SEC Current Accounting and Disclosure Issues

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15 Dec 2006

In December 2006, the Division of Corporation Finance of the US Securities and Exchange Commission published its latest list of Current Accounting and Disclosure Issues.

Click for Current Accounting and Disclosure Issues (PDF 592k) as of 30 November 2006.

The first section of the list is a review of recent and proposed rules and interpretations from the Commission. The second section is staff guidance and comments on current accounting and disclosure matters based on the Division's reviews of the filings of the 15,000 SEC registrants. The list is divided into the following sections:


SEC Division of Corporation Finance
Current Accounting and Disclosure Issues
30 November 2006 – Table of Contents


A. Final Rules Regarding Executive Compensation (New)

  • B. Employee Stock Options
    • 1. Staff Letter Summarizing Views Regarding Accounting for Stock Options (New)
    • 2. Staff Accounting Bulletin
    • 3. Valuation of Employee Stock Options
  • C. Quantifying Misstatements (New)
  • D. Final Rules Regarding Use of Form S-8, Form 8-K, and Form 20-F by Public Shell Companies (Updated)
  • E. Rules and Concept Release Regarding the Use of Tagged Data and Incentives to Voluntarily Submit XBRL Information (Updated)
  • F. Accelerated Filer Definitions and Deadlines for Filing Periodic Reports (Updated)
    • 1. Summary of Requirements
    • 2. Definitions
  • G. Management's Report on Internal Control over Financial Reporting and Certification of Disclosure in Exchange Act Periodic Reports (Updated)
  • H. Final Rule Regarding Tender Offer Best-Price Rule (New)
  • I. Rule Proposal Related to Foreign Private Issuer Deregistration (New)
  • J. Final Rule regarding IFRS First-time Adopters
  • K. Rule Proposals Related to Proxy Materials
    • 1. Proposals Regarding Internet Availability of Proxy Materials
  • L. Electronic Access to Comment and Response Letters and Notifications of Effectiveness
    • 1. Public Release of Comment Letters and Responses
    • 2. Electronic Notifications of Effectiveness (New)
  • M. Recent Enforcement Actions Involving GAAP
    • 1. Enforcement Actions involving McAffee, Inc. (New)
    • 2. Enforcement Actions involving American International Group, Inc. (AIG) (New)
    • 3. Enforcement Actions involving Tyco International Ltd. (New)
    • 4. Enforcement Actions involving Netopia, Inc. (New)
    • 5. Enforcement Actions involving Dollar General Corporation (Updated)
    • 6. Enforcement Actions involving Raytheon Company (New)
  • N. Recent Enforcement Actions Involving MD&A
    • 1. Enforcement Action involving The Coca-Cola Company
    • 2. Enforcement Actions involving Kmart



  • A. Adoption of a New Accounting Standard in an Interim Period (New)
  • B. Classification and Measurement of Warrants and Embedded Conversion Features (Updated)
    • 1. Freestanding Instruments - Warrants
    • 2. Embedded Conversion Features - Convertible Debt and Convertible Preferred Stock
  • C. Statement of Cash Flows (Updated)
    • 1. Discontinued Operations (New).
    • 2. Insurance Proceeds (New)
  • D. Oil and Gas (Updated)
  • E. Leasing
    • 1. Accounting
    • 2. Disclosure
  • F. Revenue.
    • 1. Buy/Sell Arrangements (Updated)
    • 2. Service Contracts and the use of SOP 81-1
    • 3. Disclosure
  • G. Business Combinations
    • 1. Purchase Price Allocation and Use of Residual Method.
    • 2. Date of Annual Goodwill Impairment Testing
  • H. Investments
    • 1. Other-Than-Temporary Declines in Value (Updated)
    • 2. Government-Sponsored Enterprises
    • 3. Auction Rate Securities
  • I. Contingencies, Loss Reserves, and Uncertain Tax Positions (Updated)
    • 1. Accounting and Financial Statement Disclosure
    • 2. Discussion in MD&A (New).
  • J. Pension, Post Retirement, and Post Employment Plans.
    • 1. Selection of Discount Rates under FASB Statement Nos. 87 and 106.
    • 2. Disclosure
  • K. FIN 46 and Deconsolidation
  • L. Segment Disclosure
    • 1. Identification of Operating Segments
    • 2. Aggregation of Operating Segments (Updated)
    • 3. Other Compliance Issues
    • 4. Changes in segments
    • 5. Operating segments and goodwill impairment (New)
  • M. Issues Associated With SFAS 133, Accounting for Derivative Instruments and Hedging Activities
    • 1. Formal Documentation Under SFAS 133
    • 2. Shortcut method of assessing hedge effectiveness (New)
    • 3. Financial Statement Presentation and Disclosure (Updated)
    • 4. Auditing Fair Values and SFAS 133
  • N. Disclosure of Off-Balance Sheet Arrangements (New)
  • O. Market Risk Disclosures
  • P. Allowance for Loan Losses.
    • 1. Disclosure
    • 2. Financial statement presentation
  • Q. Loans and Other Receivables
    • 1. Accounting for Loans or Other Receivables Covered by Buyback Provisions
    • 2. Disclosures About Restructured Loans and Other Receivables
    • 3. Potential Problem Loans
    • 4. Loans Held for Sale
    • 5. Disclosures about Residential Loan Products
  • R. Disclosure of Liability for Unpaid Claims and Claim Adjustment Expenses and Reinsurance Recoverables on Paid and Unpaid Claims (New)
  • S. Materiality Assessments and the Use of Sampling
  • T. Independent Registered Auditors
    • 1. Change of Accountants - Merger of Firms
    • 2. PCAOB Registration.
    • 3. Pre-Approval of Audits of Employee Benefit Plans



  • A. Other Sources of Information
  • B. Corporation Finance Staffing and Phone Numbers (Updated)
  • C. Division Employment Opportunities for Accountants
    • 1. Staff Accountant
    • 2. Professional Accounting Fellowships
    • 3. Professional Academic Fellowships (Updated).


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