The following presents a summary of new US GAAP pronouncements relevant to financial statements prepared for 2009 (includes developments to March 31, 2008). It summarizes US GAAP pronouncements that must be applied, if applicable, for the first time in 2009 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 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, 2009, it would not apply to a company that provides an annual US GAAP reconciliation until 2010. This is because 2010 annual information constitutes the first "reporting period" or "fiscal period" for that company under US GAAP.
This newsletter will be updated quarterly. 2008-01-11 Closing the GAAP: New US GAAP Pronouncements Affecting 2009 Financial Statements (includes developments to December 31, 2007) is superseded by this newsletter. Developments since the previous newsletter, if any, are highlighted in grey below.
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Reference | Pronouncement and effective date |
FAS 141(R) | Business combinations
Retains the fundamental requirements in FAS 141 that the acquisition method of accounting be used for all business combinations and for an acquirer to be identified for each business combination. The following are some of the significant changes this new statement makes to how the acquisition method is applied:
- Measuring the assets acquired, the liabilities assumed, and any noncontrolling interest at their fair values
- Recognizing assets acquired and liabilities assumed arising from contingencies
- Recognizing contingent consideration at the acquisition date, measured at its fair value
- Recognizing a gain in the event of a bargain purchase (i.e. previously negative goodwill)
Applies prospectively to business combinations for which the acquisition date is on or after the beginning of the first annual reporting period beginning on or after December 15, 2008. May not be applied before that date. |
FAS 160 | Non-controlling interests in consolidated financial statements
Amends ARB 51 to establish accounting and reporting standards for a non-controlling interest in a subsidiary and for deconsolidation of a subsidiary.
Applies prospectively to business combinations for which the acquisition date is on or after the beginning of the first annual reporting period beginning on or after December 15, 2008. May not be applied before that date. |
FAS 161 | Disclosures about derivative instruments and hedging activities
Revises disclosure requirements for derivative instruments and hedging activities. Effective for financial statements issued for years beginning after November 15, 2008 and interim periods within those years. |
EITF
07-1 | Accounting for collaborative arrangements
Applies to participants in collaborative arrangements that are conducted without the creation of a separate legal entity. Addresses appropriate income statement presentation and classification for these activities and payments between the participants, as well as the sufficiency of the disclosures related to these arrangements. Effective for years beginning after December 15, 2008, and interim periods within those fiscal years. |
| Reference | Pronouncement and effective date |
EITF
07-4 | Master limited partnerships ("MLPs") and the two-class method under FAS 128
Provides guidance on the application of the two-class method under FAS 128, Earnings per Share,and how current period earnings of an MLP should be allocated to the general partner, limited partners and, when applicable, incentive distribution rights. Effective for years beginning after December 15, 2008, and interim periods within those years. |
FSP
FAS 140-3 | Transfers of financial assets and repurchase financing transactions
Provides guidance on accounting for a transfer of a financial asset and a repurchase financing. Effective for financial statements issued for years beginning after November 15, 2008, and interim periods within those years. |
FSP
FAS 157-2 | Effective date of FAS 157
Delays the effective date of FAS 157, Fair Value Measurements, for certain nonfinancial assets and nonfinancial liabilities to years beginning after November 15, 2008, and interim periods within those years. |
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.
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