The SAS was published in the February 2000 issue of the Journal of Accountancy. Audit Adjustments SAS No. 89 establishes new procedural and communication requirements relating to audit adjustments. The representation letter should include a summary of the uncorrected misstatements aggregated by the auditor and an acknowledgement from management that it has considered those misstatements and determined that they are immaterial, individually and in the aggregate, to the financial statements taken as a whole. The auditor is required to inform the audit committee about uncorrected misstatements aggregated by the auditor and whose effects management believes are immaterial to the financial statements. SAS No. 89 is effective for audits of financial statements for periods beginning on or after December 15, 1999.
Early adoption is permitted.
As the name implies, SFAS No. 137 delays the effective date of SFAS No. 133 to fiscal quarters of fiscal years beginning after June 15, 2000. 133 may not revert back to prior accounting standards. The FASB reviews the guidance and requires corrections of guidance it objects to. No. 125 on Transfers and Servicing of Financial Assets and Extinguishments of Liabilities FASB staff has issued a revised SFAS No. 125 implementation guide. The new guide covers a variety of specific topics regarding accounting for transfers and servicing of financial assets and extinguishments of liabilities.