On The Horizon - October 30, 2012

Author:Ms Grant Thornton's Audit Practice Group
Profession:Grant Thornton LLP

Current reporting issue

SEC allows grace period for registrants affected by Hurricane Sandy

The Securities and Exchange Commission is offering a grace period for any public registrants that might not be able to submit corporate filings due this week due to the effects of Hurricane Sandy. In a statement posted October 30, the SEC said that registrants should file when they are able, but that the EDGAR system is online for those ready to file. The Divisions of Corporation Finance and Investment Management will handle requests for filing date adjustments on a case by case basis.


Final ASUs issued related to recent EITF decisions

The FASB recently issued the following Accounting Standards Updates (ASUs) related to EITF consensuses that the Board ratified at its September 27 meeting:

ASU 2012-05, Not-for Profit Entities: Classification of the Sale Proceeds of Donated Financial Assets in the Statement of Cash Flows – a consensus of the FASB Emerging Issues Task Force ASU 2012-06, Subsequent Accounting for an Indemnification Asset Recognized at the Acquisition Date as a Result of a Government-Assisted Acquisition of a Financial Institution – a consensus of the FASB Emerging Issues Task Force ASU 2012-07, Accounting for Fair Value Information That Arises after the Measurement Date and Its Inclusion in the Impairment Analysis of Unamortized Film Costs – a consensus of the FASB Emerging Issues Task Force A summary of these ASUs can be found in the September 18 edition of On the Horizon.

Meeting held October 19

All decisions reached at Board meetings are tentative and may be changed at future meetings. Decisions are included in an Exposure Draft only after a formal written ballot. Decisions reflected in Exposure Drafts are often changed in redeliberations by the Board based on information received in comment letters, at public roundtable discussions, and from other sources. Board decisions become final after a formal written ballot to issue a final Accounting Standards Update.

In addition to specifying which types of transactions would be within the scope of the proposed financial instruments guidance at its October 19 meeting, the Board also made the following tentative decisions regarding a lender's recognition and measurement of loan commitments.

If the likelihood that a loan commitment will be exercised is greater than remote and the underlying loan is measured at fair value, then the issuer would measure the loan commitment at fair...

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