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Revised 08/19/04 – 4:00 p.m.—See below
Action Alert No. 04-32
August 19, 2004
NOTICE OF MEETINGS
OPEN BOARD MEETING
(Board meetings are available by audio webcast and telephone.)
Wednesday, August 25, 2004, 9:00 a.m.
[Revised 8/19/04—Topic order has been revised]
- Equity-based compensation. The Board will continue redeliberations of its March 2004 Exposure Draft, Share-Based Payment, an amendment of FASB Statements No. 123 and 95. The Board plans to discuss issues related to employee stock purchase plans (ESPPs), income taxes, and reporting cash flows. (Estimated 90-minute discussion.)
- Interpretation of Statement 143. The Board will redeliberate the provisions of its Exposure Draft of a proposed Interpretation, Accounting for Conditional Asset Retirement Obligations, based on the comments received from constituents. (Estimated 90-minute discussion.)
Wednesday, August 25, 2004, 1:00 p.m.
- AcSEC clearance. The Board will meet with representatives of the AICPA’s Accounting Standards Executive Committee (AcSEC) to consider clearance of a final AICPA Statement of Position, Accounting for Real Estate Time-Sharing Transactions. (Estimated 60-minute discussion.)
- Open discussion. If necessary, the Board will allow time to discuss minor issues with staff members on technical projects or administrative matters. Those discussions are held following regular Board meetings as topics come up.
[Revised 8/19/04—August 25, 2004 Education Session Added]
OPEN EDUCATION SESSIONS
Wednesday, August 25, 2004, immediately following the afternoon Board meeting
Friday, August 27, 2004, 8:30 a.m.
The Board will hold educational, non-decision-making sessions to discuss topics that are anticipated to be discussed at the September 1, 2004 Board meeting. Those topics will be posted to the FASB calendar four days prior to the education session.
OPEN MEETING WITH REPRESENTATIVES OF THE FINANCIAL MANAGERS SOCIETY
Friday, August 27, 10:00 a.m.
The Board will meet with representatives of the Financial Institutions Accounting Committee of the Financial Managers Society to discuss matters of mutual interest.
BOARD ACTIONS
The Board Actions are provided for the information and convenience of constituents who want to follow the Board’s deliberations. All of the conclusions reported are tentative and may be changed at future Board meetings. Decisions are included in an Exposure Draft for formal comment only after a formal written ballot. Decisions in an Exposure Draft may be (and often are) changed in redeliberations based on information provided to the Board in comment letters, at public roundtable discussions, and through other communication channels. Decisions become final only after a formal written ballot to issue a final Statement or Interpretation.
August 11, 2004 Board Meeting
Short-term convergence. The Board redeliberated the December 2003 FASB proposed Statement, Inventory Costs (an amendment of ARB 43, Chapter 4). The Board decided:
- To proceed with the issuance of a final Statement promulgating the changes to inventory cost procedures proposed in the Exposure Draft. The Board considered but rejected the suggestion made by some respondents that the Board defer making those proposed changes until it undertook a comprehensive project on inventory accounting.
- To clarify the meaning of the term normal capacity (as requested by comment letter respondents). The staff plans to develop the clarifying guidance in consultation with comment letter respondents and members of the Small Business Advisory Committee.
- To retain, but not further define, the following terms in the final Statement: fixed and variable production overheads, double freight, rehandling costs, low production, and idle plant. Also, guidance proposed in the Exposure Draft will be amended as follows:
Certain Oother items, when abnormal, such as double freight, rehandling costs, and abnormal amounts of wasted materials (spoilage) require treatment as current period charges rather than as a portion of the inventory cost. Examples of such items are double freight, rehandling costs, and abnormal amounts of wasted materials (spoilage).
- To issue a final Statement in the fourth quarter of 2004; that Statement would apply to inventory costs incurred in fiscal years beginning after December 15, 2004.
Qualifying special-purpose entities and isolation of transferred assets. The Board continued its discussion on the impact of setoff rights on the isolation requirement in FASB Statement No. 140, Accounting for Transfers and Servicing of Financial Assets and Extinguishments of Liabilities, but did not make any decisions. The Board asked the staff to continue to consider a proposal that would define the isolation requirement in paragraphs 9(a) and 27 in a manner consistent with a legal true sale opinion and provide implementation guidance that would describe the characteristics of a true sale for portions of financial assets, for example, loan participations.
FUTURE OPEN MEETINGS
The following is a list of open meetings tentatively scheduled through September. Because schedules may change, please check the FASB calendar before finalizing your plans. Revisions to this list since the last issue of Action Alert are highlighted in bold.
Wednesday, September 1, 2004—FASB Board Meeting
Wednesday, September 1, 2004—FASB Education Session
Wednesday, September 8, 2004—FASB Education Session
Tuesday, September 14, 2004—Liaison Meeting with the Institute of Management Accountants
Wednesday, September 15, 2004—FASB Board Meeting
Wednesday, September 15, 2004—FASB Education Session
Monday, September 20, 2004—Liaison Meeting with the American Gas Association
Tuesday, September 21, 2004—Fair Value Measurement Roundtable Discussion
Wednesday, September 22, 2004—FASB Board Meeting
Wednesday, September 22, 2004—FASB Education Session
Thursday, September 23, 2004—Financial Accounting Standards Advisory Council Meeting
Wednesday, September 29, 2004—FASB Board Meeting
Wednesday, September 29, 2004—Emerging Issues Task Force Meeting
Thursday, September 30, 2004—Emerging Issues Task Force Meeting
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