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Accounting Research
Manager(TM)
Weekly Summary of Developments
February 28 - March 4, 2011
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Accounting Research Manager
subscriber,
The Accounting Research
Manager database now contains this week's weekly summary of developments. Click
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of this week's Weekly Summary.
Accounting and SEC
Headlines
Income Taxes -- Interpretation Updated
Revenue Recognition -- FASB and IASB Discuss Revenue
Recognition and Other Matters
IFRS for SMEs -- Draft Q&A and Other Matters
Discussed
Auditing and Internal
Controls Headlines
Ethics -- AICPA Issues Proposal
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ACCOUNTING AND SEC HEADLINES:
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Income Taxes --
Interpretation Updated
For detail, please contact info@hkcmcpa.us
We have updated our
publication, Accounting for Income Taxes - Interpretations of U.S. GAAP,
to reflect recent examples of income tax disclosures from Form 10-Ks applicable
to the years ended on or about December 31, 2010. In addition, we have updated
the “Recent Developments” section for various matters.
See our Literature Update for
complete details.
Revenue Recognition -- FASB
and IASB Discuss Revenue Recognition and Other Matters
For detail, please contact info@hkcmcpa.us
As reported in its
"Summary of Board Decisions" publication, the FASB and IASB (the
Boards) met on March 1-2, 2011, and discussed the following topics:
-Revenue recognition;
-Leases;
-Insurance contracts;
-Financial statement
presentation; and
-Effective dates and
transition methods.
In connection with the revenue
recognition project, the Boards continued their previous discussion on how an
entity would test a contract to determine whether it is onerous and tentatively
decided that the onerous test should apply to all contracts, including those
that are intentionally priced at a loss in expectation of profits to be
generated on subsequent contracts with the customer. The Boards also
tentatively affirmed the proposal in the Exposure Draft, Revenue from
Contracts with Customers, that the costs to be included in the onerous test
and in measuring an onerous liability should be the costs that relate directly
to satisfying the remaining performance obligations.
In connection with the leases
project, the Boards discussed the application of the right-of-use model to all
lease arrangements and discussed the scope of the leases standard. The Boards
made the following decisions:
-Affirmed the decision to
apply a right-of-use model to all lease arrangements.
-Tentatively decided that
leases of intangibles are not required to be accounted for in accordance with
the leases standard.
-Affirmed the decision that
the following will be within the scope of any final guidance on leases: (a)
right-of-use assets in a sublease; (b) leases of non-core assets; and (c)
long-term leases of land.
-Affirmed the decision that
the following will not be within the scope of any final guidance on leases: (a)
leases for the right to explore for or use minerals, oil, natural gas and
similar non-regenerative resources; (b) under U.S. GAAP only, leases of
biological assets including timber; and (c) under IFRS only, leases of
service concession arrangements within the scope of IFRIC 12, Service
Concession Arrangements.
The Boards also continued
their discussions on insurance contracts and tentatively decided:
-To affirm that the discount
rate used to measure all insurance contracts should be a current rate that is
updated each reporting period;
-To require discounting for
all non-life long-tail claims;
-Discounting of insurance
liabilities should not be required when the effect of discounting would be
immaterial;
-To affirm the proposed
guidance to exclude from the scope of the guidance some fixed-fee service
contracts that have as their primary purpose the provision of services; and
-To affirm all of the other
scope exceptions that were previously proposed by the Boards.
In addition, the FASB met
separately on March 2, 2011, and discussed the accounting for financial
instruments (classification and measurement).
IFRS for SMEs -- Draft
Q&A and Other Matters Discussed
For detail, please contact info@hkcmcpa.us
The IASB staff has issued its
periodic "IFRS for SMEs Update" publication that is a summary of news
relating to the International Financial Reporting Standard for Small and
Medium-Sized Entities (IFRS for SMEs). This update includes discussion of
the following topics:
-SME Implementation Group
publishes first draft Q&A;
-Updated IFRS for SMEs
training slides;
-Upcoming ‘train the trainers’
workshops;
-News about adoptions of the
IFRS for SMEs; and
-Obtaining IFRS for SMEs
materials.
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listed above may not be accessible under your current subscription. For
information about upgrading your subscription to include additional content,
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AUDITING AND INTERNAL CONTROLS
HEADLINES:
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Ethics -- AICPA Issues Proposal
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The Professional Ethics
Executive Committee of the AICPA has issued an exposure draft, Omnibus
Proposal of Professional Ethics Division Interpretations and Rulings. This
omnibus exposure draft includes more than 30 proposed new, revised, and deleted
interpretations. It also includes ethics rulings and definitions such as: (a)
proposed new Interpretation No. 101-18, "Application of the Independence
Rules to Affiliates," under Rule 101,
Comments on the omnibus
exposure draft are due by May 31, 2011.
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@hkcmcpa.us