They also revise the third general standard to focus on the essential elements of criteria which must be suitable and available to users. The subject matter also must be capable of evaluation against the criteria. The AT sections are also revised and renumbered. For example, AT Section 100 becomes Section 101 and is retitled Attest Engagements. 10 is effective when the subject matter or assertion is as of or for a period ending on or after June 1, 2001.
Early application is permitted.
The SEC is asking for more pracitioners' questions on these rules. The FASB has issued a revised limited exposure draft of its 1999 proposed Statement, Business Combinations and Intangible Assets. The revised draft contains the FASB's tentative decisions reached in December 2000 requiring the use of a nonamortization approach to account for purchased goodwill. Under that approach, goodwill would not be amortized to earnings, as originally proposed. Instead, it would be reviewed for impairment, written down and expensed against earnings only in the periods in which the recorded value of goodwill exceeded its fair value.