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Accounting Research Manager(TM)
Weekly Summary of Developments
May 21-24, 2007
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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:

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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

Derivatives and Hedging -- Guidance Revised and Added in Our Interpretations of FASB Statement 133
AcSEC Meeting Minutes -- AcSEC Discusses Airline Guide and Considers Other Matters at May 15-16, 2007 Meeting
IASB Update -- IASB Discusses Financial Statement Presentation and Other Matters at Its May 15-18, 2007 Meeting

Auditing Headlines

Auditing Interpretation -- Use of Electronic Confirmations

Government Headlines

GASB Technical Plan -- Discussion of Technical Plan Added to Database

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ACCOUNTING AND SEC HEADLINES:
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Derivatives and Hedging -- Guidance Revised and Added in Our Interpretations of FASB Statement 133
For detail, please contact info@zy-cpa.com

We have revised and updated the interpretations in our publication, Derivatives and Hedging - Interpretations of Statement 133. For example, to address the issuance of FASB Statement No. 159, The Fair Value Option for Financial Assets and Financial Liabilities, we added Interpretation 1-5, "Effect of Statement 159 on Statement 133," to summarize the effects of Statement 159 on the application of Statement 133; and updated Interpretation 21c-1, "Hedge Prohibition on Items Remeasured With Certain Changes in Fair Value Reported Currently in Earnings," to reflect that items remeasured with changes in fair value attributable to an identified risk reported currently in earnings due to the election of the fair value option under Statement 159 cannot be designated as the hedged item in a fair value hedge.

We also updated the section entitled, "Recent Developments," for recent deliberations at the FASB on a variety of relevant projects, and Appendix II, "Index of Accounting Literature Cited."

AcSEC Meeting Minutes -- AcSEC Discusses Airline Guide and Considers Other Matters at May 15-16, 2007 Meeting
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We have prepared minutes of the AcSEC meeting held on May 15-16, 2007. At this meeting, AcSEC considered the following matters or topics:

-Revisions to the Audit and Accounting Guide (AAG), Audits of Airlines;
-Revisions to the AAG, Audits of Casinos;
-Revisions to the AAG, Not-for Profit Organizations; and
-Other information, "Chair's Report."

The Airline Guide Task Force discussed with AcSEC planned additional revisions to the AAG, Audits of Airlines. AcSEC was generally supportive of the changes proposed. The Airline Guide Task Force intends to return to AcSEC at its July 10-11, 2007, meeting to finalize any remaining issues such that AcSEC can approve a proposed final AAG and expose it for public comment.

During the "Chair's Report," it was noted that issuance of a final Statement of Position, Clarification of the Scope of the Audit and Accounting Guide "Audits of Investment Companies" and Accounting by Parent Companies for and Equity Method Investors in Investment Companies, has been cleared by the FASB and its staff and is ready for issuance in June 2007. When issued, this presumably will be the last authoritative document issued by AcSEC. Separately, it was announced that the Planning Subcommittee of AcSEC had approved for deletion a portion of a Technical Practice Aid (TPA) that addresses the "catch-up" method of depreciation to remove an apparent conflict with the guidance in FASB Statement No. 154, Accounting Changes and Error Corrections. The TPA is 1300.08, "Statement of Cash Flows - Effect of Change in Depreciation Method on Statement of Cash Flows."

See our minutes for a discussion of all the matters covered at the May 15-16, 2007 meeting.

IASB Update -- IASB Discusses Financial Statement Presentation and Other Matters at Its May 15-18, 2007 Meeting
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As reported in its "IASB Update" publication, the IASB met on May 15-18, 2007, and discussed the following projects or topics:

-Financial Statement Presentation
-Post-Employment Benefits
-Conceptual Framework
-IAS 37 Provisions, Contingent Liabilities and Contingent Assets - Redeliberations
-Financial Instruments Puttable at Fair Value and Obligations Arising on Liquidation
-Update on IFRIC Activities
-Annual Improvements Process
-Leases
-IFRS 2 Share-Based Payment

In connection with its financial statement presentation project, the IASB tentatively decided that an entity with different businesses should apply the classification criteria to its assets and liabilities at the reportable segment level (as that term is defined in IFRS 8 Operating Segments). The IASB expressed the preliminary view that an entity that classifies similar assets and liabilities in different categories should disclose operating and financing category information by reportable segment for each primary financial statement (i.e., the statements of financial position, comprehensive income, and cash flows). That information can be combined for reportable segments that classify similar assets and liabilities in the same way. The IASB will address at a future meeting possible other changes to segment disclosures that would apply to all entities.

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AUDITING HEADLINES:
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Auditing Interpretation -- Use of Electronic Confirmations
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We have added a GAAS Update Service that provides discussion and analysis of an auditing interpretation of AU Section 330 entitled, Use of Electronic Confirmations. The auditing interpretation provides guidance to auditors about whether the use of electronic confirmation with third parties represents reliable audit evidence. It concludes that electronic confirmations may be considered as sufficient and valid confirmation responses, if the auditor is satisfied that: (a) the electronic confirmation process is secure and properly controlled, and (b) the confirmation is directly from a third party who is a bona fide authorized respondent. The auditing interpretation also indicates that the auditor might use various means to verify the validity of the sender, and whether the respondent is authorized to confirm the information requested by the auditor. Some of the means that may improve the security of the electronic confirmation process include the use of encryption, electronic digital signatures, and procedures to verify website authenticity.

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GOVERNMENT HEADLINES:
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GASB Technical Plan -- Discussion of Technical Plan Added to Database
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We have added a Governmental GAAP Update Service that discusses the GASB's technical plan as of May 1, 2007. We provide a brief summary of the projects and practice issues encompassed in the GASB technical plan. The projects and practice issues on the GASB's technical plan are as follows:

-Conceptual Framework - Elements
-Conceptual Framework - Measurement and Recognition
-Derivatives
-Fund Balance Reporting and Governmental Fund Type Definitions
-Intangible Assets
-Intergovernmental Financial Dependency Risk
-Service Efforts and Accomplishments
-Comprehensive Implementation Guide - Update
-Land and Other Real Property Held as Investments by Endowments
-Pension Disclosures - Conforming Changes

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