Pershing Yoakley & Associates, P.C. is pleased to present the June 2010 Audit & Accounting Update. This publication is designed to provide direct access to current audit and accounting information that is most relevant to you.
Recently Completed Projects
The FASB did not release any Accounting Standards Updates (ASU’s) in the month of June 2010. However, this is just a brief reprieve. FASB Chairman Robert Herz recently commented on the rapid introduction of ASU’s to date in 2010 and the promise of approximately twelve major standards to be finalized in the next year. To view these comments, please click here.
To view any of the Accounting Standards Updates issued to date in 2010, please click here.
Exposure Drafts in the News
The FASB released two proposed ASU’s in the month of June 2010. To view these proposed ASU’s, please click here.
Proposed ASU – Revenue Recognition (Topic 605): Revenue from Contracts with Customers
This ASU would align revenue recognition practices between generally accepted accounting principles (GAAP) and International Financial Reporting Standards (IFRSs). The proposed standard would differ from current practice in many ways, including allowing the recognition of revenue only from the transfer of goods or services (i.e., revenue would be recognized when the customer controls the asset); requiring the identification of separate performance obligations, which may differ from those identified in current practice; requiring the effect of a customer’s credit risk be considered when determining how much revenue is recognized; specifying which contract costs are recognized as expenses as incurred and which expenses are capitalized; and requiring more disclosure about an entity’s contracts with customers. The deadline for comment is October 22, 2010.
Proposed ASU – Fair Value Measurements and Disclosures (Topic 820): Amendments for Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRSs
This ASU amends current practice by requiring common fair value measurement and disclosure requirements between U.S. GAAP and IFRSs. The deadline for comment is September 7, 2010.
Extra Time to Catch Up on Pension Funding
With the recent enactment of the Preservation of Access to Care for Medicare Beneficiaries and Pension Relief Act, companies may have some options for extending a pension funding requirement over a longer period of time. Current legislation requires companies to catch up any pension underfunding in seven years. The new legislation will allow companies to make interest-only payments for two years and then catch up over the next seven years, or they can stretch the entire amount over fifteen years. To view a summary of this Act, please click here.
The Governmental Accounting Standards Board (GASB) issued Statement No. 59, Financial Instruments Omnibus (GASB 59) on June 24, 2010. GASB 59 updates current standards regarding the financial reporting of financial instruments and external investment pools. To view the GASB press release, please click here.