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Accounting Research Manager(TM)
Weekly Summary of Developments
December 22-24, 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:

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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

Financial Assets -- FASB Proposes Guidance on Determining Other-Than-Temporary Impairments of Certain Securities
Revenue Recognition -- FASB and IASB Propose Joint Approach for Revenue Recognition
Derivatives -- IASB Proposes Guidance on Accounting for Embedded Derivatives
Investments -- IASB Proposes Guidance on Investments in Debt Instruments
Financial Instruments -- 2009 Edition of Publication Added
Credit Rating Agencies -- White Paper on the SEC's Adoption of Credit Rating Agency Reforms Added
IASB Update -- IASB Discusses Global Financial Crisis and Other Matters

Auditing and Internal Controls Headlines

Professional Conduct -- AICPA Publishes Code of Professional Conduct Guide
Knowledge-Based Audits of Construction Companies and Contractors -- New Edition Published

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ACCOUNTING AND SEC HEADLINES:
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Financial Assets -- FASB Proposes Guidance on Determining Other-Than-Temporary Impairments of Certain Securities
For detail, please contact info@zy-cpa.com

The FASB has published for public comment a proposed FASB Staff Position (FSP) EITF 99-20-a, Amendments to the Impairment and Interest Income Measurement Guidance of EITF Issue No. 99-20. This proposed FSP would amend the impairment guidance in EITF Issue No. 99-20, "Recognition of Interest Income and Impairment on Purchased Beneficial Interests and Beneficial Interests That Continue to Be Held by a Transferor in Securitized Financial Assets." It is intended to reduce complexity and thus achieve more consistent determinations of whether other-than-temporary impairments of available-for-sale or held-to-maturity debt securities have occurred.

As proposed, this FSP would be effective for interim (including the fourth quarter for an SEC registrant) and annual reporting periods ending after December 15, 2008, and shall be applied prospectively.

Comments on this proposal are due December 30, 2008.

Revenue Recognition -- FASB and IASB Propose Joint Approach for Revenue Recognition
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The FASB and IASB published for public comment a Discussion Paper (DP), Preliminary Views on Revenue Recognition in Contracts with Customers. This DP sets out a joint approach for the recognition of revenue and is available in both the FASB and IASB formats.

Revenue recognition requirements in U.S. GAAP differ from those in International Financial Reporting Standards (IFRSs), and both are considered in need of improvement. The requirements in GAAP comprise numerous standards, many of which are industry specific, and some can produce conflicting results for economically similar transactions. Although IFRSs contain fewer standards on revenue recognition, their two main standards have different principles and can be difficult to understand and apply beyond simple transactions.

The objective is to improve the existing guidance in both GAAP and IFRSs by developing a single revenue model that can be applied consistently regardless of industry. Applying the proposed underlying principle, an entity would recognize revenue when it satisfies a performance obligation by transferring goods and services to a customer as contractually agreed, a principle similar to many existing revenue recognition requirements.

Comments on the joint DP are due June 19, 2009.

Derivatives -- IASB Proposes Guidance on Accounting for Embedded Derivatives
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The IASB has published for public comment an Exposure Draft (ED), Embedded Derivatives - Proposed Amendments to IFRIC 9 And IAS 39. This ED responds to requests received from those taking part in the recent round table discussion organized by the IASB and the FASB to clarify the requirements in IAS 39, Financial Instruments: Recognition and Measurement, and International Financial Reporting Interpretations Committee (IFRIC) 9, Reassessment of Embedded Derivatives. Participants asked the IASB to act in order to reduce any diversity in practice developing as a result of the amendments made to IAS 39 in October 2008, to permit the reclassification of particular financial assets. The proposal would require all embedded derivatives to be assessed and, if necessary, separately accounted for in financial statements.

Comments on this ED are due January 21, 2009.

Investments -- IASB Proposes Guidance on Investments in Debt Instruments
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The IASB has published for public comment an ED, Investments In Debt Instruments - Proposed Amendments to IFRS 7. This ED would amend IFRS 7, Financial Instruments: Disclosures, to require entities to provide additional disclosures on all investments in debt instruments, other than those classified in the fair value through profit or loss category. Specifically, this ED would require an entity to state in tabular form the fair value, amortized cost and amount at which the investments are actually carried in the financial statements. The amendments would also require an entity to also disclose the effect on profit or loss and equity if all debt instruments had been accounted for at fair value or at amortized cost.

Comments on this ED are due January 15, 2009.

Financial Instruments -- 2009 Edition of Publication Added
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We have published the 2009 edition of Financial Instruments. The primary objective of this publication is to serve as a comprehensive reference manual of GAAP in the United States for financial instruments and related topics, including loans, securities, securitizations, and derivatives. Among other things, this edition has been updated to reflect:

-FASB Statement No. 161, Disclosures about Derivative Instruments and Hedging Activities;
-Several FASB Staff Positions (FSPs), including: (a) FSP FAS 140-3, Accounting for Transfers of Financial Assets and Repurchase Financing Transactions; and (b) FSP APB 14-1, Accounting for Convertible Debt Instruments That May Be Settled in Cash upon Conversion (Including Partial Cash Settlement);
-Amended guidance for consolidation of variable interest entities in FASB Interpretation (FIN) No. 46 (Revised December 2003), Consolidation of Variable Interest Entities, as a result of the issuance of FASB Statement No. 141 (Revised 2007), Business Combinations;
-Derivative Implementation Group (DIG) Issue E23, "Hedging-General: Issues Involving the Application of the Shortcut Method Under Paragraph 68”; and
-New SEC guidance, including Staff Accounting Bulletin (SAB) No. 109, “Written Loan Commitments Recorded at Fair Value Through Earnings,” (which supersedes SEC SAB 105 in Topic 5DD) and updated guidance in EITF Abstracts, Topic D-98, “Classification and Measurement of Redeemable Securities," resulting from the issuance of new accounting standards.

See our Literature Update for complete details.

Credit Rating Agencies -- White Paper on the SEC's Adoption of Credit Rating Agency Reforms Added
For detail, please contact info@zy-cpa.com

We have added a White Paper, SEC Adopts Credit Rating Reforms Addressing Conflicts; Other Aspects Deferred. This Paper discusses the SEC's recently adopted rules to reform the credit rating agency process. This Paper includes discussion of the following areas or topics:

-SEC's study of three major credit rating agencies;
-Specific credit rating agency rulemaking by the SEC;
-Conflict of interest;
-Recordkeeping and rating histories;
-Differentiation;
-Reliance on ratings in SEC rules;
-Issuer-paid and subscriber-paid models; and
-European Commission reforms.

IASB Update -- IASB Discusses Global Financial Crisis and Other Matters
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As reported in its "IASB Update" publication, the IASB met on December 15-19, 2008, and discussed the following items:

-Global financial crisis;
-Annual improvements;
-Conceptual framework;
-First time adoption of IFRS;
-IFRS for private entities;
-Liabilities - amendments to IAS 36, Impairment of Assets;
-Rate-regulated activities; and
-Share-based payment.

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:
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AUDITING AND INTERNAL CONTROLS HEADLINES:
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Professional Conduct -- AICPA Publishes Code of Professional Conduct Guide
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The AICPA has published a Code of Professional Conduct, Guide For Complying with Rules 102-505. This guide provides members with principles for properly fulfilling their ethical responsibilities. The Rules of Conduct set out in the Code govern the performance of professional services by members. Specifically, this interpretive release provides guidance on complying with AICPA Rules 102-505.

Knowledge-Based Audits of Construction Companies and Contractors -- New Edition Published
For detail, please contact info@zy-cpa.com

We have published the 2008 edition of Knowledge-Based Audits of Construction Companies and Contractors. This publication is designed to help the auditor efficiently and effectively perform financial statement audits of nonpublic construction entities in accordance with auditing standards generally accepted in the United States.

This edition of Knowledge-Based Audits of Construction Companies and Contractors includes revisions and updates to reflect current accounting authoritative literature and, among other things, auditing pronouncements through Statement on Auditing Standards No. 114, The Auditor's Communication with Those Charged with Governance.

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@zy-cpa.com