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Action Alert No. 08-32
August 7, 2008
NOTICE OF MEETINGS
OPEN BOARD MEETING
(Board
meetings are available by audio webcast and telephone.)
No Board meetings are planned for the weeks of August 11 and August
18, 2008. The next scheduled Board meeting is Wednesday, August 27,
2008.
OPEN EDUCATION SESSION
Wednesday, August 13, 2008, 9:00 a.m.
The Board will hold an educational, non-decision-making session to
discuss topics that are anticipated to be discussed at a future 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, Interpretation, FSP, or
Statement 133 Implementation Issue.
July 30, 2008 Board Meeting
Reconsideration
of Interpretation 46(R) and Statement
140 implementation: transfers of financial assets. The Board
discussed the transition and effective date for the proposed amendments to
FASB Statement No. 140, Accounting for Transfers and Servicing of
Financial Assets and Extinguishments of Liabilities, and FASB
Interpretation No. 46 (revised December 2003), Consolidation of
Variable Interest Entities. The Board unanimously decided to change
its tentative decisions reached at the June 11, 2008 Board meeting
regarding transition and effective date to a single effective date for
fiscal years beginning after November 15, 2009. However, the Board also
decided to separately issue an FSP that would require additional
disclosures as soon as possible (see below).
The Board clarified that the initial consolidation of a variable
interest entity as a result of the initial application of the proposed
amendments to Interpretation 46(R) would require an enterprise to
initially measure all assets and liabilities at fair value, with any
difference being recorded as a cumulative-effect adjustment to retained
earnings that would be recorded as of the beginning of the first fiscal
year in which the proposed amendments are initially applied.
The Board decided that many of the disclosures approved for the
proposed amendments to Statement 140 and Interpretation 46(R) at the June
4, 2008 Board meeting will be included in a separate FSP. In addition, the
Board decided that the proposed FSP will require a nontransferor
enterprise that holds a significant variable interest in a qualifying
special-purpose entity to make certain disclosures required by the
proposed amendments to the Interpretation 46(R) disclosures. The Board
decided that the proposed FSP will be effective as soon as possible, but
no later than the first interim reporting period in 2009. The Board also
decided that the proposed FSP will only be applicable to public companies
and that the exposure period for the proposed FSP will be 30 days. The
purpose of a disclosure-only FSP is to meet financial statement users
needs for greater transparency for off-balance-sheet transactions as well
as to provide preparers and others with adequate time to consider and
implement the other proposed amendments to Statement 140 and
Interpretation 46(R).
The Board directed the staff to proceed to a draft of a proposed FSP
for vote by written ballot.
EITF AGENDA DECISIONS
Subsequent to the EITF
Agenda Committee meeting on July 28, 2008, the FASB Chairman
announced the following decisions on the proposed new issues:
- Consideration of the Effect of Statement 160 on Accounting for
Freestanding Derivative Financial Instruments Indexed to, and
Potentially Settled in, the Stock of a Consolidated Subsidiary—This
issue was added to the EITF agenda.
- Accounting for Purchases and Sales of Partial Interests in a
Subsidiary That Is in Substance Real Estate—This issue was not added to
the EITF agenda.
- Consideration of the Effect of Statements 141(R) and 160 on
Accounting for Equity Method Investments—This issue was added to the
EITF agenda.
FASB DOCUMENTS AVAILABLE
The following documents were issued and are available on the FASB
website:
FSP FAS
117-1, Endowments of Not-for-Profit Organizations: Net Asset
Classification of Funds Subject to an Enacted Version of the Uniform
Prudent Management of Institutional Funds Act, and Enhanced Disclosures
for All Endowment Funds (August 6, 2008).
Revised FASB
Exposure Draft, Earnings per Share (August 7, 2008).
Comments are requested by December 5, 2008.
FUTURE OPEN MEETINGS
The following is a list of open meetings tentatively scheduled through
September. 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, August 27, 2008—FASB Board Meeting
Wednesday, August 27,
2008—FASB Education Session
Wednesday, September 3, 2008—FASB Board
Meeting
Wednesday, September 3, 2008—FASB Education Session
Monday,
September 8, 2008—Liabilities and Equity Roundtable Meeting
Wednesday,
September 10, 2008—FASB Board Meeting
Wednesday, September 10,
2008—Emerging Issues Task Force Meeting
Monday, September 15,
2008—Liaison Meeting with the AICPA Private Companies Practice Section,
Technical Issues Committee
Wednesday, September 17, 2008—FASB Education
Session
Thursday, September 18, 2008—FASB Board Meeting
Monday,
September 22, 2008—Financial Accounting Standards Advisory Council
Meeting
Tuesday, September 23, 2008—Financial Accounting Standards
Advisory Council Meeting
Wednesday, September 24, 2008—FASB Board
Meeting
Wednesday, September 24, 2008—Contingency Disclosures
Roundtable, p.m.
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