Pershing Yoakley & Associates, P.C. is pleased to present the September 2010
Audit & Accounting Update. This publication is designed to provide direct
access to current audit and accounting information that is most relevant to
Recently Completed Projects
The FASB released one Accounting Standards Update (ASU) in the month of
September 2010. To view the Accounting Standards Update listed below, please
ASU 2010-25 — Plan Accounting — Defined Contribution Pension Plans (Topic
962): Reporting Loans to Participants by Defined Contribution Pension Plans (a
consensus of the FASB Emerging Issues Task Force)
The amendments in this ASU require that participant loans be classified as
notes receivable from participants, which are segregated from plan investments
and measured at their unpaid principal balance plus any accrued but unpaid
interest. This ASU should be applied retrospectively to all prior periods
presented, effective for fiscal years ending after December 15, 2010. Early
adoption is permitted.
On September 27, 2010 the Federal Deposit Insurance Corporation (FDIC) approved
the issuance of a proposed rule to provide depositors at all FDIC-insured
institutions unlimited deposit insurance coverage on noninterest-bearing
transaction accounts, beginning December 31, 2010 through December 31, 2012.
Unlike the FDIC’s “TAG” (Transaction Account Guarantee) Program expiring at the
end of this year, this rule would apply at all FDIC-insured institutions and
would apply only to traditional checking accounts that do not pay interest.
Beginning January 1, 2011, low-interest consumer checking accounts will no
longer be eligible for an unlimited guarantee. The FDIC will be accepting
comments through October 15, 2010 on this proposed rule. To view the FDIC’s
press release regarding this rule, please click here.