XBRL

Modernizing Business Reporting

The AICPA’s Assurance Services Executive Committee issued a white paper to address how transparency in financial reporting will be improved through the use of eXtensible Business Reporting Language (XBRL) and enhanced business reporting (EBR) that takes into account nonfinancial factors that affect a company’s value. The paper, The Shifting Paradigm

SEC Unveils Successor to EDGAR Database

The SEC unveiled the successor to the agency’s 1980s-era EDGAR database, which will give investors far faster and easier access to key financial information about public companies and mutual funds, according to an SEC news release. The new system is called IDEA, short for Interactive Data Electronic Applications. Based on

XBRL Around the World

EXECUTIVE SUMMARY While the United States and Asia focus on XBRL for use in capital markets, Europe has developed an eye-opening array of governmentwide and cross-border applications that can share consistently structured XBRL data for both public and private companies. In Asia, as in the U.S., XBRL is being used

Ready of Not, Here Comes XBRL

Despite the SEC-proposed mandate that all public companies adopt XBRL by 2011, a Compliance Week survey found that few are prepared for implementation. Of the 236 publicly held companies surveyed, nearly 80% said no member of their staff is well-versed in XBRL, and 15% said they had no knowledge of

Hightlights

The SEC proposed new rules that would require securities issuers to provide an XBRL version of their financial statements. Under the proposal, all U.S. public companies and foreign private issuers listed with the SEC would be required to provide financial information using XBRL within three years. The SEC staff recommended

XBRL

The SEC launched a Web page that enables investors to more easily read, analyze and compare the information provided by mutual funds related to fund cost, risk and past performance. The Mutual Fund Reader follows on the SEC’s new rules that permit mutual funds to voluntarily provide information to the

Auditing

For news from the AICPA and state societies, visit www.cpa2biz.com, which also offers online CPE, AICPA professional literature, practice management aids and links to state society Web sites. AUDITING The PCAOB published a staff audit practice alert on auditing fair value measurements in financial statements. “We were motivated to develop

Highlights

The SEC’s Committee on Improvements to Financial Reporting voted in January to support a slate of preliminary recommendations designed to make the information presented by U.S. public companies more useful to investors while reducing the complexity of the financial reporting system. The preliminary proposals included a call for reducing industry-specific

Highlights

FASB issued Statement no. 141(R), Business Combinations , and Statement no. 160, Noncontrolling Interests in Consolidated Financial Statements . Effective for fiscal years beginning after Dec. 15, 2008, the standards are intended to improve, simplify and internationally converge accounting for business combinations and the reporting of noncontrolling interests in consolidated

Six Steps to XBRL

EXECUTIVE SUMMARY XBRL is reinventing how we transmit and use data in business. XBRL is not just for SEC companies: Small businesses and practitioners alike could soon be using XBRL to submit information to bankers, the IRS, and other agencies. XBRL will become a part of every CPA’s practice. XBRL

Auditing

For news from the AICPA and state societies, visit www.cpa2biz.com, which also offers online CPE, AICPA professional literature, practice management aids and links to state society Web sites. AUDITING The Center for Audit Quality submitted a wide-ranging comment letter to the U.S. Treasury Department’s Advisory Committee on the Auditing Profession

Highlights

FASB tentatively approved a one-year delay in the effective date for FIN 48, Accounting for Uncertainty in Income Taxes, for private enterprises, including not-for-profit organizations. Acting on a request from the Private Company Financial Reporting Committee for a deferral, the FASB board is seeking public comment on a plan to

Banking

For news from the AICPA and state societies, visit www.cpa2biz.com, which also offers online CPE, AICPA professional literature, practice management aids and links to state society Web sites. BANKING The FDIC reported that profits at commercial banks and savings institutions declined 3.4% from year-earlier levels in the second quarter of

Highlights

The SEC approved the PCAOB’s Auditing Standard no. 5, An Audit of Internal Control Over Financial Reporting That Is Integrated With An Audit of Financial Statements, clearing the way for the measure to replace Auditing Standard no. 2. The new standard is designed to increase the likelihood that material weaknesses

XBRL

Three federal banking agencies have launched an improved Web site that allows faster access to banks’ quarterly Reports of Condition and Income (Call Report) data. The Central Data Repository (CDR) at https://cdr.ffiec.gov/public , established by the Federal Reserve, the FDIC and the Office of the Comptroller of the Currency, now

ROI on XBRL

EXECUTIVE SUMMARY The reality of XBRL has grown exponentially over the past two years, in large part due to the SEC’s focus and encouragement. With the time, money and effort that Chairman Cox and the SEC have dedicated to this initiative, it appears highly likely that XBRL will be either

XBRL

The Canadian Securities Administrators (CSA), the council of the securities regulators of Canada’s provinces and territories, has launched a voluntary Extensible Business Reporting Language (XBRL) filing program. Under the program, participating companies will begin filing their financial statements in XBRL this month. The XBRL statements will be available to the

XBRL

The SEC proposed rule amendments to expand the agency’s interactive data voluntary filing program to enable mutual funds to submit XBRL-tagged risk and return summary information. The risk and return summary at the front of every mutual fund prospectus includes information about a fund’s investment objectives and strategies, risks, costs

Auditing

The Public Company Accounting Oversight Board (PCAOB) issued Staff Audit Practice Alert no. 1, Matters Relating to Timing and Accounting for Options Grants, which advises auditors of emerging risks to consider during audits of financial statements or of internal controls over financial reporting ( www.pcaobus.org/news_and_events/ ). The alert was prompted

Financial Reporting

The SEC granted relief from a Sarbanes-Oxley Act section 404(b) auditor attestation requirement to foreign private issuers that are accelerated filers (but not large accelerated filers) that file their annual reports on forms 20-F or 40-F ( www.sec.gov/news/press/2006/2006-136.htm ). They will not have to comply with the section 404(b) requirement

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