Fresh Start Accounting has been amended (SOP 90-7)
By Linda Cavanaugh, CPA - FSP SOP 90-7-1 An Amendment of AICPA Statement of Position 90-7
The FASB approved this FSP on April 24, 2008 and it is effective immediately.
This FSP resolves the conflict between early adoption of new standards for fresh-start reporting and other standards that prohibit early adoption.
SOP 90-7 is amended by reversing the guidance in paragraph .38 and stating that companies emerging from Chapter 11 bankruptcy reorganization should follow only those accounting standards in effect at the date fresh-start reporting is adopted.
This one was short and to the point. I wish they all were like this.
Linda is a CPA living in Southwestern Ohio, working as a research accountant for an investor-owned publicly traded utility company. She specializes in implementing new FASB and SEC requirements and FAS 133 derivative issues. In her role at the utility she has encountered many issues and written many memos, so send in your implementation and derivative issues and Linda will help figure out an answer.