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Accounting Research
Manager(TM)
Weekly Summary of
Developments
August 31 - September 4, 2009
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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
FASB Codification -- FASB Publishes Amendments to
Codification
FASB Codification -- Interpretation Published
PCAOB Standards -- PCAOB Publishes Staff Questions and
Answers
Consolidation -- FASB Publishes Proposal on Accounting
and Reporting for Decreases in Ownership of a Subsidiary
Fair Value Measurements -- FASB Publishes Proposal to Improve
Disclosures about Fair Value Measurements
Financial Instruments -- FASB Discusses Financial Instruments
with Characteristics of Equity and Other Matters
Auditing and Internal
Controls Headlines
PCAOB Standards -- PCAOB Publishes Staff Questions and
Answers
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ACCOUNTING AND SEC HEADLINES:
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FASB Codification -- FASB
Publishes Amendments to Codification
The FASB has published the
following amendments to the FASB Accounting Standards CodificationTM
(Codification):
-FASB Accounting Standards
Update 2009-03, SEC Update - Amendments to Various Topics Containing SEC
Staff Accounting Bulletins;
For detail, please contact info@zy-cpa.com
-FASB Accounting Standards
Update 2009-04, Accounting for Redeemable Equity Instruments - Amendment to
Section 480-10-S99;
For detail, please contact info@zy-cpa.com
-FASB Accounting Standards
Update 2009-05, Fair Value Measurements and Disclosures (Topic 820) -
Measuring Liabilities at Fair Value; and
For detail, please contact info@zy-cpa.com
-FASB Accounting Standards
Update 2009-06, Income Taxes (Topic 740) - Implementation Guidance on
Accounting for Uncertainty in Income Taxes and Disclosure Amendments for
Nonpublic Entities.
For detail, please contact info@zy-cpa.com
FASB Accounting Standards
Update 2009-03 includes technical corrections to various Topics containing SEC
Staff Accounting Bulletins to update cross-references to text in the
Codification. SEC rules, regulations and interpretive materials included in the
Codification are nonauthoritative and do not replace
or affect guidance issued by the SEC or its staff. FASB Accounting Standards
Update 2009-04 updates Section 480-10-S99, Distinguishing Liabilities from
Equity, to reflect the SEC staff's views regarding the application of
Accounting Series Release No. 268, Presentation in Financial Statements of
"Redeemable Preferred Stocks." FASB Accounting Standards Update
2009-05 includes amendments to Subtopic 820-10, Fair Value Measurements and
Disclosures—Overall, for the fair value measurement of liabilities and
provides clarification that in circumstances in which a quoted price in an
active market for the identical liability is not available, a reporting entity
is required to measure fair value using one or more of the techniques provided
for in this update. FASB Accounting Standards Update 2009-06 provides
implementation guidance on accounting for uncertainty in income taxes, as well
as eliminates certain disclosure requirements for nonpublic entities.
Amendments to the
Codification are made by issuing a “FASB Accounting Standards Update” that
includes an issue date expressed as the year with number sequence. New
accounting guidance or amendments to existing guidance will no longer be issued
in the form of a standard, such as FASB Statements, FASB Staff Positions, or
EITF Abstracts.
FASB Codification --
Interpretation Published
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We have published, Generally
Accepted Accounting Principles - The FASB Accounting
Standards Codification, which provides interpretive guidance on FASB
Statement No. 168, The FASB Accounting Standards CodificationTM
and the Hierarchy of Generally Accepted Accounting Principles. Statement
168 establishes the Codification as the source of authoritative
Our interpretation includes
guidance in a question and answer (Q&A) format on the accounting and
financial reporting requirements of Statement 168. Among other things, our
interpretation includes a discussion of:
-Authoritative vs. nonauthoritative guidance;
-Pre-codification literature
that is included as authoritative guidance in the codification;
-Editorial changes made by
the FASB when codifying U.S. GAAP literature; and
-SEC guidance included in the
Codification.
See our Literature Update for
complete details.
PCAOB Standards -- PCAOB
Publishes Staff Questions and Answers
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The PCAOB has published staff
questions and answers (Q&As),
References to Authoritative Accounting Guidance in PCAOB Standards.
These Q&As provide
guidance about references to authoritative accounting guidance in PCAOB
standards. The series of Q&As
is a reminder that auditors should look to the Codification and the rules of
the SEC for authoritative U.S. GAAP guidance for SEC registrants, even though
PCAOB standards may contain descriptions of and references to U.S. GAAP. The
PCAOB publishes staff Q&As
to help auditors implement, and the PCAOB’s staff
administer, the standards issued by the PCAOB. The statements contained in
these Q&As are not rules
of the PCAOB, nor have they been approved by the PCAOB.
Consolidation -- FASB
Publishes Proposal on Accounting and Reporting for Decreases in Ownership of a
Subsidiary
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The FASB has published for
public comment a proposed Accounting Standards Update, Consolidation (Topic
810) - Accounting and Reporting for Decreases in Ownership of a Subsidiary - a
Scope Clarification. This proposal would amend Subtopic 810-10 and related
guidance to clarify that the scope of the decrease in ownership applies to the
following:
-A subsidiary or group of
assets that is a business or nonprofit activity;
-A subsidiary that is a
business or nonprofit activity that is transferred to an equity method investee or joint venture; and
-An exchange of a group of
assets that constitute a business or nonprofit activity for a noncontrolling interest in an entity (including an equity
method investee or joint venture).
The decrease in ownership
guidance does not apply if the transaction is in substance the sale of real
estate.
Comments on this proposal are
due September 28, 2009.
Fair Value Measurements --
FASB Publishes Proposal to Improve Disclosures about Fair Value Measurements
For detail, please contact info@zy-cpa.com
The FASB has published for
public comment a proposed Accounting Standards Update, Fair Value
Measurements and Disclosures (Topic 820) - Improving Disclosures about Fair
Value Measurements. This proposal is intended to improve disclosures about
fair value measurements and would affect all entities that are required to make
disclosures about recurring and nonrecurring fair value measurements. Under
this proposal, for significant unobservable inputs (Level 3 inputs), entities
would be required to provide disclosures about any significant effect(s) on
fair value measurements if the reporting entity were to use reasonably possible
alternative inputs. This proposal also addresses requests from users for
segregating information for different classes of assets and liabilities that
are determined based on their nature and risk characteristics and their
placement in the fair value hierarchy (i.e., Level 1, 2, or 3).
Comments on this proposal are
due October 12, 2009.
Financial Instruments --
FASB Discusses Financial Instruments with Characteristics of Equity and Other
Matters
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As reported in its
"Summary of Board Decisions" publication, the FASB met on August 27,
2009, and discussed: (a) financial instruments with characteristics of
equity; and (b) conceptual framework - reporting entity. The FASB
reviewed its past decisions regarding its project on financial instruments with
characteristics of equity and expressed continuing support for them, but did
not reach conclusions about how best to describe them. The FASB did decide that
equity instruments issued by a subsidiary would retain their classification in
the consolidated financial statements unless the nature of the instrument
changes. The nature of an instrument may change in consolidation because of
arrangements between the instrument holder and another member of the
consolidated group. If the nature of the instrument changes in consolidation,
classification should be reconsidered in the consolidated financial statements.
The FASB also decided to
issue an exposure draft for a comment period of 120 days that is expected to be
titled, Conceptual Framework for Financial Reporting: Reporting Entity.
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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PCAOB Standards -- PCAOB
Publishes Staff Questions and Answers
For detail, please contact info@zy-cpa.com
As discussed above in our
Accounting and SEC Summaries, the PCAOB has published staff questions and
answers (Q&As), References
to Authoritative Accounting Guidance in PCAOB Standards. These Q&As provide guidance about
references to authoritative accounting guidance in PCAOB standards. The series
of Q&As is a reminder
that auditors should look to the Codification and the rules of the SEC for
authoritative U.S. GAAP guidance for SEC registrants, even though PCAOB
standards may contain descriptions of and references to U.S. GAAP. The PCAOB
publishes staff Q&As to
help auditors implement, and the PCAOB’s staff
administer, the standards issued by the PCAOB. The statements contained in
these Q&As are not rules
of the PCAOB, nor have they been approved by the PCAOB.
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