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Action Alert No. 05-28
July 14, 2005
NOTICE OF MEETINGS
OPEN BOARD MEETING
(Board
meetings are available by audio webcast and telephone.)
No Board meetings are planned for the week of July 11, 2005. The
next scheduled Board meeting is Wednesday, July 20, 2005 and topics for
that meeting will be announced in next week’s issue of Action
Alert.
OPEN EDUCATION SESSION
Wednesday, July 20, 2005, 1:00 p.m.
The Board will hold an educational, non-decision-making session to
discuss topics that are anticipated to be discussed at the August 3, 2005
Board meeting. Those topics will be posted to the FASB calendar four
days prior to the education session.
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.
July 6, 2005 Board Meeting
Derivative
disclosures. The Board discussed what instruments would be
included within the scope of the project. The Board decided that at this
time, the scope of the project would be limited to disclosure relating
to:
- All derivatives accounted for under FASB Statement No. 133,
Accounting for Derivative Instruments and Hedging Activities
- All related hedged items, including those that are not part of a
designated and qualifying hedging relationship in accordance with
Statement 133, sometimes referred to as “economic hedges.”
The Board supported considering at a future date, but not within the
project, whether to provide additional disclosures relating to all
financial instruments, regardless of whether they are part of a hedging
relationship. The Board also agreed that further research should be
performed related to the presentation and classification within the
balance sheet and income statement for instruments included in the
project’s scope. The Board directed the staff to continue research in
these areas.
Interpretations
of paragraphs 40(b) and 40(c) of Statement 140. The Board
discussed a proposed FSP to clarify that paragraphs 40(b) and 40(c) of
FASB Statement No. 140, Accounting for Transfers and Servicing of
Financial Assets and Extinguishments of Liabilities, are not intended
to require periodic reconsideration of whether the notional amount of
derivatives held or issued by a qualifying special-purpose entity (SPE)
exceed the amount of beneficial interests issued to third parties. The
Board agreed that paragraphs 40(b) and 40(c) were intended to be applied
at the date a qualifying SPE issues beneficial interests. A transferor is
not required to reconsider compliance with those paragraphs unless it
takes actions different from those contemplated at the issuance date that
would cause the notional amount of derivatives to exceed the amount of
beneficial interests held by third parties.
The Board directed the staff to draft the proposed FSP for vote by
written ballot. If the proposed FSP is approved, it will be posted to the
FASB website as soon as possible for a 30-day comment period.
FASB DOCUMENTS AVAILABLE
The following documents are available on the FASB website:
Proposed
Interpretation, Accounting for Uncertain Tax Positions, was
issued on July 14, 2005. Comments are expected by September 12, 2005.
Proposed
FSP FAS 13-a, “Accounting for a Change or Projected Change in the
Timing of Cash Flows Relating to Income Taxes Generated by a Leveraged
Lease Transaction,” was issued on July 14, 2005. Comments are expected by
September 12, 2005.
Final
FSP APB 18-1, “Accounting by an Investor for Its Proportionate
Share of Accumulated Other Comprehensive Income of an Investee Accounted
for under the Equity Method in Accordance with APB Opinion No. 18 upon a
Loss of Significant Influence,” was issued on July 12, 2005.
Final
FSP SOP 78-9-1, "Interaction of AICPA Statement of Position 78-9
and EITF No. 04-5," was issued on July 14, 2005.
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.
Monday, July 25, 2005—Liaison Meeting with the Edison Electric
Institute
Wednesday, July 27, 2005—FASB Board Meeting
Wednesday,
July 27, 2005—FASB Education Session
Wednesday, August 3, 2005—FASB
Board Meeting
Wednesday, August 3, 2005—FASB Education
Session
Friday, August 5, 2005—Liaison Meeting with Financial Managers
Society
Wednesday, August 10, 2005—No FASB Board Meeting
Wednesday,
August 10, 2005—FASB Education Session
Wednesday, August 17, 2005—FASB
Board Meeting
Wednesday, August 17, 2005—FASB Education
Session
Wednesday, August 24, 2005—FASB Board Meeting
Wednesday,
August 24, 2005—FASB Education Session
Wednesday, August 31, 2005—FASB
Board Meeting
Wednesday, August 31, 2005—FASB Education Session
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