Question

Describe Update No. 2009-02 (omnibuds update) describe each standard update and what it added to the existing authorative accounting literarure.

Answer 1

Omnibus Update

Amendmends various topics for technical correction.

1.      Amend paragraph 810-10-30-4, while retaining the existing link to transition paragraph 805-10-65-1 as follows:

1. The excess, if any, of (a) over (b) shall be allocated and reported as a pro rata adjustment of the amounts that would have been assigned to all of the newly consolidated assets as specified in paragraphs 44 and 45 of FASB Statement No. 141, Business Combinations, before that Statement's 2007 revision, as if the initial consolidation had resulted from a business combination:
2. 1. The fair value of the newly consolidated assets and the reported amount of assets transferred by the primary beneficiary to the VIE
   2. The sum of all of the following:
      1. The fair value of the consideration paid
      2. The reported amount of any previously held interests
      3. The fair value of the newly consolidated liabilities and non-controlling interests.

Pending Content:

Transition Date: December 15, 2008 Transition Guidance: 805-10-65-1

The primary beneficiary of a VIE that is not a business shall recognize a gain or loss for the difference between (a) and (b):

1. The sum of:
   1. The fair value of any consideration paid
   2. The fair value of any noncontrolling interests
   3. The fair valuereported amount of any previously held interests
2. The net amount of the VIE's identifiable assets and liabilities recognized and measured in accordance with Topic 805.
   1. [Not used]
   2. [Not used]
   3. [Not used]

2. Amend paragraph 715-10-15-8, with no link to a transition paragraph as follows:

715-10-15-8 This Topic does not change or supersede any of the requirements set forth in Topic 960 for the financial statements of a defined benefit pension plan.

3. Amend master glossary term Business to show the following pending content, with a link to transition paragraph 805-10-65-1.

Business

An integrated set of activities and assets that is capable of being conducted and managed for the purpose of providing a return in the form of dividends, lower costs, or other economic benefits directly to investors or other owners, members, or participants. Additional guidance on what a business consists of is presented in paragraphs 805-10-55-4 through 55-9.

4. Amend paragraphs 810-10-30-6, 810-10-50-3, and 810-10-55-9 by changing the existing glossary links on the term “Business” from the term that appears in 805-10-20 to the term being amended in this Item of this ASUI.

5. 320-10-65-1

1. 1. The following represents the transition and effective date information related to FSP FAS 115-2 and FAS 124-2, Recognition and Presentation of Other-Than-Temporary Impairments:
2. 1. The pending content that links to this paragraph shall be effective for interim and annual reporting periods ending after June 15, 2009, with early adoption permitted for periods ending after March 15, 2009.
   2. Earlier adoption of the pending content that links to this paragraph for periods ending before March 15, 2009, is not permitted.
   3. An entity shall adopt early the pending content that links to this paragraph if the entity elects to adopt early either of the following:
3. 3. 1. The pending content that links to paragraph 820-10-65-1820-10-65- 4
      2. The pending content that links to paragraph 825-10-65-1.
   4. If an entity elects to adopt early the pending content that links to this paragraph, it shall adopt the pending content that links to paragraph 820-10-65-1.820-10-65-1.820-10-65-4.
   5. This paragraph does not require disclosures for earlier periods presented for comparative purposes at initial adoption.
   6. In periods after initial adoption, this paragraph requires comparative disclosures only for periods ending after initial adoption.
   7. The pending content that links to this paragraph shall be applied to existing and new investments held by an entity as of the beginning of the interim period in which that content is adopted (for example, as of April 1, 2009, if an entity adopts that content for periods ending after June 15, 2009).
   8. For debt securities held at the beginning of the interim period of adoption for which an other-than-temporary impairment was previously recognized, if an entity does not intend to sell and it is not more likely than not that the entity will be required to sell the security before recovery of its amortized cost basis (after considering the guidance in paragraphs 320-10-35-30 and 320-10-35-33A through 33G), the entity shall recognize the cumulative effect of initially applying the pending content that links to this paragraph as an adjustment to the opening balance of retained earnings with a corresponding adjustment to accumulated other comprehensive income. The cumulative effect on retained earnings shall be calculated by comparing the present value of the cash flows expected to be collected determined in accordance with the methodology in paragraphs 320-10-35-33D through 35-33E with the amortized cost basis of the debt security as of the beginning of the interim period in which the pending content that links to this paragraph is adopted. The cumulative-effect adjustment shall include related tax effects. The discount rate used to calculate the present value of the cash flows expected to be collected shall be the rate in effect before recognizing any other-than-temporary impairments and not a rate that has been adjusted to reflect those impairments.
   1. The amortized cost basis of a security for which an other-than- temporary impairment was previously recognized shall be adjusted by the amount of the cumulative-effect adjustment before taxes. The difference between the new amortized cost basis and the cash flows expected to be collected shall be accreted in accordance with existing guidance as interest income (see paragraph 320-10-35-35).
   10. In the period of adoption, an entity shall provide the disclosures required by Section 250-10-50 for changes in accounting principles.
4. 1. The following represents the transition and effective date information related to FASB Statement No. 163, Accounting for Financial Guarantee Insurance Contracts—an interpretation of FASB Statement No. 60:
5. 1. Except as noted in item (b), the pending content that links to this paragraph shall be effective for financial statements issued for fiscal years beginning after December 15, 2008, and interim periods within those fiscal years.
   2. The disclosure requirements in paragraphs 944-40-50-9(a)(5) and 944- 40-50-9(b)(1) through (5) are effective for the first period (including interim periods) beginning after May 2008, with all of the following clarifications:
      1. The disclosures shall be provided unless deemed impracticable (as described in paragraph 250-10-45-9).
      2. The disclosures shall be based on an insurance entity’s existing accounting policies that may or may not be consistent with the principles of the pending content that links to this paragraph at this earlier effective date.
      3. If the disclosures are deemed impracticable at this earlier effective date, an explanation of why they are impracticable at this time and a description of the insurance entity’s existing accounting policy for claim liabilities shall be provided.
   3. Except for the disclosures effective for the first period (including interim periods) beginning after issuance of Codification Update 2008- XXMay2008, earlier application is not permitted.
   4. The pending content that links to this paragraph shall be applied to existing and future financial guarantee insurance contracts issued by an insurance entity as of the beginning of the fiscal year in which that pending content is initially applied.
   5. An insurance entity shall recognize the cumulative effect of initially applying the pending content that links to this paragraph as an adjustment to the opening balance of retained earnings for that fiscal year.
   6. An insurance entity also shall disclose the cumulative effect of the change on retained earnings in the statement of financial position in the first interim period of the fiscal year in which the pending content that links to this paragraph is initially applied.
   7. The cumulative-effect adjustment is the difference between the amounts (if any) recognized in the statement of financial position before the initial application of the pending content that links to this paragraph and the amounts recognized in the statement of financial position at the initial application of that pending content, measured using information that is current at that date. Accordingly, discount rates shall reflect the relevant risk-free rate at the date that pending content is initially applied.
6. The pending disclosure requirements that link to this paragraph shall be applied beginning in the first interim period of the fiscal year in which the pending content that links to this paragraph is initially applied with earlier disclosure for information specified in item (b). The pending disclosure requirements that link to this paragraph need not be applied for financial statements for periods presented before initial application of the pending content that links to this paragraph