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Action Alert No. 06-42
October 19, 2006
NOTICE OF MEETINGS
OPEN JOINT IASB AND FASB BOARD MEETINGS
(Board
meetings are available by audio webcast and telephone.)
Monday, October 23, 2006, 9:00 a.m.
- Liabilities
and equity (estimated 90-minute discussion). The staff
will update the IASB about the three accounting approaches that the FASB
is developing for inclusion in the Preliminary Views planned for
issuance in mid-2007.
- Conceptual
framework (estimated 90-minute discussion). The Boards
will discuss:
- Drafts of discussion materials for roundtables on measurement
bases to be held in the first two months of 2007
- Plans and procedures for finalizing the common conceptual
framework
- Project status, plans, and priorities, focusing on the elements
and recognition phase (phase B) of the project.
- Insurance
contracts (estimated 2-hour discussion). The IASB staff
will provide an overview of decisions reached by the IASB in its project
on insurance contracts.
Tuesday, October 24, 2006, 9:00 a.m.
- Memorandum of Understanding (estimated 90-minute discussion).
The Boards will discuss plans for achieving the various project
milestones included in the February 2006 "Memorandum of Understanding
between the FASB and the IASB."
- Business
combinations (estimated 2-hour discussion). The Boards
will continue redeliberations of the June 2005 Exposure Draft,
Business Combinations. The Boards will discuss:
- The measurement attribute for the assets acquired and liabilities
assumed
- The measurement of the noncontrolling interest in a partial or
step acquisition.
- Financial
statement presentation (estimated 2-hour discussion). The
Boards will continue their discussion of the application of the
project's working principles. The Boards will address the short-term and
long-term subcategories in the operating category; presentation of
information about liquidity in the notes to the financial statements;
the definitions of financing liabilities, treasury assets, and
investments (for purposes of determining what should be included in
those categories); application of the measurement working principle; and
the presentation of other comprehensive income items.
- Revenue
recognition (estimated 1-hour discussion). The Boards
will consider a revised approach for undertaking this project and
consider the nature of the initial due process document planned for
issuance in 2007.
OPEN FASB BOARD MEETING
(Board
meetings are available by audio webcast and telephone.)
Wednesday, October 25, 2006, 8:00 a.m.
The Board meeting will begin at 8:00 a.m. instead of 9:00
a.m.
- Agenda
decision: Statement 155 implementation issues (estimated
1-hour discussion). The Board will discuss whether to add a project
to its agenda that will address implementation issues related to FASB
Statement No. 155, Accounting for Certain Hybrid Financial
Instruments. Specifically, the Board will discuss the implications
of Statement 155 on certain beneficial interests in securitized
financial assets (for example, mortgage-backed securities and
collateralized mortgage obligations).
- 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.
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.
October 11, 2006 Board Meeting
Accounting
for depreciable assets classified as held for sale when an equity method
investment is obtained. The Board discussed whether to issue for
public comment a proposed FSP on accounting for depreciable assets
classified as held-for-sale when an equity method investment is
obtained.
The proposed FSP would provide guidance that an entity should not
continue to depreciate held-for-sale long-lived assets when the entity
plans to account for its direct or indirect interest in the long-lived
assets under the equity method of accounting once the assets are sold.
The Board directed the staff to proceed to a draft of a proposed FSP
for vote by written ballot.
Participating
securities. The Board discussed whether to issue a proposed FSP to
address whether instruments granted in share-based-payment transactions
are participating securities prior to vesting and, therefore, need to be
included in basic earnings per share (EPS) using the two-class method
described in paragraphs 60 and 61 of FASB Statement No. 128, Earnings
per Share. The Board decided that unvested share-based payment awards
that provide a noncontingent transfer of value through rights to dividends
or dividend equivalents constitute a participation right and therefore
should be included in the computation of basic EPS pursuant to the
two-class method.
The Board also decided that:
- The guidance in the FSP should be applied as follows:
- The effective date should be the first reporting period beginning
after the date the FSP is posted to the FASB website.
- All prior-period EPS data presented should be adjusted
retrospectively (including interim financial statements, summaries of
earnings, and selected financial data) to conform with the provisions
of the FSP.
- The proposed FSP should be exposed for a 60-day comment period.
The Board directed the staff to proceed to a draft of a proposed FSP
for vote by written ballot.
FUTURE OPEN MEETINGS
The following is a list of open meetings tentatively scheduled through
November. 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, November 1, 2006—FASB Board Meeting
Wednesday, November
1, 2006—FASB Education Session
Tuesday, November 7, 2006—Liaison
Meeting with National Investors Relations Institute
Wednesday, November
8, 2006—FASB Board Meeting
Wednesday, November 8, 2006—FASB Education
Session
Wednesday, November 15, 2006—FASB Board Meeting
Wednesday,
November 15, 2006—FASB Education Session
Thursday, November 16,
2006—Emerging Issues Task Force Meeting
Tuesday, November 21, 2006—FASB
Board Meeting
Tuesday, November 21, 2006—FASB Education
Session
Wednesday, November 29, 2006—FASB Board Meeting
Wednesday,
November 29, 2006—FASB Education Session
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