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Summer 2008
Issues associated with reporting entities that are involved in derivative arrangements have recently generated a heightened degree of awareness across the United States and internationally.
In March 2008, the Financial Accounting Standards Board issued Statement of Financial Accounting Standards No. 161, Disclosures about Derivative Instruments and Hedging Activities. The enhanced disclosure requirements in Statement No. 161 were developed in response to concerns about existing disclosure requirements in Statement No. 133, Accounting for Derivative Instruments and Hedging Activities (as amended).
Control deficiencies can have a detrimental effect on your company and the accuracy of its financial statements.
Statement on Auditing Standards No. 112, Communicating Internal Control Related Matters Identified in an Audit, establishes standards and provides guidance to auditors for communicating matters relating to internal control over financial reporting.
The beginning of the year brought users of financial statements some potential help in understanding businesses’ financial statements, pending approval by the Securities and Exchange Commission.
The Public Company Accounting Oversight Board (PCAOB) adopted Auditing Standard No. 6, Evaluating Consistency of Financial Statements, and amendments to its interim auditing standards. The ball is now in the SEC’s court.
There are two reasons for implementing AS No. 6.
These articles are published for the use of our clients, advisors and friends. The technical information they contain is necessarily brief. No final conclusion on these topics should be drawn without further review and consultation. For additional information, please contact our firm.
© 2008 CPAmerica International
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