Assurance Services
Insights: Emerging Issues and Trends
As the world struggles to balance the dream of international accounting standards with the realities of national customs and laws, the Emerging Issue Task Force (EITF) of the Financial Accounting Standards Board (FASB) is stepping up to new issues with answers that might affect you. Your company may be affected, if it engages in certain types of business and financial practices, such as those involving “defensive” intangible assets, investments accounted for using the equity method, revenue arrangements that are contingent on achieving of milestones, leases with maintenance deposits, warrants or convertible debt, use of third-party guarantees for debt, and securities with certain redemption features. To help you sift through the potential effects on your company’s financial reporting, BDO summarizes the topics addressed and consensuses reached by the EITF during 2008, and we provide our perspective on the need for balance in setting accounting standards and interpretive guidance. For our insights, read BDO USA’s Client Advisory No. 2009-2, EITF Issues Affect 2009 Financial Reporting.
Disclosures about Potential Litigation.
BDO urges the FASB to reconsider its proposed disclosures about potential litigation and certain loss contingencies. Read BDO USA's Comment Letter.
Significant SEC Developments in 2008.
BDO has prepared a summary of many of the 2008 activities at the Securities and Exchange Commission that affect financial reporting. Read BDO's Financial Reporting Letter.
Will the SEC allow US issuers to use IFRS?
On November 14, 2008, the SEC released the proposed "road map" for transitioning U.S. registrants to reporting in accordance with International Financial Reporting Standards (IFRS). Comments are due by April 20, 2009. For more information, see BDO’s IFRS Resource Center.
XBRL: What Should Companies Do Now?
On January 30, 2009, the SEC issued a final rule making XBRL reporting a reality for public companies - both U.S. and foreign private issuers. Will your company be ready? What steps should you take in the next three to six months? What are the longer-term implications? For our assessment, read BDO USA's Client Advisory No. 2007-1: XBRL: What should companies do now?
XBRL and You: Where to find the answers you need when you need them.
Our new Guide to XBRL provides a wealth of information to help companies prepare for the SEC’s new requirement to furnish financial statements in XBRL.
FAQs on FASB Statement No. 157.
BDO USA's Guide to Statement 157 summarizes FASB Statement No. 157, Fair Value Measurements, in a series of questions and answers.
BDO Consulting Insights.
To help companies meet the challenges of maintaining profitability, or in some cases viability and liquidity, during the economic downturn, BDO USA’s consulting division has prepared an article on Dealing with Economic Turbulence: 6 Steps to Stay on Track.
Improving Transparency in Turbulent Times.
The severity of the recent losses in the financial market took many investors by surprise, sending shock waves through the economy and fueling concerns about the transparency of financial reporting. To help restore confidence in reporting and in the markets, the FASB is rushing out an unusually heavy dose of disclosure requirements. Many of the new requirements focus attention on risks, and this may help prevent more unpleasant surprises.BDO highlights the areas targeted for more robust disclosures and alerts you to the proposals in process. For our analysis and insights, read BDO USA’s Client Advisory No. 2009-1.
Disclosures and Audit Committees Are Key in Turbulent Times.
Lessons learned from the use of fair values in times of market turmoil underscore the need for careful disclosures and bring new challenges for audit committees. These developments will help shape the future of financial reporting and governance. For an overview of the key steps that companies can take now to strengthen their disclosures and address the emerging governance issues, read BDO USA’s Client Advisory No. 2008-3.
Financial Reporting in Turbulent Markets.
In recent months, the credit and financial markets have been affected by an unprecedented set of conditions. Mounting concerns about such factors as the quality of the assets that serve as collateral for loans, credit downgrades by rating agencies, use of securitizations, and sophisticated valuation models have all played a contributing role. These concerns have resulted in accounting and financial reporting challenges for both banks and other companies. For BDO’s assessment of the key reporting challenges, read our Client Advisory No. 2008-2, Financial Reporting in Turbulent Markets.
New M&A Accounting: How It Affects Earnings and Deals.
The FASB’s new standards on the accounting and reporting for business combinations and minority interests are effective in first quarter 2009. For an overview of the changes in accounting and reporting, read BDO’s Client Advisory No. 2008-1, New Accounting for M&A Affects Earnings and Deals.
Financial Reporting Update Calls.
BDO hosts periodic conference calls for clients and friends. See our Archive of Financial Reporting Calls for information provided in prior quarters.