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Action Alert No. 04-25
June 24, 2004
NOTICE OF MEETINGS
OPEN BOARD MEETING
(Board
meetings are available by audio webcast and telephone.)
Wednesday, June 30, 2004, 9:00 a.m.
- Business
combinations: purchase method procedures. The Board will listen
to a staff report on the conclusions reached by the IASB at their June
21, 2004 meeting, and the Board will discuss next steps for any
remaining issues related to the drafting of the Exposure Draft on
business combinations. The Board also will discuss certain issues that
have been identified by resource group members and staff in drafting the
Exposure Draft on noncontrolling interests. (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 July 1, 2004—No Board meetings are
scheduled for the week of July 5. The next Action Alert will be
issued on July 8 and will announce topics for the Friday, July 16 Board
meeting.]
OPEN EDUCATION SESSION
[Revised July 1, 2004]
No
education sessions will be held during the weeks of June 28 and July 5,
2004. The next scheduled education session is July 14. The topics for that
education session will be posted to the FASB calendar four
days prior to the session.
OPEN ROUNDTABLE DISCUSSION WITH RESPONDENTS TO THE FASB EXPOSURE
DRAFT, SHARE-BASED PAYMENT
(This
meeting is available by audio webcast and telephone.)
Tuesday, June 29, 2004, 9:00 a.m. – 12:00 p.m. and 1:00 p.m. – 4:00
p.m.
The Board will hold, at the FASB offices, its second public roundtable
discussion to listen to the views of and obtain information from
respondents to the March 31, 2004 FASB Exposure Draft, Share-Based
Payment.
A wide variety of constituents—including investors, preparers of
financial statements, auditors, valuation experts, and others—will be
represented at the roundtable. For a list of the organizations
participating in the roundtable, which is open to the public, access the
Equity-Based
Compensation Project Summary at the FASB website.
OPEN MEETING OF THE EMERGING ISSUES TASK FORCE
(This meeting is
available by audio webcast and telephone.)
Wednesday, June 30, 2004, 1:00 p.m. – 5:15 p.m.
Thursday, July 1,
2004, 8:00 a.m. – 3:30 p.m.
The task force plans to discuss all of the following issues in the
order shown (the task force plans to discuss the first three issues on
Wednesday and to begin discussions on Thursday with Issue 03-13):
- Issue No. 02-14, "Whether an Investor Should Apply the Equity Method
of Accounting to Investments Other Than Common Stock If the Investor Has
the Ability to Exercise Significant Influence over the Operating and
Financial Policies of the Investee"
- Issue No. 03-9, "Determination of the Useful Life of Renewable
Intangible Assets under FASB Statement No. 142, Goodwill and Other
Intangible Assets"
- Issue No. 04-1, "Accounting for Preexisting Relationships between
the Parties to a Business Combination"
- Issue No. 03-13, "Applying the Conditions in Paragraph 42 of FASB
Statement No. 144, Accounting for the Impairment or Disposal of
Long-Lived Assets, in Determining Whether to Report Discontinued
Operations"
- Issue No. 04-8, "Accounting Issues Related to Certain Features of
Contingently Convertible Debt and the Effect on Diluted Earnings per
Share"
- Issue No. 04-7, "Determining Whether an Interest Is a Variable
Interest in a Variable Interest Entity"
- Issue No. 04-6, "Accounting for Post-Production Stripping Costs in
the Mining Industry"
- Issue No. 04-5, "Investor's Accounting for an Investment in a
Limited Partnership When the Investor Is the Sole General Partner and
the Limited Partners Have Certain Rights."
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.
June 16, 2004 Board Meeting
Short-term
convergence: liability classification. The Board decided not to
issue an Exposure Draft of a proposed Statement to replace ARB 43, Chapter
3A, “Working Capital—Current Assets and Current Liabilities,” as part of
its short-term convergence project. The Board concluded that the perceived
costs of certain proposed changes might outweigh the perceived benefits
for some constituents (in particular, smaller or nonpublic entities and
the users of the financial statements of those entities). However, in
removing this project from its agenda, the Board directed the staff to
consider whether the changes that would have been proposed in this
Exposure Draft should be considered in its project on financial
performance reporting by business enterprises.
Beneficial
interests. The Board decided that all retained interests,
including servicing rights, from transfers of financial assets accounted
for as sales should be initially measured at fair value rather than based
on an allocation of the previous carrying amount between the assets sold
and the retained interests based on their relative fair values.
The Board clarified the intent of a decision made at its May 19 meeting
relating to the beneficial interests in securitized financial assets
project. The Board’s intent was that beneficial interests in transfers
of financial assets accounted for as sales should be allowed the fair
value accounting option and accounted for at the holder’s election (1) at
fair value with changes recognized in earnings or (2) through the
application of existing accounting literature with additional guidance to
be provided as to how embedded derivatives would be identified. Existing
accounting literature, in the context of the Board’s decision at the May
19 Board meeting, does not include Statement 133 Implementation Issue No.
D1, “Application of Statement 133 to Beneficial Interests in Securitized
Financial Assets,” which the Board has decided will be superseded by this
decision.
AcSEC CLEARANCE
June 15, 2004 Board Meeting
AcSEC document. The Board met with representatives of the
AICPA's Accounting Standards Executive Committee (AcSEC) and discussed
clearance of a draft of the final AICPA Statement of Position (SOP),
Clarification of the Scope of the Audit and Accounting Guide Audits of
Investment Companies and Accounting by Parent Companies and Equity Method
Investors for Investments in Investment Companies. The Board did not
object to issuance of the final SOP subject to certain changes being
made.
FASB DOCUMENTS AVAILABLE
In June, the Board issued the following exposure documents:
FASB Exposure Draft of a proposed Interpretation, Accounting for Conditional
Asset Retirement Obligations (June 17, 2004). Comments are
requested by August 1, 2004.
FASB Exposure Draft of a proposed Statement, Fair Value
Measurements (June 23, 2004). Comments are requested by September
7, 2004.
Those Exposure Drafts can be downloaded from the FASB website. If you
don’t have access to the Internet, you can receive a printed copy by
calling the FASB Order Department at 1-800-748-0659.
FUTURE OPEN MEETINGS
The following is a list of open meetings tentatively scheduled through
August. 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, July 14, 2004—FASB Education Session
Friday, July 16,
2004—FASB Board Meeting
Wednesday, July 21, 2004—FASB Board
Meeting
Wednesday, July 21, 2004—FASB Education Session
Monday, July
26, 2004—Liaison Meeting with the Edison Electric Institute
Tuesday,
July 27, 2004—FASB Board Meeting
Tuesday, July 27, 2004—FASB Education
Session
Wednesday, August 4, 2004—FASB Board Meeting
Wednesday,
August 4, 2004—FASB Education Session
Wednesday, August 11, 2004—FASB
Board Meeting
Wednesday, August 11, 2004—FASB Education
Session
Wednesday, August 18, 2004—FASB Board Meeting
Wednesday,
August 18, 2004—FASB Education Session
Wednesday, August 25, 2004—FASB
Board Meeting
Wednesday, August 25, 2004—FASB Education
Session
Friday, August 27, 2004—Liaison Meeting with the Financial
Managers Society
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