Accounting Roundup — Third Quarter in Review — 2008
We’re pleased to announce the latest edition of
. It has been another busy quarter for the FASB and SEC, particularly in light of the current economic conditions.
Two particularly important topics for this quarter are consolidations and fair value.
Last quarter, we alerted you to the FASB's fast-track project to amend (1) the derecognition guidance in Statement No. 140, Accounting for Transfers and Servicing of Financial Assets and Extinguishments of Liabilities; (2) the consolidation model in Interpretation No. 46(R), Consolidation of Variable Interest Entities; and (3) required disclosures under both standards. In September, the FASB issued three Exposure Drafts associated with this project. The changes proposed for the consolidation model and the additional disclosures will affect all organizations. The FSP for disclosure enhancements proposes an effective date for public entities for reporting periods (interim and annual) beginning with the first reporting period that ends after the final FSP is issued. The FASB is expected to issue a final FSP in the fourth quarter of 2008. This FSP only has a 30-day comment period, with comments due by October 15, 2008. Comments on the Statement 140 and Interpretation 46(R) Exposure Drafts are due by November 14, 2008.
Fair value measurement has been another hot topic this quarter. The SEC has issued guidance regarding its expectations for fair value measurement disclosures included in MD&A for an entity’s periodic filings. Although the guidance involved letters sent to financial institutions, the SEC has indicated that it expects all companies to consider these fair value disclosures. In addition, the FASB and SEC jointly issued a release clarifying fair value measurement practices in the current market environment. The FASB followed up by issuing a proposed FSP last Friday that would amend Statement No. 157, Fair Value Measurements, to give examples of how to determine the fair value of financial assets in inactive markets.
This month’s Accounting Roundup includes articles and links to helpful Deloitte publications on these issues and other standard-setter activities that affect financial reporting.
Find the complete Third Quarter in Review — 2008 issue of Accounting Roundup in the PDF attachment below. Or visit our Accounting Roundup Archive , where you can access past issues and other special editions, including: Second Quarter in Review — 2008, First Quarter in Review — 2008, and Year in Review — 2007