FlashLine 2009-46
PricewaterhouseCoopers - 11/19/2009
PwC's weekly accounting and auditing alert. This week's topics include: PwC Highlights Joint FASB/IASB Project to Overhaul Financial Statement Presentation...PwC Discusses Changes Being Considered to Financial Instruments Accounting...PwC Suggests Deferring Accounting Standards Update on Derivatives and Hedging...PwC DataLine Discusses New Electronic Municipal Market Access System...PwC Takes a Look at SEC's Recent Updates to Guidance on Business Combinations and Noncontrolling Interests...IASB Completes First Phase of Financial Instruments Accounting Reform...SEC Requests Comments on PCAOB Postponing Effective Date of Rules Related to Annual and Special Reporting...SEC Issues Updated Compliance and Disclosure Interpretations...EITF Proposes Changes to the Types of Costs That Insurance Companies May Capitalize...FASB Developments

FlashLine 2009-45
PricewaterhouseCoopers - 11/12/2009
PwC's weekly accounting and auditing alert. This week's topics include: Point of View: The Future of Lease Accounting...Acquired Assets Not Intended to Be Used -- You May Need to Record Them, Even if You Don't Use Them...FASB and IASB Reaffirm Commitment to Memorandum of Understanding...FASB to Propose Deferral of FAS 167 for Certain Investment Entities and Amended Guidance on Whether Certain Fees Represent a Variable Interest...Other FASB Developments...House Committee Approves "Investor Protection Act"...IFRS News -- November 2009...IASB Seeks Comments on Proposal re: Impairment of Financial Assets...IAASB Practice Alert Aims to Help Auditors Plan More Effective Use of External Confirmations

FlashLine 2009-44
PricewaterhouseCoopers - 11/05/2009
PwC's weekly accounting and auditing alert. This week's topics include: FASB to Consider Limiting the Impact of FAS 167 for Investment Managers...Other FASB Developments...SEC Staff Issues SAB 113 on Oil and Gas Producing Activities...SEC Seeks Comments on PCAOB New Auditing Standard on Engagement Quality Review...IASB Issues Revised Version of IAS 24, Related Party Disclosure

Breaking News: EITF Proposes Changes to the Types of Costs that Insurance Companies May Capitalize
PricewaterhouseCoopers - 11/19/2009
The FASB's Emerging Issues Task Force (EITF) today reached a consensus-for-exposure related to the definition and types of costs that should be considered acquisition costs by insurance entities. Currently acquisition costs include those costs that vary with and are primarily related to the acquisition of insurance contracts. This definition has been interpreted in different ways, resulting in diversity in practice in terms of the types of costs that are being capitalized. The EITF proposal would redefine acquisition costs as those costs that are "directly related" to the acquisition of new and renewal insurance contracts. The change could be significant for insurance companies.

Breaking News: FASB to Propose Deferral of FAS 167 for Certain Investment Entities and Amended Guidance on Whether Certain Fees Represent a Variable Interest
PricewaterhouseCoopers - 11/11/2009
At today's FASB meeting, the Board decided to propose a deferral of FAS 167, Amendments to FASB Interpretation No. 46(R), for asset managers that would allow them to apply the current accounting guidance to investment entities that have the attributes of entities subject to ASC 946 (the "investment company guide"). However, as proposed, an investment entity would not be eligible under the deferral if the asset manager has an obligation to fund potentially significant losses of the entity or has an interest in the entity that absorbs a disproportionate share of the entity’s losses. The FASB also decided to propose amendments to its guidance on whether a decision-maker or service-provider’s fee represents a variable interest.

Breaking News: FASB to Consider Limiting the Impact of FAS 167 for Investment Managers
PricewaterhouseCoopers - 11/04/2009
At today's FASB meeting, the Board indicated that they have decided to add a project to their agenda to consider changes to FAS 167, Amendments to FASB Interpretation No. 46(R), to address certain investment management industry concerns regarding consolidation under FAS 167. Both preparers and users have expressed concerns that consolidation by investment managers of the funds they manage will not enhance financial reporting and instead will obscure the portrayal of their financial performance.

DataLine 2009-48: Financial Statement Presentation -- A Project Update
PricewaterhouseCoopers - 11/19/2009
Since the FASB and IASB issued a Discussion Paper (DP) last year setting out their preliminary views on financial statement presentation, they have received over 200 comment letters, conducted two field-tests, and completed a research study. Recently, the boards began discussing the initial feedback they've received and are working towards formulating their formal overhaul proposal, which they expect to release in the second quarter of 2010. This DataLine provides a high-level overview of the DP, identifies key matters raised in the comment letters, and highlights key issues and tentative decisions reached to date by the boards.

DataLine 2009-49: Changes Being Considered to Financial Instruments Accounting
PricewaterhouseCoopers - 11/19/2009
The FASB and IASB are jointly reconsidering all aspects of financial instrument accounting, including impairment and hedge accounting. However, the FASB and IASB are working to different timetables and have expressed fundamentally different viewpoints. The FASB is working towards issuing an exposure draft on all aspects of financial instrument accounting in the first quarter of next year and a final standard in late 2010. So far, the tentative decisions reached by the FASB on the recognition and measurement of financial instruments are expected to have a significant impact on many companies. This DataLine discusses the status of the financial instrument project based on the FASB's tentative decisions and provides PwC's insights on selected matters.

DataLine 2009-50: SEC Staff Updates Its Guidance Related to Business Combinations and Noncontrolling Interests
PricewaterhouseCoopers - 11/19/2009
The SEC staff issued Staff Accounting Bulletin No. 112 (SAB 112) to rescind or amend, as appropriate, its previous guidance to align it with the current standards on business combinations and noncontrolling interests. This DataLine highlights the more significant aspects of the changes resulting from the issuance of SAB 112. The new guidance impacts the treatment of acquisition costs, as well as the accounting for certain assets and liabilities recorded in a business combination. It also affects the accounting for the divestiture of some or all of a subsidiary, and the application of "push down" accounting in a subsidiary's separate financial statements. The DataLine offers practical examples with PwC's insights on the accounting considerations.

EITF Observer: A meeting synopsis - September 2009
PricewaterhouseCoopers - 09/14/2009
At the September 2009 meeting, the Emerging Issues Task Force (EITF) discussed seven issues. The EITF reached final consensuses on Issue 08-1, "Revenue Arrangements with Multiple Deliverables," and Issue 09-3, "Certain Revenue Arrangements That Include Software Elements." The EITF reached consensuses-for-exposure on Issue 09-2, "Research and Development Assets Acquired In an Asset Acquisition," Issue 09-B, "Consideration of an Insurer's Accounting for Majority-Owned Investments When Ownership Is through a Separate Account," and Issue 09-E, "Accounting for Distributions to Shareholders with Components of Stock and Cash in the Calculations and Presentation of Earnings Per Share." Further discussion is expected on Issue 08-9, "Milestone Method of Revenue Recognition," and Issue 09-4, "Seller Accounting for Contingent Consideration." This edition of PwC's EITF Observer provides a synopsis of the discussions and decisions reached at the meeting.

EITF Observer: A meeting synopsis - June 2009
PricewaterhouseCoopers - 06/19/2009
At its June 18 meeting, the Emerging Issues Task Force (EITF) discussed five issues. The EITF reached a final consensus on Issue 09-1, "Share Lending Arrangements," a consensus-for-exposure on two issues: Issue 08-1, "Revenue Arrangements with Multiple Deliverables" and Issue 09-3, "Reconsidering the Scope of SOP 97-21" and deferred decisions on Issue 08-9, "Milestone Method of Revenue Recognition" and Issue 09-2, "Research and Development Assets In an Asset Acquisition." This edition of PwC's EITF Observer provides a synopsis of the discussions and decisions reached at the meeting.

EITF Observer: A meeting synopsis - March 2009 (Updated 4/9/2009)
PricewaterhouseCoopers - 03/24/2009
At its March 19 meeting, the EITF discussed five issues, reaching a consensus-for-exposure on two issues and deferring decisions on the remaining issues. Consensuses-for-exposure were reached on Issue 08-9, "Milestone Method of Revenue Recognition," and Issue 09-1, "Accounting for Share Lending Arrangements in Contemplation of Convertible Debt Issuance." The EITF will continue to discuss the following issues at a future meeting: Issue 08-1, "Revenue Arrangements with Multiple Deliverables," Issue 09-2, "Research and Development Assets Acquired In an Asset Acquisition," and Issue 09-3, "Applicability of SOP 97-2 to Certain Arrangements That Include Software Elements."

IFRS News -- November 2009
PricewaterhouseCoopers - 11/10/2009
PwC's monthly report shedding light on the IASB's activities. This edition's topics include: Implications of the 'Financial instruments: Amortised cost and impairment' ED issued earlier this month; Details of the amendment to the standard on related-party disclosures; Highlights of IASB chairman's speech to ECOFIN, outlining the features of the IAS 39 replacement; Summary of recent activity at the IASB; and IFRS in brief, PwC's newsletter that provides a snapshot view of the latest IFRS developments. This month: impairment lessons learnt in the latest reporting cycle.

IFRS News -- October 2009
PricewaterhouseCoopers - 10/01/2009
PwC's monthly report shedding light on the IASB's activities. This edition's topics include: A summary of recent activity at the Board on its financial instruments project and what to expect over the coming months; A look at the three new board members and summary of all board members' backgrounds; An overview of two IFRS conferences taking place this month, in London and Paris; and a supplement on questions and answers on IFRS 3 (revised) and IAS 27 (revised) - part 3. Also included is IFRS in brief: PricewaterhouseCoopers' newsletter that provides a snapshot view of the latest IFRS developments. This month: changes to accounting for investment property under construction.

IFRS News -- September 2009
PricewaterhouseCoopers - 09/03/2009
PwC's monthly report shedding light on the IASB's activities. This edition's topics include: Board proposes amendment that will eliminate volatility in profit or loss for rights issues denominated in a foreign currency; A look at some of the common issues arising in impairments of non-finanical assets; High-level overview of the EU institutions involved in accounting and their interaction with the IFRS standard-setting process; Questions and answers on IFRS 3 (revised) and IAS 27 (revised) - part 2; and more.

Straight Away: Guidance on IFRS 9 'Financial Instruments'
PricewaterhouseCoopers - 11/12/2009
This edition of Straight Away outlines IFRS 9 'Financial instruments' issued by the IASB on November 12.

Straight Away: Guidance on Exposure Draft 'Financial Instruments: Amortized Cost and Impairment'
PricewaterhouseCoopers - 11/09/2009
This edition of Straight Away outlines the latest IASB exposure draft Financial Instruments: Amortized Cost and Impairment.

Straight Away: Guidance on Amendment to IAS 24, 'Related Party Disclosures'
PricewaterhouseCoopers - 11/05/2009
This edition of Straight Away outlines the latest IASB amendment to IAS 24, Related Party Disclosures.

Practical Tip 2009-05: The Summarized Equity Method Investee Financial Information Required To Be Included in a Registrant's Audited Financial Statements Must Be Provided at the Time the Form 10-K is Filed
PricewaterhouseCoopers - 10/28/2009
This Practical tip highlights the filing timetable for separate financial statements and summarized financial information relating to equity method investees. It points out that the limited grace period which may be available to an SEC registrant with respect to the filing deadline for the separate financial statements of a significant equity method investee (under S-X Rule 3-09) does not extend to the requirement for the registrant to provide summarized investee financial information in the notes to the registrant's financial statements (under S-X Rule 4-08(g)).

Practical Tip 2009-04: Reductions in the Level of Production May Require Fixed Production Overhead to Be Recorded as a Current Period Expense Instead of Being Capitalized in Inventory
PricewaterhouseCoopers - 09/21/2009
This Practical Tip highlights that when a company's production levels are abnormally low, the portion of the fixed production overhead attributable to the excess capacity should not be allocated and capitalized as a cost of inventory. Instead, the excess should be recognized as an expense, within cost of goods sold, in the period in which it is incurred.

Practical Tip 2009-03: Changes to Income Tax Uncertainties and Valuation Allowances Acquired in a Business Combination
PricewaterhouseCoopers - 08/24/2009
In this third Practical Tip -- PwC's series designed to help you stay on top of important elements of financial reporting -- the firm highlights that under the FASB's new business combinations standard (FAS 141(R), which is codified in ASC 805), adjustments made to valuation allowances on acquired deferred tax assets and income tax uncertainties that are made subsequent to the acquisition date are generally recognized in income tax expense, unless they qualify as measurement period adjustments. This is true even if the acquisition was accounted for under prior GAAP.

The Quarter Close: A look at this quarter's financial reporting issues -- Third Quarter 2009
PricewaterhouseCoopers - 09/18/2009
The Quarter Close is designed to keep you informed about the latest accounting and financial reporting issues. In this edition, we highlight a wide range of topics, some which have near-term impact, while others have the potential for significant changes in the future. Newly-approved guidance from the EITF on two revenue recognition projects could impact companies in the near-term--read all about it in "Hot off the press." Another project that is garnering considerable attention is the re-examination of the accounting for financial instruments. It's a "hot topic" that may be a "hot potato" later this year.

The Quarter Close: A look at this quarter's financial reporting issues -- Second Quarter 2009
PricewaterhouseCoopers - 06/23/2009
In this edition of PwC's quarterly publication designed to keep you informed about the latest accounting and financial reporting issues, we highlight three recently issued FSPs that are effective in Q2, offer some perspectives from early adopters on the new impairment standard for debt securities, and provide some "lessons learned" in applying the new noncontrolling interest standard (FAS 160). Under the heading of "Hot off the press!" we spotlight two new standards that will have broad applicability in the near term: FAS 166 on transfers of financial assets and FAS 167 on consolidations of variable interest entities. And, in "On the horizon," we call your attention to some key EITF issues dealing with revenue recognition.

The Quarter Close: A look at this quarter's financial reporting issues -- First Quarter 2009
PricewaterhouseCoopers - 04/03/2009
Welcome to our inaugural edition of The Quarter Close. This quarterly publication is designed to keep you informed about the latest accounting and financial reporting issues. This new publication highlights certain accounting hot topics and newly effective standards along with other areas of interest. In this edition, we highlight the results of the latest debate on fair value accounting and impairments, and discuss the new standards for business combinations and non-controlling interests, including recent amendments to the guidance on acquired contingencies.

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