Action Alert No. 06-48
November 30, 2006

NOTICE OF MEETINGS

OPEN BOARD MEETING
(Board meetings are available by audio webcast and telephone.)

Wednesday, December 6, 2006, 2:15 p.m.

The Board meeting will follow the open education session and begin at 2:15 p.m.

  1. Insurance risk transfer (estimated 1-hour discussion). The Board will review and discuss the comment letters received on the FASB Invitation to Comment, Bifurcation of Insurance and Reinsurance Contracts for Financial Reporting. The Board also will discuss what further steps should be undertaken in the project.

  2. Financial guarantee insurance (estimated 15-minute discussion). The Board will discuss with regard to financial guarantee insurance contracts, what interest rate to use and whether that interest rate should be locked-in at inception or updated in discounting the future installment premiums (the asset and the liability), the preclaim liabilities, and the claim liabilities.

  3. Offsetting receivables or liabilities recognized upon payment or receipt of cash collateral in master netting arrangements (estimated 15-minute discussion). The Board will address its decision reached at the November 29, 2006 Board meeting to issue a proposed FSP on offsetting receivables or liabilities recognized upon payment or receipt of cash collateral in master netting arrangements. Specifically, the Board will discuss whether the proposed FSP should clarify what is considered a conditional contract.

  4. 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

Wednesday, December 6, 2006, 9:00 a.m.

The education session will precede the open Board meeting.

The Board will hold an educational, non-decision-making session to discuss topics that are anticipated to be discussed at the December 13, 2006 Board meeting. Those topics will be posted to the FASB calendar four days prior to the education session.

OPEN MEETING OF THE FINANCIAL ACCOUNTING STANDARDS ADVISORY COUNCIL
(This meeting is available by audio webcast and telephone, except the portion noted below.)

Thursday, December 7, 2006, 9:00 a.m.

The Advisory Council will meet to discuss the following topics:

  1. International issues

  2. Accounting for insurance contracts

  3. Liabilities and equity

  4. Business combinations

  5. The conceptual framework.*

The Advisory Council will hear reports from the chairman of the FASB on other Board activities and the chief accountant of the Securities and Exchange Commission (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. In addition, two Board members from the International Accounting Standards Board and the chairman of the IASB's Standards Advisory Council will attend and report on international issues.

*Audio webcast and telephone not available from 1:00 p.m. to approximately 2:15 p.m.

The Advisory Council will hold break-out group discussions on the conceptual framework project immediately following the lunch break until approximately 2:15 p.m. The break-out group discussions will not be available via webcast or telephone. The Advisory Council will reconvene at approximately 2:15 p.m. for a group discussion on the conceptual framework. That session will be available via webcast and telephone.

OPEN MEETING OF THE SMALL BUSINESS ADVISORY COMMITTEE
(This meeting is available by audio webcast and telephone.)

Friday, December 8, 2006, 9:00 a.m.

The Board and the Small Business Advisory Committee will meet to discuss:

  1. The Board's project on the conceptual framework

  2. The Board's project on financial statement presentation

  3. Materiality considerations

  4. The Board's project on liabilities and equity

  5. The Board's project on business combinations.

The chairman of the FASB will report on other Board activities. The Advisory Committee also will hear reports from representatives of the Office of the Chief Accountant of the SEC and the Office of the Chief Auditor of the Public Company Accounting Oversight Board.

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, Interpretation, or FSP.

November 21, 2006 Board Meeting

Statement 133 Implementation Issue—hedging foreign exchange risk for a forecasted foreign-currency-denominated debt issuance. The Board decided to proceed with the exposure of a proposed Statement 133 Implementation Issue, "Hedging Functional-Currency-Equivalent Proceeds to Be Received from a Forecasted Foreign-Currency-Denominated Debt Issuance." The proposed Implementation Issue will state that the functional currency variability in proceeds to be received from the forecasted issuance of debt denominated in a currency other than the reporting entity's functional currency is not eligible to be hedged in a cash flow hedge of foreign currency risk because the forecasted transaction does not meet the criterion in paragraph 29(c) of FASB Statement No. 133, Accounting for Derivative Instruments and Hedging Activities, that the forecasted transaction (that is, the receipt of proceeds) presents an exposure to variations in cash flows for the hedged risk that could affect reported earnings. The Board directed the staff to proceed to a draft of a proposed Implementation Issue for vote by written ballot.

FUTURE OPEN MEETINGS

The following is a list of open meetings tentatively scheduled through January. 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, December 13, 2006—FASB Board Meeting
Wednesday, December 13, 2006—FASB Education Session
Tuesday, December 19, 2006—FASB Board Meeting
Wednesday, December 20, 2006—FASB Board Meeting
Wednesday, December 20, 2006—FASB Education Session
Wednesday, December 27, 2006—No FASB Board Meeting or Education Session scheduled
Wednesday, January 3, 2007—No FASB Board Meeting scheduled
Wednesday, January 3, 2007—FASB Education Session
Tuesday, January 9, 2007—Liaison Meeting with the National Association of College and University Business Officers
Wednesday, January 10, 2007—FASB Board Meeting
Wednesday, January 10, 2007—FASB Education Session
Wednesday, January 17, 2007—FASB Board Meeting
Wednesday, January 17, 2007—FASB Education Session
Wednesday, January 24, 2007—FASB Board Meeting
Wednesday, January 24, 2007—FASB Education Session
Wednesday, January 31, 2007—FASB Board Meeting
Wednesday, January 31, 2007—FASB Education Session