KPMG's Defining Issues No. 10-34, Proposed Changes to Lease Accounting provides information on the proposed changes to accounting for leases.

Continuing Professional Education (CPE) credits (2) will be available to U.S. participants who meet the eligibility requirements.

Course Level: Intermediate

CPE Credits: 1.5

Contact: Send e-mails to our US-KPMG CFO Forum mailbox

Mark Bielstein, Mark Northan, and Jason Jacobs, partners in KPMG’s Department of Professional Practice, presented this session on the FASB’s Staff Positions on fair value measurements and other-than-temporary impairment of investment securities. The following FASB Staff Positions were discussed:

• FAS 157-4, Determining Fair Value When the Volume and Level of Activity for the Asset or Liability Have Significantly Decreased and Identifying Transactions That Are Not Orderly
• FAS 115-2 and FAS 124-2, Recognition and Presentation of Other-Than-Temporary Impairments
• FAS 107-1 and APB 28-1, Interim Disclosures about Fair Value of Financial Instruments

• Order of impairment testing
• Long-lived assets held and used
• Long-lived assets held for sale
• Intangibles - Goodwill and other intangibles 

The presentation discusses the FASB's proposed changes related to the classification, measurement, and presentation of financial instruments and highlights some of the proposal's potential conceptual and application issues.

The presentation discusses the FASB's proposed changes related to accounting for derivative instruments and hedging activities and highlights some of the proposal's potential conceptual and application issues.

If unchanged, the revised proposal would be effective for public entities in fiscal years ending after December 15, 2010 (December 31, 2010 for calendar year-end entities).

CPE Credit: 1

The speakers present an in-depth discussion on the FASB's proposed changes related to impairment and interest income recognition of financial assets. They also highlight some of the proposal's potential conceptual and application issues.

• SFAS No. 166, Accounting for the Transfers of Financial Assets
• SFAS No. 167, Amendments to FASB Interpretation No. 46(R)

After providing an overview, the presenters explained the major changes resulting from each standard. They also discussed practical implementation issues and answered industry-related questions from the participants during the Q&A session.

KPMG partner Enrique Tejerina and senior manager Hillary Larson provided insights into the deliberations and status of the FASB project, Accounting for Financial Instruments. The following related topics were discussed:

• Background and objectives of the FASB project
• Classification and Measurement
• Impairment
• Hedge Accounting

After providing an overview of the project's background and objectives, the presenters discussed the decisions reached to date on the three stages of the project - those being classification and measurement, impairment, and hedge accounting. The presenters answered questions from the participants during the Q&A session.

Among the topics discussed:

• Goodwill Impairment
• Other-Than-Temporary-Impairment (O-T-T-I) of Financial Assets
• Other Year End Reporting Issues

• Introduction to the Codification
• Structure of the Codification
• Researching the Codification
• Citations in Financial Statements and Other Documents

• Objective and scope of the revenue recognition exposure draft
• Highlights of the revenue recognition exposure draft
• Application of the revenue recognition model
• Potential changes to the current practice

1.5  Continuing Professional Education (CPE) credit will be available to U.S. participants who meet the eligibility requirements.

The Webcast will last approximately 90 minutes, including a question and answer session.

• Elimination of QSPE concept
• Transfers of portions of financial assets
• Derecognition criteria
• Interests held after a transfer of financial assets
• Guaranteed mortgage securitizations

Also discussed is Disclosures Statement 167, Amendments to FASB Interpretation No. 46(R).

Their presentation focuses on the modified strategy announced by the FASB and the IASB to converge U.S. GAAP and International Financial Reporting Standards (IFRS). This strategy would extend the targeted completion dates for some projects beyond June 2011 into the second half of the year and also prioritize major joint projects. KPMG's Defining Issues publication contains more background information on the modified strategy.

Discussion topics include:

• FASB/IASB revised project plan
• FASB/IASB financial instruments project
• FASB/IASB revenue recognition project
• FASB/IASB leasing project
• FASB loss contingencies disclosure project

Two Continuing Professional Education (CPE) credits will be available to U.S. participants who meet the eligibility requirements. The Webcast will last approximately 120 minutes, including a question and answer session.

• Background
• Classification and Measurement Guidance - General
• Measurement Guidance for Specific Financial Instruments
• Financial Statement Presentation 
• Impairment and Interest Income Recognition
• Hedge Accounting
• Disclosures
• Effective Date and Transition

• Definition of a business
• Cash flow statement
• Accrued liabilities/restructuring cost
• Use of a newco in a business combination
• Exceptions to gain recognition
• Attribution of income

• Overview of the SEC's Final Rule on XBRL, including related implementation matters
• SEC's Interpretative Release on Climate Change Disclosures
• SEC's Compliance and Disclosure Interpretations on Non-GAAP Financial Measures

• FSP APB 14-1, Accounting for Convertible Debt Instruments That May Be Settled in Cash upon Conversion (Including Partial Cash Settlement)
• EITF 07-05, Determining Whether an Instrument (or Embedded Feature) is Indexed to an Entity's Own Stock
• EITF 08-8, Accounting for an Instrument (or an Embedded Feature) with a Settlement Amount That Is Based on the Stock of an Entity's Consolidated Subsidiary
• EITF D-98, Classification and Measurement of Redeemable Securities (recent updates for redeemable noncontrolling interests)
• EITF 09-1, Accounting for Own-Share Lending Arrangements in Contemplation of Convertible Debt Issuance
• FASB and IASB Joint Project, Financial Instruments with Characteristics of Equity (formerly Liabilities and Equity)

• Background and Proposed Accounting Model
• Scope and Timing of Initial Recognition
• Lessor Accounting
• Presentation
• Sale-Leasebacks
• Disclosures

• EITF 08-9, Milestone Method of Revenue Recognition
• EITF 08-1, Revenue Arrangements with Multiple Deliverables
• EITF 09-3, Applicability of SOP 97-2 to Certain Arrangements That Include Software Elements
• FASB and IASB Discussion Paper - Preliminary Views on Revenue Recognition in Contracts with Customers

Mark Bielstein, Tamara Mathis, David Elsbree, Meredith Canady and Cecil Mak, from KPMG's Department of Professional Practice, presented an in-depth discussion on the following topics:

• Issue 08-1, Revenue Arrangements with Multiple Deliverables
• First Steps to Implementation
• Estimating a Standalone Selling Price
• Transition & Disclosures
• Issue 09-3, Certain Revenue Arrangements That Include Software Elements
• Other Considerations

• Measuring Liabilities at Fair Value
• Applying Fair Value to Interests in Alternative Investments
• Improving Disclosures about Fair Value Measurements

• EITF Issue No. 08-10, Selected Statement 160 Implementation Questions
• Overview of EITF Issue No. 08-I, Accounting for Own-Share Lending Arrangements in Contemplation of Convertible Debt Issuance

• Issue 09-1, Accounting for Own-Share Lending Arrangements in Contemplation of Convertible Debt Issuance
• Issue 08-1, Revenue Arrangements with Multiple Deliverables
• Issue 09-3, Applicability of SOP 97-2 to Certain Arrangements That Include Software Elements
• Issue 09-2, IPR&D Acquired in an Asset Acquisition
• Issue 09-4, Seller Accounting for Contingent Consideration
• Issue 08-9, Milestone Method of Revenue Recognition
• Topic No. D-110

• Issue 08-9, Milestone Method of Revenue Recognition
• Issue 09-B, Consideration of an Insurer's Accounting for Majority-Owned Investments When the Ownership is through a Separate Account
• Issue 09-F, Casino Base Jackpot Liabilities
• Issue 09-I, Effect of a Loan Modification When the Loan is Part of a Pool that is Accounted for as a Single Asset
• Issue 09-J, Effect of Denominating the Exercise Price of a Share-Based Payment Award in the Currency of the Market in which the Underlying Equity Security Trades
• Issue 09-G, Accounting for Costs Associated with Acquiring or Renewing Insurance Contracts
• Issue 09-H, Selected Healthcare Organization Issues
• SEC Staff Announcement, Foreign Currency Issues  

• Issue 09-1, Accounting for Own-Share Lending Arrangements in Contemplation of Convertible Debt Issuance
• Issue 08-9, Milestone Method of Revenue Recognition
• Issue 08-1, Revenue Arrangements with Multiple Deliverables
• Issue 09-3, Applicability of SOP 97-2 to Certain Arrangements That Include Software Elements
• Issue 09-2, IPR&D Acquired in an Asset Acquisition

The Webcast was led by Mark Bielstein, KPMG partner and representative on the EITF. Among the topics covered:

• Issue 09-E, Accounting for Stock Dividends, Including Distributions to Shareholders with Components of Stock and Cash
• Issue 09-F, Casino Base Jackpot Liabilities
• Issue 09-G, Clarification of the Definition of Deferred Acquisition Costs of Insurance Entities
• Issue 09-I, Effect of a Loan Modification When the Loan is Part of a Pool that is Accounted for as a Single Asset
• Issue 09-J, Impact of Denominating the Exercise Price of a Share-Based Payment Award in the Currency of the Market in which the Underlying Equity Security Primarily Trades
• Issue 09-2, Research and Development Assets Acquired and Contingent Consideration Issued in an Asset Acquisition

Mark Bielstein, Partner, and KPMG's representative on the task force, leads an in-depth discussion on topics covered in the EITF meeting on September 16, 2010.

 Additional Information:

• View description of the issues: September 2010 - Agenda and Summary
• Additional information on the issues may be obtained from the FASB website.

Continuing Professional Education (CPE) credits (1.5 credits)will be available to U.S. participants who meet the eligibility requirements. The Webcast will last approximately 120 minutes, including a question and answer session.

 Topics in the discussion:

• Issue 08-1, Revenue Arrangements with Multiple Deliverables
• Issue 09-3, Certain Revenue Arrangements That Include Software Elements
• Issue 09-2, Research and Development Assets Acquired in an Asset Acquisition
• Issue 09-B, Consideration of an Insurer's Accounting for Majority-Owned Investments When the Ownership Is through a Separate Account
• Issue 09-E, Accounting for Distributions to Shareholders with Components of Stock and Cash in the Calculations and Presentation of Earnings per Share
• Issue 08-9, Milestone Method of Revenue Recognition
• Issue 09-4, Seller Accounting for Contingent Consideration

This Webcast, third in the series, was moderated by Christine DiFabio, Vice President at FEI. KPMG partners Randolph Green, Lina Amador, and Douglas Sweeney presented an in-depth discussion on Accounting for Income Taxes in the Current Environment covering the following topics:

• Statement 141R – Business Combinations
• Valuation Allowance Considerations
• Recent Comment Letters
• Declines in Fair Value and Deferred Tax Assets
• Other-Than-Temporary Impairments
• Convertible Debt Instruments
• Other Considerations
  –  FIN 48 – Private Companies
  –  FASB Codification
• IFRS and Income Taxes – Where are we now?

This Webcast, second in the series, was moderated by Christine DiFabio, Vice President at Financial Executives International (FEI). The topics were presented by KPMG partners Brenna Wist and Brian Stevens, principal Sharon Todd, and managing director BJ Orzechowski. The speakers offered their insights and perspectives on Accounting for Asset Impairment (Intangibles and Tangibles) in the Current Environment, covering the following areas:

• FAS 142, Goodwill and intangible assets
• FAS 144, Other long-lived assets including discontinued operations
• FAS 157, Valuation considerations

This Webcast, fourth in the series, was moderated by Terry Iannaconi, KPMG's Partner-in-Charge of Knowledge Sharing at the firm's Department of Professional Practice, and Cheryl Graziano, VP, Research Foundation at FEI. KPMG partners David Reavy and Robert Malhotra offered their insights and perspectives on Statements 166 & 167.