Feb 20, 2012
From the Financial Reporting View
KPMG LLP recently commented on proposed FASB ASU,Principal versus Agent Analysis.
KPMG believes that the FASB could simplify and enhance the guidance in the proposed ASU by making it more objective, and that the FASB should revise the principal-agent model to make substantive kick-out rights determinative rather than merely a factor to consider.
KPMG also suggested that the FASB add a scope exception to the final ASU for entities that are required to comply with or operate under requirements similar to those in Rule 2a-7 of the Investment Company Act of 1940 for registered money market funds.