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11/20/08-In Release No. 34-58911, SEC Approves Nasdaq Proposal for Late Filers

On November 6, 2008, the SEC approved a Nasdaq proposal to modify the procedures for listed companies that are late in filing a required periodic report with the SEC.

Release No. 34-58911, Self-Regulatory Organizations; The NASDAQ Stock Market LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change to Modify the Procedures Applicable to Listed Companies that Are Late in Filing a Required Periodic Report with the Commission, is effective immediately under Section 19(b)(3)(A) of the Securities Exchange Act of 1934.

Comments on the proposal are due December 9.

11/19/08-SEC Issued IFRS Roadmap in Release No. 33-8982

The SEC issued the long-awaited proposal to pave the way for U.S. companies to use global accounting rules in Release No. 33-8982, Roadmap for the Potential Use of Financial Statements Prepared in Accordance with International Financial Reporting Standards by U.S. Issuers, on November 14, 2008.

The proposed rule provides a timeline for U.S. companies to adopt IFRS in a phased-in approach from 2010 through 2017, provided several conditions are met each stage along the away. Large companies approved to be in the first wave of adopters can use the rules for the regulatory filings they submit in 2010 for their 2009 fiscal years. Only companies that are among the largest global entities in industries where IFRS are followed by more firms than any other set of accounting principles would be eligible to become early users. The proposal's 90-day comment period ends on February 19, 2009.

11/17/08 -- SEC to Consider Proposals on Rating Agencies and Fund Disclosures
The SEC plans to have an open meeting on November 19, 2008, to consider two regulatory and administrative proposals.

The proposals include rule amendments that would:

• Impose additional requirements on nationally recognized statistical rating organizations (NRSROs) to address concerns about the integrity of their credit rating procedures and methodologies; and

• Improve mutual fund disclosure by providing investors with a summary prospectus containing key information in plain English in a clear and concise format, and by enhancing the availability on the Internet of more detailed information to investors. The SEC will also consider adopting related amendments to Form N 1A, including amendments that address exchange-traded funds (ETFs).

The proposed amendments are detailed in a series of releases the SEC issued during the summer.

11/12/08 -- SLB No. 14D Clarifies Right to Reject Proposals on Corporate Charters
The SEC's division of corporation finance said there is "some basis" for companies to omit shareholder proposals to amend a company's charter under Rule 14a-8 of the Securities Exchange Act of 1934.

In Staff Legal Bulletin (SLB) No. 14D, issued on November 7, 2008, the SEC said the omission would be allowed "if the company meets its burden of establishing that applicable state law requires any such amendment to be initiated by the board and then approved by shareholders in order for the charter to be amended."

11/06/08 -- SEC and FASB Say Warrants in Bailout Package May Be Treated as Equity
The SEC and the FASB told the Treasury Department that warrants issued under the government's plan to buy troubled assets from financial institutions may be treated as permanent equity under U.S. GAAP.

The standard-setters outlined their opinion in a joint letter to David Nason, Treasury's assistant secretary for financial institutions in an October 24, 2008, letter.

"We would not object if the warrants…were to be classified as permanent equity under applicable U.S. GAAP, provided that the issuer of such warrants has sufficient authorized but unissued shares of the class of stock that may be required upon settlement and any other necessary shareholder approvals have been obtained," wrote James Kroeker, deputy chief accountant for the SEC and Russell Golden, technical director for the FASB.

11/03/08 -- With SEC Release No. 33-8981, Electronic Filings Are Now Mandatory Under the Investment Company Act
The SEC issued a final rule on October 29, 2008, requiring all applications for exemptions under the Investment Company Act of 1940 to be made electronically. The rule in Release No. 33-8981, Mandatory Electronic Submission of Applications for Orders under the Investment company Act and Filing Made Pursuant to Regulation E, will become effective January 1, 2009.

Under Chairman Christopher Cox, who has indicated he will leave the agency in 2009, the regulatory agency has approved a number of rules to increase the electronic filing of forms and disclosures on the SEC's EDGAR system.

The final rule amends certain provisions of Regulation S-T and Investment Company Act Rule 0-2 to require electronic submission on EDGAR. Rule 0-2 requires every application for an exemption that does not have a specific form to contain a statement from the company that all requirements have been met and the person signing the application is fully authorized. Regulation E allows for the exemption from registration of securities issued by small business investment companies registered under the Investment Company Act.

The goal of the rule change is to increase the speed of delivery of financial and business information to investors, the SEC said.

10/31/08 -- Mark-to-Market Problems Seen in Application, Not Practice Itself
The panelists who took part in the first of two scheduled roundtables the SEC is holding as part of its congressionally-mandated study on mark-to-market accounting didn't change their views.

Neither the defenders nor the critics of rules like the FASB's SFAS No. 157, Fair Value Measurements, budged from their positions during the October 29, 2008, roundtable. A second discussion is scheduled for November 21.

The SEC is required to conduct a study of mark-to-market accounting applicable to financial institutions under the Emergency Economic Stabilization Act of Act 2008, which was passed earlier in October.

10/29/08 -- In Release No. 34-58834, NYSE Temporarily Suspends Listing Rule to Aid Mortgage Lender
In Release No. 34-58834, the SEC approved an application from the New York Stock Exchange LLD to temporarily suspend a stock-price listing requirements and permit Thornburg Mortgage Inc. to maintain its listing.
The NYSE applied for the temporary suspension of Rule 123D(3) on October 10, 2008, and the SEC granted it on October 23 on an accelerated basis.

10/20/08 -- Short-Sale Reporting Requirements for Money Managers Are Extended in Release No. 34-58785
The SEC adopted an interim final temporary rule in Release No. 34-58785, Disclosure of Short Sales and Short Positions by Institutional Investment Managers, on October 15, 2008, which extends an order that requires institutional money managers to report information concerning their short sales of section 13(f) securities on a weekly basis using Form SH.

The order, which was to expire at 11:59 p.m. on October 17, is now effective until August 1, 2009.

10/08/08 -- In Release No. 34-58696, SEC Issues Proposal To Make STRIPS Eligible for Interbank Service
The SEC issued Release No. 34-58696, Notice of Filing and Immediate Effectiveness of Proposed Rule Change to Amend the Rules of the Government Securities Division to Expand the Types of Securities Eligible for the GCF Repo Service, on September 30, 2008, to solicit comments on a proposed rule that would make about $170 billion of fixed-rate Treasury notes and bonds, held in stripped form, eligible for the Fixed Income Clearing Corp.'s GCF Repo Service.

The GCF Repo Service, which was reopened in May 2008, permits dealers to trade general collateral finance (GCF) repurchase agreements with each other, on a blind brokered basis. According to the FICC, the revival of the interbank service has added substantial liquidity to the market.

Comments on the proposed rule are due 15 days after its publication in the Federal Register, which normally takes place a few days after publication on the SEC's website.

10/07/08 -- Two More Short-Sale Restrictions Are Extended
Two additional extensions on the restrictions against short selling were issued by the SEC on October 2, 2008 -- Release No. 34-58723, Order Extending Emergency Order Halting Short Selling in Financial Stocks, and Release No. 34-58724, Order Amending and Extending Emergency Order Requiring Institutional Money Managers to Report New Short Sales.

In Release No. 34-58724, the SEC said it needed to continue requiring some investment managers to report their short-sale positions.

10/06/08 -- SEC Extends Short Selling Emergency Orders
With the issuance of Release Nos. 34-58711 and 34-58703, the SEC extended its emergency order halting abusive "naked" short selling that was initially announced after market close on September 17, 2008, in Release No. 34-58572, Emergency Order Pursuant To Section 12(k)(2) of the Securities Exchange Act of 1934 Taking Temporary Action to Respond to Market Developments.

At that time regulators expressed concern about the extent to which abusive short selling affected all public companies and not just the financial institutions that were protected in a July emergency order in Release No. 34-58166.

10/02/08 -- In Release No. 33-8961, SEC Amends Item 407 of Regulation S-K
The SEC adopted a technical amendment to Item 407 of Regulation S-K in Release No. 33-8961, Technical Amendment to Item 407 of Regulation S-K, on September 26, 2008.

The final rule became effective September 30.

Under existing Item 407 of Regulation S-K, an issuer's audit committee must state that it has received from the independent accountants the written disclosures and letter required by Independence Standards Board (ISB) Standard No. 1, Independence Discussions with Audit Committees. In Release No. 33-8961, the reference is being updated to refer to the "applicable requirements of the PCAOB regarding the independent accountant's communications with the audit committee concerning independence."

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11/18/08 -- FASB Plans to Discuss Measurement of Lease Obligations
The FASB plans to discuss its projects on lease accounting and financial instruments with characteristics of equity at its November 19, 2008, weekly meeting in Norwalk, CT.

The Board will review the initial and subsequent measurement of a lease obligation and right-of-use asset and the presentation of a lease in financial statements. The Board also will discuss the accounting for subleases.

The Board will also continue to develop an approach to identify equity instruments, as part of its project on financial instruments with characteristics of equity, for which it released Preliminary Views (PV) No. 1550-100, Financial Instruments with Characteristics of Equity. Finally, the Board will discuss whether perpetual basic ownership instruments, other perpetual instruments, and derivatives on an issuer's basic ownership instruments should be classified as equity.

11/14/08 -- FASB Resolves Many Outstanding Issues on Guidance on Disclosures of Transferred Financial Assets
The FASB Board discussed public comments on its project to require additional disclosures for off-balance-sheet transactions, giving its staff approval to draft the final version, when the Board met for its weekly meeting on November 12, 2008, at its Norwalk, CT headquarters.

The Board authorized its research staff to incorporate certain modifications to FASB Staff Proposal (FSP) No. FAS 140-e and FIN 46(R)-e, Disclosures about Transfers of Financial Assets and Interests in Variable Interest Entities. The staff estimated that these changes could be made and brought to the Board the final week of November. They anticipated that the guidance will be issued on December 15, 2008.

The FASB staff had tried to integrate some of the public feedback into the recommended changes they proposed to the Board, some of which were approved, while others were met with skepticism.

11/13/08-IASB and FASB Announce Plans for Second and Third Global Financial Crisis Roundtables

On November 6, 2008, the IASB and the FASB announced the dates for the remaining two public roundtable discussions to identify financial reporting issues highlighted by the global financial crisis.

The second roundtable will be held in Norwalk on November 25, and the third will be held in Tokyo on December 3. The first roundtable, which was announced on November 3, is to be held in London on November 14.

The roundtables are being held to give the Boards an opportunity to ask financial statement users, preparers, government officials and regulators, and others about the market meltdown and the things that need to be done to improve financial reporting and restore investor confidence.

11/11/08-Action Alert 08-45: FASB Will Discuss Disclosures for Transfers of Financial Assets At its weekly meeting on November 12, 2008, the FASB will redeliberate the proposed guidance on disclosures about transfers of financial assets and interests in variable interest entities. According to Action Alert 08-45, the FASB will discuss the proposed FASB Staff Position (FSP) No. FAS 140-e and FIN 46(R)-e, Disclosures about Transfers of Financial Assets and Interests in Variable Interest Entities. The FSP is being issued to improve disclosures for users of financial information until the amendments to SFAS No. 140, Accounting for Transfers and Servicing of Financial Assets and Extinguishments of Liabilities, and FASB Interpretation (FIN) No. 46 (revised December 2003), Consolidation of Variable Interest Entities, are effective. The Board will also discuss the disclosures, effective date, and transition provisions for the final guidance on mergers and acquisitions of not-for-profit organizations and goodwill and other intangible assets. The Board also will consider whether to proceed toward drafting a single final statement or separate statements. The Board will also hold an educational session to discuss topics that it expects to come up at a future meeting.

11/10/08 -- Financial Statement Users Suggest Changes to FASB's Consolidation Rules
A group of auditors, bankers, financial analysts and government officials met with the FASB Board at a special roundtable session on November 6, 2008, and discussed their views on proposed amendments to Exposure Draft (ED) No. 1610-100, Accounting for Transfers of Financial Assets: An Amendment of FASB Statement No. 140, and ED No. 1620-100, Reconsideration of FIN 46(R): Consolidation of Variable Interest Entities.

Both proposals are open for comment until November 14.

In letters to the FASB, some constituents had argued that if there is any continuing involvement with a securitized asset, sale accounting should not be permitted. Continuing involvement is defined as any involvement with the sold financial assets that still allows the seller to receive a cash flow, such as a mortgage payment, from the assets.

In the November 6 discussion, participants provided the Board with their opinions on the continuing involvement, often disagreeing with each other on the implications of the new guidance or how it would impact users' understanding of securitized assets and the financial statements.

11/07/08 -- In Proposed FSP No. FIN 48-c, the FASB Seeks a Partial Delay for Compliance with FIN No. 48
The FASB issued Proposed FASB Staff Position (FSP) No. FIN 48-c, Effective Date of FASB Interpretation No. 48 for Certain Nonpublic Enterprises, on November 4, 2008.

In the proposal, the FASB is seeking to defer the effective date for FASB Interpretation (FIN) No. 48, Accounting for Uncertainty in Income Taxes, for private entities to fiscal years beginning after December 15, 2008.

The comment period on the proposal ends on December 3.

The FSP uses the definition of non-public companies that appears in paragraph 289 of SFAS No. 109, Accounting for Income Taxes, which includes nonpublic not-for-profit organizations.

11/05/08 -- Action Alert 08-44: Board Plans to Review Measurement of Assets and Liabilities Under Conceptual Framework
At its weekly meeting on November 5, 2008, the FASB will continue its discussion of the methods for measuring different types of assets and liabilities in the conceptual framework.

According to Action Alert 08-44, the Board will discuss the factors that should be considered in making decisions about appropriate measurement bases, such as exit price or entry price, for different types of assets and liabilities.

On November 6, the Board plans to hold an open roundtable discussion on the proposed statements in Exposure Draft (ED) No. 1610-100, Accounting for Transfers of Financial Assets, and ED No. 1620-100, Amendments to FASB Interpretation No. 46(R). The proposals are open for comment until November 14.

11/04/08-Accounting for Business Combination Contingencies Swiftly Moving Forward
The FASB considered amendments to clarify how assets and liabilities arising from contingencies in a business combination should be accounted for at its weekly Board meeting on October 29, 2008.

The Board approved the scope for its recently added project on accounting for assets and liabilities arising from contingencies in a business combination, which would amend SFAS 141(R), Business Combinations. The scope will include loss contingencies, such as pending litigation, possible claims and assessments, obligations related to product warranties and product defects and other related items. Board members also discussed both the initial measurement and recognition of pre-acquisition contingencies and their subsequent measurement.

10/30/08 -- Bankers Step up Attack on FASB's Fair Value Guidance
The banking industry is using the SEC's rulemaking comment process to advance its campaign to undo fair value accounting, particularly the FASB's SFAS No. 157, Fair Value Measurements.

A number of the early comments on the SEC's fair value accounting study, which it was ordered to do by the Emergency Economic Stabilization Act of 2008, are in, and several of them have been filed by financial institutions and their backers looking to ease the rule's requirements.

10/28/08 -- Action Alert No. 08-43: FASB Plans to Vote on Finalizing Pension Disclosures
At its October 29, 2008, weekly meeting, the FASB will continue its discussion of guidance on pension plan disclosures and the accounting for assets and liabilities arising from contingencies in a business combination.

According to Action Alert No. 08-43, the Board will consider whether to finalize proposed FASB Staff Position (FSP) No. FAS 132(R)-a, Employers’ Disclosures about Postretirement Benefit Plan Assets. The Board plans to discuss disclosure requirements relating to fair value measurements of plan assets, transition, and effective date.

In its discussion on contingencies in a business combination, the Board will review the issues raised by constituents and whether guidance that would amend SFAS No. 141(R), Business Combinations, is needed to address those issues.

10/23/08 -- FASB and IASB Support Proposal Tightening Guidance on Derecognition of Financial Assets
The FASB and IASB Boards voted in preference of a more stringent approach in determining the sale of a financial asset that would consider factors such as the ability of the asset to be sold to a third party, as the two Boards discussed their joint derecognition project during their semi-annual meeting on October 20, 2008, at the FASB headquarters in Norwalk, CT.

Christian Kusi-Yeboahm, who is managing the derecognition project, presented a joint FASB-IASB research paper before the two Boards on derecognizing financial assets, which offered two alternative approaches for derecognizing financial assets if continuing involvement, such as continued streams of mortgage payments, still exists.

This project was developed in response to a request at the April 2008 meeting between FASB and IASB to develop an alternative derecognition approach to potentially be adopted by the two Boards.

10/22/08 -- Crisis Task Force to Focus on Links Between Financial Reporting and Investor Confidence
The FASB and the IASB, during the first day of their two-day meeting, said on October 20, 2008, they plan to empanel their credit crisis task force quickly and have the group of senior regulatory officials and accounting practitioners examine the links between financial reporting, accounting transparency, and market confidence.

The two Boards announced plans to form the group on October 16, and the body's establishment is part of a series of quickly arranged responses by the FASB, the IASB, and the SEC as the credit crisis ballooned out of control during September.

In addition to committing to a quick response by the advisory panel, the U.S. and the international standard-setter said they plan to conduct a series of three roundtable discussions, one each in Asia, North America, and Europe, to assess the financial reporting and accounting issues brought to light by the market meltdown.

The Boards also said they would develop long-term solutions to the financial reporting issues brought to light by the crisis, and that they planned to base many of their forthcoming proposals on the Invitation to Comment (ITC) No. 1560-100, Reducing Complexity in Reporting Financial Instruments, and the responses they receive to the paper.

10/21/08 -- IASB and FASB Publish Discussion Paper on Proposed Enhancements to Financial Statement Presentation
The FASB and the IASB published for comment a joint Discussion Paper (DP), PV No. 1630-100, Preliminary Views on Financial Statement Presentation, on October 16, 2008, that contains an analysis of the current issues in financial statement presentation and the Boards' initial plans to tackle those issues.

Comments about the paper are due by April 14, 2009.

10/16/08 -- FASB Issues Draft Guidance on Going Concerns and Subsequent Events
The FASB issued Exposure Draft (ED) No. 1640-100, Subsequent Events, and ED No. 1650-100, Going Concern, on October 9, 2008.

The separate but related proposed statements incorporate related AICPA guidance for auditors into the accounting literature and are intended to improve financial reporting and help converge U.S. GAAP with IFRS, the FASB said.

10/15/08 -- FASB Clarifies Fair Value Guidance for Inactive Markets in Final FSP No. FAS 157-3

The FASB issued Final FASB Staff Position (FSP) No. FAS 157-3, Determining the Fair Value of a Financial Asset When the Market for That Asset Is Not Active, on October 10, 2008, to clarify the guidance for applying fair value accounting to financial instruments that are no longer trading in an open market.

10/14/08 -- Action Alert No. 08-41: Board Plans to Discuss Comments on FIN No. 48
At the FASB's October 15, 2008, weekly meeting, Board members will discuss comments submitted about deferring compliance with FASB Interpretation (FIN) No. 48, Accounting for Uncertainty in Income Taxes, for some nonpublic enterprises, according to Action Alert No. 08-41.

As the Board discusses the difficulties non-public entities have in applying the guidance, it will revisit an issue that was addressed at its October 1 meeting, during which the FASB decided to give nonpublic pass-through entities an extra year to comply with FIN No. 48 based on their federal income tax status. The Board wants to determine whether the scope of the deferral may have unintended consequences.

10/09/08 -- Constituents Raise Issues With FASB's Fair Value Proposal
The FASB's request for comments on its proposed interpretation of fair value accounting in illiquid markets continues to bring a flurry of impassioned responses from individuals, many of whom have chosen to instead focus on where the blame should be laid for the current credit crisis.

The draft guidance, Proposed FASB Staff Position (FSP) No. FAS 157-d, Determining the Fair Value of a Financial Asset in a Market That Is Not Active, amends SFAS No. 157, Fair Value Measurements.

The proposal clarifies the application of fair value measurements in an inactive market, the FASB said. The Board plans to discuss the comments and vote on issuing final guidance in a special session on October 10, 2008.

Some letter writers blamed the SEC for what they view as a lack of regulation that led to the current financial chaos.

10/01/08 -- FASB May Review Fair Value Implementation Issues
The FASB may review the guidance governing fair value accounting, a proposal that had been part of the huge bailout of the financial industry that Congress rejected on September 29, 2008.

“All along, we have supported a post-implementation review of 157, and the call for an additional study is in line with our view,” said Christine Klimek, a FASB spokesperson.

The Board is considering clarifying guidance on SFAS No. 157, Fair Value Measurements, that would provide constituents with more examples to help them differentiate between Level 2 and Level 3 assets as defined in the statement’s three-level hierarchy.

FASB’s Valuation Resource Group recently discussed how the determinations should be made for assets that are not actively trading in an open market.

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9/04/08 -- AICPA's Proposed Amendment of AU Section 722 Would Cover Private Company Interim Statements
The Auditing Standards Board (ASB), the senior technical committee of the American Institute of Certified Public Accountants (AICPA) designated for issuing auditing, attestation, and quality control standards and guidance, issued an exposure draft on September 2, 2008, that would amend AU Section 722, "Interim Financial Information."

Comments on the proposal are due by November 3.

The proposed Statement on Auditing Standards (SAS) would amend AU Section 722 to accommodate reviews of interim financial information of nonissuers, including companies offering securities in private offerings under Rule 144A of the Securities Act of 1933 or participating in private equity exchanges.

The proposed guidance would apply when the interim financial information is intended to provide a periodic update to year-end reporting and the accountant either:

• Has audited the entity's latest annual financial statement, or

• Is auditing the current year financial statements and the entity's latest annual financial statements were audited by another auditor.

In addition, the amendment would remove the guidance for reviews of the interim financial statements of issuers in AU Section 722 because the guidance resides in the auditing standards of the Public Company Accounting Oversight Board (PCAOB).

The proposed SAS would be effective for interim periods within fiscal years beginning after December 15, 2008. Early application would be permitted.

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10/13/08 -- PCAOB Schedules Meeting of Standing Advisory Group
The PCAOB's Standing Advisory Group will meet on October 22- 23, 2008, in Washington.

The SAG will discuss audit considerations relating to the current economic environment; the PCAOB's standard-setting priorities, which will include a report on the standards-related accomplishments during the past year; and two recommendations included in the final report from the Treasury Department's Advisory Committee on the Auditing Profession (ACAP).

6/04/08 -- PCAOB Schedules Meeting to Consider Rules on Reporting by Audit Firms.
The Public Company Accounting Oversight Board (PCAOB) has scheduled a special meeting for June 10, 2008, to consider rules requiring annual and special reporting of specified information by registered public accounting firms.

If approved, the information provided in the reports would be available to the public, except for confidential information. The PCAOB said that any rules it adopts as a result of its deliberations on this topic would form the foundation of its reporting regime for accounting firms.

The Board also will consider adopting rules on firm registration status in the event of a merger or change in legal form.

In 2006, the PCAOB proposed rules on reporting and succession. The reporting proposal would require all registered firms to report certain information annually and to report other information if and when certain events occur. The proposal on audit firm succession requires auditors to provide certain information and representations as a condition to succeeding to the registration status of a predecessor.

5/29/08 -- Next Meeting of Treasury Department’s Advisory Panel Will Review Draft Report and Audit Quality Proposal.
The Treasury Department’s Advisory Committee on the Auditing Profession is approaching the final stretch of its one-year life span as it prepares for a June 3, 2008, meeting where it will review a draft of the final report it will submit to Treasury Secretary Henry Paulson in July.

The meeting's agenda also includes oral testimony from witnesses and consideration of written comments on the draft report. Treasury has asked that comments be submitted by June 13.

The draft, which was discussed during the committee’s May 5 meeting, addresses several human resources issues, including partner rotation, retention, and compensation, as well as the more complex issues for firms such as raising outside capital, litigation, and liability.
One recommendation asks the Public Company Accounting and Oversight Board (PCAOB), in consultation with auditors, investors, public companies, and others to "determine the feasibility of developing key indicators of audit quality and effectiveness and requiring auditing firms to publicly disclose these indicators."

The draft report says that given the dearth of publicly available information on audit quality, requiring firms to disclose indicators would have other positive effects, including improved decision-making by audit committees in approving auditor selection.

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3/4/08 -- GASAC to Receive an Update on the Board's Derivative Instruments Project.
The Governmental Accounting Standards Advisory Council, which advises the Governmental Accounting Standards Board, will meet on March 6-7, 2008, to take up:

• A report on the meetings and activities of the Financial Accounting Foundation (FAF), and a report from the GASB Chairman;
• Comments from other Board members, including an update on the Board's derivative instruments project; and
• GASAC feedback on technical agenda topics, communications and public relations topics, project prospectuses and proposals, and project priorities.

The meeting will take place at the GASB office in Norwalk, Connecticut, and be open to the public.

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10/21/08 -- IASB and FASB Publish Discussion Paper on Proposed Enhancements to Financial Statement Presentation
The FASB and the IASB published for comment a joint Discussion Paper (DP), PV No. 1630-100, Preliminary Views on Financial Statement Presentation, on October 16, 2008, that contains an analysis of the current issues in financial statement presentation and the Boards' initial plans to tackle those issues.

Comments about the paper are due by April 14, 2009.

4/23/08 - IASB SUPPORTS CUSTOMER CONSIDERATION APPROACH FOR REVENUE RECOGNITION
At a joint meeting of the Financial Accounting Standards Board (FASB) and the International Accounting Standards Board (IASB) on April 21, 2008, in London, the two standards setters reviewed the progress on their revenue recognition project and discussed the strategies for selecting and implementing a new approach with the initiative.

The Boards agreed that a common set of principles needs to be established for revenue recognition that will apply to all transactions.

Some members of the IASB gave cautious support to the customer consideration approach to measuring performance obligations, one of the two models that were developed over the past year.

"Revenue recognition is fundamental to investors," said an IASB Board member. "The majority of the Board supports or does not object to the customer consideration approach."

In the customer consideration approach, assets and liabilities would be measured by reference to the customer consideration. The other approach calls for measuring assets and liabilities at fair value.

2/21/08 -- AUDITING STANDARDS BOARD VOTES TO ISSUE TWO EXPOSURE DRAFTS.
The Auditing Standards Board, the senior technical committee of the American Institute of Certified Public Accountants designated for issuing auditing, attestation, and quality control standards and guidance, voted to issue for public comment an exposure draft of proposed clarified Statement on Auditing Standards (SAS) 103, Audit Documentation, and an ED of proposed clarified SAS 114, The Auditor’s Communication with Those Charged with Governance, during a conference call on January 29, 2008.

SAS 103 and SAS 114 are the first standards to be redrafted as part of the ASB’s clarity project, which calls for the redrafting of all SASs so they are easier to read, understand, and implement.

SAS 103 was redrafted to converge with finalized and clarified International Standard on Auditing (ISA) 230, Audit Documentation. According to the Audit Documentation Task Force, there are no substantive differences between ISA 230 and the proposed clarified SAS.

SAS 114 was redrafted to converge with Redrafted ISA 260, The Auditor’s Communication with Those Charged with Governance. The revisions to SAS 114 reflect the changes made to the ED of ISA 260, which was rewritten for the International Auditing and Attestation Board's (IAASB) clarity project, the first stage of which was completed on January 14.

2/14/08 -- Trustees Announce Strategy to Advance Review Of Constitution.
The Trustees of the International Accounting Standards Committee Foundation, the oversight body of the International Accounting Standards Board, agreed on a strategy for their upcoming review of the IASCF's Constitution at their January 29-30, 2008, meeting.

The strategy calls for the Trustees to accelerate their review of three proposals that are intended to enhance the their public accountability:

• A representative monitoring group of official organizations, which would approve Trustee appointments and review the Trustees' oversight activities. The Trustees plan to reach their conclusions on the size, composition, and mandate of the group in the second half of 2008;
• A gradual expansion of the IASB from 14 to 16 members. The Trustees also will consider whether the Constitution should explicitly require geographical balance among members; and
• An extended consultation process on other Constitutional matters, including a request for comments and suggestions on other elements of the Constitution. The Trustees plan to conclude their broader review of the Constitution by the end of 2009.

The Trustees also said they plan to broaden their discussions with stakeholder groups on both these proposals and on the review of the Constitution more generally.

2/11/08 -- IASB to Discuss International Convergence With Its Analyst Representative Group.
The International Accounting Standards Board will meet with its Analyst Representative Group, which provides the views of professional investors on financial reporting issues, on Wednesday, February 13, 2008, to discuss:

• Market issues;
• Recent updates to the IASB work plan;
• Current matters concerning the International Financial Reporting Interpretations Committee (IFRIC);
• The IASB's joint projects with the Financial Accounting Standards Board (FASB) on financial reporting for consolidated entities, financial instruments, and earnings per share; and
• The measurement phase (Phase C) and reporting entity phase (Phase D) of the Boards' joint conceptual framework project.

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