Edition of Publication Issued
For detail, please contact info@hkcmcpa.us
We have
published the 2012 edition of Financial Instruments. The primary
objective of this publication is to serve as a comprehensive reference manual
of generally accepted accounting principles in the
In addition,
this edition of the publication reflects new guidance or views communicated by
members of the SEC staff in various speeches.
See our
Literature Update for complete details.
Revenue
Recognition -- Updated Interpretation Published
For detail, please contact info@hkcmcpa.us
We have
updated our publication, Revenue Recognition Guide, to incorporate
changes in the accounting literature and various interpretive developments.
Most significantly, it has been updated to reflect the issuance by the FASB for
recent guidance on the milestone method of revenue recognition and
multiple-deliverable arrangements, as well as the application of the special
requirements for recognition of revenue in software arrangements. In addition,
this edition includes a detailed discussion of the second Exposure Draft, Revenue
Recognition (Topic 605): Revenue from Contracts with Customers, issued in
November 2011 that would replace and significantly change revenue recognition
accounting standards.
See our
Literature Update for complete details.
Classification
and Measurement -- FASB and IASB Discuss Classification and Measurement of
Financial Instruments and Other Matters
For detail, please contact info@hkcmcpa.us
As reported
in its "Summary of Board Decisions" publication, the FASB and IASB
(the Boards) held a joint videoconference meeting on January 27, 2012. The
Boards discussed accounting for financial instruments, including: (a)
the convergence efforts on aligning the classification and measurement models
under IFRS 9, Financial Instruments, and the FASB tentative model; and (b)
the “three bucket” approach for impairment of financial assets, including the
application of the credit deterioration model to purchased financial assets
with evidence of credit deterioration.
The Boards
tentatively decided to jointly redeliberate selected
aspects of their classification and measurement models to seek to reduce the
following key differences:
-The
contractual cash flow characteristics of an instrument;
-The need
for bifurcation of financial assets and, if pursued, the basis for bifurcation;
-The basis
for and scope of a possible third classification category (i.e., debt
instruments measured at fair value through other comprehensive income); and
-Any
interrelated issues from the above (e.g., disclosures or the model for
financial liabilities given the financial asset decisions).
The Boards
also discussed how the three bucket impairment model should be applied to purchased financial assets with an explicit expectation of
credit losses at acquisition. In addition, the Boards discussed other aspects
of the accounting for such purchased financial assets, including the following:
-Application
of the impairment model;
-The scope
of purchased financial assets that would be initially included in Bucket 2 or
Bucket 3 and for which accretion from the purchase price to the expected cash
flows would be required;
-Favorable
changes in expectations after acquisition; and
-Presentation
in the statement of financial position of purchased financial assets with an
explicit expectation of credit losses at acquisition.
Risk
Alert -- AICPA Issues Financial Institutions Audit Risk Alert
For detail, please contact info@hkcmcpa.us
The AICPA
has issued an Audit Risk Alert, Financial Institutions Industry
Developments: Including Depository and Lending Institutions and Brokers and
Dealers in Securities - 2011/12. This publication provides users with a
detailed overview of recent industry, technical, regulatory, or professional
developments. Audit Risk Alerts can also be used by an entity’s internal
management to address areas of audit concern.
IFRS for SMEs -- IASB Issues IFRS for SMEs
Update
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
topics:
-Overall
update on the IFRS for SMEs;
-Status
report on Q&As about the IFRS for SMEs;
-Status
report on IFRS for SMEs translations;
-Additional
Spanish- and Arabic-language training modules;
-IFRS for SMEs “train the trainers” workshop in the Republic of
Kazakhstan; 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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Risk
Alert -- AICPA Issues Financial Institutions Audit Risk Alert
For detail, please contact info@hkcmcpa.us
As discussed
above in our Accounting and SEC Summaries, the AICPA has issued an Audit Risk
Alert, Financial Institutions Industry Developments: Including Depository
and Lending Institutions and Brokers and Dealers in Securities - 2011/12. This
publication provides users with a detailed overview of recent industry,
technical, regulatory, or professional developments. Audit Risk Alerts can also
be used by an entity’s internal management to address areas of audit concern.
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GOVERNMENT
HEADLINES:
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Governmental
GAAP -- New Edition of Governmental GAAP Guide Published
For detail, please contact info@hkcmcpa.us
We have
published the 2012 Edition of Governmental GAAP Guide. This publication
is written with the recognition that financial professionals who work with
state and local governments must stay current with emerging governmental
standards or face unfortunate consequences. This edition of the publication has
been updated throughout with the latest information on:
-GASB
Statement No. 60, Accounting and Financial Reporting for Service Concession
Arrangements;
-GASB
Statement No. 61, The Financial Reporting Entity: Omnibus - an Amendment of
GASB Statements No. 14 and No. 34; and
-GASB
Statement No. 62, Codification of Accounting and Financial Reporting
Guidance Contained in Pre-November 30, 1989 FASB and AICPA Pronouncements.
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@hkcmcpa.us