2009-10-20 Closing the GAAP: New US GAAP Pronouncements Affecting 2011 Financial Statements (includes developments to September 30, 2009)

This newsletter presents a summary of new US GAAP pronouncements relevant to financial statements prepared for 2011 (includes developments to September 30, 2009).

The following summarizes US GAAP pronouncements that must be applied, if applicable, for the first time in 2011 to a company with a calendar year-end that either is preparing financial statements in accordance with US GAAP or reconciling its Canadian GAAP financial statements to US GAAP.

The listing includes the following pronouncements:

  • FASB Accounting Standard Updates ("ASU")
  • FASB Statement of Financial Accounting Standards ("FAS")
  • FASB Interpretations ("FIN")
  • Consensus Opinions of the FASB Emerging Issues Committee ("EITF")
  • FASB Staff Positions ("FSP")
  • AICPA Statement of Positions ("SOP")
  • Derivatives Implementation Group ("DIG")
  • SEC Staff Accounting Bulletin ("SAB")

Effective date information should be considered with care. The effective dates set out below are those specified in the standard. In situations where a company is reconciling its Canadian GAAP financial statements to US GAAP, the effective date in certain situations will depend on the frequency with which the company provides US GAAP information. For example, if a pronouncement specifies that it is effective for the first "reporting period" or "fiscal period" beginning after June 15, 2011, it would not apply to a company that provides an annual US GAAP reconciliation until 2012. This is because 2012 annual information constitutes the first "reporting period" or "fiscal period" for that company under US GAAP.

This newsletter will be updated quarterly.

Reference  Pronouncement and effective date
ASU
2009-13
Topic 605
 Multiple-deliverable revenue arrangements

Provides another alternative for determining the selling price of deliverables. Eliminates the residual method of allocating arrangement consideration. Requires expanded qualitative and quantitative disclosures. Effective prospectively for revenue arrangements entered into or materially modified in years beginning on or after June 15, 2010.
ASU
2009-14
Topic 985
 Revenue arrangements that include software elements

Removes non-software components of tangible products and certain software components of tangible products from the scope of existing software revenue guidance, resulting in the recognition of revenue similar to that for other tangible products. Requires expanded qualitative and quantitative disclosures. Effective prospectively for revenue arrangements entered into or materially modified in years beginning on or after June 15, 2010.

While we have attempted to make this newsletter as complete as possible, it may not include all changes or modifications to existing authoritative literature that may affect a particular enterprise.