Does it Affect You?
As with every year there are some changes to accounting standards that become effective. The following are items that become effective for fiscal years ending on or after December 15, 2012 that we thought might affect many of our clients (this is not all inclusive).
Comprehensive income may no longer be presented in the statement of changes in equity
- Separate statement or
- Put on bottom of income statement
Goodwill impairment testing
- Allows entity to first assess goodwill qualitatively to determine if it is necessary to perform 2-step impairment test
Indefinite-Lived Intangible Assets – Licenses, trademarks
- Guidance similar to goodwill testing
Fair Value Disclosures for Level 3 investments
- Description of valuation process
- Table of unobservable inputs
- For public companies only:
- Disclose all level 1 and 2 transfers
- Qualitative discussion of sensitivity of fair value to changes in unobservable inputs
Multiemployer Benefit Plans
- Increase quantitative and qualitative disclosures
Independent Audit Reports
- Use of paragraph headings
- Report on the Financial Statements
- Management Responsibility for the Financial Statements
- Auditor’s Responsibility
- Additional Paragraphs in the Independent Auditor’s Report
- The term ‘explanatory paragraph’ will no longer be included in U.S. GAAS, but will be replaced with the terms ‘emphasis-of-matter’ and ‘other-matter’ paragraphs.
- Expansion of description of management and auditor responsibilities
If any of these changes affect your company, feel free to contact your Meaden & Moore representative or Kelli Bernstein at (216) 241-3272 or firstname.lastname@example.org for more information.