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The AICPA accounting standards executive committee
(AcSEC) issues Statement of Position (SOP) 03-3, Accounting for
Certain Loans or Debt Securities Acquired in a Transfer (
www.aicpa.org ). It addresses accounting for differences between
contractual cash flows and cash flows expected to be collected from an
investment in loans or debt securities acquired in a transfer. The SOP
applies to deteriorated loans acquired in transfers, including
business combinations, and to all nongovernmental entities, including
not-for-profit organizations, but not to loans the entity itself
originates or to higher quality purchased loans. The statement
contains a transition provision that applies to certain aspects of
loans currently within the scope of Practice Bulletin no. 6,
Amortization of Discounts on Certain Acquired Loans. The
SOP is effective for loans acquired in fiscal years beginning after
December 15, 2004, with early adoption encouraged. Copies of the
statement (product no. 014938JA) are available in the accounting and
auditing literature section of www.cpa2biz.com/store or by
phone at 888-777-7077.
The Securities and Exchange Commission releases Staff
Accounting Bulletin (SAB) no. 104, Revenue Recognition ( www.sec.gov/interps/account/sab104.pdf
), which updates portions of the interpretative guidance included
in topic 13 of the SEC’s codification of staff accounting bulletins (
www.sec.gov/interps/account/sab103.htm
) to make it consistent with current authoritative accounting
guidance. The SAB’s principal revisions relate to the rescission of
material no longer necessary because of private-sector developments in
U.S. GAAP.
The AICPA’s accounting and review services committee has
issued two exposure drafts (ED) for comment. One, Performance of
Review Engagements , would revise various provisions in
Statement on Standards for Accounting and Review Services (SSARS) no.
1, Compilation and Review of Financial Statements. The
proposed statement would be effective for reviews of financial
statements for periods ending on or after December 15, 2004. The other
ED, Standards for Accounting and Review Services ,
establishes a SSARS hierarchy and revises guidance in several earlier
statements. It would take effect upon issuance as final. The EDs are
available online at www.aicpa.org/members/div/auditstd eds.asp.
Comments are due April 11.
