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Accounting Research
Manager(TM)
Weekly Summary of
Developments
November 10-14, 2008
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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@zy-cpa.com
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
Financial Statement
Disclosures -- FASB
Approves Enhanced Disclosure Requirements Applicable in 2008 for Public
Entities
EITF Meeting Results -- EITF Decisions Reached
Revenue Recognition -- 2009 Edition of Revenue Recognition
Guide Added
EITF Materials -- FASB Issues Additional Meeting
Materials for November 13, 2008 EITF Meeting
Shareholder Proposals -- SEC Staff Issues Guidance on
Shareholder Proposals
International Financial
Reporting -- IASB Issues
Agenda for November 18-21, 2008 Meeting
IFRIC Update -- Customer Contributions and Other
Matters Discussed
Auditing and Internal
Controls Headlines
Using the Work of a
Specialist -- Additional
Interpretive Guidance Discussed
Government Headlines
Single Audits -- New Required Electronic Submission
Process for the Single Audit Data Collection Form Discussed
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ACCOUNTING AND SEC HEADLINES:
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Financial Statement
Disclosures -- FASB Approves Enhanced Disclosure Requirements Applicable in
2008 for Public Entities
For detail, please contact info@zy-cpa.com
We have added a Hot Topic
discussing the FASB's decision to finalize the
disclosure requirements (with certain modifications) in proposed FASB staff
position (FSP) FAS 140-e and FIN 46(R)-e, Disclosures about Transfers of
Financial Assets and Interests in Variable Interest Entities. The FASB
decided that it will require enhanced disclosure requirements regarding
transfers of financial assets and additional disclosure regarding an entity
that is involved with a variable interest entity. Such disclosures will be
required of public entities effective for periods ending after December 15,
2008. As a result, calendar year-end public entities will be required to
provide the additional disclosures in their December 31, 2008 financial
statements. Public entities that do not have a calendar year-end will be
required to provide the disclosures in their first interim reporting period
ending after December 15, 2008, and each annual reporting period thereafter.
See our Hot Topic for
complete details.
EITF Meeting Results --
EITF Decisions Reached
For detail, please contact info@zy-cpa.com
As described in our
"EITF Flash Report," the EITF discussed the following issues at its
November 13, 2008 meeting:
-EITF Issue No. 08-1,
"Revenue Arrangements with Multiple Deliverables";
-EITF Issue No. 08-6,
"Equity Method Investment Accounting Considerations";
-EITF Issue No. 08-7,
"Accounting for Defensive Intangible Assets";
-EITF Issue No. 08-8,
"Accounting for an Instrument (or an Embedded Feature) with a Settlement
Amount That Is Based on the Stock of an Entity's Consolidated Subsidiary";
-EITF Issue No. 08-9,
"Milestone Method of Revenue Recognition"; and
-EITF Issue No. 08-10,
"Selected Statement 160 Implementation Questions."
The EITF reached a final
consensus on Issues 08-6, 08-7 and 08-8. The FASB must ratify these EITF
decisions before they become GAAP. In addition, the EITF also reached a
consensus-for-exposure on Issues 08-1 and 08-10 which also requires FASB
ratification before they are exposed for comment. The FASB ratification process
is scheduled for November 24, 2008.
See our EITF Flash Report for
complete details.
Revenue Recognition --
2009 Edition of Revenue Recognition Guide Added
For detail, please contact info@zy-cpa.com
We have published the 2009
edition of the Revenue Recognition Guide, which is a comprehensive
reference manual covering key concepts and issues that arise in determining
when and how to recognize revenue. This publication provides guidance on
revenue recognition and includes: (a) reference to appropriate
accounting literature; (b) explanations of appropriate accounting
treatment for revenue items; and (c) illustrates the application of the
accounting treatment through numerical examples or disclosure examples.
The 2009 edition of the Guide
has been updated to reflect discussion on:
-EITF Issue No. 08-1,
"Revenue Recognition for a Single Unit of Accounting";
-EITF Issue No. 08-2, “Lessor Revenue Recognition for Maintenance Services”; and
-EITF Issue No. 08-3,
“Accounting by Lessees for Nonrefundable Maintenance Deposits.”
The 2009 edition of the Guide
also includes a discussion of current revenue-related projects currently on the
standard-setters’ agendas.
See our Literature Update for
complete details.
EITF Materials -- FASB
Issues Additional Meeting Materials for November 13, 2008 EITF Meeting
For detail, please contact info@zy-cpa.com
The FASB issued the following
additional materials for the EITF meeting held on November 13, 2008:
-EITF Issue No. 08-1, "Revenue
Arrangements with Multiple Deliverables" (addendum to Issue Summary No. 2,
meeting handout, and comment letter).
See our EITF Flash Report
discussed above for complete details on the November 13, 2008 EITF meeting.
Shareholder Proposals --
SEC Staff Issues Guidance on Shareholder Proposals
For detail, please contact info@zy-cpa.com
The staff of the SEC's Division of
Corporation Finance issued, Staff Legal Bulletin No. 14D, Shareholder
Proposals. This guidance provides information for companies and
shareholders regarding Rule 14a-8 under the Securities Exchange Act of 1934.
Specifically, this legal bulletin contains information regarding:
-Shareholder proposals that
recommend, request, or require a board of directors to unilaterally amend the
company’s articles or certificate of incorporation;
-A new e-mail address
established for the receipt of Rule 14a-8 no-action requests and related
correspondence;
-Whether a company must send
a notice of defect if the company’s records indicate that the proponent has not
owned the minimum amount of securities for the required period of time as set
forth in Rule 14a-8(b); and
-The requirement that a
proponent send copies of correspondence to the company and the manner in which
the company and a proponent should provide additional correspondence to the SEC
and to each other.
International Financial
Reporting -- IASB Issues Agenda for November 18-21, 2008 Meeting
For detail, please contact info@zy-cpa.com
The IASB is scheduled to
discuss the following agenda items at its November 18-21, 2008 meeting:
-Conceptual framework, both
phases C and D;
-Consolidation;
-Derecognition;
-Fair value measurement;
-Financial instruments;
-Financial instruments with
characteristics of equity;
-International Financial
Reporting Interpretations Committee (IFRIC);
-IAS 24, Related Party
Disclosures;
-IFRS for private entities;
-Leases; and
-Standards Advisory Committee
update.
IFRIC Update -- Customer
Contributions and Other Matters Discussed
For detail, please contact info@zy-cpa.com
As reported in the IASB's "IFRIC Update" publication, the IFRIC met
on November 6, 2008, and discussed the following matters:
-IFRIC D24, Customer
Contributions;
-Costs of compliance with the
requirements of the European regulation concerning the Registration,
Evaluation, Authorization and Restriction of Chemicals (REACH);
-Customer-related intangible
assets;
-Discussion of voluntary
prepaid contributions under a minimum funding requirement per IFRIC 14, IAS 19,
The Limit on a Defined Benefit Asset, Minimum Funding Requirements and their
Interaction;
-Agenda decisions;
-Tentative agenda decisions;
and
-Work in progress.
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@zy-cpa.com
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AUDITING AND INTERNAL
CONTROLS HEADLINES:
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Using the Work of a
Specialist -- Additional Interpretive Guidance Discussed
For detail, please contact info@zy-cpa.com
We have added a GAAS Update
Service that focuses on practical issues relating to Statement on Auditing
Standards (SAS) No. 73, Using the Work of a Specialist, by providing a
question & answer (Q&A) format designed for practical discussion,
advice, and specific implementation guidance. The Q&As
address various issues including:
-Whether the auditor is
prohibited from using a specialist who has a relationship with the client;
-Circumstances in which the
specialist’s relationship to the client might impair the specialist’s
objectivity;
-Whether the auditor can use
the work of an attorney as a specialist in situations relating to matters other
than litigation, claims, or assessments;
-Whether it is necessary or
permissible for the auditor to refer to the specialist’s work in the auditor’s
report;
-How the auditor or client
can effectively use the work of an environmental specialist for estimating
environmental remediation liabilities; and
-The type of procedures the
auditor can perform to test the reliability of the source data used by the
specialist when such data is significant to the accuracy of the specialist’s
findings and the financial statements.
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@zy-cpa.com
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GOVERNMENT HEADLINES:
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Single Audits -- New
Required Electronic Submission Process for the Single Audit Data Collection
Form Discussed
For detail, please contact info@zy-cpa.com
We have added a Governmental
GAAP Update Service that discusses the new 2008 through 2010 "Single Audit
Data Collection Form" (DCF also referred to as Form SF-SAC) and reporting
package submission process. DCF reporting allows federal agency inspectors and
the public to monitor the use of funds under Federal programs. States, local
governments, and nonprofit organizations that annually expend $500,000 or more
in federal awards must obtain a single audit and complete the DCF for every
fiscal year that they meet the audit threshold.
This Update covers the
following topics:
-Changes to the DCF;
-Internet Data Entry System
(IDES) table of contents;
-New online submission
process; and
-2008 Single Audit submission
questions and answers.
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@zy-cpa.com