PCAOB issued Staff Audit Practice Alert no. 4 to describe
potential implications of three FASB Staff Positions on reviews of
interim financial information and annual audits.
FSPs relate to fair value measurement and other-than-temporary
impairment. They are:
- FSP FAS 157-4, Determining Fair Value When the Volume and Level of Activity for the Asset or Liability Have Significantly Decreased and Identifying Transactions That Are Not Orderly
- FSP FAS 115-2 and FAS 124-2, Recognition and Presentation of Other-Than-Temporary Impairments
- FSP FAS 107-1 and APB 28-1, Interim Disclosures about Fair Value of Financial Instruments
The PCAOB alert, available here, discusses reviews of interim financial information; audits of financial statements, including integrated audits; disclosures; and auditor reporting considerations.
The U.S. Small Business Administration issued a temporary alternate size standard that it says should give 70,000 more small businesses access to the agency’s largest lending program. The temporary standard for the SBA’s 7(a) loan program will remain in effect until Sept. 30, 2010.
The temporary 7(a) size standard allows businesses to qualify based on net worth and average income. To qualify, a company and its affiliates’ net worth cannot exceed $8.5 million, and average net income after federal income taxes for the two most recently completed fiscal years cannot exceed $3 million. The alternate size standard is published in the Federal Register as an interim final rule. This change is in addition to provisions of the American Recovery and Reinvestment Act of 2009 (Recovery Act), which raised the guarantee on 7(a) loans to 90% and reduced borrowing fees.
More information about the SBA’s 7(a) loan program is available at www.sba.gov. Information and resources related to small business provisions of the Recovery Act are available at www.sba.gov/recovery.