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The Financial Accounting Standards Board (FASB) met on Wednesday, July 8, 2009, to discuss comments received on: (a) proposed FASB Staff Position (FSP) FAS 157-f, Measuring Liabilities under FASB Statement No. 157; and (b) proposed FSP FIN 48-d, Application Guidance for Pass-through Entities and Tax-Exempt Not-for-Profit Entities and Disclosure Modifications for Nonpublic Entities.

Meeting handouts are available at:
http://www.fasb.org/cs/ContentServer?c=Document_C&pagename=FASB%2FDocument_C%2FDocumentPage&cid=1176156338139

Thought of the day…..

Believe in miracles. The best is yet to come!

To celebrate growing older, Regina Brett, 90 yrs old, once wrote the 45 lessons life taught her.

To one who has faith, no explanation is necessary.

To one without faith, no explanation is possible.

- St. Thomas Aquinas (1225-1274)

Without faith, nothing is possible.  With it, nothing is impossible

Your faith is what you believe, not what you know.

 

You can do very little with faith, but you can do nothing without it.

The principal part of faith is patience. It is like electricity.

 

You can’t see it, but you can see the light.

Faith makes: the uplook good, the outlook bright, the future glorious.

 

Update – 9 Feb 09

The IIA has released a research report, International Financial Reporting Standards (IFRS): What Internal Auditors Need to Know (2009). This report is designed to provide internal auditors with a working knowledge of IFRS and the challenges facing many companies.

Topics in this report include:

-IFRS versus U.S. GAAP: What is the difference?;
-Internal audit’s responsibility in the IFRS process;
-Business Impact: Key changes to expect from IFRS;
-Proposed timeline for IFRS Convergence in the U.S.; and
-Summary and IFRS resources.

This report is available through the IIA website at:
http://www.theiia.org/research/research-reports/chronological-listing-research-reports/downloadable-research-reports/?search=ifrs&C=2098&I=8810

IASB webcast on revenue recognition – 10 Feb 2009

Webcast topic: Discussion Paper Preliminary Views on Revenue Recognition in Contracts with Customers issued jointly by FASB and IASB
Webcast organiser: IASB
Date: Tuesday, 10 February 2009
Times: 9:00am to 10:00am GMT and 3:00pm to 4:00pm GMT
Presenters: Jan Engstrom, Member of the IASB; Henry Rees, Senior Project Manager; and April Pitman, Project Manager
Listener participation: The webcasts will allow listeners to submit questions to the presenters.
Cost: Free of charge.
Link to IASB website  for more information

Update – IASB – 31 Jan 09

Transfer of Assets – IASB Issues Guidance on Transfers of Assets from CustomersThe IASB has issued International Financial Reporting Interpretations Committee (IFRIC) Interpretation 18, Transfers of Assets from Customers. This Interpretation is particularly relevant for the utility sector. IFRIC 18 clarifies the requirements of IFRSs for agreements in which an entity receives from a customer an item of property, plant and equipment that the entity must then use either to connect the customer to a network or to provide the customer with ongoing access to a supply of goods or services (such as a supply of electricity, gas or water). Specifically, the IASB believes IFRIC 18 clarifies the:

-Circumstances in which the definition of an asset is met;
-Recognition of the asset and the measurement of its cost on initial recognition;
-Identification of the separately identifiable services (one or more services in exchange for the transferred asset);
-Recognition of revenue; and
-Accounting for transfers of cash from customers.

IFRIC 18 requires entities to apply the Interpretation prospectively to transfers of assets from customers received on or after July 1, 2009. Earlier application is permitted provided the valuations and other information needed to apply to the Interpretation to past transfers were obtained at the time those transfers were made.

Derivatives and Hedging – IASB Publishes Proposed Amendments to IFRIC Interpretations

The IASB has published for public comment an Exposure Draft (ED), Post-Implementation Revisions to IFRIC Interpretations. This ED would amend IFRIC 9, Reassessment of Embedded Derivatives, and IFRIC 16, Hedges of a Net Investment in a Foreign Operation. Specifically, this proposal would amend paragraph 5 of IFRIC 9 to exclude from its scope embedded derivatives in contracts acquired in combinations of entities or businesses entities under common control and in the formation of joint ventures. This amendment results from the changed definition of a business combination in IFRS 3 (Revised January 2008), Business Combinations. In addition, this ED would amend paragraph 14 of IFRIC 16 to remove the restriction on the entity that can hold hedging instruments.

As proposed, the amendments to IFRIC 9 would be effective for annual periods beginning on or after July 1, 2009 with prospective application, and would require an entity that applies IFRS 3 for an earlier period to disclose that fact and apply the amendment to IFRIC 9. The amendment to IFRIC 16 would be effective for annual periods beginning on or after October 1, 2008 with prospective application.

Comments on this proposal are due March 2, 2009.

Updates – Internal Controls – 31 Jan 09

Internal Controls – PCAOB Publishes Staff Guidance on Auditing Internal Control over Financial Reporting of Smaller Public Companies

The PCAOB staff has published, Staff Views – An Audit of Internal Control over Financial Reporting That is Integrated with an Audit of Financial Statements – Guidance for Auditors of Smaller Public Companies. This guidance explains how auditors can apply the principles in PCAOB Auditing Standard No. 5, An Audit of Internal Control over Financial Reporting That is Integrated with an Audit of Financial Statements, to audits of smaller, less complex public companies. Auditing Standard No. 5 provides direction to auditors on scaling the audit based on the company’s size and complexity. This staff guidance reflects consideration of comments received on the preliminary views guidance that was issued in October 2007.

Updates – FASB – 31 Jan 09

Financial Instruments – FASB Discusses Financial Instruments with Characteristics of Equity and other matters

The FASB met on January 28, 2009, and discussed the following items:

-Financial instruments with characteristics of equity;
-Implementation of FASB Statement No. 140, Accounting for Transfers and Servicing of Financial Assets and Extinguishments of Liabilities; and
-Reconsideration of FASB Interpretation (FIN) No. 46 (Revised December 2003), Consolidation of Variable Interest Entities.

The FASB decided to further analyze an approach that would divide puttable and mandatorily redeemable instruments with characteristics of equity into the following categories:

-Instruments that are puttable or mandatorily redeemable upon the occurrence of an event that is certain to occur (such as death or retirement); and
-All other puttable and mandatorily redeemable instruments.

At a future meeting, the FASB is expected to discuss classification and possible separation of instruments in each category.

The FASB also redeliberated significant issues raised in comments received on FASB proposed Statement, Accounting for Transfers of Financial Assets, and decided to limit the circumstances in which a transfer of a portion of a financial asset is eligible for derecognition. The FASB affirmed the definition of “participating interest” with certain changes outlined in the FASB’s Summary of Board Decisions.

Financial Instruments – FASB Discusses Disclosures about Certain Financial Assets

The FASB met on January 23, 2009, and discussed issues raised by respondents in comment letters received on proposed FASB Staff Position (FSP) FAS 107-a, Disclosures about Certain Financial Assets: An Amendment of FASB Statement No. 107, and decided not to finalize the proposed FSP. Rather, the FASB decided to issue a new proposed FSP that would amend FASB Statement No. 107, Disclosures about Fair Value of Financial Instruments, to require interim and annual disclosures of fair value measurements for all financial instruments within the scope of that Statement. The FASB also decided that entities should provide the disclosures in Statement 107 for interim and annual periods ending after March 15, 2009. The FASB expects to issue a proposed FSP on or around January 30, 2009, with a 30-day comment period.

Wealth

You aren’t wealthy until you

have something money can’t buy.

Garth Brooks

 

TIP:
Not everything that can be counted counts,

and not everything that counts can be counted.
It is not the man who has too little, but the man who craves more, that is poor.
It is not what we take up, but what we give up, that makes us rich.

If we command our wealth, we shall be rich and free.

If our wealth commands us, we are poor indeed.

 

Therefore, if your only goal is to become rich,

you will never achieve it.

News! Jan 14, 2009

US Supreme Court Asked to Rule PCAOB Unconstitutional.

A small audit firm has asked the US Supreme Court to declare the Public Company Accounting Oversight Board (PCAOB) unconstitutional. The arugument is  that the Sarbanes-Oxley Act of 2002 provisions creating the PCAOB violate the separations of powers and Appointments Clause by essentially stripping the President of all powers to appoint or remove PCAOB members.  PCAOB members are appointed by a majority vote of the Securities and Exchange Commission (SEC) and can only be removed if the SEC finds they “willfully” violated the PCAOB’s rules or refused to enforce compliance with public accounting rules.

Further information on this case, including access to the audit firm’s petition, is available from Jim Hamilton’s World of Securities Regulation blog at:
http://jimhamiltonblog.blogspot.com/2009/01/us-supreme-court-asked-to-rule-pcaob.html

Upcoming Webcast

FASB Webcast – Proposed Improvements to Financial Statement Presentation.

There will be a webcast on the recently issued Discussion Paper, Preliminary Views on Financial Statement Presentation (issued October 16, 2008) on Tuesday, January 27, 2009.  The live webcast is offered free of charge. Viewers will have the opportunity to email questions to panelists during the event.

More information is available from FASB.

Registration is required to view and participate in the webcast.

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