Pershing Yoakley & Associates, P.C., is pleased to present the November 2011 Audit & Accounting Update. This update is designed to provide direct access to current audit and accounting information that is relevant to you.
FASB Activities
Exposure Drafts
The Financial Accounting Standards Board (FASB) has released Proposed Accounting Standards Update (PASU), Technical Corrections. A summary of this item is provided below.
In November 2010, the acting FASB chairman added to the FASB s agenda a project designed to address feedback received from interested parties regarding the Accounting Standards Codification (ASC). This ongoing project was established to facilitate ASC updates for minor technical corrections to the ASC. The FASB limits the types of issues that it will consider through this project to minor changes to clarify the ASC or correct unintended applications of guidance that are not expected to have a significant effect on current accounting practice or create a significant administrative cost.
This PASU includes amendments that conform the use of the term fair value throughout the ASC. These conforming amendments fully reflect the measurement and disclosure requirements of ASC Topic 820, Fair Value Measurement. The FASB believes the proposed conforming amendments are non-substantive in nature and do not result in pervasive changes to current practice.
The amendments in this PASU address a wide range of topics. The FASB invites individuals and organizations to comment on all matters covered in the PASU. Comments are due by December 13, 2011. To view this PASU in its entirety, please click here.
GASB Activities
Exposure Drafts
The Governmental Accounting Standards Board (GASB) has released an Exposure Draft (ED) entitled: Technical Corrections, an amendment of GASB Statements No. 10 and No. 62. A summary of this item is provided below.
The primary objective of this ED is to improve accounting and financial reporting of governmental entities by resolving conflicting guidance that resulted from the issuance of two recent pronouncements, GASB Statement No. 54, Fund Balance Reporting and Governmental Fund Type Definitions, and GASB Statement No. 62, Codification of Accounting and Financial Reporting Guidance Contained in Pre-November 30, 1989, FASB and AICPA Pronouncements.
This ED is proposing amendments to GASB Statement No. 10, Accounting and Financial Reporting for Risk Financing and Related Insurance Issues, by removing the provision that limits fund-based reporting of an entity s financing activities to the general fund and the internal service fund type. The ED would also amend GASB Statement No. 62 by modifying the specific guidance on accounting for: (1) operating lease payments that vary from a straight-line basis; and (2) the difference between the initial investment (purchase price) and the principal amount of a purchased loan or group of loans.
The provisions of this ED would be effective for periods ending after June 15, 2012, with earlier application being encouraged. The deadline for comment is December 16, 2011. To view this ED in its entirety, please click here.
For more information, please contact the experts listed below at PYA, (800) 270-9629.
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