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Accounting
Research Manager®
Weekly
Summary of Developments
March 12-16,
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
=============================
ACCOUNTING
AND SEC HEADLINES:
=============================
Foreign
Issuers -- SEC Director Speaks about Foreign Issuers and Other Matters
For detail, please contact info@hkcmcpa.us
On March 8,
2012, Meredith B. Cross, Director of the Division of Corporation Finance (Corp
Fin) of the SEC, spoke at a conference in
-Reporting
requirements for foreign issuers;
-Rulemaking
activities under the Dodd-Frank Act;
-Capital
formation initiatives; and
-Corp Fin’s
disclosure review program.
In her
remarks, Ms. Cross indicated that the SEC may review the current reporting
requirements for foreign issuers that are only listed in the U.S. Ms. Cross
also discussed the progress made regarding the SEC’s decision about whether to
incorporate IFRS into the financial reporting system for U.S. issuers. Ms.
Cross indicated that the SEC staff has completed all of its work under the
“Work Plan,” which is contained in Commission Statement in Support of
Convergence and Global Accounting Standards. The SEC staff is now focused
on completing a final report and recommendations for the SEC to consider, which
Ms. Cross expects to be published in a few months.
Ms. Cross also
discussed capital formation initiatives undertaken by the SEC and its staff.
Ms. Cross indicated that Corp Fin is considering whether there are ways to make
going public easier and whether the ban on general solicitation is still
necessary given today’s social media and continuous news coverage. In addition,
Corp Fin is looking at the registration and reporting requirements under the
Securities Exchange Act of 1934, including conducting a comprehensive study of
the Section 12(g) thresholds and triggers for registration and reporting.
EITF
Materials -- FASB Issues Additional Materials for March 15, 2012 EITF Meeting
For detail, please contact info@hkcmcpa.us
The FASB has
issued the following additional materials for the March 15, 2012 EITF meeting:
-Revised
agenda (marked version included);
-New EITF
members announcement;
-Side-by-side
summary of issues;
-EITF Issue
No. 11-A, "Parent's Accounting for the Cumulative Translation Adjustment
(CTA) upon the Sale or Transfer of a Group of Assets within a Consolidated
Foreign Entity That Meets the Definition of a Business" (comment letter);
and
-EITF Issue
No. 12-E, "Accounting for Fair Value Information That Arises Subsequent to
the Measurement Date and Its Inclusion in the Impairment Analysis of
Unamortized Film Costs" (comment letter).
Financial
Instruments -- IASB and FASB Discuss Financial Instruments and Other Matters
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As reported
in its "IASB Update" publication, the IASB and FASB (the Boards) met
on February 27-March 2, 2012, and discussed the following topics:
-Financial
instruments-classification and measurement;
-Impairment
of financial assets;
-Insurance
contracts; and
-Leases.
In addition,
the IASB held separate sessions on the following topics:
-Annual
Improvements project;
-IFRS
Interpretations committee (update, agenda rejection notices, and issues);
-Leases
(education session);
-Macro hedge
accounting;
-Put options
written on non-controlling interests; and
-Work plan.
Government
Auditing Standards -- AICPA Issues Practice Aid on Yellow Book
For detail, please contact info@hkcmcpa.us
The AICPA
has published the “2011 Yellow Book Independence -- Nonaudit
Services Documentation Practice Aid.” The AICPA believes the practice aid will
assist auditors performing audits in accordance with the 2011 revision to Government
Auditing Standards (the 2011 Yellow Book) issued by the Government
Accountability Office in identifying and evaluating threats to independence for
nonaudit services when considering whether to provide
a nonaudit service. It is also intended to assist
auditors in applying the conceptual framework for independence contained in the
2011 Yellow Book and in complying with the 2011 Yellow Book’s independence
documentation requirements.
Users of the
practice aid should consult the original material referenced in this
publication for a complete understanding of the standards, requirements, and
guidance. This practice aid will be useful to auditors performing audit
engagements of all types and sizes. However, this practice aid highlights nonaudit services that are frequently performed for smaller
entities, including preparing the following:
-Financial
statements;
-Journal
entries other than proposed audit entries; and
-Reconciliations.
An auditor
could use various approaches to meet the independence evaluation and
documentation requirements of the 2011 Yellow Book; therefore, use of this
particular practice aid is not required. This practice aid is intended to
provide an illustration of one methodology that could be used by an auditor.
However, auditors using their own internal methodologies are encouraged by the
AICPA to review this practice aid to ensure that such methodologies do not need
to be enhanced or revised.
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:
=======================================
COSO
Report -- COSO Issues Paper on Enhancing Board Oversight
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The
Committee of Sponsoring Organizations of the Treadway
Commission (COSO) has issued a thought paper, “Enhancing Board Oversight:
Avoiding Judgment Traps and Biases.” The COSO thought paper aims to provide
thought leadership on issues that bear on enterprise risk management, internal
control, and fraud deterrence. This thought paper details a five-step judgment
process that board members and others can use to overcome common pitfalls and mitigate
the effects of judgment bias.
Government
Auditing Standards -- AICPA Issues Practice Aid on Yellow Book
For detail, please contact info@hkcmcpa.us
As discussed
above in our Accounting and SEC Summaries, the AICPA has published the “2011
Yellow Book Independence -- Nonaudit Services
Documentation Practice Aid.” The AICPA believes the practice aid will assist
auditors performing audits in accordance with the 2011 revision to Government
Auditing Standards (the 2011 Yellow Book) issued by the Government
Accountability Office in identifying and evaluating threats to independence for
nonaudit services when considering whether to provide
a nonaudit service. It is also intended to assist
auditors in applying the conceptual framework for independence contained in the
2011 Yellow Book and in complying with the 2011 Yellow Book’s independence
documentation requirements.
Users of the
practice aid should consult the original material referenced in this
publication for a complete understanding of the standards, requirements, and
guidance. This practice aid will be useful to auditors performing audit
engagements of all types and sizes. However, this practice aid highlights nonaudit services that are frequently performed for smaller
entities, including preparing the following:
-Financial
statements;
-Journal
entries other than proposed audit entries; and
-Reconciliations.
An auditor
could use various approaches to meet the independence evaluation and
documentation requirements of the 2011 Yellow Book; therefore, use of this
particular practice aid is not required. This practice aid is intended to
provide an illustration of one methodology that could be used by an auditor.
However, auditors using their own internal methodologies are encouraged by the
AICPA to review this practice aid to ensure that such methodologies do not need
to be enhanced or revised.
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:
=======================================
GASB
Report Issued -- GASB Seeks Input on Emerging Issues
For detail, please contact info@hkcmcpa.us
The February
2012 edition of the "GASB Report" has been issued and includes the
following discussion items:
-GASB
calendar;
-GASB
requests input on emerging issues;
-GASB
performance measures-technical inquiry acuities;
-Summary of
recent GASB meetings; and
-Who's who
at the GASB.
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