Sunday, October 26, 2008

PwC FlashLine 2008-43 (October 23, 2008)

PricewaterhouseCoopers - 10.23.08

PwC's weekly accounting and auditing alert. This week's topics include:

PCAOB Proposes Seven New Risk Assessment Standards

The Public Company Accounting Oversight Board (PCAOB) has decided to propose seven new auditing standards related to the auditor's assessment of and responses to risk. The proposed standards would realign the existing subject matter of several PCAOB interim standards into a topical framework that is common with the recently-clarified risk assessment standards of the International Auditing and Assurance Standards Board (IAASB).

EITF Agenda Committee Adds Two Items to EITF Agenda

The Emerging Issues Task Force (EITF) Agenda Committee met on October 10 and discussed two potential new issues:
  • Accounting for Share Lending Arrangements in Contemplation of Convertible Debt Issuances and the Related Determination of Earnings per Share
  • Selected Statement 160 Implementation Questions

FASB and IASB Announce Further Details on Global Approach to Credit Crisis

The FASB and the International Accounting Standards Board (IASB) have announced further details about their joint effort to deal with reporting issues arising from the global financial crisis.

PwC DataLine Highlights New Disclosure Requirements for Credit Derivatives and Certain Guarantees

In September, the Financial Accounting Standards Board (FASB) issued a FASB Staff Position (FSP No. FAS 133-1 and FIN 45-4) that (1) introduces new disclosure requirements for credit derivatives and certain guarantees and (2) clarifies the effective date of FASB Statement No 161, Disclosures about Derivative Instruments and Hedging Activities (FAS 161). The new disclosure requirements are aimed at providing financial-statement users with similar disclosures for financial instruments with similar risks and rewards relating to credit risk, regardless of their legal form as a credit derivative or guarantee arrangement.