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Action Alert No. 05-37
September 15, 2005
NOTICE OF MEETINGS
OPEN BOARD MEETING
(Board
meetings are available by audio webcast and telephone.)
Wednesday, September 21, 2005, 8:00 a.m.
The Board meeting will begin at 8:00 a.m. instead of 9:00
a.m.
- Rental
costs. The Board will discuss comments received on proposed FSP
FAS 13-b, "Accounting for Rental Costs Incurred during a Construction
Period." (Estimated 30-minute discussion.)
- Nontraditional
loan products. The Board will discuss whether to add a project
to its agenda to provide disclosure guidance for entities that
originate, hold, guarantee, or service nontraditional loan products (for
example, option adjustable rate mortgages). The Board will discuss
whether the guidance should be in the form of an FSP. (Estimated
30-minute discussion.)
- Alternative
transition option related to accounting for the tax effects of
share-based payment awards. The Board will discuss whether to
add a project to its agenda to provide guidance on a practical
transition option related to accounting for the tax effects of
share-based payment awards upon adoption of FASB Statement No. 123
(revised December 2004), Share-Based Payment. The Board will
discuss whether the guidance should be in the form of an FSP.
(Estimated 30-minute discussion.)
- Short-term
convergence: earnings per share. The Board will discuss the
effective date and the comment period for the upcoming Exposure Draft.
(Estimated 15-minute discussion.)
- Conceptual
framework. The Board will continue its discussion of issues
relating to the qualitative characteristics of financial information.
The Board also will discuss plans for addressing matters relating to the
concept of the reporting entity. In addition, the Board will consider
whether to address matters relating to providing prospective information
as part of the objectives of financial reporting being considered in
Phase A or as part of a later phase of this project. Finally, the Board
will decide whether to issue an Invitation to Comment prepared by the
staff relating to assets and liabilities with uncertainties. Comments
would be used in the next phase of the project, which addresses the
elements of financial statements and their recognition and measurement.
(Estimated 2-hour discussion.)
- Revenue
recognition. The Board will consider certain issues relating to
the initial identification and measurement of performance obligations in
the context of an approach that would measure performance obligations
based on an allocation of the customer consideration amount.
(Estimated 2-hour 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.
OPEN EDUCATION SESSION
No education sessions are planned for the week of September 19,
2005.
OPEN MEETING WITH THE AICPA PCPS TECHNICAL ISSUES COMMITTEE
Monday, September 19, 2005, 3:00 p.m.
The Board will meet with representatives of the AICPA Private Companies
Practice Section Technical Issues Committee to discuss matters of mutual
interest.
OPEN MEETING OF THE FINANCIAL ACCOUNTING STANDARDS ADVISORY
COUNCIL
(This
meeting is available by audio webcast and telephone.)
Thursday, September 22, 2005, 9:00 a.m.
The Advisory Council will meet to discuss:
- The preliminary results of the FASAC survey
- An FASB agenda proposal on accounting for postretirement benefits
- The Board’s project on the conceptual framework
- The Board’s project on derivatives disclosures
- The Board’s project on fair value measurements.
The Advisory Council will hear reports from the chairman of the FASB on
other Board activities and the deputy chief accountant of the SEC on
current accounting-related developments. The Advisory Council also will
hear a report from the chief auditor of the Public Company Accounting
Oversight Board.
Closed to Public Observation
The FASAC Steering Committee will hold a closed session with the Board
to discuss administrative and strategic matters. The closed session, which
will be the last item on the agenda, is expected to begin at approximately
2:15 p.m.
OPEN MEETING WITH THE INSTITUTE OF MANAGEMENT ACCOUNTANTS
Friday, September 23, 2005, 9:00 a.m.
The Board will meet with representatives of the Financial Reporting
Committee of the Institute of Management Accountants 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.
September 7, 2005 Board Meeting
Variable
interest entities. The Board decided that a proposed FSP that
addresses determining the variability to be considered when applying FASB
Interpretation No. 46 (revised December 2003), Consolidation of
Variable Interest Entities, should be issued for public comment. The
proposed FSP will recognize that there currently is diversity in practice
with respect to determining the variability to consider when applying
Interpretation 46(R). The proposed FSP outlines, in principle, a
systematic process for analyzing the design of the variable interest
entity (VIE) or potential VIE to determine the purpose of the entity and
the risks and variability the entity was designed to create and pass along
to its interest holders. Examples will be included to illustrate how that
process would be applied to specific transactions.
The Board also decided that the guidance in the final FSP would be
effective prospectively from the date the FSP is posted to the FASB
website for new initial determinations as to whether an entity is a VIE
(including newly created entities). In addition, the guidance would be
effective for all entities previously analyzed under Interpretation 46(R)
for which a reconsideration event as to whether an entity is a VIE occurs
pursuant to paragraph 7 of Interpretation 46(R) after the effective date.
Early application also would be permitted for periods for which financial
statements have not yet been issued. Retroactive application to the date
of the initial application of Interpretation 46(R) would be permitted but
not required. The amount of time that will be allowed for an enterprise to
retroactively apply the guidance in the FSP, if that transition approach
is elected, was not determined at the meeting, but will be included in the
proposed FSP.
The Board instructed the staff to proceed to a draft of a proposed FSP
for vote by written ballot.
Other-than-temporary
impairment. The Board discussed whether to provide transition
guidance in the final FSP. The Board raised the concern that constituents
may interpret the final FSP as eliminating the ability to place securities
on nonaccrual once the FSP becomes effective. Some Board members further
asserted that the perceived elimination of the nonaccrual approach would
not be consistent with other existing GAAP and that not accreting income
may be warranted under certain circumstances. The Board directed the staff
to research the issue further for discussion before deciding on the
issue.
FUTURE OPEN MEETINGS
The following is a list of open meetings tentatively scheduled through
October. 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 28, 2005—FASB Board Meeting
Wednesday,
September 28, 2005—FASB Education Session
Thursday, September 29,
2005—User Advisory Council Meeting, New York City
Wednesday, October 5,
2005—FASB Board Meeting
Wednesday, October 5, 2005—FASB Education
Session
Monday, October 10, 2005—Uncertain Tax Positions Roundtable
Meeting
Wednesday, October 12, 2005—FASB Board Meeting
Wednesday,
October 12, 2005—FASB Education Session
Friday, October 14,
2005—Liaison Meeting with the National Investor Relations
Institute
Tuesday, October 18, 2005—FASB Education
Session
Wednesday, October 19, 2005—FASB Board Meeting
Monday,
October 24, 2005—Joint IASB/FASB Meeting
Tuesday, October 25,
2005—Joint IASB/FASB Meeting
Wednesday, October 26, 2005—FASB Insurance
Forum
Thursday, October 27, 2005—Business Combinations Roundtable
Meetings
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