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Accounting Research Manager(TM)
Weekly Summary of Developments
September 28 - October 2, 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:

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

Disclosure Checklists -- SEC Disclosure Checklists Updated through September 30, 2009
Business Combinations -- Updated Interpretation Published
FASB Codification -- FASB Publishes Amendments to Codification
Research and Development -- FASB Proposes Guidance on Accounting for Research and Development Assets Acquired
Financial Services -- FASB Proposes Guidance on Consolidating Majority-Owned Investments through a Separate Account
Earnings Per Share -- FASB Proposes Guidance
EITF Matters -- September 9-10, 2009 Meeting Minutes Published
Risk Alerts -- AICPA Issues Audit Risk Alerts
IASB Update -- IASB Discusses Financial Instruments
IASB Update -- IASB Discusses Financial Crisis and Other Matters

Auditing and Internal Controls Headlines

Risk Alerts -- AICPA Issues Audit Risk Alerts

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ACCOUNTING AND SEC HEADLINES:
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Disclosure Checklists -- SEC Disclosure Checklists Updated through September 30, 2009
For detail, please contact info@zy-cpa.com

As discussed in our Literature Update, we have updated the following SEC disclosure-related checklists through September 30, 2009:

-Financial Statement Disclosures - This checklist outlines the required SEC disclosures for financial statements included in 1934 and 1933 Act domestic filings that are incremental to U.S. GAAP. The checklist is organized by topic.

-Management's Discussion and Analysis - This checklist outlines the required SEC disclosures for MD&A included in 1934 and 1933 domestic filings, including Forms 10-K and S-1.

-Incremental Certifications, Disclosures, and Reporting Mandated by Sarbanes-Oxley - This checklist outlines the certification, disclosure and reporting requirements resulting from the SEC rules mandated by the Sarbanes-Oxley Act of 2002.

-SEC Form 10-Q checklist - This checklist is for financial and nonfinancial information included in Form 10-Q and is organized by form item number.

Among the revisions we made to these checklists was to update our references to reflect the SEC’s publication of revised Compliance and Disclosure Interpretations (C&DIs). These C&DIs include the interpretations of the staff in the Division of Corporation Finance (Corp Fin), in a question and answer (Q&A) format, of the rules promulgated under the registration and reporting provisions of various sections of both the Securities Act of 1933 and Securities Exchange Act of 1934. In addition, we have updated these checklists to reflect certain updates published in Corp Fin’s Financial Reporting Manual.

Our “General U.S. GAAP Financial Statement Disclosures Checklist ” and “General U.S. GAAP Interim Financial Statement Disclosures Checklist ” are currently being updated through September 30, 2009, to reflect recent or pending changes by the FASB. For example, FASB Accounting Standards Update No. 2009-12, issued on September 30, 2009, and to reflect the expected changes to the FASB Accounting Standards Codification^TM (Codification) resulting from the EITF meeting held on September 9-10, 2009.

See our Literature Update for complete details.

Business Combinations -- Updated Interpretation Published
For detail, please contact info@zy-cpa.com

We have updated our publication, Accounting for Business Combinations, Goodwill, and Other Intangible Assets - Interpretations of U.S. and International Accounting Standards. Among the topics covered in our updated interpretations are:

-Deconsolidation of variable interest entities;
-Subsequent sales of subsidiary stock;
-Measurement period adjustments to deferred income taxes;
-Goodwill impairment testing in the presence of a noncontrolling interest;
-Goodwill impairment loss and deferred income taxes; and
-Carryforward of reporting unit fair value.

In addition, we have added two appendices that provide illustrations of various concepts and disclosures related to goodwill impairment and acquisition accounting.

See our Literature Update for complete details.

FASB Codification -- FASB Publishes Amendments to Codification
For detail, please contact info@zy-cpa.com

The FASB has published FASB Accounting Standards Update No. 2009-12, Fair Value Measurements and Disclosures (Topic 820) - Investments in Certain Entities That Calculate Net Asset Value per Share (or Its Equivalent). This Update amends Subtopic 820-10, Fair Value Measurements and Disclosures - Overall, to permit a reporting entity to measure the fair value of certain investments on the basis of the net asset value per share of the investment (or its equivalent). This Update also requires new disclosures, by major category of investments, about the attributes includes of investments within the scope of this amendment to the Codification.

The guidance in this Update is effective for interim and annual periods ending after December 15, 2009. Early application is permitted.

Research and Development -- FASB Proposes Guidance on Accounting for Research and Development Assets Acquired
For detail, please contact info@zy-cpa.com

The FASB has issued for public comment a Proposed Accounting Standards Update, Research and Development (Topic 730) - Research and Development Assets Acquired and Contingent Consideration Issued in an Asset Acquisition. This proposal represents the consensus-for-exposure reached by the EITF (see Issue 09-2 noted below) and includes guidance for any entity that acquires tangible and intangible research and development assets (individually or with a group of assets) or issues contingent consideration in an asset acquisition. Under this proposal, all tangible and intangible research and development assets acquired in an asset acquisition would be capitalized regardless of whether those assets have a future alternative use. Acquired intangible research and development assets would be considered indefinite-lived assets until completion or abandonment of the related research and development activities. Once the research and development activities are completed or abandoned, the entity would determine the useful life of the assets. As proposed, any contingent consideration arrangements related to the acquisition of an asset or asset group (regardless of whether the asset group includes research and development assets) would continue to be accounted for in accordance with existing accounting standards.

As proposed, this guidance would be effective for acquisitions of assets occurring in fiscal years beginning on or after December 15, 2009. Early application would not be permitted.

Comments on this proposal are due October 26, 2009.

Financial Services -- FASB Proposes Guidance on Consolidating Majority-Owned Investments through a Separate Account
For detail, please contact info@zy-cpa.com

The FASB has issued for public comment a Proposed Accounting Standards Update, Financial Services - Insurance (Topic 944) - Consideration of an Insurer's Accounting for Majority-Owned Investments When Ownership Is through a Separate Account. This proposal represents the consensus-for-exposure reached by the EITF (see Issue 09-B noted below) which addresses practice questions about whether a life insurance entity is required to consolidate a majority-owned voting-interest investment when ownership is held through the insurer's separate account or through a combination of investments in the insurer's separate and general accounts. Under this proposal, for the sole purpose of evaluating whether the retention of specialized accounting for investments in consolidation is appropriate, a separate account arrangement would be considered a subsidiary. This proposal would not require an insurer to consolidate a majority-owned voting-interest investment held by a separate account if the investment is not or would not be consolidated in the standalone financial statements of the separate account. No new required financial statement disclosures are included in this proposal.

As proposed, this guidance would be effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2010. Early adoption would not be permitted.

Comments on this proposal are due October 26, 2009.

Earnings Per Share -- FASB Proposes Guidance
For detail, please contact info@zy-cpa.com

The FASB has issued for public comment a Proposed Accounting Standards Update, Equity (Topic 505) and Earnings per Share (Topic 260) - Accounting for Stock Dividends, Including Distributions to Shareholders with Components of Stock and Cash. This proposal represents the consensus-for-exposure reached by the EITF (see Issue 09-E noted below) which addresses diversity in practice related to the accounting for a distribution to shareholders that offers them the ability to elect to receive their entire distribution in cash or stock of equivalent value with a limit on the amount of cash that will be distributed in total. Under this proposal, the stock portion of a distribution to shareholders that allows them to elect to receive cash or stock with a limit on the amount of cash that will be distributed is a stock dividend, with only the portion that cannot be issued in cash would be accounted for as a stock dividend. For purposes of computing earnings per share, this proposal provides that the calculation of diluted earnings per share should not include the stock portion of a distribution to shareholders that is accounted for as a stock dividend that has not yet been retroactively reflected in earnings per share. In addition, this proposal clarifies that an entity should reflect a stock dividend in earnings per share on the later of the: (a) ex-dividend date; or (b) date the number of shares to be issued is known.

As proposed, this guidance would be effective for interim and annual periods ending on or after December 15, 2009, and would require retrospective application.

Comments on this proposal are due October 26, 2009.

EITF Matters -- September 9-10, 2009 Meeting Minutes Published
For detail, please contact info@zy-cpa.com

The final meeting minutes of the September 9-10, 2009 EITF meeting have been issued. The minutes document the results previously described in our meeting summary published in September 2009. As discussed in the minutes, the EITF reached consensuses in: (a) EITF Issue No. 08-1, "Revenue Arrangements with Multiple Deliverables"; and (b) EITF Issue No. 09-3, “Certain Revenue Arrangements That Include Software Elements.” These consensuses will be documented in a forthcoming FASB Accounting Standards Update.

In addition, the EITF reached consensus-for-exposure in each of the following three issues:

-EITF Issue No. 09-2, "Research and Development Assets Acquired In an Asset Acquisition";
-EITF Issue No. 09-B, "Consideration of an Insurer’s Accounting for Majority-Owned Investments When Ownership Is through a Separate Account"; and
-EITF Issue No. 09-E, "Accounting for Stock Dividends, Including Distributions to Shareholders with Components of Stock and Cash."

As discussed above, the FASB has issued proposed Accounting Standards Updates covering these three consensuses-for-exposure.

Risk Alerts -- AICPA Issues Audit Risk Alerts

The AICPA has issued the following Audit Risk Alerts:

-Current Economic Instability: Accounting and Auditing Considerations - 2009;
For detail, please contact info@zy-cpa.com

-Health Care Industry Developments - 2009; and
For detail, please contact info@zy-cpa.com

-Government Auditing Standards and Circular A-133 Developments - 2009.
For detail, please contact info@zy-cpa.com

AICPA Audit Risk Alerts provide users with a detailed overview of recent industry, technical, regulatory, or professional developments. Topics covered in each Alert include: (a)legislative and regulatory activities (SEC, PCAOB, and other government agencies); (b)economic and industry developments or trends; (c)recent auditing and attestation pronouncements and related guidance; (d)recent AICPA independence and ethics pronouncements; and (e)future or emerging issues to monitor. In addition, each Alert includes a "Resources Central" section listing resources practitioners may find useful.

IASB Update -- IASB Discusses Financial Instruments

As reported in its "IASB Update" publications, the IASB met on September 22, 2009 and September 29, 2009, and continued its discussions on responses received to its exposure draft, Financial Instruments: Classification and Measurement. During these meetings, the IASB made the following tentative decisions:

-The scope of this phase of the project should continue to include financial liabilities.

-Classification of financial instruments should be based on: (a) how an entity manages its financial instruments; and (b) the contractual terms of the instrument.

-The final standard will have more examples than were included in the exposure draft.

-The IASB will provide guidance for when entities can use a simplified current measurement for equity instruments if determining fair value is impracticable.

-Amend IAS 34, Interim Financial Reporting, to allow an entity to carry forward that measure if there is no evidence of a significant change in that measure since the last reporting date.

The IASB also continued its discussions on the impairment of financial instruments and made a number of tentative decisions (detailed in the IASB Update) on an expected exposure draft on this topic.

September 22, 2009 Update:
For detail, please contact info@zy-cpa.com

September 29, 2009 Update:
For detail, please contact info@zy-cpa.com

IASB Update -- IASB Discusses Financial Crisis and Other Matters
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As reported in its "IASB Update" publication, the IASB met on September 14-18, 2009, and discussed the following topics:

-Financial crisis, including derecognition, financial instruments, and classification of rights issues;
-Conceptual framework;
-Financial instruments with characteristics of equity;
-Financial statement presentation;
-Insurance contracts;
-Leases;
-Liabilities: Amendments to IAS 37, Provisions, Contingent Liabilities and Contingent Assets;
-Post-employment benefits;
-Related party disclosures; and
-Revenue recognition.

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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Risk Alerts -- AICPA Issues Audit Risk Alerts

As discussed above in our Accounting and SEC Summaries, the AICPA has issued the following Audit Risk Alerts:

-Current Economic Instability: Accounting and Auditing Considerations - 2009;
For detail, please contact info@zy-cpa.com

-Health Care Industry Developments - 2009; and
For detail, please contact info@zy-cpa.com

-Government Auditing Standards and Circular A-133 Developments - 2009.
For detail, please contact info@zy-cpa.com

AICPA Audit Risk Alerts provide users with a detailed overview of recent industry, technical, regulatory, or professional developments. Topics covered in each Alert include: (a)legislative and regulatory activities (SEC, PCAOB, and other government agencies); (b)economic and industry developments or trends; (c)recent auditing and attestation pronouncements and related guidance; (d)recent AICPA independence and ethics pronouncements; and (e)future or emerging issues to monitor. In addition, each Alert includes a "Resources Central" section listing resources practitioners may find useful.

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