Accounting RoundupThird Quarter in Review — 2010

To our clients, colleagues, and other friends:

Welcome to the quarterly edition of Accounting Roundup. Like the second quarter of 2010, the third quarter was a busy one for the FASB and IASB as they unveiled their proposals for leases and insurance contracts. For the FASB, the quarter was also marked by the unexpected announcement of the retirement of its chairman and the decision to return the Board to its seven-member structure. How these changes in the FASB composition will affect the standard-setting process remains to be seen.

Things were not quiet in Washington, D.C., either, as President Obama ushered in financial regulatory reform with the signing of the Dodd-Frank Wall Street Reform and Consumer Protection Act (the “Act”) into law. The Act represents only the first step in financial regulatory reform, since regulators are tasked with writing a number of new rules and regulations over the coming months. So stay tuned.

Events that occurred in September or that were not addressed in the July and August issues of Accounting Roundup (or that were updated since those issues were released) are marked with an asterisk (*) in the article title. Events without asterisks have been covered in those monthly issues.

As usual, click any title in the table of contents to go directly to the article. For additional information about a topic, click the hyperlinks, which are underlined in blue. Further details are also on the Web sites of the accounting standard setters and regulators, including the FASB, GASB, SEC, PCAOB, AICPA, and IASB. Be sure to monitor upcoming issues of Accounting Roundup for new developments. We value your feedback and would appreciate any comments you may have on Accounting Roundup: Third Quarter in Review — 2010. Take a moment to tell us what you think by sending us an e-mail at accountingstandards@deloitte.com.

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Accounting RoundupThird Quarter in Review — 2010

Accounting Standards and Communications Publications Publication Title Affects

September EITF Snapshot — Various entities.

September 24, 2010, Heads Up SEC to Open the Curtains on “Window Dressing” SEC registrants.

September 2, 2010, Heads Up FASB Proposes Disclosures About an Employer’s Participation in Multiemployer Plans

All nongovernmental entities that participate in multiemployer plans.

August31,2010,Heads Up ASummaryoftheJuly15MeetingofthePCAOB’sStanding Advisory Group

Registered public accounting firms.

August 24, 2010, Heads Up IASB Issues Exposure Draft on Insurance Contracts Entities reporting under IFRSs.

August17,2010,Heads Up Proposed ASU Revamps Lease Accounting All entities.

August 12, 2010, Heads Up Financial Reporting Implications of the Dodd-Frank Wall Street Reform and Consumer Protection Act

All entities.

August 4, 2010, Financial Reporting Alert

Accounting Considerations Related to the New Policies Proposed by the Special Master for TARP Executive Compensation

All entities.

July 2010 EITF Snapshot — Various entities.

July26,2010,Heads Up PCAOB Issues Proposed Standard on Audit Confirmations Registered public accounting firms.

July 22, 2010, Heads Up Board Enhances Disclosures About the Credit Quality of Financing Receivables and the Allowance of Credit Losses

All entities.

July 20, 2010, Heads Up FASB Proposes Guidance on Expanded Disclosures for Certain Loss Contingencies

All entities.

July8,2010,Financial Reporting Alert

Foreign Currency Exchange Accounting Implications of Recent Government Actions in Venezuela

Entities with operations in Venezuela.

July8,2010,Heads Up FASB Proposes Sweeping Changes to Financial Statement Presentation

All entities.

ContentsBusiness Combinations 1FASB Ratifies Consensus-for-Exposure on Disclosures of Supplementary Pro Forma Information for Business Combinations

(Issue 10-G)* 1

Compensation — Retirement Benefits 1FASB Proposes Disclosures About an Employer’s Participation in Multiemployer Plans* 1

Compensation — Stock Compensation 1Accounting Considerations Related to the New Policies Proposed by the Special Master for TARP Executive Compensation 1

Consolidation 2FASB Announces Public Roundtable Meetings to Solicit Input on the IASB Staff Draft on Consolidated Financial Statements* 2

EITF Deliberates Accounting for Deconsolidation of a Subsidiary That Is In-Substance Real Estate (Issue 10-E)* 2

Contingencies 2FASB Proposes Guidance on Expanded Disclosures for Certain Loss Contingencies 2

Extractive Activities — Mining 2IFRS Interpretations Committee Issues Proposed Guidance on Surface Mining 2

Fair Value Measurements and Disclosures 3IASB Issues Staff Draft on Fair Value Measurement 3

Financial Instruments 3FASB Announces Series of Public Roundtable Meetings to Solicit Input on Proposal for Accounting for Financial Instruments* 3

Financial Services — Insurance 3FASB Issues Discussion Paper Seeking Input on Improving the Financial Reporting for Insurance Contracts* 3

FASB Ratifies Final Consensus on Accounting for Costs Associated With Acquiring or Renewing Insurance Contracts (Issue 09-G)* 4

IASB Issues Exposure Draft on Insurance Contracts 4

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Accounting RoundupThird Quarter in Review — 2010

Foreign Currency Matters 4EITF Suspends Discussion of Accounting for Multiple Foreign Currency Exchange Rates (Issue 10-B)* 4

Foreign Currency Exchange Accounting Implications of Recent Government Actions in Venezuela 4

Health Care Entities 5FASB Ratifies Consensus-for-Exposure on Revenue Recognition for Health Care Entities (Issue 09-H)* 5

FASB Issues ASU on Presentation of Insurance Claims and Related Insurance Recoveries for Health Care Entities* 5

FASB Issues ASU on Measuring Charity Care for Disclosure* 5

Income Taxes 6IASB Proposes to Amend One Aspect of IAS 12* 6

IRS Releases Final UTP Disclosure Guidance* 6

Intangibles — Goodwill and Other 6FASB Ratifies Consensus-for-Exposure on How the Carrying Amount of a Reporting Unit Should Be Calculated When Performing

Step 1 of the Goodwill Impairment Test (Issue 10-A)* 6

Leases 6FASB and IASB Issue Proposed Guidance on Lease Accounting 6

Other Expenses 7FASB Issues Proposed ASU on Fees Paid to the Federal Government by Pharmaceutical Manufacturers (Issue 10-D)* 7

Plan Accounting — Defined Contribution Pension Plans 7FASB Issues ASU on Reporting Loans to Participants by Defined Contribution Pension Plans (Issue 10-C)* 7

Presentation of Financial Statements 7FASB and IASB Propose Sweeping Changes to Financial Statement Presentation 7

IASB Issues Proposed Amendments to IFRS 1 8

Receivables 8FASB Enhances Disclosures About the Credit Quality of Financing Receivables and the Allowance for Credit Losses 8

Other Accounting 8FAF Appoints Russell G. Golden to the Board* 8

FASB and IASB Announce Series of Public Roundtable Meetings on Revenue Recognition, Insurance Contracts, and Leases* 9

FASB Announces Public Roundtable Meetings to Solicit Input on Private-Company Accounting and Reporting Issues* 9

AICPA/FAF/NASBA Private-Company “Blue-Ribbon Panel” to Hold Its Fourth Meeting* 9

FASB and IASB Complete the First Stage of the Conceptual Framework* 9

AICPA Issues Various Technical Practice Aids 9

Dodd-Frank Wall Street Reform and Consumer Protection Act Signed Into Law 10

FASB Chairman Herz to Retire; FAF to Increase Size of FASB 10

FASB Issues ASU on Accounting for Technical Amendments to Various SEC Rules and Schedules 10

FASB Issues ASU on Accounting for Technical Corrections to SEC Paragraphs 10

FAF Issues U.S. GAAP Financial Reporting Taxonomy for Review and Comment 11

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Accounting RoundupThird Quarter in Review — 2010

IFRS Foundation Appoints Members of the SME Implementation Group 11

IFRS Taxonomy Updated for Improvements to IFRSs 11

2010OMBCircularA-133ComplianceSupplementIsIssued 11

Other SEC Matters 11SEC Issues Final Rule Providing Exemption From Section 404(b) for Nonaccelerated Filers* 11

SEC Issues Interpretive Release on Guidance Regarding Auditing, Attestation, and Related Professional Practice Standards Related to Broker-Dealers* 12

SEC Issues Proposed Rule and Interpretive Release to Enhance Short-Term Borrowing Disclosures* 12

SEC Issues Notice Regarding the Requirements to Use XBRL* 12

CAQ Releases Highlights of SEC Regulations Committee’s June 24 Meeting* 12

SEC Issues Proposed Rule on Mutual Fund Distribution Fees 13

SEC Issues C&DI Updates* 13

SEC Updates Financial Reporting Manual 14

SEC Publishes Concept Release on the U.S. Proxy System 14

CAQReleasesHighlightsofSECRegulationsCommittee’sApril6Meeting 14

SEC Requests Comments on Incorporating IFRSs Into the Financial Reporting System for U.S. Issuers 15

SEC Issues Shareholder Access Rule 15

Other Auditing 15PCAOB Files With SEC Proposed Rules on Auditing Standards Related to the Auditor’s Assessment of and Response to Risk

and Related Amendments to PCAOB Standards* 15

PCAOB Hosts Roundtable on Communications With Audit Committees, Reopens Comment Period on Proposal* 16

ASBIssuesInterpretation8ofATSection101 16

ASB Issues Proposed SAS to Revise Applicability of SAS 116 16

ASB Issues Proposed SAS on Letters for Underwriters and Certain Other Requesting Parties 16

ASB Issues Proposed SAS on Interim Financial Information 17

ASB Issues Proposed SSARS on the Applicability of SSARSs 17

PCAOB Issues Proposed Standard on Audit Confirmations 17

PCAOB Issues Release on the Responsibilities of Registered Public Accounting Firms and Supervisory Personnel 18

PCAOB Staff to Develop Proposal to Make Disciplinary Hearings and Related Proceedings Public 18

ASummaryoftheJuly15MeetingofthePCAOB’sStandingAdvisoryGroup 18

PCAOB Issues Staff Practice Alert on Using the Work of Other Auditors and Engaging Assistants From Outside the Firm 18

GASB Matters 19GASB Issues Guidelines for Reporting of SEA Performance Information 19

Appendix A: Significant Adoption Dates and Deadlines 20

Appendix B: Recent Meetings 30

Appendix C: Glossary of Standards 34

Appendix D: Abbreviations 37

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Accounting RoundupThird Quarter in Review — 2010

Business Combinations

FASB Ratifies Consensus-for-Exposure on Disclosures of Supplementary Pro Forma Information for Business Combinations (Issue 10-G)*

Affects: Public entities that have entered into a material business combination or a series of immaterial business combinations that are material in the aggregate.

Summary: At its September 2010 meeting, the Task Force reached a consensus-for-exposure that an entity should present the pro forma disclosures as if the business combination occurred at the beginning of the prior annual period when preparing the pro forma financial information for both the current and prior reportingperiods.TheTaskForcealsoreachedaconsensusthatthedisclosuresunderASC805shouldbeaccompanied by a narrative description about the nature and amount of material, nonrecurring pro forma adjustments.

At its September 29, 2010, Board meeting, the FASB ratified the consensus-for-exposure.

Next Steps: The consensus-for-exposure will be exposed for comment.

Other Resources: Deloitte’s September 2010 EITF Snapshot. •Compensation — Retirement Benefits

FASB Proposes Disclosures About an Employer’s Participation in Multiemployer Plans*

Affects: Nongovernmental entities that participate in multiemployer plans.

Summary: On September 1, 2010, the FASB issued a proposed ASU whose objective is to improve transparency by amendingASC715-80tosignificantlyincreasethelevelofquantitativeandqualitativedisclosuresanemployer would be required to make about its participation in multiemployer plans, including the effect on its cash flows. The disclosure requirements would be effective for reporting entities with fiscal years endingafterDecember15,2010,exceptfornonpublicentities,whichwouldapplytheprovisionsforfiscalperiodsendingafterDecember15,2011.Comparativedisclosureswouldberequiredprospectivelyonly.

Next Steps: Comments on the proposed ASU are due by November 1, 2010.

Other Resources: Deloitte’s September 2, 2010, Heads Up. •

Compensation — Stock Compensation

Accounting Considerations Related to the New Policies Proposed by the Special Master for TARP Executive Compensation

Affects: All entities.

Summary:OnJuly23,2010,theSpecialMasterforTARPExecutiveCompensation,KennethR.Feinberg,announcedthe completion of his review of compensation payments made by TARP recipients to top executives (for periodsbeforeFebruary17,2009).Aspartoftheannouncement,theSpecialMasterproposedthatTARPrecipients prospectively adopt policies that would give compensation committees special restructuring rights related to executive pay plans. Under the proposal, an entity could voluntarily include in its executive pay plans a provision that allows the entity to restructure or retract some or all of an executive’s pay in times of crisis.

Other Resources: Deloitte’s August 4, 2010, Financial Reporting Alert. •

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Accounting RoundupThird Quarter in Review — 2010

Consolidation

FASB Announces Public Roundtable Meetings to Solicit Input on the IASB Staff Draft on Consolidated Financial Statements*

Affects: All entities.

Summary:OnSeptember23,2010,theFASBannouncedthatitwillhosttwopublicroundtablemeetingstosolicitinput from its constituents on the IASB’s staff draft on consolidated financial statements. Both meetings willbeheldonOctober25,2010,attheFASB’sofficesinNorwalk,CT.

Other Resources: For more information, see the press release on the FASB’s Web site. •EITF Deliberates Accounting for Deconsolidation of a Subsidiary That Is In-Substance Real Estate (Issue 10-E)*

Affects: Entities that are considering whether to deconsolidate a subsidiary that is in-substance real estate.

Summary: At its September 2010 meeting, the Task Force reached a preliminary consensus that a reporting entity mustapplytheguidanceinASC360-20todeterminewhethertoderecognizerealestateheldinasubsidiary that was considered in-substance real estate when the reporting entity relinquishes control over the special-purpose entity. However, some Task Force members expressed concerns about how this preliminary consensus would affect financial institutions that obtain control of real estate either temporarily or permanently as a result of default or foreclosure.

Next Steps: The FASB staff will perform further user outreach and will bring back the Issue for further deliberation at a future EITF meeting.

Other Resources: Deloitte’s September 2010 EITF Snapshot. •Contingencies

FASB Proposes Guidance on Expanded Disclosures for Certain Loss Contingencies

Affects: All entities.

Summary: On July 20, 2010, the FASB issued a proposed ASU that would (1) expand the scope of loss contingencies subject to disclosure to include certain remote contingencies; (2) increase the quantitative and qualitative disclosures entities must provide to enable users to assess the "nature, potential magnitude, and potential timing(ifknown)"oflosscontingencies;and(3)forpublicentities,requireatabularreconciliationforchanges in amounts recognized for loss contingencies.

Comments on the proposed ASU were due by September 20, 2010.

Next Steps: For public entities, the proposed amendments would be effective for fiscal years ending after December 15,2010,andinterimandannualperiodsinsubsequentfiscalyears.Fornonpublicentities,theproposedamendmentswouldbeeffectiveforthefirstannualperiodbeginningafterDecember15,2010,andforinterim periods in fiscal years after the first annual period.

Other Resources: Deloitte’s July 20, 2010, Heads Up. •

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Accounting RoundupThird Quarter in Review — 2010

Extractive Activities — Mining

IFRS Interpretations Committee Issues Proposed Guidance on Surface Mining

Affects: Entities reporting under IFRSs.

Summary:OnAugust26,2010,theIFRSInterpretationsCommitteepublishedadraft interpretation on accounting for stripping costs incurred during the production phase of a surface mine. Under the proposal, an entity would account for benefits associated with such costs as an additional component of an existing asset and would write them down in a rational and systematic manner over the portion of the ore body that becomes directly accessible as a result of the stripping campaign.

Next Steps:CommentsonthedraftinterpretationareduebyNovember30,2010.

Other Resources: For more information, see the press release on the IASB’s Web site. •

Fair Value Measurements and Disclosures

IASB Issues Staff Draft on Fair Value Measurement

Affects: All entities.

Summary: On August 19, 2010, the IASB posted to its Web site a staff draft on fair value measurement. The staff draft reflects the decisions the IASB and FASB have made thus far as part of their project to converge their guidance on this topic.

Other Resources: Deloitte’s June30,2010,Heads Up. •

Financial Instruments

FASB Announces Series of Public Roundtable Meetings to Solicit Input on Proposal for Accounting for Financial Instruments*

Affects: All entities.

Summary: On September 10, 2010, the FASB announced that it will host five public roundtable meetings to solicit input on its proposed ASU on accounting for financial instruments. FASB member Leslie Seidman stated, “As part of the Board’s robust due process, we believe it is important to elicit as much input as possible on the accounting for financial instruments Exposure Draft and other major FASB proposals.” The meetingswillbeheldonOctober12,18,and19,2010,atmultiplelocations.

Other Resources: For more information, see the press release on the FASB’s Web site. •Financial Services — Insurance

FASB Issues Discussion Paper Seeking Input on Improving the Financial Reporting for Insurance Contracts*

Affects: Entities that issue insurance contracts (as defined in the discussion paper).

Summary:OnSeptember17,2010,theFASBissuedadiscussion paper as part of its joint project with the IASB on insurance contracts. The discussion paper asks constituents for input on the following:

• “WhethertheIASB’sproposalwouldbeasufficientimprovementtoU.S.GAAPtojustifythecostofchange;

• Whethertheprojectgoalsofimprovement,convergence,andsimplificationwouldbemoreeffectively achieved by making targeted improvements to existing U.S. GAAP (rather than issuing comprehensive new guidance); and

• CertaincriticalaccountingissuesforwhichthepreliminaryviewsoftheFASBdifferfromtheIASB’sED.”

Other Resources: For more information, see the press release on the FASB’s Web site. •

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Accounting RoundupThird Quarter in Review — 2010

FASB Ratifies Final Consensus on Accounting for Costs Associated With Acquiring or Renewing Insurance Contracts (Issue 09-G)*

Affects: Insurance entities that are within the scope of ASC 944.

Summary: At its September 2010 meeting, the Task Force deliberated the comments received on the FASB staff draft of the proposed ASU on Issue 09-G. The FASB staff draft was a near-final version of the ASU and was posted on the FASB’s Web site shortly after the July 2010 EITF meeting. A number of constituents expressed concerns about the staff draft. For example, some believed that the proposed guidance would result in differences in accounting for economically similar acquisition costs (e.g., commissions) depending on whether the person performing the acquisition activity was an independent third party or an employee. In light of those concerns, the Task Force decided to reverse its previous decision and reached a final consensus that incremental direct costs of contract acquisition that are incurred in transactions with both independent third parties and employees are deferrable in their entirety.

At its September 29, 2010, Board meeting, the FASB ratified the final consensus.

Next Steps: The FASB will issue a final ASU in the near future.

Other Resources: Deloitte’s September 2010 EITF Snapshot. •IASB Issues Exposure Draft on Insurance Contracts

Affects: Entities reporting under IFRSs.

Summary:OnJuly30,2010,theIASBissuedanED on insurance contracts that represents an important milestone in the second phase of the IASB’s project to fundamentally revise IFRS 4. The ED requires entities to measure insurance liabilities by using a transparent building-blocks accounting model that is based on a discounted probability-weighted estimate of future cash flows. During their deliberations, the FASB and IASB failed to agree on the accounting for the volatility inherent in this probability-weighted estimate. As a result, two different methods were proposed in the ED.

Next Steps:CommentsontheEDareduebyNovember30,2010.

Other Resources: Deloitte’s August 24, 2010, Heads Up. •Foreign Currency Matters

EITF Suspends Discussion of Accounting for Multiple Foreign Currency Exchange Rates (Issue 10-B)*

Affects: Entities with foreign subsidiaries in a country in which multiple exchange rates exist.

Summary: At its September 2010 meeting, the Task Force decided to delay any further deliberation of whether it is appropriate to use different exchange rates for (1) remeasurement of a foreign-currency-denominated transaction and (2) translation of a foreign subsidiary’s financial statement. In reaching this conclusion, the Task Force noted that this Issue was raised in the context of Venezuela and before the Venezuelan economy was deemed highly inflationary. Since it is not currently applicable, the deliberations of this Issue have been suspended.

Other Resources: Deloitte’s September 2010 EITF Snapshot. •Foreign Currency Exchange Accounting Implications of Recent Government Actions in Venezuela

Affects: Entities with operations in Venezuela.

Summary: Recent actions taken by the Venezuelan government to centralize the purchase and sale of foreign currency in the country could result in accounting implications. New regulations may affect the rates entities can use for foreign currency exchange transactions in Venezuela. Potential accounting concerns include remeasurement, consolidation and deconsolidation implications, balance sheet classification, and the need for affected entities to provide additional disclosures.

Other Resources: Deloitte’s July8,2010,Financial Reporting Alert. •

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Accounting RoundupThird Quarter in Review — 2010

Health Care Entities

FASB Ratifies Consensus-for-Exposure on Revenue Recognition for Health Care Entities (Issue 09-H)*

Affects: HCOs.

Summary: At its September 2010 meeting, the Task Force continued its discussions of the revenue recognition model and reached a consensus-for-exposure that would not affect current recognition policies but would require HCOs to provide additional disclosures. These disclosures would include:

• AnHCO’spolicyforconsideringcollectibilitywithrespecttothetimingandamountofrevenueandbad debt recognized.

• Atabulardisclosureshowingnetrevenuebymajortypeofpayer.Majortypeofpayerisdeterminedby reference to the source of payment for the procedures performed (e.g., self-pay, insured).

• Atabularreconciliationdescribingmaterialactivity,bymajorpayer,intheallowancefordoubtfulaccounts for the period.

The proposed ASU is expected to provide an example to help entities implement the disclosure requirements.

Further, the Task Force requested that the FASB staff include questions in the proposed ASU that solicit feedback from constituents on (1) whether the tabular disclosures should be further segregated (e.g., by whether service must be provided before a credit evaluation can be performed); (2) the cost or effort to preparethetabulardisclosures;and(3)whetherthedisclosurerequirementsachievetheobjectiveoftheproject or whether the Task Force should address the Issue by changing the presentation requirements for an entity’s revenue line item in the income statement.

At its September 29, 2010, Board meeting, the FASB ratified the consensus-for-exposure.

Next Steps: The consensus-for-exposure will be exposed for comment.

Other Resources: Deloitte’s September 2010 EITF Snapshot. •FASB Issues ASU on Presentation of Insurance Claims and Related Insurance Recoveries for Health Care Entities*

Affects: HCOs.

Summary: In August 2010, the FASB issued ASU 2010-24, which clarifies that health care entities should not net insurance recoveries against a related claim liability. Further, such entities should determine the claim liability without considering insurance recoveries.

Next Steps: The ASU is effective for fiscal years, and interim periods within those fiscal years, beginning after December15,2010.Acumulative-effectadjustmentshouldberecognizedinopeningretainedearningsin the period of adoption if a difference exists between any liabilities and insurance receivables recorded as a result of applying the amendments in the ASU. Retrospective application and early adoption are permitted. •

Other Resources: Deloitte's July 2010 EITF Snapshot. •FASB Issues ASU on Measuring Charity Care for Disclosure*

Affects: HCOs.

Summary: In August 2010, the FASB issued ASU 2010-23, which requires that HCOs use costs as the measurement basis for charity care disclosures and that they identify those costs as the direct and indirect costs of providing the charity care. The ASU also requires disclosure of the method used to identify the costs.

Next Steps:TheASUiseffectiveforfiscalyearsbeginningafterDecember15,2010.Retrospectiveapplicationandearly adoption are permitted.

Other Resources: Deloitte's July 2010 EITF Snapshot. •

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Accounting RoundupThird Quarter in Review — 2010

Income Taxes

IASB Proposes to Amend One Aspect of IAS 12*

Affects: Entities reporting under IFRSs.

Summary: On September 10, 2010, the IASB issued an ED that proposes an amendment to IAS 12. The ED’s purpose is to “provide an exception to the principle that the measurement of deferred tax liabilities and deferred tax assets should reflect the tax consequences that would follow from the manner in which the entity expects to recover or settle the carrying amount of its assets and liabilities.” The ED also states that “in specified circumstances, the measurement of deferred [taxes] should reflect a rebuttable presumption that the carrying amount of the underlying asset will be recovered entirely by sale.”

Next Steps: Comments on the ED are due by November 9, 2010.

Other Resources: For more information, see the press release on the IASB’s Web site. •IRS Releases Final UTP Disclosure Guidance*

Affects: Certain entities that file tax returns with the IRS.

Summary: The IRS has finalized Schedule UTP (for uncertain tax positions) and instructions, creating a more simplified disclosure regime that is phased in over several years. Generally, only corporations with $100 million or more in assets will file Schedule UTP with their 2010 tax returns. Two types of UTPs must be disclosed: those for which a reserve is recorded in audited financial statements and those for which no reserve is recorded because the corporation expects to litigate the position. Tax positions are ranked according to the size of the reserve. The corporation now need only disclose (1) the relevant facts affecting the tax treatment and (2) information that reasonably can be expected to communicate the identity of the tax position and the nature of the issue. •

Intangibles — Goodwill and Other

FASB Ratifies Consensus-for Exposure on How the Carrying Amount of a Reporting Unit Should Be Calculated When Performing Step 1 of the Goodwill Impairment Test (Issue 10-A)*

Affects:EntitiesthatevaluategoodwillforimpairmentunderASC350-20.

Summary: At its September 2010 meeting, the Task Force reached a consensus-for-exposure that (1) an entity should use an equity premise when performing step 1 of the goodwill impairment test and (2) if a reporting unit has a zero or negative carrying amount, the entity must assess, on the basis of qualitative factors such as thoselistedinASC350-20-35-30(thesefactorsarenotall-inclusive),whetheritismorelikelythannotthat a goodwill impairment exists (i.e., if it is more likely than not that a goodwill impairment exists, step 2 must be performed).

At its September 29, 2010, Board meeting, the FASB ratified the consensus-for-exposure.

Next Steps: The consensus-for-exposure will be exposed for comment.

Other Resources: Deloitte’s September 2010 EITF Snapshot. •Leases

FASB and IASB Issue Proposed Guidance on Lease Accounting

Affects: All entities.

Summary:OnAugust17,2010,theFASBandIASBissuedanEDonleaseaccounting.TheED,releasedbytheFASB as a proposed ASU, creates a new accounting model for both lessees and lessors and eliminates the concept of operating leases. The proposed ASU, if finalized, would converge the FASB's and IASB's accounting for lease contracts in most significant areas.

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Accounting RoundupThird Quarter in Review — 2010

The proposed ASU does not specify an effective date. The boards plan to consider the effective date after reviewing the comments they receive on the ED and after taking into account all other joint projects expected to be finalized in the coming year.

Next Steps:CommentsontheproposedASUareduebyDecember15,2010.

Other Resources: Deloitte’s August17,2010,Heads Up. •Other Expenses

FASB Issues Proposed ASU on Fees Paid to the Federal Government by Pharmaceutical Manufacturers (Issue 10-D)*

Affects: Entities that are required to pay the U.S. government a fee calculated on the basis of sales of qualifying branded prescription drugs to any federal government program.

Summary: At its July 2010 meeting, the Task Force reached a consensus-for-exposure that (1) the annual fee should be classified as an operating expense and (2) when the annual fee is recognized as a liability, a corresponding asset should be recognized and amortized to expense over the calendar year. The Task Force agreed with the FASB staff’s recommendation that no additional disclosures should be required; however, entities should consider other disclosure requirements (e.g., disclosure in MD&A for SEC registrants).

FASBratificationoccurredattheBoard’sAugust18,2010,meeting,afterwhichtheFASBissuedaproposed ASU of the consensus-for-exposure.

Next Steps:CommentsontheproposedASUareduebyOctober8,2010.

Other Resources: Deloitte’s July 2010 EITF Snapshot. •

Plan Accounting — Defined Contribution Pension Plans

FASB Issues ASU on Reporting Loans to Participants by Defined Contribution Pension Plans (Issue 10-C)*

Affects: Entities that issue employee benefit plan financial statements.

Summary: At its September 2010 meeting, the Task Force considered comments received on the proposed ASU and confirmed its previous consensus-for-exposure that participant loans will be classified as notes receivables and measured at the unpaid principal balance plus any accrued but unpaid interest. The Task Force also reached a final consensus to exclude participant loans from the credit quality disclosure requirements in ASU 2010-20.

AtitsSeptember16,2010,Boardmeeting,theFASBratifiedthefinalconsensus.

Next Steps: The amendments in the ASU should be applied retrospectively to all prior periods presented, effective for fiscalyearsendingafterDecember15,2010.Earlyadoptionispermitted.

Other Resources: Deloitte’s September 2010 EITF Snapshot. •Presentation of Financial Statements

FASB and IASB Propose Sweeping Changes to Financial Statement Presentation

Affects: All entities.

Summary: On July 1, 2010, the FASB posted to its Web site a staff draft of an ED on financial statement presentation. The IASB issued the same draft. The staff draft reflects the FASB’s and IASB’s tentative decisions through April 2010; however, the work on the project is continuing and the proposal is subject to change before the boards issue an ED for public comment. As part of the project, the boards are also conducting outreach activities focused primarily on “(1) the perceived benefits and costs of the proposals and (2) the implications of the proposals for financial reporting by financial services entities.” Although

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Accounting RoundupThird Quarter in Review — 2010

the FASB and IASB have not formally requested comments on the staff draft, they welcome input from interested parties. Before publishing an ED, the boards will consider whether to revise any of their decisions on the basis of the input they receive.

Next Steps: The FASB and IASB expect to issue the ED for public comment in early 2011 and a final standard during the fourth quarter of 2011.

Other Resources: Deloitte’s July8,2010,Heads Up. •

IASB Issues Proposed Amendments to IFRS 1

Affects: Entities reporting under IFRSs.

Summary:OnAugust26,2010,theIASBpublishedproposed amendments to IFRS 1 for public comment. The amendments would replace references to “1 January 2004” (i.e., a fixed transition date) with “the date of transition to IFRSs.” First-time adopters of IFRSs would therefore not be required to restate derecognition transactions that occurred before the date of transition to IFRSs. In addition, when recognizing financial instruments, first-time adopters would not have to recalculate “day 1” differences in situations in which the transaction occurred before the date of transition to IFRSs.

Next Steps:CommentsontheEDareduebyOctober27,2010.

Other Resources: For more information, see the press release on the IASB’s Web site. •Receivables

FASB Enhances Disclosures About the Credit Quality of Financing Receivables and the Allowance for Credit Losses

Affects: All entities.

Summary: On July 21, 2010, the FASB issued ASU 2010-20,whichamendsASC310byrequiringmorerobustanddisaggregated disclosures about the credit quality of an entity’s financing receivables and its allowance for credit losses. The objective of enhancing these disclosures is to improve financial statement users’ understanding of (1) the nature of an entity’s credit risk associated with its financing receivables and (2) the entity’s assessment of that risk in estimating its allowance for credit losses as well as changes in the allowance and the reasons for those changes.

Next Steps: For public entities, the new and amended disclosures that relate to information as of the end of a reporting period will be effective for the first interim or annual reporting periods ending on or after December15,2010.Thatis,forcalendar-year-endpublicentities,mostofthenewandamendeddisclosures in the ASU will be effective for this year-end reporting season. However, the disclosures that include information for activity that occurs during a reporting period will be effective for the first interimorannualperiodsbeginningafterDecember15,2010.Thosedisclosuresinclude(1)theactivityin the allowance for credit losses for each period and (2) disclosures about modifications of financing receivables. For calendar-year-end public entities, those disclosures will be effective for the first quarter of 2011.

Other Resources: Deloitte’s July 22, 2010, Heads Up. •

Other Accounting

FAF Appoints Russell G. Golden to the Board*

Affects: All entities.

Summary:OnSeptember17,2010,theFAFannouncedtheappointmentofRussellG.Golden,whohadpreviouslyserved as technical director of the FASB, to the Board. Mr. Golden’s appointment is effective October 1, 2010,andhisinitialtermwillextendtoJune30,2012.BeforehistenureattheFASB,Mr.Goldenwasapartner at Deloitte & Touche LLP in the National Office Accounting Services department.

Other Resources: For more information, see the press release on the FASB’s Web site.

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Accounting RoundupThird Quarter in Review — 2010

FASB and IASB Announce Series of Public Roundtable Meetings on Revenue Recognition, Insurance Contracts, and Leases*

Affects: All entities.

Summary:OnSeptember16,2010,theFASBandIASBannouncedthattheywillhostaseriesofpublicroundtablemeetings on their proposals on revenue recognition, insurance contracts, and leases. The objective of the roundtables is to obtain broad input about the proposals from various constituents.

Other Resources: For more information, see the press release on the IASB’s Web site. •FASB Announces Public Roundtable Meetings to Solicit Input on Private-Company Accounting and Reporting Issues*

Affects: Private entities.

Summary:OnSeptember13,2010,theFASBannouncedthatitwillhosttwopublicroundtablemeetingstosolicitinput on private-company accounting and reporting issues. Jeffrey Mechanick, the FASB assistant director for nonpublic entities, stated, “The Board’s purpose in holding these public roundtables is to engage in a constructive dialogue about private company accounting and reporting issues with a wide variety of stakeholders, including private companies, their CPA practitioners, and users of private company financial statements.” The meetings will be held on October 12, 2010, and November 2, 2010, at multiple locations.

Other Resources: For more information, see the press release on the FASB’s Web site. •AICPA/FAF/NASBA Private-Company “Blue-Ribbon Panel” to Hold Its Fourth Meeting*

Affects: Private entities.

Summary: The “Blue-Ribbon” Panel on standard setting for private companies will hold its fourth meeting on Friday, October8,2010.Themissionofthepanelistounderstandtheneedsofprivate-companyfinancialstatement users so that it can provide the FAF with standard-setting recommendations for private companies. •

FASB and IASB Complete the First Stage of the Conceptual Framework*

Affects: All entities.

Summary:OnSeptember28,2010,theFASBandIASBissuedtwochaptersaspartoftheirjoint,eight-phaseprojectto develop an improved, converged conceptual framework for financial accounting and reporting. This single conceptual framework will serve as the foundation for the development of financial accounting and reporting guidance based on consistent principles. These two new chapters, Chapter 1, “Objectives ofFinancialReporting,”andChapter3,“QualitativeCharacteristicsofUsefulFinancialInformation,”supersede Concepts Statements 1 and 2 and mark the completion of the conceptual framework’s first phase.

Other Resources: Deloitte's October 4, 2010, Heads Up. •AICPA Issues Various Technical Practice Aids

Affects: Various entities.

Summary: In July 2010, the AICPA issued the following TPAs:

• TISSection1400.33,“CombiningFinancialStatementsPreparedinAccordanceWiththeIncomeTax Basis of Accounting.”

• TISSection1800.06,“ApplicabilityofFairValueDisclosureRequirementsinFinancialAccountingStandards Board (FASB) Accounting Standards Codification(ASC)820,Fair Value Measurements and Disclosures, to Financial Statements Prepared in Conformity With a Comprehensive Basis of Accounting Other Than Generally Accepted Accounting Principles.”

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Accounting RoundupThird Quarter in Review — 2010

• TISSection6931.12,“AccountingandDisclosureRequirementsforHealthandWelfarePlansRelated to the COBRA Premium Subsidy Included in the American Recovery and Reinvestment Act of 2009.”

• TISSection9110.17,”ApplicationofFinancialAccountingStandardsBoard(FASB)Accounting Standards Codification(ASC)740-10(PreviouslyFASBInterpretationNo.48,Accounting for Uncertainty in Income Taxes), to Other Comprehensive Basis of Accounting (OCBOA) Financial Statements — Recognition and Measurement Provisions.” •

Dodd-Frank Wall Street Reform and Consumer Protection Act Signed Into Law

Affects: All entities.

Summary: On July 21, 2010, President Obama signed the Dodd-Frank Wall Street Reform and Consumer Protection Act (the “Act”) into law. The Act represents the most sweeping change to financial regulation in the United States since the Great Depression, affecting all federal financial regulatory agencies and virtually every aspect of the financial services industry. The legislation is in response to widespread calls for change intheregulatorysystemasaresultofthenearcollapseoftheworldfinancialsysteminthefallof2008and the ensuing global credit crisis. The financial reporting implications of the Act include:

• PermanentexemptionofnonacceleratedfilersfromSection404(b)oftheSarbanes-OxleyActof2002.

• PCAOBauthorityoverbroker-dealers.

• Improvementstotheasset-backedsecuritizationprocess.

• Greateroversightofcreditratingagencies.

• Newsystematicriskregulator.

• IncreasedpowersoftheSEC.

• Regulationofover-the-counterderivatives.

• Regulationofadviserstohedgefundsandprivateequityfunds.

Other Resources: Deloitte’s August 12, 2010, Heads Up. For more information, see the summary on the White House’s Web site. •

FASB Chairman Herz to Retire; FAF to Increase Size of FASB

Affects: All entities.

Summary: On August 24, 2010, the Board of Trustees of the FAF announced that Bob Herz, chairman of the FASB, has decided to retire. Board member Leslie Seidman will replace him as acting chairman effective October 1, 2010. The Board of Trustees of the FAF also indicated that the FASB would expand from five to seven members. The expansion is expected to take place in early 2011. “Returning the [FASB] to the seven-member structure will enhance FASB’s investment in the convergence agenda with the [IASB], while addressing the unprecedented challenges facing the American capital markets in the months and years ahead,” said FAF Chairman Jack Brennan.

Other Resources: For more information, see the press release on the FASB’s Web site. •

FASB Issues ASU on Accounting for Technical Amendments to Various SEC Rules and Schedules

Affects: All entities.

Summary: In August 2010, the FASB issued ASU 2010-21, which “amends various SEC paragraphs in accordance withtheissuanceofRelease33-9026.” •

FASB Issues ASU on Accounting for Technical Corrections to SEC Paragraphs

Affects: All entities.

Summary: In August 2010, the FASB issued ASU 2010-22, which “amends various SEC paragraphs based on external comments received and the issuance of SAB 112, which amends or rescinds portions of certain SAB topics.” •

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Accounting RoundupThird Quarter in Review — 2010

FAF Issues U.S. GAAP Financial Reporting Taxonomy for Review and Comment

Affects: All entities.

Summary:OnAugust31,2010,theFAFissuedtheproposed2011U.S.GAAPFinancialReportingTaxonomyforpublic review and comment. The proposed taxonomy “contains updates for accounting standards and other recommended improvements to the official taxonomy currently in use by SEC issuers.”

Other Resources: For more information, see the press release on the FASB’s Web site. •

IFRS Foundation Appoints Members of the SME Implementation Group

Affects: Entities reporting under IFRSs.

Summary:OnAugust5,2010,theIFRSFoundationannouncedmembersofthenewlycreatedSMEImplementation Group, which was designed to support the adoption of the IFRS for SMEs and monitor its implementation. The primary responsibilities of the SME Implementation Group are to (1) develop nonauthoritative Q&As to help entities implement the IFRS for SMEs (the objective is to make these Q&As available to the public in a timely manner) and (2) recommend amendments, as appropriate, to the IFRS for SMEs.

The members’ terms, which are renewable, began in July 2010 and will last two years.

Other Resources: For more information, see the press release on the IASB’s Web site. •

IFRS Taxonomy Updated for Improvements to IFRSs

Affects: Entities reporting under IFRSs.

Summary:OnAugust5,2010,theIFRSFoundationreleasedthefirstinterimupdatefortheIFRSTaxonomy2010. This release contains updates related to new IFRSs as well as improvements to IFRSs that have been published by the IASB. The IFRS Foundation’s goal in issuing the interim releases is to (1) provide taxonomy items to entities earlier, thereby allowing them to use the latest IFRSs in their electronic reporting and supporting early adoption of IFRSs, and (2) make it unnecessary for entities to develop their own taxonomy items.

Other Resources: For more information, see the press release on the IASB’s Web site. •

2010 OMB Circular A-133 Compliance Supplement Is Issued

Affects:ComplianceauditengagementsperformedinaccordancewithOMBCircularA-133.

Summary: Recently, the White House’s OMB issued the OMBCircularA-133ComplianceSupplement. Updated annually, the compliance supplement identifies existing compliance requirements that the federal government expects to be considered in an audit in accordance with the Single Audit Act Amendments of1996andOMBCircularA-133.

Next Steps:ThecompliancesupplementiseffectiveforauditsoffiscalyearsbeginningafterJune30,2009. •

Other SEC Matters

SEC Issues Final Rule Providing Exemption From Section 404(b) for Nonaccelerated Filers*

Affects: Nonaccelerated filers.

Summary:OnSeptember15,2010,theSECissuedFinalRule33-9142. The final rule states that under Section 404(c) of the Sarbanes-Oxley Act of 2002, Section 404(b) is not applicable to “any audit report prepared for an issuer that is neither an accelerated filer nor a large accelerated filer as defined in Rule 12b-2 under theSecuritiesExchangeActof1934.”

Next Steps: The guidance in the final rule is effective as of September 21, 2010. •

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Accounting RoundupThird Quarter in Review — 2010

SEC Issues Interpretive Release on Guidance Regarding Auditing, Attestation, and Related Professional Practice Standards Related to Broker-Dealers*

Affects: Broker-dealers.

Summary: On September 24, 2010, the SEC issued an interpretive release on auditing, attestation, and related professional practice standards related to broker-dealers. According to the release, the "Commission is considering a rulemaking project to update the audit and related attestation requirements under the federal securities laws for brokers and dealers, particularly in light of the [amendments made to the Sarbanes-Oxley Act of 2002 by the] Dodd-Frank Act." The SEC staff believes that references to "GAAS" or "U.S. GAAS" in the amendments may cause confusion on the part of brokers, dealers, auditors, and investors with regard to the professional standards auditors should follow for reports filed or furnished by brokers and dealers. Accordingly, the interpretive release provides transitional guidance to brokers and dealers and indicates that references "to GAAS or to specific standards under GAAS, as they relate to non-issuer brokers or dealers, should continue to be understood to mean auditing standards generally accepted in the United States of America, plus any applicable rules of the Commission."

Next Steps: The guidance in the interpretive release is effective as of October 1, 2010. •SEC Issues Proposed Rule and Interpretive Release to Enhance Short-Term Borrowing Disclosures*

Affects: SEC registrants.

Summary:OnSeptember17,2010,theSECissuedaproposed rule on disclosure of short-term borrowings and a companion interpretive release on presenting liquidity and capital resources disclosures in MD&A. The SEC’s objective in proposing the rule is to improve transparency of registrants’ short-term borrowings by creating a new section within Liquidity and Capital Resources that would contain tabular information about a registrant’s short-term borrowings and narrative disclosures, and analysis of short-term borrowings, within MD&A. In addition, the rule would increase existing disclosures for financial companies and add a new disclosure requirement on short-term borrowings that would apply to all other public entities.

The interpretive release would provide guidance on the current requirements within MD&A about liquidity and capital resources disclosures.

Next Steps: Comments on the proposed rule are due by November 29, 2010. The guidance in the interpretive release iseffectiveasofSeptember28,2010.

Other Resources: Deloitte’s September23,2010,Heads Up. •SEC Issues Notice Regarding the Requirements to Use XBRL*

Affects: SEC registrants.

Summary:OnAugust27,2010,theSECissuedanotice informing NRSROs that the list of XBRL tags these organizationsshouldusetomeettheratingshistorydisclosurerequirementsinRule17g-2(d)oftheSecuritiesExchangeActof1934arenowavailableontheSEC’sWebsite.SuchentitiesmuststartusingXBRLtoprovidethesedisclosuresnolaterthan60daysafterthepublicationofthisnoticeintheFederal Register. •

CAQ Releases Highlights of SEC Regulations Committee's June 24 Meeting*

Affects: SEC registrants.

Summary: In September, the CAQ SEC Regulations Committee released highlights of its June 24, 2010, meeting with the SEC staff. At this meeting, the committee and the staff discussed emerging technical accounting and reporting issues related to SEC rules and regulations. The meeting highlights include the following topics:

Current Financial Reporting Matters

• Effectofcurrenteventsondisclosures.

• REITIPOs.

• Cheapstock.

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Accounting RoundupThird Quarter in Review — 2010

• Contingencydisclosures.

• DomesticcompanieswithamajorityofoperationsoutsidetheUnitedStates.

Implementation and Interpretation of Recent SEC Releases

• Section404(b)fornonacceleratedfilers.

• XBRL.

SEC Staff and Other Initiatives

• (1)UpdatestotheSEC'sFinancialReportingManual(FRM)andC&DIsonnon-GAAPfinancialmeasures and Regulation S-K and (2) a possible delay in the SEC’s planned core disclosure project.

Current Practice Issues

• Summarizedfinancialinformationofequityinvestees.

• PCAOBregistrationforauditorsofequitymethodinvestees.

• ImpactonArticle11proformaincomestatementofchangesinthefairvalueofcontingentconsideration related to a business combination.

• Proformaincomeinformationforabusinesscombination—computationandpresentationinMD&A.

Since the meeting, the SEC staff has taken action on a number of the issues that were discussed, including revising the FRM, issuing C&DIs, and making several announcements. •

SEC Issues Proposed Rule on Mutual Fund Distribution Fees

Affects: SEC registrants.

Summary: On July 21, 2010, the SEC issued a proposed rule on mutual fund distribution fees that would replace Rule 12b-1 of the Investment Company Act of 1940. According to the proposal, “The proposed rule and rule amendments are designed to protect individual investors from paying disproportionate amounts of sales charges in certain share classes, promote investor understanding of fees, eliminate outdated requirements, provide a more appropriate role for fund directors, and allow greater competition among funds and intermediaries in setting sales loads and distribution fees generally.” The proposed rule also requires clearer disclosures about sales charges.

Next Steps:CommentsontheproposedruleareduebyNovember5,2010. •

SEC Issues C&DI Updates*

Affects: SEC registrants.

Summary:OnJuly27,2010,theSEC’sDivisionofCorporationFinanceissuednewC&DIsontheuseofcreditratings for issuers not subject to Regulation AB. The new C&DIs provide interpretive guidance on when a registrant would be required to name a credit agency as an expert and obtain its consent in conjunction with the use of credit ratings information in a registration statement. The following C&DIs were added:

• Question8ofSection198,Rule401,“RequirementsastoProperForm.”

• Questions4–8ofSection233,Rule436,“ConsentsRequiredinSpecialCases.”

Inaddition,Question13waswithdrawnfromSection255,Rule501,“DefinitionsandTermsUsedinRegulation D.”

On August 11, 2010, the SEC’s Division of Corporation Finance issued C&DI updates on the following topics: Securities Act sections, Securities Act rules, Securities Act forms, Exchange Act rules, Exchange Act forms,andExchangeActSection16andrelatedrulesandforms.

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Accounting RoundupThird Quarter in Review — 2010

OnSeptember17,2010,theSEC’sDivisionofCorporationFinanceupdatedthefollowingC&DIs related to the tagging of information in XBRL:

• Questions14–16ofSection146onRegulationS-K,Item601.

• Question10ofSection130onRegulationS-T,Rule405.

• Question1ofSection131onRegulationS-T,Rule406T.

Inaddition,Questions5and6werewithdrawnfromSection105onexchangeactformsunderForm10-Q. •

SEC Updates Financial Reporting Manual

Affects: SEC registrants.

Summary:OnJuly7,2010,theSEC’sDivisionofCorporationFinancepublishedarevisedversionofitsFRM, updated asofMarch31,2010.OnenoteworthychangerelatestoclarificationintheSECstaff’sinterpretiveguidance of whether registrants that are limited partnerships must include the balance sheet of a general partner (GP) in their filings. The updated guidance notes that oil and gas companies, as well as companies in other industries such as real estate, in which limited partnerships may be prevalent may exclude a GP balance sheet. However, the guidance states that disclosures of the relationship and commitments may be relevant to investors.

Other changes include expanded guidance or clarifications related to:

• CalculatingsignificanceforseparateRegulationS-X,Rule3-05,financialstatementsforbusinessacquisitions in situations in which registrants or acquired businesses are successors to predecessor businesses.

• Calculatingsignificancefordispositions.

• Treatmentoftransactioncostsinproformafinancialstatements. •

SEC Publishes Concept Release on the U.S. Proxy System

Affects: SEC registrants.

Summary: On July 14, 2010, the SEC published a concept release on the U.S. proxy system for public comment. The concept release represents the first comprehensive review of the proxy voting system undertaken by the SECinnearly30years.

The concept release focuses on the accuracy and transparency of the voting process, the manner in which shareholders and corporations communicate, and the relationship between voting power and economic interest.

Next Steps: Comments on the concept release are due by October 20, 2010. •

CAQ Releases Highlights of SEC Regulations Committee’s April 6 Meeting

Affects: SEC registrants.

Summary: In July, the CAQ SEC Regulations Committee released highlightsofitsApril6,2010,meetingwiththeSECstaff. At this meeting, the committee and staff discussed emerging technical accounting and reporting issues related to SEC rules and regulations. The meeting highlights include the following topics:

Current Financial Reporting Matters

• 2009year-endreportingchallengesandmattersdiscussedatthe2009AICPAConferenceonCurrent SEC and PCAOB Developments.

• StafffilingreviewandcommentprocessfortheuseofpreclearancelettersforIPOs.

• Effectsofthenewhealthcarelegislationanddisclosuresininterimfinancialstatementsonnewlyadopted accounting standards.

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Accounting RoundupThird Quarter in Review — 2010

Implementation and Interpretation of Recent SEC Releases

• IFRSs—Commissionstatementinsupportofconvergenceandglobalaccountingstandards.

• ICFR—Section404(b).

• Commissionguidanceondisclosuresrelatedtoclimatechange.

New or Pending Accounting Standards and Pronouncements

• Subsequentevents(ASC855).

• ICFRreportingconsiderationsandtheinitialconsolidationofavariableinterestentity.

SEC Staff and Other Initiatives

• UpdatetotheFRM,C&DIsonNon-GAAPMeasures,andthe“DearCFO”letteronrepurchaseagreements.

Current Practice Issues

• CalculatingbookvaluepershareafteradoptingASC810.

• ApplicabilityofdisclosurerequirementsofItem3(f)onFormS-4whenthetargetisareportingcompany that is significantly at or below the 20 percent level.

• GPbalancesheetinanoilandgaslimitedpartnershipregistrationstatement.

• XBRLtransitionprovisions.

Other Resources: Deloitte’s December17,2009,Heads Up; January 20, 2010, Heads Up; and Special Report, SEC Comment Letters on Domestic Registrants (updated December 2009). •

SEC Requests Comments on Incorporating IFRSs Into the Financial Reporting System for U.S. Issuers

Affects: SEC registrants.

Summary: On August 12, 2010, the SEC published two releases (Nos. 33-9133 and 33-9134) that request comment on a number of topics related to whether the Commission should incorporate IFRSs into the financial reporting system for U.S. issuers (as laid out in the SEC’s February 24, 2010, statement in support of convergence and global accounting standards).

Next Steps:CommentsonthereleasesareduebyOctober18,2010. •

SEC Issues Shareholder Access Rule

Affects: SEC registrants.

Summary:OnAugust25,2010,theSECissuedFinalRule33-9136 (the "Rule"), which allows shareholders to use company proxy documents to nominate director candidates. The Rule applies to companies subject to the SecuritiesExchangeActof1934’sproxyrules,includinginvestmentcompaniesandcontrolledcompanies,but not to “debt-only” filers. Its application to smaller reporting companies is subject to a three-year deferral period.

Next Steps:TheguidanceintheRulewillbecomeeffectiveonNovember15,2010.

Other Resources: For more information, see the press release on the SEC’s Web site. •

Other Auditing

PCAOB Files With SEC Proposed Rules on Auditing Standards Related to the Auditor’s Assessment of and Response to Risk and Related Amendments to PCAOB Standards*

Affects: Registered public accounting firms.

Summary:OnSeptember15,2010,theSECissuedanotice indicating that the PCAOB had filed with the Commission its (1) eight auditing standards related to the auditor’s assessment of and response to risk and (2) related amendments to the PCAOB’s interim auditing standards.

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Accounting RoundupThird Quarter in Review — 2010

In the words of PCAOB Acting Chairman Daniel L. Goelzer, “These new standards are a significant step in promoting sophisticated risk assessment in audits and minimizing the risk that the auditor will fail to detect material misstatements.” Goelzer further remarked that “[i]dentifying risks, and properly planning and performing the audit to address those risks, is essential to promoting investor confidence in audited financial statements.”

Next Steps:CommentsontheproposalsareduebyOctober18,2010. •PCAOB Hosts Roundtable on Communications With Audit Committees, Reopens Comment Period on Proposal*

Affects: Registered public accounting firms.

Summary: On September 21, 2010, the PCAOB held a public roundtable to discuss its proposed standard on auditors’ communications with audit committees. The roundtables included audit committee members, investors, auditors, issuers, and others. As a result of this roundtable, the comment period on the proposal was reopened and comments will not be due until October 21, 2010.

Other Resources: For more information, see the press release on the PCAOB’s Web site. •

ASB Issues Interpretation 8 of AT Section 101

Affects: Auditors.

Summary:OnJuly27,2010,theASBissuedInterpretation8ofATSection101. The interpretation addresses whether it is appropriate for an audit practitioner “to include a description of tests of controls or other procedures performed, and the results thereof, in a separate section” of the practitioner’s report when performing an examination engagement. •

ASB Issues Proposed SAS to Revise Applicability of SAS 116

Affects: Auditors.

Summary:OnJuly8,2010,theASBissuedforpubliccommentaproposed SASthat“wouldamendSASNo.116such that the SAS would be applicable when the auditor audited the entity’s latest annual financial statements and the appointment of another auditor to audit the current year financial statements is not effective prior to the beginning of the period covered by the review.” This revision “would allow for an appropriate transition between auditors when an auditor change is anticipated.”

Next Steps:CommentsontheproposedSASareduebyOctober8,2010.TheproposedSASwouldbeeffectiveforreviews of interim financial information for interim periods of fiscal years beginning on or after December 15,2011. •

ASB Issues Proposed SAS on Letters for Underwriters and Certain Other Requesting Parties

Affects: Auditors.

Summary:OnJuly23,2010,aspartofitsClarityProject(anattempttomakeU.S.GAASeasiertoread,understand,and apply), the ASB issued for public comment a proposed SAS on letters for underwriters and certain otherrequestingpartiesthatwouldsupersedeSAS72.TheproposedSAS“doesnotrequirerequestingpartieswithastatutoryduediligencedefenseundersection11oftheSecuritiesActof1933...toprovide a written legal opinion that states that such party has such defense; instead, paragraph 9 of the proposed SAS requires only that requesting parties provide the prescribed representation letter.” Further, to "reflect a more principles-based approach to standard setting, certain requirements that are duplicative ofbroaderrequirementsinSASNo.72,asamended,havebeenmovedtoapplicationandotherexplanatory material.”

CommentsontheproposedSASwereduebySeptember30,2010.

Next Steps:TheproposedSASwouldbeeffectiveforcomfortlettersissuedonorafterDecember15,2012. •

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Accounting RoundupThird Quarter in Review — 2010

ASB Issues Proposed SAS on Interim Financial Information

Affects: Auditors.

Summary:OnJuly8,2010,aspartofitsClarityProject(anattempttomakeU.S.GAASeasiertoread,understand,and apply), the ASB issued for public comment a proposed SAS on interim financial information that wouldsupersedeSAS116.TheproposedSASwouldmakecertainamendmentstoAUSection722.Changes to current requirements include:

• PermittingapplicationofAUSection722“evenwhentheauditordoesnotexpecttobeengagedto audit the current year financial statements and will allow for appropriate transition between auditors when there is a change in auditors.”

• Limitingthesituationsinwhichanoralreportisappropriate.

• Increasingthedutiesanauditormustperformbeforeacceptinganengagement.

• Changingthetermused“torefertothepractitionerperformingthereviewofinterimfinancialinformation” from “accountant” to “auditor.”

• Requiringauditorstoprovideastatementindicatingthatthereviewofinterimfinancialinformationwas conducted in accordance with U.S. GAAS.

Next Steps:CommentsontheproposedSASareduebyOctober8,2010.TheproposedSASwouldbeeffectiveforreviews of interim financial information for interim periods of fiscal years beginning on or after December 15,2012. •

ASB Issues Proposed SSARS on the Applicability of SSARSs

Affects: Auditors.

Summary:OnJuly8,2010,theASBissuedforpubliccommentaproposed SSARS that “would revise SSARSs such that SSARSs would not be applicable when the auditor audited the entity’s latest annual financial statements and the appointment of an auditor to audit the current year financial statements is not effective prior to the period covered by the review. This change would allow for an appropriate transition between the predecessor auditor and the auditor of the current year financial statements.”

Other Resources:CommentsontheproposedSSARSareduebyOctober8,2010.TheproposedSSARSwouldbeeffectivefor reviews of interim financial information for interim periods of fiscal years beginning on or after December15,2011. •

PCAOB Issues Proposed Standard on Audit Confirmations

Affects: Registered public accounting firms.

Summary:OnJuly13,2010,thePCAOBissuedaproposed standard on audit confirmations. The proposed standard wouldsupersedePCAOBAUSection330,whichestablishestherequirementsfor,andprovidesguidanceon, the confirmation process in audits. The proposal defines a confirmation as the “process of obtaining and evaluating a direct communication from a third party in response to a request, either in paper form or by electronic or other medium, for information about a particular item affecting financial statement assertions.”

CommentsontheproposalwereduebySeptember13,2010.

Next Steps:AfinalstandardwouldbeeffectiveforauditsoffiscalyearsendingonorafterDecember15,2011.

Other Resources: Deloitte’s July26,2010,Heads Up. •

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Accounting RoundupThird Quarter in Review — 2010

PCAOB Issues Release on the Responsibilities of Registered Public Accounting Firms and Supervisory Personnel

Affects: Registered public accounting firms.

Summary:OnAugust5,2010,thePCAOBissuedaconcept release “to address, in two ways, issues relating to the responsibilities of a registered public accounting firm and its supervisory personnel with respect to supervision.” The release emphasizes that the PCAOB is authorized to “impose sanctions” on firms that fail to reasonably supervise individuals who have violated certain laws, rules, or standards. Further, the release seeks comment on approaches to rulemaking that might lead to improved supervisory practices and audit quality.

Next Steps:CommentsonthereleaseareduebyNovember3,2010.

Other Resources: For more information, see the press release on the PCAOB’s Web site. •

PCAOB Staff to Develop Proposal to Make Disciplinary Hearings and Related Proceedings Public

Affects: Registered public accounting firms.

Summary:OnAugust5,2010,PCAOBActingChairmanDanielL.GoelzerdirectedthePCAOBstafftodevelopaproposal to send to Congress that would make the PCAOB’s disciplinary hearings and related proceedings public.

Other Resources: For more information, see the press release on the PCAOB’s Web site. •

A Summary of the July 15 Meeting of the PCAOB’s Standing Advisory Group

Affects: Registered public accounting firms.

Summary:OnJuly15,2010,thePCAOB’sSAGmetanddiscussedthefollowing:broker-dealerauditconsiderations,FASB projects and their potential impact on auditors, and the auditor’s consideration of subsequent events. In addition, the PCAOB staff summarized comments it has received on its proposed audit committee communications standard and gave an update on its plans to undertake a project on the auditor’s reporting model.

Other Resources: Deloitte’s August31,2010,Heads Up. •

PCAOB Issues Staff Practice Alert on Using the Work of Other Auditors and Engaging Assistants From Outside the Firm

Affects: Registered public accounting firms.

Summary: On July 12, 2010, the PCAOB issued Staff Audit Practice Alert 6, which provides guidance on using the work of other auditors and engaging assistants from outside the firm. The alert covers certain topics discussed at the April 2010 meeting of the PCAOB’s Standing Advisory Group, including inspections of instances in which U.S.-based audit firms issued audit reports based on work performed by auditors outside the United States, particularly in China. In the cases discussed, the U.S.-based firms were identifiedasnotproperlyapplyingPCAOBstandards,inparticularAUSection543.

PracticeAlert6reiteratesexistingrequirementsofthePCAOB’sinterimauditingstandards,includingthoseinAUSection543,and“isintendedasaremindertoregisteredfirmsconcerningafirm’sobligations when using the work of other firms or using assistants engaged from outside the firm.” The alert does not contain any new requirements, and the firms to which the inspection findings applied were smaller organizations without international networks.

Other Resources: For more information, see the press release on the PCAOB’s Web site. •

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Accounting RoundupThird Quarter in Review — 2010

GASB Matters

GASB Issues Guidelines for Reporting of SEA Performance Information

Affects: Governmental entities.

Summary: On July 14, 2010, the GASB issued guidelines “to provide state and local governments with suggested guidelines intended to provide a common framework for the effective external communication of SEA performance information.” More specifically, the guidelines detail “what the GASB has identified as the four essential components of an effective SEA report, the six qualitative characteristics of SEA performance information, and three keys to effective communication.”

Other Resources: For more information, see the press release on the GASB’s Web site. •

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Accounting RoundupThird Quarter in Review — 2010

Appendix A: Significant Adoption Dates and Deadlines

The chart below illustrates significant adoption dates and deadline dates for the FASB, EITF, AICPA/FinREC, SEC, PCAOB, GASB/GAO, FASAB, and IASB/IFRIC. Content recently added or revised is highlighted in green.

FASB Affects Status

Significant Adoption Dates

ASU2010-25,Reporting Loans to Participants by Defined Contribution Pension Plans — a consensus of the FASB Emerging Issues Task Force

Entities that issue employee benefit plan financial statements.

The amendments in this ASU should be applied retrospectively to all prior periods presented, effective for fiscal years ending after December 15,2010.Earlyadoptionispermitted.

ASU 2010-24, Presentation of Insurance Claims and Related Insurance Recoveries — a consensus of the FASB Emerging Issues Task Force

Health care organizations. The ASU is effective for fiscal years (and interim periods within those fiscal years) beginning afterDecember15,2010.Acumulative-effectadjustment should be recognized in opening retained earnings in the period of adoption if a difference exists between any liabilities and insurance receivables recorded as a result of applying the amendments in this ASU. Retrospective application and early adoption are permitted.

ASU2010-23,Measuring Charity Care for Disclosure — a consensus of the FASB Emerging Issues Task Force

Health care organizations. The ASU is effective for fiscal years beginning afterDecember15,2010.Theamendmentsshould be applied retrospectively; early adoption is permitted.

ASU 2010-22, Accounting for Various Topics — Technical Corrections to SEC Paragraphs (SEC Update)

All entities. The ASU does not contain an effective date.

ASU 2010-21, Accounting for Technical Amendments to Various SEC Rules and Schedules Amendments to SEC Paragraphs Pursuant to ReleaseNo.33-9026:TechnicalAmendmentsto Rules, Forms, Schedules and Codification of Financial Reporting Policies (SEC Update)

All entities. The ASU does not contain an effective date.

ASU 2010-20, Disclosures About the Credit Quality of Financing Receivables and the Allowance for Credit Losses

All entities. For public entities, the new and amended disclosures that relate to information as of the end of a reporting period will be effective for the first interim or annual reporting periods ending onorafterDecember15,2010.Thatis,forcalendar-year-end public entities, most of the new and amended disclosures in the ASU would be effective for this year-end reporting season. However, the disclosures that include information for activity that occurs during a reporting period will be effective for the first interim or annual periodsbeginningafterDecember15,2010.Those disclosures include (1) the activity in the allowance for credit losses for each period and (2) disclosures about modifications of financing receivables. For calendar-year-end public entities, those disclosures would be effective for the first quarter of 2011.

ASU 2010-19, Foreign Currency Issues: Multiple Foreign Currency Exchange Rates

Entities with operations in Venezuela. EffectiveMarch18,2010.

ASU2010-18,Effect of a Loan Modification When the Loan Is Part of a Pool That Is Accounted for as a Single Asset

Entities that modify a loan that is currently accounted for under ASC 310-30(formerlySOP03-3)aspartofapool of loans that, when acquired, had deteriorated in credit quality.

The ASU is effective for any modifications of a loan or loans accounted for within a pool in the first interim or annual reporting period endingafterJuly15,2010,andwillbeappliedprospectively. Early application is permitted.

ASU2010-17,Milestone Method of Revenue Recognition

Entities that enter into research and development arrangements involving deliverables or units of accounting in which a vendor satisfies its performance obligations over time and all or a portion of the arrangement consideration is contingent upon the achievement of a milestone.

The ASU is effective for fiscal years (and interim periods within those fiscal years) beginning onorafterJune15,2010.Earlyapplicationis permitted. Entities can apply this guidance prospectively to milestones achieved after adoption. However, retrospective application to all prior periods is also permitted.

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Accounting RoundupThird Quarter in Review — 2010

ASU2010-16,Accruals for Casino Jackpot Liabilities

Entities that have gaming operations within the scope of ASC 924 (formerly AICPA Audit and Accounting Guide, Casinos).

The ASU is effective for interim and annual reporting periods beginning on or after December15,2010.Earlyapplicationispermitted. A cumulative catch-up adjustment will be recorded in retained earnings as of the beginning of the period in which the ASU is adopted.

ASU2010-15,How Investments Held Through Separate Accounts Affect an Insurer’s Consolidation Analysis of Those Investments

Insurance companies that have a majority interest in an investment fund through interests held by the separate accounts or through a combination of interests held by the general and separate accounts.

The ASU is effective for interim and annual periodsbeginningafterDecember15,2010,and must be applied retrospectively to all prior periods. Early application is permitted.

ASU 2010-14, Accounting for Extractive Activities — Oil & Gas — amendmentstoparagraph932-10-S99-1

Entities in the oil and gas industry. The ASU does not contain an effective date.

ASU2010-13,Effect of Denominating the Exercise Price of a Share-Based Payment Award in the Currency of the Market in Which the Underlying Equity Security Trades

Entities that issue share-based payment awards with exercise prices in currencies that are different from the entity’s functional currency and the payroll currency of the employees.

This ASU is effective for interim and annual periodsbeginningonorafterDecember15,2010, and will be applied prospectively. Affected entities will be required to record a cumulative catch-up adjustment to the opening balance of retained earnings for all awards outstanding as of the beginning of the annual period in which the ASU is adopted. Earlier application is permitted.

ASU 2010-12, Accounting for Certain Tax Effects of the 2010 Health Care Reform Acts

SEC registrants with a period-end betweenMarch23,2010,andMarch30,2010.

The ASU does not contain an effective date.

ASU 2010-11, Scope Exception Related to Embedded Credit Derivatives

All entities. The ASU is effective on the first day of the first fiscalquarterbeginningafterJune15,2010.Therefore, for a calendar-year-end entity, the ASU becomes effective on July 1, 2010. Early application is permitted at the beginning of the firstfiscalquarterbeginningafterMarch5,2010.

ASU 2010-10, Amendments for Certain Investment Funds

Money market mutual funds and interests in mutual funds, hedge funds, private equity funds, and venture capital funds.

The ASU is effective as of the beginning of the first annual period that begins after November 15,2009,andforinterimperiodswithinthatfirstannual period. Early application is not permitted.

ASU 2010-09, Amendments to Certain Recognition and Disclosure Requirements

All entities. For all entities (except conduit debt obligors), the ASU is effective immediately for financial statements that are (1) issued or available to be issued or (2) revised. For conduit debt obligors, the ASU is effective for interim and annual periodsendingafterJune15,2010.

ASU2010-08,Technical Corrections to Various Topics

All entities. The clarifications of the guidance on embedded derivativesandhedging(ASC815-15)areeffective for fiscal years beginning after December15,2009.Theamendmentstotheguidance on accounting for income taxes in a reorganization(ASC852-740)shouldbeappliedto reorganizations whose date is on or after the beginning of the first annual reporting period beginningonorafterDecember15,2008.Allother amendments are effective as of the first interim or annual reporting period beginning after the ASU’s issuance date (February 2, 2010).

ASU2010-07,Not-for-Profit Entities: Mergers and Acquisitions

Not-for-profit entities. Effective prospectively for mergers that occur at or after the beginning of an initial reporting periodthatbeginsonorafterDecember15,2009, and acquisitions that occur at or after the beginning of the first annual reporting period thatbeginsonorafterDecember15,2009.Earlyapplication is prohibited.

ASU2010-06,Improving Disclosures About Fair Value Measurements

All entities. The new disclosures and clarifications of existing disclosures are effective for interim and annual reporting periods beginning after December 15,2009,exceptforthedisclosuresaboutpurchases, sales, issuances, and settlements in therollforwardofactivityinLevel3fairvaluemeasurements. Those disclosures are effective forfiscalyearsbeginningafterDecember15,2010, and for interim periods within those fiscal years.

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Accounting RoundupThird Quarter in Review — 2010

ASU2010-05,Escrowed Share Arrangements and the Presumption of Compensation

All entities. The ASU does not contain an effective date.

ASU 2010-04, Accounting for Various Topics — Technical Corrections to SEC Paragraphs

All entities. The ASU does not contain an effective date.

ASU2010-03,Oil and Gas Reserve Estimation and Disclosures

Entities in the oil and gas industry. Effective for annual reporting periods ending on orafterDecember31,2009.Anentityshouldapply the adoption of the amendments as a change in accounting principle inseparable from a change in estimate. The amendments to ASC 932specifytherequireddisclosuresfortheeffectof adoption. Early application is not permitted. An entity that became subject to the disclosure requirementsofASC932asaresultofthechange to the definition of significant oil- and gas-producing activities is permitted to apply thedisclosureprovisionsofASC932inannualperiodsbeginningafterDecember31,2009.

ASU 2010-02, Accounting and Reporting for Decreases in Ownership of a Subsidiary — a Scope Clarification

All entities. Effective beginning in the period in which an entityadoptsStatement160(codifiedin ASC810-10).IfanentityhaspreviouslyadoptedStatement160asofthedateonwhichtheamendments in this ASU are included in the Accounting Standards Codification, the amendments in this ASU are effective beginning in the first interim or annual reporting period endingonorafterDecember15,2009.Theamendments in this ASU should be applied retrospectively to the first period in which an entityadoptedStatement160.

ASU 2010-01, Accounting for Distributions to Shareholders with Components of Stock and Cash — a consensus of the FASB Emerging Issues Task Force

Entities that provide distributions to shareholders in the form of stock and cash.

Effective for interim and annual periods ending onorafterDecember15,2009.

ASU2009-17,Improvements to Financial Reporting by Enterprises Involved With Variable Interest Entities

All entities. Effective as of the beginning of each reporting entity’s first annual reporting period that begins afterNovember15,2009,andforbothofthefollowing: (1) interim periods within that first annual reporting period and (2) interim and annual reporting periods thereafter. Earlier application is prohibited.

ASU2009-16,Accounting for Transfers of Financial Assets

All entities. Effective as of the beginning of each reporting entity’s first annual reporting period that begins afterNovember15,2009,andforbothofthefollowing: (1) interim periods within that first annual reporting period and (2) interim and annual reporting periods thereafter. Earlier application is prohibited.

ASU2009-15,Accounting for Own-Share Lending Arrangements in Contemplation of Convertible Debt Issuance or Other Financing — a consensus of the FASB Emerging Issues Task Force

All entities. Effective for fiscal years beginning on or after December15,2009,andinterimperiodswithinthose fiscal years for arrangements outstanding as of the beginning of those fiscal years.

ASU 2009-14, Certain Revenue Arrangements That Include Software Elements — a consensus of the FASB Emerging Issues Task Force

All entities. Effective prospectively for revenue arrangements entered into or materially modified in fiscal years beginningonorafterJune15,2010.Earlierapplication is permitted.

ASU2009-13,Multiple-Deliverable Revenue Arrangements — a consensus of the FASB Emerging Issues Task Force

All entities. Effective prospectively for revenue arrangements entered into or materially modified in fiscal years beginningonorafterJune15,2010.Earlierapplication is permitted.

ASU 2009-12, Investments in Certain Entities That Calculate Net Asset Value per Share (or Its Equivalent)

All entities. Effective for financial statements issued for interim and annual periods ending after December15,2009.Earlierapplicationispermitted.

ASC715-20-65-2(FSPFAS132(R)-1,"Employers’Disclosures About Postretirement Benefit Plan Assets")

Entities with postretirement benefit plan assets.

Effective for financial statements issued for fiscalyearsendingafterDecember15,2009.The technical amendment became effective on December30,2008.

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Accounting RoundupThird Quarter in Review — 2010

Projects in Request-for-Comment Stage

Proposed ASU, Accounting for Legal Costs Associated With Medical Malpractice and Similar Claims — a consensus of the FASB Emerging Issues Task Force

Health care organizations. CommentsdueOctober8,2010.

Proposed ASU, Fees Paid to the Federal Government by Pharmaceutical Manufacturers — a consensus of the FASB Emerging Issues Task Force

Entities that are required to pay the U.S. government a fee calculated on the basis of sales of qualifying branded prescription drugs to any federal government program.

CommentsdueOctober8,2010.

Proposed ASU, Revenue From Contracts With Customers

All entities. Comments due October 22, 2010.

Proposed ASU, Disclosure About an Employer’s Participation in a Multiemployer Plan

Nongovernmental entities that participate in multiemployer plans.

Comments due November 1, 2010.

Discussion Paper, Preliminary Views on Insurance Contracts

Entities that issue insurance contracts (as defined in the discussion paper).

CommentsdueDecember15,2010.

Proposed ASU, Leases All entities. CommentsdueDecember15,2010.

AICPA/FinREC Affects Status

Significant Adoption Dates

SAS 120, Required Supplementary Information Auditors. Effective for audits of financial statements for periodsbeginningonorafterDecember15,2010. Early application is permitted.

SAS 119, Supplementary Information in Relation to the Financial Statements as a Whole

Auditors. Effective for audits of financial statements for periodsbeginningonorafterDecember15,2010. Early application is permitted.

SAS118,Other Information in Documents Containing Audited Financial Statements

Auditors. Effective for audits of financial statements for periodsbeginningonorafterDecember15,2010. Early application is permitted.

SAS117,Compliance Audits Auditors of governmental entities. Effective for compliance audits for fiscal periodsendingonorafterJune15,2010.Earlyapplication is permitted.

SAS116,Interim Financial Information Auditors. Effective for reviews of interim financial information for interim periods beginning on or afterDecember15,2009.Earlyapplicationispermitted.

SAS115,Communicating Internal Control Related Matters Identified in an Audit

Auditors. Effective for audits of financial statements for periodsendingonorafterDecember15,2009.Early application is permitted.

SAS, Audit Considerations Relating to an Entity Using a Service Organization (Redrafted)

Auditors. Effective for audits of financial statements for periodsendingonorafterDecember15,2012.

SAS, Consideration of Laws and Regulations in an Audit of Financial Statements (Redrafted)

Auditors. Effective for audits of financial statements for periodsendingonorafterDecember15,2012.

SAS, The Auditor's Communication With Those Charged With Governance (Redrafted)

Auditors. Effective for audits of financial statements beginningonorafterDecember15,2010.

SAS, Audit Documentation (Redrafted) Auditors. Effective for audits of financial statements for periodsbeginningonorafterDecember15,2010.

SSARS 19, Compilation and Review Engagements Accountants that provide compilation or review services.

Effective for compilations and reviews of financial statements for periods ending on or after December15,2010.Earlyimplementationofcertain requirements and guidance related to compilations performed by accountants who are not independent is permitted.

SSARS18,Applicability of Statements on Standards for Accounting and Review Services

Accountants that provide compilation or review services.

Effective for reviews of interim financial information for interim periods beginning on or afterDecember15,2009.Earlyapplicationispermitted.

SSAE16,Reporting on Controls at a Service Organization

Service auditors. Effective for service auditors’ reports for periods endingonorafterJune15,2011.Earlierapplication is permitted.

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Accounting RoundupThird Quarter in Review — 2010

Projects in Request-for-Comment Stage

Proposed SAS, Interim Financial Information (Redrafted)

Auditors. CommentsdueOctober8,2010.

Proposed SSARS, The Applicability of Statements on Standards for Accounting and Review Services

Auditors. CommentsdueOctober8,2010.

Proposed SAS, Revised Applicability of Statement onAuditingStandardsNo.116, Interim Financial Information

Auditors. CommentsdueOctober8,2010.

SEC Affects Status

Significant Adoption Dates

SAB113(revisesorrescindsportionsoftheinterpretive guidance in SAB Topic 12, “Oil and Gas Producing Activities”)

SEC registrants. Effective November 4, 2009.

Final Rule, Removal From Regulation FD of the Exemption for Credit Rating Agencies(33-9146)

SEC registrants. Effective October 4, 2010.

Final Rule, Rescission of Rules Pertaining to the Payment of Bounties for Information Leading to the Recovery of Civil Penalties for Insider Trading (34-62921)

SEC registrants. Effective September 21, 2010.

Final Rule, Delegation of Authority to the Director of Its Division of Enforcement(34-62821)

SEC registrants. EffectiveSeptember8,2010.

Interim Final Temporary Rule, Temporary Registration of Municipal Advisors(34-62824)

Municipal advisers. Effective October 1, 2010, through December 31,2011.

Interpretive Release, Commission Guidance Regarding Auditing, Attestation, and Related Professional Practice Standards Related to Brokers and Dealers(34-62991)

Broker-dealers. Effective October 1, 2010.

Final Rule, Delegation of Authority to the Director of Its Division of Enforcement(34-62690)

SEC registrants. EffectiveAugust16,2010.

Final Rule, Amendments to the Informal and Other Procedures, Rules of Organization and Program Management, and Rules of Practice; Interim Commission Review of Public Company Accounting Oversight Board Inspection Reports and Regulation P(34-62575)

SEC registrants. EffectiveSeptember7,2010.

Final Rule, Technical Amendment to Rules of Organization; Conduct and Ethics; and Information and Requests(34-62520)

SEC registrants. Effective July 22, 2010.

Final Rule, Adoption of Supplemental Standards of Ethical Conduct for members and Employees of the Securities and Exchange Commission and Revisions to the Commission’s Ethics Rules (34-62501)

SEC registrants. Effective August 19, 2010.

Final Rule, Amendment to Municipal Securities Disclosures (34-62184A)

Brokers, dealers, or municipal securities dealers.

Effective August 9, 2010 (except Part 241, which became effective on June 10, 2010).

Final Rule, Shareholder Approval of Executive Compensation of TARP Recipients(34-61335)

SEC registrants that are recipients of financial assistance under the TARP.

EffectiveFebruary18,2010.

Final Rule, Internal Control Over Financial Reporting in Exchange Act Periodic Reports of Non-Accelerated Filers (33-9142)

Nonaccelerated filers. Effective September 21, 2010.

Final Rule, Adoption of Updated EDGAR Filer Manual(33-9140)

SEC registrants. EffectiveSeptember15,2010.

Interpretive Release, Commission Guidance on Presentation of Liquidity and Capital Resources Disclosures in Management's Discussion and Analysis(33-9144)

SEC registrants. EffectiveSeptember28,2010.

Final Rule, Facilitating Shareholder Director Nominations(33-9136)

SEC registrants. EffectiveNovember15,2010.

Final Rule, Adoption of Updated EDGAR Filer Manual(33-9115)

SEC registrants. EffectiveApril8,2010.

Final Rule, Amendments to Rules Requiring Internet Availability of Proxy Materials(33-9108)

SEC registrants. Effective March 29, 2010.

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Accounting RoundupThird Quarter in Review — 2010

Interpretive Release, Commission Guidance Regarding Disclosures Related to Climate Change (33-9106)

SEC registrants. EffectiveFebruary8,2010.

Final Rule, Proxy Disclosure Enhancements, Correction(33-9089A)

SEC registrants. EffectiveFebruary28,2010.

Final Rule, Proxy Disclosure Enhancements (33-9089)

SEC registrants. EffectiveFebruary28,2010.

Final Rule, Adoption of Updated Edgar Filer Manual(33-9077)

SEC registrants. EffectiveOctober30,2009.

Final Rule, Internal Control Over Financial Reporting in Exchange Act Periodic Reports of Non-Accelerated Filers (33-9072)

Nonaccelerated filers. EffectiveDecember18,2009,fornonacceleratedfilers. Auditor’s attestation report on internal control over financial reporting must be included with annual reports for fiscal years ending on or afterJune15,2010.

Final Rule, Interactive Data for Mutual Fund Risk/Return Summary(33-9006)

Mutual funds. Effective for initial registration statements and post-effective amendments that are annual updates to post-effective registration statements that become effective after January 1, 2011.

Final Rule, Interactive Data to Improve Financial Reporting(33-9002)

SEC registrants (other than investment companies).

Effective for domestic and foreign registrants using U.S. GAAP that have a worldwide public floatofmorethan$5billionforperiodsendingonorafterJune15,2009.Effectiveforallother domestic and foreign large accelerated filers using U.S. GAAP for periods ending on or afterJune15,2010.Effectiveforallremainingregistrants using U.S. GAAP and foreign private issuers using IFRSs as issued by the IASB for periodsendingonorafterJune15,2011.

Final Rule, Enhanced Disclosure and New Prospectus Delivery Option for Registered Open-End Management Investment Companies (33-8998)

Registered open-end management investment companies.

Initial registration statements on Form N-1A (and any annual updates) filed on or after January 1, 2010, will need to comply with the new rule. All effective registration statements on Form N-1A must be amended by January 1, 2011; however, a fund may choose to comply with the new requirementsanytimeafterMarch31,2009.

Final Rule, Indexed Annuities and Certain Other Insurance Contracts(33-8996)

Insurance companies and entities with annuities.

Rule151Ashouldbeappliedtoindexedannuities issued on or after January 12, 2011. Rule12h-7willbecomeeffectiveonMay1,2009.

Final Rule, Modernization of Oil and Gas Reporting(33-8995)

Public oil and gas companies. Effective for registration statements filed on or after January 1, 2010, and for annual reports on Forms 10-K and 20-F for fiscal years ending on orafterDecember31,2009.

Final Rule, Amendments to Form ADV(IA-3060) Investment advisers. Effective October 12, 2010.

Final Rule, Political Contributions by Certain Investment Advisors(IA-3043)

Investment advisers. EffectiveSeptember13,2010.

Final Rule, Custody of Funds or Securities of Clients by Investment Advisers(IA-2968)

Registered investment advisers. Effective March 12, 2010.

Final Rule, Money Market Fund Reform (IC-29132)

Money market funds. EffectiveMay5,2010.

Projects in Request-for-Comment Stage

Notice of Filing of Proposed Rules on Auditing Standards Related to the Auditor's Assessment of and Response to Risk and Related Amendments to PCAOB Standards(34-62919)

Registered public accounting firms. CommentsdueOctober18,2010.

Release, Notice of Solicitation of Public Comment on Consideration of Incorporating IFRS Into the Financial Reporting System for U.S. Issuers (33-9133)

SEC registrants. CommentsdueOctober18,2010.

Release, Notice of Solicitation of Public Comment on Consideration of Incorporating IFRS Into the Financial Reporting System for U.S. Issuers (33-9134)

SEC registrants. CommentsdueOctober18,2010.

Concept Release, Concept Release on the U.S. Proxy System (34-62495)

SEC registrants. Comments due October 20, 2010.

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Accounting RoundupThird Quarter in Review — 2010

Proposed Rule, Mutual Fund Distribution Fees; Confirmations(33-9128)

SEC registrants. CommentsdueNovember5,2010.

Proposed Rule, Short-Term Borrowings Disclosure (33-9143)

SEC registrants. Comments due November 29, 2010.

PCAOB Affects Status

Significant Adoption Dates

AuditingStandard15,Audit Evidence Registered public accounting firms. IfapprovedbytheSEC,effectiveDecember15,2010.

Auditing Standard 14, Evaluating Audit Results Registered public accounting firms. IfapprovedbytheSEC,effectiveDecember15,2010.

AuditingStandard13,The Auditor’s Responses to the Risks of Material Misstatement

Registered public accounting firms. IfapprovedbytheSEC,effectiveDecember15,2010.

Auditing Standard 12, Identifying and Assessing Risks of Material Misstatement

Registered public accounting firms. IfapprovedbytheSEC,effectiveDecember15,2010.

Auditing Standard 11, Consideration of Materiality in Planning and Performing an Audit

Registered public accounting firms. IfapprovedbytheSEC,effectiveDecember15,2010.

Auditing Standard 10, Supervision of the Audit Engagement

Registered public accounting firms. IfapprovedbytheSEC,effectiveDecember15,2010.

Auditing Standard 9, Audit Planning Registered public accounting firms. IfapprovedbytheSEC,effectiveDecember15,2010.

AuditingStandard8,Audit Risk Registered public accounting firms. IfapprovedbytheSEC,effectiveDecember15,2010.

PCAOB Rule Release 2009-004, Engagement Quality Review and Conforming Amendment to the Board’s Interim Quality Control Standards

Registered public accounting firms. RuleapprovedbytheSEConJanuary15,2010.Effective for audits and interim reviews for fiscal yearsthatbeginonorafterDecember15,2009.

Project in Request-for-Comment Stage

Proposed Auditing Standard, Communications With Audit Committees

Registered public accounting firms. Comments due October 21, 2010.

Release, Concept Release on Possible Rulemaking Approaches to Complement Application of Section105(c)(6)oftheSarbanes-OxleyActof2002

Registered public accounting firms. CommentsdueNovember3,2010.

GASB/GAO Affects Status

Significant Adoption Dates

Statement59,Financial Instruments Omnibus Governmental entities. Effective for financial statements prepared by state and local governments for periods beginningonorafterJune15,2010.Earlyapplication is permitted.

Statement57,OPEB Measurements by Agent Employers and Agent Multiple-Employer Plans

Governmental entities. Provisions related to the use and reporting of the alternative measurement method are effective immediately. Provisions related to the frequency and timing of measurements are effective for actuarial valuations first used to report funded status information in OPEB plan financial statementsforperiodsbeginningafterJune15,2011. Earlier application of this Statement is encouraged.

Statement54,Fund Balance Reporting and Governmental Fund Type Definitions

Governmental entities. EffectiveforperiodsbeginningafterJune15,2010. Early adoption is encouraged.

GAO Interim Guidance, Reporting Deficiencies in Internal Control for GAGAS Financial Audits and Attestation Engagements

Auditors of government agencies. Effective concurrently with an auditor’s adoption ofSAS115,SSAE15,orboth.Thisguidancemay change upon final deliberations by the Comptroller General’s Advisory Council on Government Auditing Standards.

FASAB Affects Status

Significant Adoption Dates

Statement38,Accounting for Federal Oil and Gas Resources

U.S. federal government entities. Effective for periods beginning after September 30,2011.Earlierapplicationisencouraged.

Statement37,Social Insurance: Additional Requirements for Management’s Discussion and Analysis and Basic Financial Statements

U.S. federal government entities. Effective beginning in fiscal year 2011.

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Accounting RoundupThird Quarter in Review — 2010

Statement36,Reporting Comprehensive Long-Term Fiscal Projections for the U.S. Government

U.S. federal government entities. This Statement provides for a phased-in implementation, but earlier implementation is encouraged. All information will be reported as required supplementary information for the first three years of implementation (fiscal years 2010, 2011, and 2012). Beginning in fiscal year 2013,therequiredinformationwillbepresentedas a basic financial statement, disclosures, and required supplementary information as designated within the standard.

Statement35,Estimating the Historical Cost of General Property, Plant, and Equipment — Amending Statements of Federal Financial AccountingStandards6and23

U.S. federal government entities. The requirements in this standard were effective upon issuance.

Statement34,The Hierarchy of Generally Accepted Accounting Principles, Including the Application of Standards Issued by the Financial Accounting Standards Board

U.S. federal government entities. The requirements in this standard were effective upon issuance.

Statement33,Pensions, Other Retirement Benefits, and Other Postemployment Benefits: Reporting the Gains and Losses From Changes in Assumptions and Selecting Discount Rates and Valuation Dates

U.S. federal government entities. Effective for fiscal years beginning after September30,2009.

Technical Release 11, Implementation Guidance on Cleanup Costs Associated With Equipment

U.S. federal government entities. Effective immediately.

Technical Release 10, Implementation Guidance on Asbestos Cleanup Costs Associated With Facilities and Installed Equipment

U.S. federal government entities. Effective immediately.

TechnicalBulletin2006-1,Recognition and Measurement of Asbestos-Related Cleanup Costs

U.S. federal government entities. Effective for periods beginning after September 30,2009.Earlyadoptionisencouraged.

International Standards Affects Status

Significant Adoption Dates

IFRS 9, Financial Instruments Entities reporting under IFRSs. Effective for annual periods beginning on or after January1,2013.Earlierapplicationispermitted.

Improvements to IFRSs — a collection of amendments to seven International Financial Reporting Standards

Entities reporting under IFRSs. The amendments are effective for annual periods beginning on or after January 1, 2011, unless otherwise noted. Earlier application is permitted.

Improvements to IFRSs — a collection of amendments to twelve International Financial Reporting Standards

Entities reporting under IFRSs. Effective for annual periods beginning on or after January 1, 2010. Early application is permitted.

Amendments to IFRS 2, Group Cash-settled Share-based Payment Transactions

Entities reporting under IFRSs. Effective for annual periods beginning on or after January 1, 2010; the amendments must be applied retrospectively. Early application is permitted.

Amendments to IFRS 1, Limited Exemption From ComparativeIFRS7DisclosuresforFirst-timeAdopters

Entities reporting under IFRSs. Effective on July 1, 2010. Earlier application is permitted.

Amendments to IFRS 1, Additional Exemptions for First-time Adopters

Entities reporting under IFRSs. Effective January 1, 2010. Earlier application is permitted.

AmendmentstoIAS32,Financial Instruments: Presentation — Classification of Rights Issues

Entities reporting under IFRSs. Effective for annual periods beginning on or after February 2, 2010. Early application is permitted.

IAS 24, Related Party Disclosures Entities reporting under IFRSs. Effective for annual periods beginning on or after January 1, 2011. Earlier application is permitted.

IFRIC Interpretation 19, Extinguishing Financial Liabilities With Equity Instruments

Entities reporting under IFRSs. Effective for annual periods beginning on or after July 1, 2010. Earlier application is permitted. If an entity applies this Interpretation for a period beginning before July 1, 2010, it should disclose that fact. An entity should apply a change in accountingpolicyinaccordancewithIAS8fromthe beginning of the earliest comparative period presented.

Amendments to IFRIC 14, Prepayments of a Minimum Funding Requirement

Entities reporting under IFRSs. An entity should apply those amendments for annual periods beginning on or after January 1, 2011. Earlier application is permitted. If an entity applies the amendments for an earlier period, it should disclose that fact.

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Accounting RoundupThird Quarter in Review — 2010

ISA810(Revised/Redrafted),Engagements to Report on Summary Financial Statements

Auditors subject to International Standards on Auditing.

Effective for audits of financial statements for periodsbeginningonorafterDecember15,2009.

ISA805(Revised/Redrafted),Special Considerations — Audits of Single Financial Statements and Specific Elements, Accounts or Items of a Financial Statement

Auditors subject to International Standards on Auditing.

Effective for audits of financial statements for periodsbeginningonorafterDecember15,2009.

ISA800(Revised/Redrafted),Special Considerations — Audits of Financial Statements Prepared in Accordance With Special Purpose Frameworks

Auditors subject to International Standards on Auditing.

Effective for audits of financial statements for periodsbeginningonorafterDecember15,2009.

ISA720(Redrafted),The Auditor's Responsibilities Relating to Other Information in Documents Containing Audited Financial Statements

Auditors subject to International Standards on Auditing.

Effective for audits of financial statements for periodsbeginningonorafterDecember15,2009.

ISA710(Redrafted),Comparative Information — Corresponding Figures and Comparative Financial Statements

Auditors subject to International Standards on Auditing.

Effective for audits of financial statements for periodsbeginningonorafterDecember15,2009.

ISA706(Revised/Redrafted),Emphasis of Matter Paragraphs and Other Paragraphs in the Independent Auditor’s Report

Auditors subject to International Standards on Auditing.

Effective for audits of financial statements for periodsbeginningonorafterDecember15,2009.

ISA705(Revised/Redrafted),Modifications to the Opinion in the Independent Auditor’s Report

Auditors subject to International Standards on Auditing.

Effective for audits of financial statements for periodsbeginningonorafterDecember15,2009.

ISA700(Redrafted),Forming an Opinion and Reporting on Financial Statements

Auditors subject to International Standards on Auditing.

Effective for audits of financial statements for periodsbeginningonorafterDecember15,2009.

ISA620(Revised/Redrafted),Using the Work of an Auditor’s Expert

Auditors subject to International Standards on Auditing.

Effective for audits of financial statements for periodsbeginningonorafterDecember15,2009.

ISA610(Redrafted),Using the Work of Internal Auditors

Auditors subject to International Standards on Auditing.

Effective for audits of financial statements for periodsbeginningonorafterDecember15,2009.

ISA600(Redrafted),Special Considerations — Audits of Group Financial Statements (Including the Work of Component Auditors)

Auditors subject to International Standards on Auditing.

Effective for audits of financial statements for periodsbeginningonorafterDecember15,2009.

ISA580(Revised/Redrafted),Written Representations

Auditors subject to International Standards on Auditing.

Effective for audits of financial statements for periodsbeginningonorafterDecember15,2009.

ISA570(Redrafted),Going Concern Auditors subject to International Standards on Auditing.

Effective for audits of financial statements for periodsbeginningonorafterDecember15,2009.

ISA560(Redrafted),Subsequent Events Auditors subject to International Standards on Auditing.

Effective for audits of financial statements for periodsbeginningonorafterDecember15,2009.

ISA550(Revised/Redrafted),Related Parties Auditors subject to International Standards on Auditing.

Effective for audits of financial statements for periodsbeginningonorafterDecember15,2009.

ISA540(Revised/Redrafted),Auditing Accounting Estimates, Including Fair Value Accounting Estimates, and Related Disclosures.

Auditors subject to International Standards on Auditing.

Effective for audits of financial statements for periodsbeginningonorafterDecember15,2009.

ISA530(Redrafted),Audit Sampling Auditors subject to International Standards on Auditing.

Effective for audits of financial statements for periodsbeginningonorafterDecember15,2009.

ISA520(Redrafted),Analytical Procedures Auditors subject to International Standards on Auditing.

Effective for audits of financial statements for periodsbeginningonorafterDecember15,2009.

ISA510(Redrafted),Initial Audit Engagements — Opening Balances

Auditors subject to International Standards on Auditing.

Effective for audits of financial statements for periodsbeginningonorafterDecember15,2009.

ISA505(Revised/Redrafted),External Confirmations

Auditors subject to International Standards on Auditing.

Effective for audits of financial statements for periodsbeginningonorafterDecember15,2009.

ISA501(Redrafted),Audit Evidence — Specific Considerations for Selected Items

Auditors subject to International Standards on Auditing.

Effective for audits of financial statements for periodsbeginningonorafterDecember15,2009.

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Accounting RoundupThird Quarter in Review — 2010

ISA500(Redrafted), Audit Evidence Auditors subject to International Standards on Auditing.

Effective for audits of financial statements for periodsbeginningonorafterDecember15,2009.

ISA450(Revised/Redrafted),Evaluation of Misstatements Identified During the Audit

Auditors subject to International Standards on Auditing.

Effective for audits of financial statements for periodsbeginningonorafterDecember15,2009.

ISA 402 (Revised and Redrafted), Audit Considerations Relating to an Entity Using a Service Organization

Auditors subject to International Standards on Auditing.

Effective for audits of financial statements for periodsbeginningonorafterDecember15,2009.

ISA320(Revised/Redrafted),Materiality in Planning and Performing an Audit

Auditors subject to International Standards on Auditing.

Effective for audits of financial statements for periodsbeginningonorafterDecember15,2009.

ISA265,Communicating Deficiencies in Internal Control to Those Charged With Governance and Management

Auditors subject to International Standards on Auditing.

Effective for audits of financial statements for periodsbeginningonorafterDecember15,2009.

ISA250(Redrafted),Consideration of Laws and Regulations in an Audit of Financial Statements

Auditors subject to International Standards on Auditing.

Effective for audits of financial statements for periodsbeginningonorafterDecember15,2009.

ISA 220 (Redrafted), Quality Control for an Audit of Financial Statements

Auditors subject to International Standards on Auditing.

Effective for audits of financial statements for periodsbeginningonorafterDecember15,2009.

ISA 210 (Redrafted), Agreeing the Terms of Audit Engagements

Auditors subject to International Standards on Auditing.

Effective for audits of financial statements for periodsbeginningonorafterDecember15,2009.

ISA 200 (Revised/Redrafted), Overall Objectives of the Independent Auditor and the Conduct of an Audit in Accordance With International Standards on Auditing

Auditors subject to International Standards on Auditing.

Effective for audits of financial statements for periodsbeginningonorafterDecember15,2009.

ISQC 1 (Redrafted), Quality Control for Firms That Perform Audits and Reviews of Financial Statements, and Other Assurance and Related Services Engagements

Auditors subject to International Standards on Auditing.

Systems of quality control in compliance with thisISQCmustbeestablishedbyDecember15,2009.

Projects in Request-for-Comment Stage

Exposure Draft, Revenue From Contracts With Customers

Entities reporting under IFRSs. Comments due October 22, 2010.

Exposure Draft, Removal of Fixed Dates for First-time Adopters — Proposed Amendments to IFRS 1

Entities reporting under IFRSs. CommentsdueOctober27,2010.

Exposure Draft, Deferred Tax: Recovery of Underlying Assets

Entities reporting under IFRSs. Comments due November 9, 2010.

ISA315(Revised),Identifying and Assessing the Risk of Material Misstatement Through Understanding the Entity and Its Environment

Auditors subject to International Standards on Auditing.

CommentsdueNovember15,2010.

ISA610(Revised),Using the Work of Internal Auditors

Auditors subject to International Standards on Auditing.

CommentsdueNovember15,2010.

Exposure Draft, Severe Hyperinflation Entities reporting under IFRSs. CommentsdueNovember30,2010.

IFRIC Draft Interpretation, Stripping Costs in the Production Phase of a Surface Mine

Entities reporting under IFRSs. CommentsdueNovember30,2010.

Exposure Draft, Leases Entities reporting under IFRSs. CommentsdueDecember15,2010.

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Accounting RoundupThird Quarter in Review — 2010

Appendix B: Recent Meetings

Recent FASB Meetings

To jump to the minutes of a FASB meeting, click a link below.

September 15, 2010

The FASB and IASB discussed the following topics:

• Balance Sheet — Offsetting.

• Fair Value Measurement.

• Emissions Trading Schemes.

• AccountingforFinancialInstruments:Impairment.

September 16, 2010

The FASB discussed the following topic:

• FASB Ratification of EITF Consensus on Issue 10-C.

September 23–24, 2010

The FASB Not-for-Profit Advisory Committee discussed the following topics:

• EnvironmentalTrends(e.g.,Political,Regulatory,andEconomicTrends)ThatAreImportanttoNot-for-ProfitOrganizations’Financial Reporting.

• TheCurrentFinancialReportingModelforNot-for-ProfitOrganizations.

• Near-TermFASBProjectsofInteresttoNot-for-ProfitOrganizations,IncludingAccountingforFinancialInstruments,RevenueRecognition, Leases, and Disclosure of Certain Loss Contingencies.

• OtherMattersofInterest.

September 29, 2010

The FASB discussed the following topics:

• Effective Date and Transition Discussion Paper Announcement.

• RatificationofEITFConsensusesandTentativeConclusions.

FASB Project Summaries and Meeting Minutes

Project summaries, handouts distributed at each meeting, and summaries of FASB meetings and recent actions are available on the FASB’s Web site.

Recent EITF Meetings

September 16, 2010

The EITF discussed the following topics:

• AdministrativeMatters.

• Issue09-H,"HealthCareEntities:RevenueRecognition."

• Issue10-C,"ReportingLoanstoParticipantsbyDefinedContributionPensionPlans."

• Issue09-G,"AccountingforCostsAssociatedWithAcquiringorRenewingInsuranceContracts."

• Issue10-A,"HowtheCarryingAmountofaReportingUnitShouldBeCalculatedWhenPerformingStep1oftheGoodwillImpairment Test."

• Issue10-E,"AccountingforDeconsolidationofaSubsidiaryThatIsIn-SubstanceRealEstate."

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Accounting RoundupThird Quarter in Review — 2010

• Issue10-G,"DisclosureofSupplementaryProFormaInformationforBusinessCombinations."

• Issue10-B,"AccountingforMultipleForeignExchangeRates."

The agenda is available on the FASB’s Web site.

Recent ASB Meetings

NoASBmeetingswereheldinSeptember2010.ThenextmeetingisscheduledforOctober18–21,2010.

Recent FinREC Meetings

September 7, 2010

The FinREC discussed the following topics:

• FinancialInstrumentsDraftCommentLetter.

• OtherComprehensiveIncomeDraftCommentLetter.

• PCInsuranceGuide.

• InsuranceDraftCommentLetteronIASBED.

• FairValueMeasurementDraftCommentLetter.

The agenda is available on the AICPA’s Web site.

September 8, 2010

The FinREC discussed the following topics:

• HealthCareGuide.

• Chairman’sReport.

• EmployeeBenefitPlansGuide.

• RevenueRecognitionDraftCommentLetter.

• IPR&DPracticeAid.

The agenda is available on the AICPA’s Web site.

Recent FASAB Meetings

NoFASABmeetingswereheldinSeptember2010.ThenextmeetingisscheduledforOctober27–28,2010.

Recent GASB Meetings

NoGASBmeetingswereheldinSeptember2010.ThenextmeetingisscheduledforOctober5,2010.

Recent IASB Meetings

September 14, 2010

The IASB discussed the following topics:

• AnnualImprovements.

• ManagementCommentary.

• PutsonNoncontrollingInterests—IFRSInterpretationsCommitteeUpdate.

• FinancialInstrumentsWithCharacteristicsofEquity.

• FairValueOptionforFinancialLiabilities.

• AccountingforFinancialInstruments:Impairment.

The agenda is available on the IASB’s Web site.

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Accounting RoundupThird Quarter in Review — 2010

September 15, 2010

The IASB discussed the following topic:

• Liabilities—AmendmentstoIAS37.

The IASB and FASB discussed the following topics:

• BalanceSheet—Offsetting.

• FairValueMeasurement.

• EmissionsTradingSchemes.

• AccountingforFinancialInstruments:Impairment.

The agenda is available on the IASB’s Web site.

September 16, 2010

The IASB discussed the following topics:

• PostemploymentBenefits.

• IFRSInterpretationsCommittee—UpdateFromLastMeeting.

• Rate-regulatedActivities.

• AccountingforFinancialInstruments:HedgeAccounting.

The agenda is available on the IASB’s Web site.

Recent IFRIC Meetings

September 2, 2010

The IFRIC discussed the following topics:

• AdministrativeSession.

• ActiveCommitteeProjects.

o Share-based Payment.

o Consolidated and Separate Financial Statements.

• ReviewoftentativeagendadecisionspublishedinJulyIFRICupdate.

o First-time Adoption of International Reporting Standards.

o Income Taxes.

o The Effects of Changes in Foreign Exchange Rates.

• NewItemsforInitialConsideration.

o Presentation of Financial Statements.

o Impairment of Assets.

The agenda is available on the IASB’s Web site.

September 3, 2010

The IFRIC discussed the following topics:

• ActiveCommitteeProjects.

o Share-based Payment.

o Consolidated and Separate Financial Statements.

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Accounting RoundupThird Quarter in Review — 2010

• NewItemsforInitialConsideration.

o Related-party Disclosures.

o Impairment of Assets.

o Employee Benefits.

o Share-based Payment.

o Presentation of Financial Statements.

• AdministrativeSession.

The agenda is available on the IASB’s Web site.

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Accounting RoundupThird Quarter in Review — 2010

Appendix C: Glossary of Standards

FASBAccountingStandardsUpdateNo.2010-25,Reporting Loans to Participants by Defined Contribution Plans — a consensus of the FASB Emerging Issues Task Force

FASB Accounting Standards Update No. 2010-24, Presentation of Insurance Claims and Related Insurance Recoveries — a consensus of the FASB Emerging Issues Task Force

FASBAccountingStandardsUpdateNo.2010-23,Measuring Charity Care for Disclosure — a consensus of the FASB Emerging Issues Task Force

FASB Accounting Standards Update No. 2010-22, Accounting for Various Topics — Technical Corrections to SEC Paragraphs

FASB Accounting Standards Update No. 2010-21, Accounting for Technical Amendments to Various SEC Rules and Schedules

FASB Accounting Standards Update No. 2010-20, Disclosures About the Credit Quality of Financing Receivables and the Allowance for Credit Losses

FASB Proposed Accounting Standards Update, Disclosure About an Employer’s Participation in a Multiemployer Plan

FASB Proposed Accounting Standards Update, Disclosure of Certain Loss Contingencies

FASB Proposed Accounting Standards Update, Amendments for Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRSs

FASB Proposed Accounting Standards Update, Leases

FASB Proposed Accounting Standards Update, Accounting for Financial Instruments and Revisions to the Accounting for Derivative Instruments and Hedging Activities

FASB Accounting Standards Codification Topic 944, Financial Services — Insurance

FASBAccountingStandardsCodificationTopic855,Subsequent Events

FASBAccountingStandardsCodificationTopic810,Consolidation

FASBAccountingStandardsCodificationTopic805,Business Combinations

FASBAccountingStandardsCodificationTopic310,Receivables

FASBAccountingStandardsCodificationSubtopic715-80,Compensation — Retirement Benefits — Multiemployer Plans

FASBAccountingStandardsCodificationSubtopic360-20,Property, Plant, and Equipment — Real Estate Sales

FASBAccountingStandardsCodificationSubtopic350-20,Intangibles — Goodwill and Other — Goodwill

FASB Concepts Statement No. 1, Objectives of Financial Reporting by Business Enterprises

FASB Concepts Statement No. 2, Qualitative Characteristics of Accounting Information

FASB Staff Draft, Staff Draft of an Exposure Draft on Financial Statement Presentation

EITF Issue No. 10-G, “Disclosure of Supplementary Pro Forma Information for Business Combinations”

EITF Issue No. 10-E, “Accounting for Deconsolidation of a Subsidiary That Is In-Substance Real Estate”

EITF Issue No. 10-D, “Accounting for Certain Fees Associated With Recently Enacted Health Care Legislation”

EITF Issue No. 10-C, “Reporting Loans to Participants by Defined Contribution Pension Plans”

EITF Issue No. 10-B, “Accounting for Multiple Foreign Currency Exchange Rates”

EITF Issue No. 10-A, “How the Carrying Amount of a Reporting Unit Should Be Calculated When Performing Step 1 of the Goodwill Impairment Test”

EITF Issue No. 09-H, “Health Care Entities: Revenue Recognition”

EITF Issue No. 09-G, “Accounting for Costs Associated With Acquiring or Renewing Insurance Contracts”

AICPAStatementonAuditingStandardsNo.116,Interim Financial Information

AICPAStatementonAuditingStandardsNo.72,Letters for Underwriters and Certain Other Requesting Parties

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Accounting RoundupThird Quarter in Review — 2010

AICPA Proposed Statement on Auditing Standards, RevisedApplicabilityofStatementonAuditingStandardsNo.116,InterimFinancial Information

AICPA Proposed Statement on Auditing Standards (Redrafted), Letters for Underwriters and Certain Other Requesting Parties

AICPA Proposed Statement on Auditing Standards (Redrafted), Interim Financial Information

AICPA Professional Standards,AUSection722,“InterimFinancialInformation”

AICPA Professional Standards,Interpretation8(ATSection9101),“IncludingaDescriptionofTestsofControlsorOtherProcedures,and the Results Thereof, in an Examination Report,” of AT Section 101, “Attest Engagements”

AICPATechnicalPracticeAids,TISSection9110.17,“ApplicationofFinancialAccountingStandardsBoard(FASB) Accounting Standards Codification(ASC)740-10(PreviouslyFASBInterpretationNo.48,Accounting for Uncertainty in Income Taxes), to Other Comprehensive Basis of Accounting (OCBOA) Financial Statements — Recognition and Measurement Provisions”

AICPATechnicalPracticeAids,TISSection6931.12,“AccountingandDisclosureRequirementsforHealthandWelfarePlansRelatedto the COBRA Premium Subsidy Included in the American Recovery and Reinvestment Act of 2009”

AICPATechnicalPracticeAids,TISSection1800.06,“ApplicabilityofFairValueDisclosureRequirementsinFinancialAccountingStandards Board (FASB) Accounting Standards Codification(ASC)820,Fair Value Measurements and Disclosures, to Financial Statements Prepared in Conformity With a Comprehensive Basis of Accounting Other Than Generally Accepted Accounting Principles”

AICPATechnicalPracticeAids,TISSection1400.33,“CombiningFinancialStatementsPreparedinAccordanceWiththeIncomeTaxBasis of Accounting”

AICPA Proposed Statement on Standards for Accounting and Review Services, The Applicability of Statements on Standards for Accounting and Review Services

SECRegulationS-X,Rule3-05,“FinancialStatementsofBusinessesAcquiredortoBeAcquired”

SECRegulationS-K,Item601,“Exhibits”

SECFinalRuleReleaseNo.33-9142, Internal Control Over Financial Reporting in Exchange Act Periodic Reports of Non-Accelerated Filers

SECFinalRuleReleaseNo.33-9136,Facilitating Shareholder Director Nominations

SECFinalRuleReleaseNo.33-9026,Technical Amendments to Rules, Forms, Schedules and Codification of Financial Reporting Policies

SECInterpretiveReleaseNo.33-9144,Commission Guidance on Presentation of Liquidity and Capital Resources Disclosures in Management’s Discussion and Analysis

SECInterpretiveReleaseNo.34-62991, Commission Guidance Regarding Auditing, Attestation, and Related Professional Practice Standards Related to Brokers and Dealers

SECReleaseNo.34-62784,Notice Regarding the Requirement to Use eXtensible Business Reporting Language Format to Make PubliclyAvailabletheInformationRequiredPursuanttoRule17g-2(d)oftheExchangeAct

SECReleasesNo.33-9133and33-9134,Notice of Solicitation of Public Comment on Consideration of Incorporating IFRS Into the Financial Reporting System for U.S. Issuers

SECReleaseNo.33-9109,Commission Statement in Support of Convergence and Global Accounting Standards

SECConceptReleaseNo.34-62495,Concept Release on the U.S. Proxy System

SECProposedRuleReleaseNo.33-9143,Short-Term Borrowings Disclosure

SECProposedRuleReleaseNo.33-9128,Mutual Fund Distribution Fees; Confirmations

PCAOBAUSection543,"PartofAuditPerformedbyOtherIndependentAuditors"

PCAOBAUSection330,“TheConfirmationProcess”

PCAOBReleaseNo.2010-005,Application of the “Failure to Supervise” Provision of the Sarbanes-Oxley Act of 2002 and Solicitation of Comment on Rulemaking Concepts

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Accounting RoundupThird Quarter in Review — 2010

PCAOB Release No. 2010-004, Auditing Standards Related to the Auditor’s Assessment of and Response to Risk and Related Amendments to PCAOB Standards

PCAOBReleaseNo.2010-003,Proposed Auditing Standard Related to Confirmation and Related Amendments to PCAOB Standards

PCAOB Release No. 2010-001, Proposed Auditing Standard Related to Communications With Audit Committees and Related Amendments to Certain PCAOB Auditing Standards

PCAOBStaffAuditPracticeAlertNo.6,Auditor Considerations Regarding Using the Work of Other Auditors and Engaging Assistants From Outside the Firm

GASB Suggested Guidelines, SEA Performance Information

OfficeofManagementandBudgetCircularA-133,Audits of States, Local Governments, and Non-Profit Organizations

IFRS 4, Insurance Contracts

IFRS 2, Share-based Payment

IFRS 1, First-time Adoption of International Financial Reporting Standards

IAS37,Provisions, Contingent Liabilities and Contingent Assets

IAS36,Impairment of Assets

IAS27,Consolidated and Separate Financial Statements

IAS 24, Related Party Disclosures

IAS 21, The Effects of Changes in Foreign Exchange Rates

IAS 19, Employee Benefits

IAS 12, Income Taxes

IAS 1, Presentation of Financial Statements

IASB Exposure Draft, Deferred Tax: Recovery of Underlying Assets — Proposed Amendments to IAS 12

IASB Exposure Draft, Insurance Contracts

IASB Exposure Draft, Leases

IASB Exposure Draft, Removal of Fixed Dates for First-time Adopters — Proposed Amendments to IFRS 1

IASB Staff Draft, Fair Value Measurement

IFRIC Draft Interpretation, Stripping Costs in the Production Phase of a Surface Mine

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Accounting RoundupThird Quarter in Review — 2010

AICPA American Institute of Certified Public Accountants

ASB Auditing Standards Board

ASC FASB Accounting Standards Codification

ASU FASB Accounting Standards Update

AT U.S. Attestation Standards

AU U.S. Auditing Standards

C&DIs compliance and disclosure interpretations

CAQ Center for Audit Quality

CFO chief financial officer

CPE continuing professional education

ED exposure draft

EDT Eastern Daylight Time

EITF Emerging Issues Task Force

FAF Financial Accounting Foundation

FASAB Federal Accounting Standards Advisory Board

FASB Financial Accounting Standards Board

FinREC Financial Reporting Executive Committee (formerly known as AcSEC)

FRM SEC Financial Reporting Manual

GAAP generally accepted accounting principles

GAAS generally accepted auditing standards

GAO Government Accountability Office

GASB Governmental Accounting Standards Board

GP general partner

HCO health care organization

IAS International Accounting Standard

IASB International Accounting Standards Board

ICFR internal control over financial reporting

IFRIC International Financial Reporting Interpretations Committee

IFRS International Financial Reporting Standard

IPO initial public offering

IRS Internal Revenue Service

ISA International Standard on Auditing

ISAE International Standard on Assurance Engagements

ISQC International Standard on Quality Control

IT information technology

M&A mergers and acquisitions

MD&A Management's Discussion and Analysis

NRSRO nationally recognized statistical rating organization

OMB Office of Management and Budget

PC property and casualty

PCAOB Public Company Accounting Oversight Board

Q&As questions and answers

REIT real estate investment trust

SAB Staff Accounting Bulletin

SAG Standing Advisory Group

SAS Statement on Auditing Standards

SEA service efforts and accomplishments

SEC Securities and Exchange Commission

SMEs small and medium-sized entities

SOP Statement of Position

SSAE Statement on Standards for Attestation Engagements

SSARS Statement on Standards for Accounting and Review Services

TARP Troubled Asset Relief Program

TIS Technical Inquiry Service

TPA Technical Practice Aid

UTP uncertain tax position

XBRL eXtensible Business Reporting Language

Appendix D: Abbreviations

As used in this document, “Deloitte” means Deloitte & Touche LLP, a subsidiary of Deloitte LLP. Please see www.deloitte.com/us/about for a detailed description of the legal structure of Deloitte LLP and its subsidiaries.

Copyright © 2010 Deloitte Development LLC. All rights reserved.

SubscriptionsIf you wish to receive Accounting Roundup and other accounting publications issued by Deloitte’s Accounting Standards and Communications Group, please register at www.deloitte.com/us/subscriptions.

Technical Library: The Deloitte Accounting Research ToolDeloitte makes available, on a subscription basis, access to its online library of accounting and financial disclosure literature. Called Technical Library: The Deloitte Accounting Research Tool, the library includes material from the FASB, the EITF, the AICPA, the PCAOB, the IASB, and the SEC, in addition to Deloitte’s own accounting and SEC manuals and other interpretive accounting and SEC guidance.

Updated every business day, Technical Library has an intuitive design and navigation system that, together with its powerful search features, enable users to quickly locate information anytime, from any computer. In addition, Technical Library subscribers receive Technically Speaking, the weekly publication that highlights recent additions to the library.

For more information, including subscription details and an online demonstration, visit www.deloitte.com/us/techlibrary.

Conclusions of the FASB, GASB, IASB, and IFRIC are subject to change at future meetings and generally do not affect current accounting requirements until an official position (e.g., Accounting Standards Update or IFRS) is issued. Official positions are determined only after extensive deliberation and due process, including a formal vote.

Further information about the standard setters can be found on their respective Web sites as follows: www.fasb.org (FASB); www.fasb.org/eitf/agenda.shtml (EITF); www.aicpa.org (AICPA); www.sec.gov (SEC); www.fasab.gov (FASAB); www.gasb.org (GASB); and www.iasb.org — or on www.iasplus.com/index.htm (IASB and IFRIC).

Accounting Roundup is prepared by the National Office Accounting Standards and Communications Group of Deloitte. The purpose of this publication is to briefly describe key regulatory and professional developments that have recently occurred in the field of accounting and to provide links to locations where additional information can be found on each topic. Readers seeking additional information about a topic should review the information referred to in the hyperlinks and not rely solely on the descriptions included in this communication.

This publication contains general information only and Deloitte is not, by means of this publication, rendering accounting, business, financial, investment, legal, tax, or other professional advice or services. This publication is not a substitute for such professional advice or services, nor should it be used as a basis for any decision or action that may affect your business. Before making any decision or taking any action that may affect your business, you should consult a qualified professional advisor. Deloitte, its affiliates, and related entities shall not be responsible for any loss sustained by any person who relies on this publication.